Current SME Situation and SME promotion in Thailand By the Office of SMEs Promotion 30 March 2011

1. Current SME Situation and SME promotion in Thailand By the Office of SMEs Promotion 30 March 2011

2. Definition of Thai SMEs • Economic Significance of Thai SMEs • OSMEP as Focal Agency on SME Promotion • Vision, Roles & Responsibilities of OSMEP • Plan, Strategies & Tools for SME Promotion • Refocusing of SME Promotion Policy

3. Enterprise Size Manufacturing Wholesales Retails Services SE Employment (Persons) ≤ 50 ≤ 25 ≤ 15 ≤ 50 Fixed Asset (million baht) ≤ 50 ≤ 50 ≤ 30 ≤ 50 ME Employment (Persons) 51 - 200 26 - 50 16 - 30 51 - 200 Fixed Asset (million baht) Over 50 ≤ 200 Over 50 ≤ 100 Over 30 ≤ 60 Over 50 ≤ 200 1. Definition of SMEs in Thailand Sector

4. - Majority of the Economy - Key Job Creators - Contributors of GDP - Contributors of Export Value 2. Economic Significance of Thai SMEs

5. Economic Significance of SMEs 2009 Number of Enterprise Employment(Person) GDP (Million Bt.) Export Value (Million Bt.) 4,653 (0.2%) 2,704,243 (21.8%) 4,156,704 (51.97%) 3,424,579 (65.86%) 2,896,106 (99.8%) 9,701,354 (78.2%) 3,417,860 (42.73%) 1,589,199 (30.56%) 2,900,759 12,405,597 7,998,151 5,199,912 Total 1) GDP in the figure was only the non-agricultural sector, accounting for 88.4% of the overall and 5.3% of which represented other types of enterprises unable to identify their size. 2) GDPof agricultural sector was 1,052.564 mln. bt or 11.6% of overall GDP. 3) Export value of 3.58% was from export transactions unable to identify the exporter size.

6. Structure of Gross Domestic Product 2009 Source: The Office of the National Economic and Social Development Board Complied by: The Office of Small and Medium Enterprises Promotion (OSMEP)

7. Foreign Trade Value of SMEs 2007-2009 Source : Thai Customs Department Compiled : The Office of Small and Medium Enterprises Promotion (OSMEP)

8. 3. OSMEP as Thailand’s Focal Agency on SME Promotion In order to promote the growth of the SMEs, the Office of Small and Medium Enterprises Promotion (OSMEP) was established by the endorsement of the SME Promotion Act 2000 (Publicized in the Royal Gazette on February 17, 2000) as focal point on SME promotion

9. Dr. Trairong Suwankiri The National Board of SME Promotion The Executive Board of OSMEP Mr. Witoon Simachokedee OSMEP Mr. Yuthasak Supasorn

10. 4. Vision & Mission of SME Promotion

11. VISION on SME Promotion “To be leader in policy formulation on SME promotion and to serve as center in coordinating working systems in order to forge overall SME promotion within 2012” Dr. Yuthasak SupasornOSMEP Director-General

12. MISSION • Recommending SME promotion policy and formulating SMEs promotion master plan and action plan for the overall, sectoral and area approachesand recommending the amendment of SME related laws and regulations • Forging, supporting, operating and coordinating the cooperation in the public and private sectors, domestically and internationally, as well as, monitoring and evaluating the operation results to ensure the efficiency • Developing the National Center of SME Database and Early Warning Information which is comprehensive, accurate and up to date and conducting study, analysis, research and situation report for the use of policy formulation on SME promotion and services • Developing SME promotion systems and conducting pilot projects, integration projects and ad hoc projects to jointly promote SME with other relevant agencies • Utilizing SME Promotion Fund which is efficiently managed as a tool of SME promotion

13. Mission (Cont.) • Formulating SME Master and Action Planand SME related laws and regulations • Taking chargeof SME promotional activities that • have yet to be implementedby other offices • Establishing international network and serving as SME advocacy in both local and international arena • Providing support facilities for SME such as financial support, innovation and technology support, mentoring, incubation, etc. • Managing and monitoring special SME promotional projects under the government’s policies i.e. OTOP

14. 5. Plan, Strategies and Tools for SME Promotion

15. 2nd SME Promotion Master Plan (2007-2011) Intellectual Infrastructure Vision: SMEs to Grow with Sustainability & Strength Strategy 1: Create new entrepreneur and develop the capability of existing entrepreneurs Strategy 4: Promote the Capability on Value Creation in Services Strategy 5: Promote SMEs in Regional and Local Areas Strategy 2: Upgrade Manufacturing SMEs Network & Alliance Productivity Strategy 3: Increase the efficiency and reduce impediment in trading sectors Strategy 6 : Create business environment and enabling factors Competitiveness

16. Initiatives on SME Promotion, 2003 - 2010 • -ASEAN SME Partnership Roadmap • SME Flying Geese • SME Capacity Building • SME Consortium -Master Plan on the Promotion of OTOP - -National SME Information Center • SME Development and Incubation in Creative Economy Concept • SME Identity Study Project Capacity Building Fund Italian Service Desk -SME Incubation Center -iSMEDevelopment Center Venture Capital Fund OTOP Project 2003 2004 2005 2006 2007 2008 2009 2010 16

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18. 5. Refocusing of SME Promotion Policy

19. New Growth Strategic for SME Promotion Grassroots Income Generation & Econ. Capability Strengthen up SMEs to Sustainability Promote Economic Linkages • ♦Efficiency • & Productivity • ♦Adding Value in • Products & Services • ♦Capital Access • Opportunity • ♦Enabling Factors • Favorable to • Entrepreneurs’ • Business Conduct • ♦Manufacturing • Development to • International & • National Standards ♦New Marketing Channels ♦Knowledge Build-up ♦Opportunity from FTAs and AEC • ♦Start-ups • & New Enterprises • ♦SMEs’ Capability • & Locality Core • Competency • ♦OTOP Upgrading • to SMEs • ♦Networking • Development • ♦SMEs in • Creative Economy

20. New Growth Strategic for SME Promotion Grassroots Income Generation & Econ. Capability Strengthen up SMEs to Sustainability Promote Economic Linkages • Target Industry • Food and Beverage • Textile • Furniture • & Wood Products • Chemical Products • Hotel • & Related Businesses • Cultural Tourism • Retail – Wholesale • Businesses • Target Industry • Food and Beverage • Textile • Handicraft • Gem & Jewelry • Agricultural • Machinery • Plastics Products • Furniture • Creative • & Design Business • Target Industry • Social Enterprise • Creative • & Design Business • New Media Business • Entertainment • Business • Focusing on Local & Regional SMEs

21. 3rd SME Promotion Master Plan GREEN GROWTH And CREATIVE ECONOMY Are to be highlighted in the 3rd SME Promotion Master Plan In order to drive the growth of SMEs with STRENGTH and SUSTAINABILITY

22. SME Promotion Budget in 2011 ♢ Budget Approval for SME Promotion in 2011 in 3 Categories Fundamental Mission of OSMEP 370 mln. bt SME Promotion Action Plan 212 mln. bt ♢Administration of SME Promotion Fund 180 mln. bt Total 762 mln. bt ♢

23. Highlighted Projects for Sustainable SME Development Highlighted Projects of SME Promotion Action Plan, 2010-2012 ☆ASEAN SME Regional Gateway ➱ASEAN SME Service Provider ➱ASEAN SME Service Portal ➱ASEAN SME Logistic Platform ☆Cross-Border SME Clusters toward Global Supply Chains

24. Highlighted Projects for Sustainable SME Development Highlighted Projects of SME Promotion Action Plan, 2010-2012 ☆Cross-Border SME Clusters toward Global Supply Chains ➱Cosmetic, with Cosmetic Valley of France ➱Yacht Building, with Italy ➱Handicraft Development, with AHPADA ➱Medical Devices

25. Key Success Factors in Thailand • Focal Point Agency • Integrated Budget • SME Networking • SME Database • International partnership

26. Dr. Wimonkan Kosumas Deputy Director General The Office of SMEs Promotion Tel. 66 2278 8800 ext.240 Fax. 66 2273 8850 wimonkan@sme.go.th Thank you