By Pooky, Thai Intel’s economics journalist
Yingluck’s government has established a “Seed Money Fund” to spur entrepreneurs. Olarn Chaipravat, who chairs the Seed Money Fund’s board, said 5,000 to 10,000 loans should be approved next year. “Several business aspirants have already expressed an interest. They intend to venture into software, robot, agriculture and food industries,” he said.
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But will it be enough to reverse a tanking Thailand‘s Global position in Venture Capital and Private Equity (VCPE).
Since 2007, the year after the 2006 coup, Thailand’s global ranking in Venture Capital and Private Equity (VCPE) has been tanking. In fact, between 2007 and 2011, Thailand’s ranking have tanked 6 place, according to IESE‘s Global Venture Capital and Private Equity Attractiveness Index.
In that space of time, Indonesia, Malaysia and Vietman VCPE ranking went up, with for example Vietnam shooting up 9 place. Overall in ASEAN, Thailand ranks 3rd, with a score of 59.3. Singapore ranks first with 92.4, and Malaysia with 72.5.
IESE’s said Thailand weakness is a financial environment that relies on banks finances, where VCPE is not widely recognized. IESE’s also said the threat to Thailand is political instability that can hurt consumers and investors confidence.
The following is from Xinhua, China’s news agency:
BANGKOK
Dec. 12 (Xinhua)
A government fund will be provided to finance small-sized, innovative businesses of young people who have graduated from Thailand’s universities and vocational colleges.
The government under Prime Minister Yingluck Shinawatra has prepared a sum of 15 billion baht (500 million U.S. dollars), formally called the Entrepreneurs Fund, which will be loaned to those who may have graduated from universities or vocational colleges inside the country for no more than five years.
Each of the applicants may be given a maximum of three million baht (100,000 U.S. dollars) from the Entrepreneurs Fund to start up their small-sized private businesses in the country. It will carry a 1-2 percent interest rate and a repayment term of 7-10 years.
The Fund, viewed as a populist policy of the ruling Puea Thai Party, will be readily available from early next month for Thai prospective entrepreneurs who can apply at the campuses where they have graduated.
According to Deputy Finance Minister Tanusak Lek-uthai, the Fund may finance varied fields of business, including agriculture, industry, tourism, art and cultural promotio and information technology.
Yingluck presided on Wednesday over the signing of a memorandum of understanding on the administration of the Fund between the Office of Higher Education Commission, an agency under the Education Ministry, and Thai Credit Guarantee Corp., a government- run company which will screen and endorse applications for the Fund.
The Government Savings Bank, the government-owned Krung Thai Bank and a few other financial institutions will jointly contribute 10 billion baht (333 million U.S. dollars) to the 15 billion baht (500 million U.S. dollars) Fund and the balance will be covered by the government’s current budget.
“Any graduates, who have innovative, creative qualities and knowledge, may apply for the Entrepreneurs Fund. They could probably make a new generation of professional, prolific, small- sized entrepreneurs, given the Fund to start up their businesses. The government is gladly providing the opportunity for the young people to have access to such a source of financial support,” said the female prime minister.
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