Group calls on govt to help SMEs

The federation said it expected up to 100 SMEs to go out of business every year if the government failed to offer any assistance

Thailand’s export of lifestyle products is only expected to increase by 2 per cent this year mainly due to the global economic crisis, which diluted the export value of lifestyle products by 50 per cent. The federation predicts the value of total export of lifestyle products to reach about US$3 billion or between Bt90 billion and Bt100 billion this year. Next year's export of lifestyle products is expected to rise by another 3 per cent, though if the government does not step in to help, the export might drop by 3 per cent in 2013.

Supat Sriwannavit, TLPF president, said local producers of lifestyle products have been severely impacted by the minimum-wage scheme introduced by the government, which will be applied throughout the Kingdom from January 1, because this measure has increased their production costs.

The wage hike, in addition to the euro-zone crisis and the recession in the United States, has forced more than 100 SMEs out of a total of 3,000 to shut down.

"Most SME entrepreneurs need to make adjustments by boosting product value and maintaining exports to major markets, including EU and the US. They also need to start looking for new potential markets, such as the Middle East, Hong Kong, and Asean, especially Malaysia, which grew by 15.97 per cent in 2011," Supat said.

The federation is also planning to coordinate with the Export-Import Bank and the Commerce Ministry's Department of Export Promotion in order to integrate both public and private sectors so SMEs have easier access to loans at low interest and relaxed conditions.

Jiraboon Vidhayasingha, secretary-general of TLPF, said the government needed to introduce measures, such as setting up a fund worth Bt2 billion in order to help SMEs that have been hit by negative factors.

Sirichai Lertsirimit, president of the Thai Gifts Premiums & Decorative Association, said local manufacturers of gifts and home decorative products had burdened by a 40-per-cent increase in the cost of labour thanks to the minimum-wage scheme, which has only been introduced in some provinces so far. However, he said, that once the scheme gets implemented across the Kingdom, their costs will rise by 70 per cent.

"All business entrepreneurs need to be cautious about their expenditure and cost-down measure should be introduced for their manufacturing process. They should encourage consumers to buy products made locally, as well as seek new potential markets like Japan, China and other Asean countries. At present, Asean accounts for more than 30 per cent of total export of gifts and home-decorative products, while another 50 per cent is sent to Europe," he said.