Thailand's SME D Bank is ramping up its efforts to support small and medium enterprises (SMEs) with significant expansions to its loan program. The initiative, backed by Finance Minister Prasoom Boonyachai, aims to work closely with other financial institutions to bolster economic growth by enhancing access to funding for SMEs, which are often deemed high-risk by commercial banks.
Prasoom recently articulated the necessity for the SME D Bank to take proactive measures rather than waiting for stronger enterprises to seek loans. This approach is aimed squarely at supporting the weaker SMEs, particularly those unfamiliar with banking resources and struggling to access funding. By engaging directly with these businesses, the bank hopes to bridge the funding gaps experienced by SMEs across the country.
“The role of the state is to do whatever it takes to provide our SMEs with access to markets globally,” said Prasoom. He emphasized the three main challenges SMEs face: the lack of opportunities for development, the absence of buyers for their products, and limited access to financial resources. He remarked, “SMEs are like newborns; helping them access funds and sustain continuity is imperative for their growth.”
This new initiative will see collaboration between the SME D Bank, the Small Industry Credit Guarantee Corporation (Scgc), and the Export-Import Bank of Thailand (EXIM Bank). Such partnerships are expected to alleviate the financial risks involved when lending to SMEs. By sharing the responsibility, these institutions can improve the stability of financing and enable more businesses to take advantage of growth opportunities.
“We need to work together to prevent missing out on supporting those smaller enterprises needing assistance,” Prasoom continued. He indicated the importance of allowing SMEs to eventually access international markets, widening their potential for growth beyond local confines. This cooperative effort is positioned as mutually beneficial, with strengthened SMEs contributing positively to the national economy.
Prasoom's administration is also focusing on initiatives to roll out low-interest loans, particularly aimed at stimulating new industries and enhancing resilience within the SME sector. He understands the importance of targeted support during specific periods, citing the upcoming low season for tourism which may affect many service-oriented SMEs. “A digital wallet or cash injection can make all the difference,” he stated, reinforcing the need to see cash flow within these businesses.
The bank will also cater to specific industries identified as needing more focused support, smoothing the path for businesses at various developmental stages. The anticipated changes are set to take effect as early as the second or third quarter of this year, with the government expressing its commitment through accessible lending practices.
Overall, these changes form part of the Thai government’s dedicated strategy to empower SMEs, which are integral to the country’s economy, contributing significantly to employment and national revenue.