The establishment of the Care Group as a non-partizan think tank to push forward issues within Thai society is starting to show results with the government implementing recommendations made by the group’s economists.
Following a forum by the group regarding the plight of small and medium enterprises, the government this week announced measures to help SMEs navigate the economic fall out of the coronavirus pandemic.
“We made it very clear that the SME sector is one that must be looked after,” said Care Group core member Prommin Lertsuridej and a former deputy prime minister.
“SMEs have a problem accessing capital and liquidity at a time of economic downturn. The large corporations will find a way as they have previous relationships with banks,” he told Thai Enquirer.
According to Prommin, if SMEs fail because of a lack of support it will put increasing pressure on the economy both from those laid-off by failing businesses and the defaulting of loans. Prommin said that up to ten million people are employed by SMEs.
“We want the government to absorb the NPLs which would give the private banks more confidence to give out loans to struggling SMEs,” Prommin said.
Government response
Kobsak Pootrakool, deputy secretary-general to the prime minister, told reporters this week that the government would be looking at several measures to help SMEs but stopped short of attributing care group for the idea.
However, senior sources from inside the cabinet told Thai Enquirer on Thursday that the government was indeed “monitoring” what the Care Group were doing and saying.
“Of course we hear what they are saying but it is our job as the government to listen to the opinion of every side and implement those ideas if we see that they have merit,” one senior government source told Thai Enquirer on condition of anonymity.
The senior government source said that the cabinet would be reticent in admitting influence from Care Group because it is staffed with former Thaksin ministers and allies.
