Thailand’s small and
medium-sized enterprises (SMEs) are expected to grow by 3.3 percent in 2013, in
accordance with the country’s projected economic growth of 3 percent.
As for 2014, the gross
domestic product (GDP) for Thai SMEs is likely to grow by between 4.3 and 4.7
percent.
The Director-General of the
Office of Small and Medium Enterprises Promotion, Mr. Patima Jeerapaet, said
that there are currently 2.74 million SMEs, accounting for 98.5 percent of all
enterprises in Thailand. They generate employment for 11.78 million people,
representing 80.4 percent of the country’s total employment.
A study shows that from
January to October 2013, exports of Thai SMEs totaled 1.57 trillion baht, a
decline by 9.3 percent, when compared with the same period of 2012. Major
export items include gems and jewelry, plastics and plastic products, and
rubber and rubber products. China, Japan, and the United States are major
trading partners for Thai SMEs.
During the 10-month period,
Thailand saw the registration of almost 60,000 new SMEs. The number accounts
for a rise of 13.5 percent over the same period of the previous year. A total
of 11,070 SMEs suspended their operations during the same period. This number
represents a decline of 2.4 percent.
The deceleration of Thailand’s
SME growth in 2013 is a result of the falling prices of several agricultural
products. In addition, Thai exports have experienced a decline and energy
production costs have increased. The political situation in the country and the
slow economic recovery of major trading partners are also the reasons.
According to the Office of
Small and Medium Enterprises Promotion, the expansion of Thai SMEs in 2014 will
be resulted from both domestic and external factors. For instance, household
consumption is expected to grow by 8 percent, as people will earn more from the
measures of personal income tax reduction and the increase in daily minimum
wage, while household debts are likely to drop and the interest rate still
remains at a low level. The government expenditure will increase by 5 percent.
These factors will contribute to SME growth in 2014.
Efforts will also be made
to provide more opportunities for Thai SME operators to expand their markets in
ASEAN. SMEs are considered integral to the economic development and growth of
the ASEAN Member States, as they largely outnumber large enterprises in both
quantity of establishments and share of the labor force they employ.
They account for more than
96 percent of all enterprises and 50 to 85 percent of domestic employment in
ASEAN. The contribution of SMEs to GDP in this region is between 30 and 53
percent and the contribution of SMEs to exports is between 19 and 31 percent.
(thailand.prd.go.th)