EXIM Thailand Launches Credit for SMEs Start-up Supporting Thai SMEs R&D and Innovation

Monday 06 July 2015 11:15
Mr. Suthanai Prasertsan, Acting President of Export-Import Bank of Thailand (EXIM Thailand), revealed that, based on EXIM Thailand's existing cooperative framework with various government agencies, EXIM Thailand has witnessed well-placed "exporters incubator" programs which resulted in an emerging pool of entrepreneurs who are ready to export provided that sufficient fund is made available. EXIM Thailand is prepared to fulfill this financial gap by extending credit facilities to novice SMEs interested in starting up export business and having undergone government's exporter training programs or experienced SMEs aspiring to become exporters. Currently, the Bank has launched a new service "SMEs Start-up Credit" to support SME exporters already obtaining purchase orders but lacking working capital, with a credit limit of 2 million baht per exporter. Such credit facility is aimed to provide new exporters with sufficient funds for goods preparation during the pre- and post-shipment period. Moreover, EXIM Thailand has introduced "SMEs R&D and Innovation Credit" with a maximum credit line of 5 million baht per business operator. This facility is designed to promote Thai SMEs' research and development relating to their product and service improvement and to help create their own innovation leading to further business expansion while adding more value to Thai exports.

Of all the 2.7 million SMEs currently in Thailand, about 25,000 are exporters. With new trade and investment opportunities opening up with the advent of the ASEAN Economic Community (AEC) by end-2015, augmented by rapidly burgeoning cross-border trade following an increase in purchasing power of Thailand's neighboring countries, new SME exporters are emerging. The global megatrends like aging society, online commerce, nature and environmental awareness, and healthy lifestyle are also seen as new gateways for SMEs to export their products to meet the demand of different consumer markets. Furthermore, the new generation SMEs are beginning to appreciate the importance of research and development which will lead to innovative product development and help increase their competitive advantage as well as differentiate their products amid the intense competition in the world market.

"The close cooperation between EXIM Thailand and other government agencies throughout the exporters incubation process, from upstream to downstream, has resulted in an emergence of new exporters who are ready to obtain purchase orders, build up production capability, and eventually export their products. In closing exporters' financial gap, our goal is to help Thai SME Exporters to become stronger while facilitating their research and development efforts in the hope of adding more value to international trade and business of Thailand," said Mr. Suthanai.