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Published on April 7, 2008

Despite the economy growing 4.8 per cent in 2007, many small and medium-sized enterprises (SMEs), which make up more than 99 per cent of the country's estimated 1.87 million businesses, suffered.

Political uncertainty and persistently high oil prices dampened consumer sentiment, causing many people to save their disposable money for a rainy day.

Pongsak Chewcharat, president of the SME Development Bank, said last week that his state-owned bank, facing rising non-performing loans during the year, realised that it had to develop more innovative services to help its more than 20,000 borrowers.

"In addition to normal loan-restructuring processes, we knew we had to develop new services that will help our customers drive their businesses," he said.

Even though they are small individually, the well-being of SMEs as a sector is critical for the overall development of the economy.

"They generate more than 80 per cent of the country's non-farm employment, 42 per cent of our gross domestic product and 38 per cent of manufactured exports," he said.

After months of planning with the Japanese government and its SME-related entities, the SME Bank held a business-matching event for 20 Japanese SMEs and their local counterparts on March 19 at its  SME Tower head office located on Phaholyothin Road.

"We worked with the Japan Finance Corporation for Small and Medium Enterprises and the Japan External Trade Organisation to organise this most successful event," he said.

Japan has a long history of proactively supporting its SMEs by conducting similar events. which gave them the opportunity to meet many pre-screened foreign SMEs at a single venue. "This has been the most cost-effective and time-saving way for Japanese SMEs to develop overseas business," he said.

The SME Bank decided to develop a business-matching event for local SMEs based on Japan's successful experiences.

 "We selected 16 of our best SMEs to attend the event and the feedback has been excellent," he said.

With Thailand's major push to become a premier food producer and "kitchen of the world", the SME Bank featured companies in the processed food business, including seafood, packaged vegetables and packaged fruits and juices.

For the recent Bangkok event, the SME Bank invited Bua Sri-Noni Juice, Jae Da Chinese Sausages, Raimaijon, Kejmukda, Sarujai Food Industry and Siam Future Farm.

 "Each company has achieved international standards through GMP and HACCP certifications, "Pongsak said.

Prior to the event, all local SME participants attended training sessions conducted by Kanchit Siripakdi, a former embassy official in Japan and Australia, who advised them on how best to present themselves and their companies to the Japanese guests at the event.

They were told that product presentation and superior product knowledge were key selling factors to Japanese buyers.

The SME owners were told of the importance of wearing shirts and ties, or business attire, at such an important meeting.

 "We told them that first impressions were very important to Japanese buyers," Kanchit said.

On behalf of the SME Bank, Kanchit has advised more than 200 local SMEs on how to succeed in the very lucrative but demanding Japanese market.

Besides buyers, the Japanese SME contingent included many companies selling food processing products, machinery and services.

Korat Saisan and Sanyo Oilless Industry (Asia) provide dye components for the food industry.

Saraya International (Thailand) and Saraya Manufacturing offer food sanitation chemical products while Thai Fujimori deals in packaging machinery and materials.

Japanese auto-parts suppliers were also present. They were represented by Thai Shizuoka Accessory and Thaisho Seiki.

 The event's success has prompted the SME Bank to consider conducting these business-matching events overseas.

"We would like to take some of our SME clients to various countries in the region so that they can more easily access potential customers," Pongsak said.

KI Woo

The Nation