• 
• 

Published on November 16, 2007

The scheme will begin in December and continue until 2011. It targets to boost the growth of the manufacturing and service sectors by 10 per cent and 15 per cent per annum, respectively. Due to more financial pressure and tougher competition from free-trade pacts, it expects growth of 5 per cent for the trading sector.

Jhitraporn said Osmep must focus on the two sectors to achieve its commitment that SMEs' gross domestic product should make up 42 per cent of the country's GDP, worth Bt4.617 trillion, in the next four years.

According to an Osmep report, GDP in the SME sector will be worth around Bt3.16 trillion this year, accounting for 39.5 per cent of total GDP.

Osmep plans to propose that the Cabinet approve a budget of Bt3.2 billion for fiscal year 2009.

"Most of the budget will go towards productivity and innovation projects in collaboration with other organisations, particularly the Federation of Thai Industries," Jhitraporn said.

FTI vice chairman Payungsak Chartsutipol said the outlook for SMEs next year was cloudy due to many negative factors such as the global economic slowdown, fluctuation of the baht, high oil prices and inflation.

Therefore, the new government needs to stimulate investment and domestic consumption to create demand for SMEs, he said.

He said the results of the first SME plan drafted by the FTI and the Industry Ministry were satisfactory because it supported 4,500 operators.

Chalida Ekvitthayavechnukul

 The Nation