The Office of Small and Medium Enterprise Promotion (Osmep) has come up with a new loan scheme to help smaller businesses cope with the higher daily minimum wage, with at least 6,300 SMEs eligible.
Under the Industry Ministry, Osmep estimates up to 100 enterprises have closed due to the the government's daily minimum wage hike to 300 baht, while about 1,000 employees were laid off.
With a budget of 193 million baht, Osmep expects the programme will improve the liquidity of SMEs affected by the higher wage.
Each enterprise is limited to 1 million baht with a discount interest rate of 3% when a project is filed with the bank.
Participating commercial banks include Krungthai Bank, the Government Saving Bank, Bangkok Bank, Kasikornbank, Bank of Ayuthaya and Siam Commercial Bank, while smaller banks such as the Islamic Bank of Thailand are considering whether to join the project.
The main target of the project is SMEs in labour-intensive sectors, aimed at helping them to retain employees and prevent them from borrowing money from outside the system.
Meanwhile, the Industrial Promotion Department said 75 SMEs have boosted their production efficiency after participating in the Manufacturing Development to Improve Competitiveness Programme.
Department director-general Sophon Pholprasit said these ventures have increased sales by 3.9 billion baht and boosted investments by 659 million baht.
Waste has been cut by 168 million baht, while 47 new products have been developed.
Established in 2000, the scheme was designed to help SMEs increase their competitiveness and improve productivity amid a volatile global market.
Some of the initiatives include developing new products and services, improving financial management, enhancing research and human resources, and organising supply-chain management.
So far, 684 SMEs have participated in the programme, said Mr Sophon.
He said the scheme helped SMEs prepare for the upcoming Asean Economic Community, offering them opportunities to expand within the 600-million-strong market.
Osmep, meanwhile, has collaborated with Japan's Organization for Small and Medium Enterprises and Regional Innovation to distribute One Tambon One Product goods in that country.
Chaolert Leelaswatanakoon, the business development manager at Lucky Frame Co, said the firm decided to join the scheme to mitigate high production costs and improve productivity to compete against cheaper foreign products.
The scheme provided consultancy on incorporating computer technology after the government's 300-baht daily minimum wage hike affected the company.
Subsequently, Lucky Frame has lowered production costs and enhanced production efficiency.
Aphisarawan Watcharinporn, the president of Lertloy Metal Sheet Co, said the scheme has helped the company to cope with the labour shortage.
The Industrial Promotion Department suggested the company calculate costs and management in order to improve productivity, she said.
The plan produced a positive outcome, as 70-80% of workers raised production efficiency in meeting customer demand.