Thailand’s economic development has brought the nation to experience a massive economic growth for the past years. However, the rapidly growing competition in the global economy has constantly put challenges toward Thailand’s economic performance. The government has seen the needs to embark in a new economic journey to transform the industry into an innovative and value based industry.

With significant contribution by Micro, Small and Medium Enterprises (MSMEs) to total number of enterprises in Thailand (up to 99.70 percent), job employment ( 78.48 percent) and export ( 29.01 percent)[1], the government has put more attention to MSMEs. The government even already setting the target to increase contribution by Small and Medium Enterprises (SME) to national GDP up to 50 percent by 2021 (the current SME’s contribution to national GDP as of 2017 is 42.2 percent) by supporting innovation-driven SMEs that aim to offer high-valued products and services (High Value Start-ups, Smart SMEs, Smart Farmers and Global SMEs) through the 5-year SME Promotion Plan of the Office of SME Promotion (OSMEP).

Thailand 4.0

thailand

The government has introduced “Thailand 4.0” scheme with the objective to promote, encourage and support both public and private sector; including MSMEs and entrepreneurs, to adopt, upgrade and use innovation and technology in many aspects to enhance capacity and efficiency.

By introducing Thailand 4.0, the government had set their target to modernise MSMEs into innovation-driven MSMEs, with clear indicators such as to initiate creative and innovative business models, encourage technology usage with research and development (R&D) support, as well as to increase MSME’s responsiveness toward the world market demand. Many MSME-related agencies and science/technology-related agencies have setup plans for encouraging innovation in MSME toward the “Thailand 4.0” scheme such as:

  1. Formulating SMEs promotion plan as the main strategy and upgrading technology, innovation, and productivity.
  2. Providing grants for entrepreneurs to create innovation.
  3. Organising events once a year such as Thailand Synergy for Thai SMEs, STI Thailand Award and Science Technology and Innovation Association.

The Office of SME Promotion: supporting MSMEs to adopt innovation

The Office of SME Promotion (OSMEP) of Thailand has been promoting innovation for MSMEs through awareness creation, information and guideline support for MSMEs to adopt innovation in various sectors. One successful example is the Innovation Coupon program, which was aimed to support SMEs for adopting innovation or create innovation by subsidized the expense/cost by reimbursement process. The concept of innovation coupon is to pursue and encourage MSMEs to seek technology service providers or researchers to work on innovation toward their needs. MSMEs also can team up with their technology service providers or researcher partner to apply for the coupon or they can visit OSMEP in order to seek and match with proper technology service providers or researchers. The MSMEs that would like apply for the innovation coupon must pass the selection process conducted by the committee.

Future-Ready MSMEs

future-ready MSMEs

Founded in 2008 by Kris Jangjarat with his passion and expertise in cosmetic field, M.Y.R. Cosmetics Solution is one of cosmetic manufacturers among Thai SME who won Thailand SME National Award in Outstanding SME Category.

One key distinction that the company has as compared to competitors is the self-conducted researches and time the company spends in developing new formulas, which helps to keep the company to be competitive in the export market.

With each of product’s ingredient is well chosen based on research, the company also supported its staffs to obtain master degrees in cosmetic science, and shall conduct their own researches on the company’s herbal ingredients.

 

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[1] National sources (2017)