BANGKOK, Thailand – Thailand is preparing a series of incentives to help small and medium-sized enterprises (SMEs) adapt to the rapid rise of artificial intelligence and shifting global economic conditions, with the goal of doubling the sector’s contribution to the national economy.
Speaking at the “Smart Industry: Growing Together” seminar in Bangkok, Deputy Prime Minister and Finance Minister Ekniti Nitithanprapas said the world is undergoing rapid transformation driven by geopolitical tensions, economic rivalry, and technological disruption. He warned that SMEs must urgently adapt, particularly by adopting AI tools, to remain competitive.
Ekniti said conflicts between major global powers have escalated from economic competition to broader geopolitical tensions, creating both risks and opportunities for Thailand. As trade disputes and global uncertainty reshape supply chains, more investors may consider relocating production bases to Southeast Asia, including Thailand.
“Thailand must be ready to seize this opportunity,” he said, noting that investment applications submitted to the Board of Investment of Thailand exceeded 1.8 trillion baht in 2025.
“Big Brother Helps Little Brother” Initiative
To support SME growth, the government plans to introduce new incentives under a “Big Brother Helps Little Brother” program. The scheme will encourage larger companies to assist SMEs within their supply chains through collaboration, technology transfer, and business partnerships.
Under the proposal, companies participating in the program could receive double tax deductions for expenses related to supporting SME development.
The government also plans to mobilize financial support from both state-owned and commercial banks to increase access to funding for SMEs. Officials are preparing to amend laws related to the national competitiveness enhancement fund to allow broader support measures under a unified policy package.
Ekniti noted that previous assistance programs were often fragmented across multiple agencies, slowing implementation. The new approach aims to consolidate policies and provide more coordinated support.
Industrial Policy Shift
Natthaphon Rangsitphon, Permanent Secretary of the Ministry of Industry, said the ministry will adjust its strategy to align with the government’s policy.
The plan includes promoting responsible industrial development, encouraging environmentally friendly production, and eliminating illegal or substandard factories. Authorities will also push forward with 11 targeted industries aligned with Thailand’s green industry policy and efforts to reduce PM2.5 pollution.
SMEs Key to Economic Growth
According to Chana Phoomee, advisor to the managing director of SCG and vice chairman of the Federation of Thai Industries, Thailand aims to significantly expand the role of SMEs in the national economy.
Currently, SMEs account for around 35 percent of Thailand’s GDP. The industry sector hopes to increase that share to 50 percent, while expanding the number of SMEs from roughly 3 million to 9 million businesses.
Industry leaders also want to reduce reliance on imported raw materials by developing domestic production capacity for key industrial inputs. AI technologies are expected to play a major role in transforming operations across the 11 targeted industry groups, including smart manufacturing and advanced industrial systems.
AI Disruption Concerns
Asawin Asavanant, director of the Digital Council of Thailand, warned that AI could significantly reshape the workforce.
He said Thailand has already passed through three major technological transitions over the past 60 years: the internet era, the smartphone era, and now the AI era.
Unlike previous technological shifts, AI is capable of replacing many high-level roles such as office staff, analysts, and technical specialists.
“This is a major disruption,” Asawin said. “SMEs and business owners must learn how to control and use AI intelligently to reduce costs and remain competitive.”
Officials believe that if businesses successfully adapt to the new technology wave, Thailand could transform global challenges into opportunities and achieve stronger economic growth in the years ahead. (TNA)
