BT1.2-bn plan to rescue SMEs seeks Cabinet nod

The ministry's Business Devel-opment Department will manage the budget, using the funds to create business opportunities for new enterprises as well as jobs for the unemployed.

Deputy Commerce Minister Alongkorn Pollabutr, who is responsible for the department, said last week the ministry would ask the Cabinet to approve the budget tomorrow so that the project can be launched within the next few months.

"The global economic crisis has hit many business sectors, including SMEs, and will lead to 1 million to 2 million workers being unemployed this year. So the government wants to create a project to promote new business growth, which will lead to more employment opportunities," he said.

The ministry will focus on three main areas: Firstly, the depart-|ment will establish training programmes for setting up new businesses, with an emphasis on franchises, which are considered easier to operate.

Secondly, the department will ask the Government Saving Bank and the Small and Medium Enterprise Development Bank to approve soft loans for entrepreneurs looking to start businesses. Thirdly, to reduce costs for new entrepreneurs, the government will ask franchisors of businesses - for example, noodle kiosks - to discount their royalty fees by 50 per cent in the initial stage.

The project is expected to create about 100,000 new businesses, providing jobs for at least 100,000 unemployed labourers, said Alongkorn. The business promotion project will also boost supply chains for the country's industries, which have been hit with lower orders this year.

In addition, a portion of the budget will be used to set up a "trade tourism" project, which will organize "walking street" markets to showcase local traders nationwide. Initially, the government plans to establish up to 1,000 walking street markets.

The markets will not only provide a venue for local traders, but also boost domestic spending, said Alongkorn.

To ensure that local traders have enough capital to participate in the markets, the government is considering cooperating with SME Bank and other lenders to provide traders with soft loans of Bt10,000.