Industry Minister Akanat Promphan is pushing ahead with plans to help small and medium-sized enterprises (SMEs) ease their financial burdens and develop their technological know-how to better compete in the market.
The move is part of the Industry Ministry's goal to reform Thailand's manufacturing sector, he said. Officials plan to offer financial aid under the ministry's SME development fund, helping them overcome financial problems.
SMEs will be given loans with low interest rates to increase their competitiveness and solve liquidity problems. Loans of 1.9 billion baht will be allocated.
"This will help SMEs gain better access to financial sources and develop their businesses in a more sustainable way," Mr Akanat said.
Earlier the minister announced plans to set up an "Industrial Reform Fund" worth more than 20 billion baht to help manufacturers, especially SMEs.
The fund will be composed of various funds already established under the ministry, including some that intend to help SMEs.
Many funds are well-intentioned, but their functions may be redundant so they need to be managed under the Industrial Reform Fund to have clearer purposes, according to Mr Akanat.
He also plans to work with the Small and Medium Enterprise Development Bank of Thailand to implement a debt moratorium for SMEs. Principal payments will be suspended for borrowers for three months, he said.
Mr Akanat is also speeding up a plan to establish the I-EA-T Incubation Centre for SMEs in Bangkok to improve and keep SMEs updated on new technologies. The new centre will be operated by the Industrial Estate Authority of Thailand (IEAT).
"The centre should be ready to open by year-end," he said.
IEAT officials plan to build the centre in the compound of the Lat Krabang industrial estate.