Thai SMEs must improve says Abhisit

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Thai SMEs must improve says Abhisit 
Bangkok Post: 29 Jan 2010
Thai SMEs must improve, says Abhisit

Thai small businesses must continue to improve in order to better cope with growing competition in the domestic and international markets, says Prime Minister Abhisit Vejjajiva.

Mr Abhisit inspects a display of fabric yesterday at the ThailandSMEExpo 2010 exhibition, where he said that Thai small and medium-sized businesses should no longer expect to rely on low labour costs to compete in international markets. SOMCHAI POOMLARD

Competition will only increase as the region continues to liberalise trade and investment barriers and moves to forge closer co-operative ties.

Mr Abhisit, speaking at the opening of the Thailand SME Expo 2010 exhibition, said within five years Asean's 10 member-states will join together to create a massive, integrated market under the Asean Economic Community initiative.

The AEC will offer massive growth opportunities for local companies, but only if they have the experience, networks and flexibility to expand abroad.

Mr Abhisit said the government is looking closely at how small businesses can take advantage of market liberalisation, whether under Asean or the larger Apec grouping.

Many small Thai firms currently serve as original equipment manufacturers (OEMs), leveraging low labour costs as their primary competitive advantage.

But Mr Abhisit said many other countries in Asia, Eastern Europe and Latin America also compete in terms of low labour costs in the battle for global investment.

"We need to improve the knowledge of our entrepreneurs and enable linkages towards a 'creative economy'," he said, adding that companies need to leverage the country's existing strengths, whether in culture or in the food and agriculture industry.

More than 2.82 million small and medium-sized enterprises operate nationwide, accounting for 99.7% of all companies in Thailand. Small companies are estimated to account for 37.8% of gross domestic product, or 3.44 trillion baht per year.

The SME Expo, organised by the Office of Small and Medium Enterprises Promotion (OSMEP), will be held through Sunday at the Queen Sirikit National Convention Center.


http://www.bangkokpost.com/business/economics/31936/thai-smes-must-improve-says-abhisit