The Industry Ministry is speeding up its Regional Integrated SME Promotion (Rismep) project, a collaboration with the Japan International Cooperation Agency (JICA), as financial support from Japanese counterparts will end in 2019.
The Industrial Promotion Department hosts the Rismep project, which was formed with the JICA in 2009. The project supports local small and medium-sized enterprises (SMEs) to increase efficiency, product development and access to technology.
The Rismep project involves many provinces in Thailand, including Chiang Mai, Nakhon Ratchasima, Surat Thani, Chon Buri, Songkhla and Suphan Buri.
Kobchai Sungsitthisawad, director-general of the Industrial Promotion Department, said the project will span 11 provinces next year and aims to expand to every province by 2023.
"The Rismep project supports more than 2,000 SMEs in many sectors, such as agricultural processing, automotive and electronics," he said. "The department has seen positive outcomes in terms of higher profits after the project provided some guidelines on how to do business."
Mr Kobchai said local SMEs are key engines for mobilising the country's economy, as they represent more than 80% of companies in Thailand.
The department also aims to provide SMEs access to soft loans and more business opportunities.
Mr Kobchai said the department plans to talk with other related units of the ministry to connect the Rismep project with the government's soft-loan budget for fiscal 2019, which starts next month.
The JICA will discontinue support for the project because Thai SMEs have seen significant improvements since the project's launch.
"We have a SME development fund under the Pracha Rat initiative, worth 20 billion baht, and the department aims to utilise this fund for the Rismep project," Mr Kobchai said. "Of the total fund, 8 billion baht is allocated to micro SMEs."
Earlier, the fund disbursed soft loans worth 4 billion baht for 4,000-5,000 micro SMEs, of which 10 billion baht went to 1,700-2,000 SMEs for machinery replacement and upgrades.
JICA chief representative Hiroo Tanaka said Thailand and Japan have many collaborations supporting SMEs in both countries.
The JICA expects the Rismep project to raise SMEs' GDP contribution to 50% by 2021, up from 42%.