Bangkok--19 Jun--KASIKORNBANK
KASIKORNBANK and the Office of Small and Medium Enterprises Promotion (OSMEP) have introduced the “SMEs Undeterred by Wage Increase” program, offering a 6-percent lending rate decrease to assist SME operators in 12 businesses of 51 provinces impacted by the minimum wage hike to 300 Baht. The service aims to increase liquidity for SME business operation.
According to Mr. Pipavat Bhadranavik, First Senior Vice President of KASIKORNBANK, the minimum wage hike to 300 Baht nationwide, starting January 1, has had an adverse impact on production costs and business liquidity of some SMEs. In light of this, KBank and OSMEP have introduced the “SMEs Undeterred by Wage Increase” program, offering a 6-percent lending rate decrease, to assist these businesses with their increased operating costs due to the wage raise.
Mr. Chawan Svasti-xuto, Deputy Director-General Acting on behalf of the Director-General of the OSMEP, said the program is offered under OSMEP’s goal of helping to reduce labor costs due to the minimum wage increase to 300 Baht for SMEs. With Cabinet endorsement, OSMEP is offering a 1-million-Baht credit limit with a lending rate of 3 percent lower than normal for one year for each SME to be used as working capital in coping with rising operating costs.
“With a budget of 193 million Baht, OSMEP is offering the interest rate decrease program for SMEs impacted by the minimum wage hike to 300 Baht. This cooperative effort, we believe, will help SMEs to manage their operating costs efficiently and maintain employment in manufacturing, retail-wholesale trade and service sectors. We expect at least 6,300 SME operators to participate in the program,” he said.
Mr. Pipavat added that SME customers applying for this program will be given a 3-percentage-point lending rate discount upon credit approval. They can choose from three types of installments with a three-month grace period, a privilege given exclusively by KBank. The first 700 existing SME customers of KBank to apply for this program will be offered a 6-percent lending rate discount, of which 3 percent is offered by OSMEP and the other 3 percent by KBank.
Eligible SMEs for this program are those impacted by the minimum wage increase to 300 Baht which started January 1 in 51 provinces of the north, northeast and south. They must be in the following 12 industry groups: textiles and garments; food and beverages; metal products; restaurants and food shops; lumber, wooden products and cork; construction; rubber and plastic; retail trade; hotels; transportation; automotive service, motorcycles and retail fueling service; furniture and jewelry accessories.
Mr. Pipavat said KBank is the first and only bank that has quickly responded to aid SME customers under this program, which will provide relief from the impacts of the minimum wage hike. Interested SME operators can apply for the program at any KBank branch from today until December 31, 2013, or ask for more information from the K-BIZ Contact Center by calling 0 2888 8822.