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Published on January 5, 2008

"The government's policy should continue promoting innovation and brand creation in the SME sector to boost their competitiveness in the market, while our projects - such as SME incubations and a venture capital fund - will support them," she said

Osmep forecasts that the gross domestic product in the SME sector this year will be worth Bt3.4 trillion to Bt3.5 trillion, expanding 4.5-5 per cent from Bt3.26 trillion last year.

Despite negative factors - especially the economic slowdown in the US and the strong baht - it still targets that the total value of exports in the SME sector will grow 8.5-9 per cent this year, compared with 9.04 per cent last year.

Jhitraporn said most operators had shifted their export destinations from the US to China, Australia, the Middle East and Southeast Asia.

The Cabinet approved a budget of Bt1.8 billion to support Osmep's SME promotion plan for 2008.

This consists of four core projects, which aim at boosting collaboration with public agencies, academic institutes and private organisations such as the Federation of Thai Industries.

Of the total budget, it set aside Bt500 million to support 20 operators in its venture capital project to increase their financial liquidity.

In addition, if manufacturers want to retrofit their machinery, Osmep will help those paying 3-per-cent interest in its machinery-fund project.

Jhitraporn said her office would concentrate more than last year on promoting SME trading and service operators because they have the potential to grow robustly in the global market.

Under the One Tambon One Product (Otop) project, Osmep plans to spend Bt400 million to develop and promote local community products this year.

Otop operators generated total revenue of Bt70.96 billion last year. This figure is expected to rise by more than Bt2 billion this year, Jhitraporn said.

Chalida Ekvitthayavechnukul

 The Nation