Digital finance to support Thai growth next year, finance minister says

[BANGKOK] Thailand's digital finance will be a major boost to economic growth next year, helping smaller businesses gain more access to credit after a struggle to stay afloat during the pandemic, the finance minister said on Wednesday (Dec 15).

Small-and-medium enterprises (SMEs), the backbone of South-east Asia's second-largest economy, have been hard hit by falling income and a lack of liquidity due to the impact of outbreaks.

Only some of about 3 million smaller firms have received financial support measures, Finance Minister Arkhom Termpittayapaisith told a news conference on the launch of digital supply chain finance.

The service is part of a smart financial and payment infrastructure for business project, which connects government agencies, lenders and businesses with digital technology.

"This will be a key driver of the economy in 2022," as it is fast and highly efficient, said Arkhom, who predicted economic growth of up to 4.5 per cent next year.

Cash-strapped SMEs account for about 40 per cent of Thailand's gross domestic product and 15 million jobs. A recent survey showed many of them were on the brink of closure.

The project can be a "game changer" that will support the business sector in digital transformation, central bank Governor Sethaput Suthiwartnarueput told the conference.

REUTERS