SME Development Bank of Thailand

SMEs in Thailand

Overview of the SME Sector in Thailand

Number of Fixed Assets Number of Fixed Assets Employees excl. land Employees excl. land (THB mm) (THB mm)

Manufacturing 50 or less 50 or less 51-200 > 50 to 200

Service 50 or less 50 or less 51-200 > 50 to 200

Wholesale 25 or less 50 or less 26-50 > 50 to 100

Retail 15 or less 30 or less 16-30 > 30 to 60

Small Medium

Production Value 87.7% of GDP (Not included Agriculture)

Export Value 28.82% Employment 80.4%

98.5% of all enterprises are SMEs

SME Classification: by employment and fixed assets

Definition

Corporate Profile

and Operations

Ministry of Finance

SMALL AND MEDIUM ENTERPRISE

DEVELOPMENT BANK OF THAILAND

Ministry of Industry

Vision and Mission

Vision

“A government financial institution for development that assist and support Thai SMEs”

Mission

- Support the government policies to assist and promote Thai SMEs. - Provide financial services and others response to Thai SMEs’ needs. - Promote and develop Thai SMEs with competition potential in global stage. - Develop IT technology system with Organization Management and Good Governance

Network

1,692 Officers

2 Bureaus

8 Regions

95 Business Development Centers

Policy Loan General Loan

Long Term Credit (Term Loan)

Short Term Credit (P/N)

Factoring

Leasing and Hire Purchase

Trade Finance

Economic Crisis

SMEs Potential Development

Food and Restaurant

OTOP and Grass Root

New Entrepreneurs

Intellectual Property Capitalization

Other Service

Joint Venture AVAL

Letters of Guarantee

Market Channel Advisory Service

Credit & Service

SME POWER for Thai Strong Program 2

Measures for Exporter

SME POWER for Tourisms

SME POWER for A New Start

Thai Logistic Business

Measures for Flood Victims

Gems and Jewelry Business

NGV

Energy Conservation

Hire Purchase for NGV Van

Hire Purchase for NGV Car

Thai Cuisine to the World II

OTOP

Civil Sector Debt Relief

Franchise

Small Business ( Retail )

Innovative

New Entrepreneur Creation

Intellectual Property Capitalization

Machinery Capitalization

Royal Land Tenants

SME Development • Aim to Support and Develop Entrepreneurs before and after lending credit (Pre and Post Loan) • Increase Potential and Capacity in competition to Thai SMEs

Pre Loan Prepare the readiness in fund reaching. - Share the knowledge about credit loans and products of the bank for Thai Entrepreneurs. - Counsel with simply and comfortably to reach source of funds. - Enhancing the knowledge before borrowing credit with SME Bank.

Post Loan

Capacity Enhancement for Thai Entrepreneurs

After getting credit loan from the bank. SME Bank will educate for Thai Entrepreneurs by

focusing on knowledge enhancement especially five main areas : Production, Marketing,

Finance, Information Technology, and Innovation.

Post loan Activities

1. Seminar 2. Business Diagnosis 3. Upgrade in Products and Services 4. Alliance cooperation 5.Others service

Ministry of Industry : Focus on green industry

Productivity Improvement Loan

SME Bank

Ministry of Industry

Ministry of Finance

COOPERATION

SME Bank

Ministry of industry

Ministry of Finance

Develop SMEs in order to upgrade in productivity. Preparing for

the readiness in AEC competition

Cabinet Approval 24 April 2012

8 January 2013

Promote and Support SMEs in fund reaching.

Develop, Training, Enhance capacity with strengthen and sustainable growth

Policy

Productivity Improvement Loan(PIL): Project amount 20,000 million baht. (640 million USD)

Objective

Upgrade in productivity for SMEs to prepare the

readiness for AEC competition

Relieve impact of the minimum wage policy

(300 Baht)

Relieve impact from cost of energy

Type of Lending

Working process

Improving Loan o Revolving Fund

(Stock management)

o Extension / Improvement

o Human Resource / Labor / Planning / Operation Process / Logistic

Machinery

Improving Loan o Machinery and Equipment purchasing

o Improvement machinery changing

Approval Proportion

Approval

21%

79%

Bangkok-MetropolitanRegions-Provinces

Bangkok - Metropolitan Region

21% 79 %

Approval Proportion (Business Sectors)

10%

33%

53%

4%

Business Sectors

Retail Wholesales

Service

Manufacturing

Others

Manufacturing

Service

Productivity Improvement Loan

Term Loan The maximum loan period of 7

years. Grace Period 1 year

Credit facilities type :

1. Machinery Improving Loan 2. Working process Improving Loan

Term Loan The maximum loan period of 5

years. Grace Period 1 year

Credit limit : Not exceed 5 Million baht / Customer

Credit facilities type

interest rate : 1st year – 2nd year interest rate MLR– 3% / year From 3rd year onwards, interest rate is MLR a year

Productivity Improvement Loan

Amount : 50.15 Million Baht (1.6 Million USD.)

1. Machinery Improving Loan 2. Working process

Amount : 15,666 Million Baht (501 Million USD.)

Out Standing

Outstanding as at : October 30 2013

Success Case

Customer : Mrs. Champa Bangon Business : Production and distribution of ice tube Amount of Loan : 2.5 Million Baht Purpose : To Buy new machine

Objective : To Reduce energy cost by Production during off peak hour (22.00 – 9.00 ) Reduce energy cost : 960,000 Baht/Years Gross Profit / Years : (before) 3.431 Million Baht (After) 4.391 Million Baht

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