prepare for the new economy

Business challenges have prompted the Federation of Thai Industries (FTI) to devise new projects in the hope of strengthening local entrepreneurs.

The Group believes there is an urgent need to help small and medium-sized enterprises (SMEs), which are still suffering from the effects of the pandemic, become better managers.

Also on the FTI’s agenda is devising ways to develop agribusiness, a core sector of the economy, and improving the ability of auto parts manufacturers to cope with the disruption caused by the burgeoning electric vehicle (EV) industry. It has become.

“Technological advances and increased competition are shaping a new economy,” said FTI Chairman CleanCry Tiennekul, stressing the need for close collaboration between federations and entrepreneurs to address these challenges. emphasized.

Business smart small business

Following previous measures aimed at increasing sales, FTI is improving the competitiveness of small and medium-sized enterprises through the “Sango” policy.

“We want to transform ordinary small businesses into smart small businesses,” Klienkrai said.

He said the global economy has changed over the past two years, but there is still a lot of uncertainty, with some small and medium-sized enterprises facing declining sales and difficulty raising capital.

CleanCry said small and medium-sized businesses need better tools to succeed.

Three Go’s policy emphasizes new capabilities and market expansion plans for entrepreneurs.

Business Digital focus

The first issue focuses on digital. The federation wants small and medium-sized businesses, which make up the majority of FTI members, to use more computer programs to improve their operations and reduce costs.

Because some software is expensive and small and medium-sized businesses have limited budgets, Klienkrai asked FTI’s Digital Industry Club to design and compile the necessary computer programs and make them affordable to small and medium-sized businesses. We asked companies to sell it to us.

Required programs cover accounting and production management.

The government is promoting robotics and automation systems under its Industry 4.0 initiative (Fourth Industrial Revolution), encouraging factory operators to combine digital technology and data analytics.

However, a 2020 Ministry of Industry survey found that only 2% of Thai industries are at Industry 4.0 level, using advanced technologies in their operations.

FTI also wants to encourage small and medium-sized enterprises to develop innovations that add value to their products.

The second aspect focuses on innovation, with the federation working with the Ministry of Higher Education, Science, Research and Innovation to help small and medium-sized enterprises and start-ups develop new business projects based on the use of technology. We have established Innovation One, a 2 billion baht fund.

The third pillar encourages small and medium-sized enterprises to globalize and helps them sell their products abroad.

Former FTI Chairman Soupant Mongkolsuri, known in media circles as “MiT Man,” launched the Made in Thailand (MiT) campaign to increase sales for small and medium-sized enterprises through national procurement projects.

The campaign encourages authorities to use more locally produced products, especially from small and medium-sized enterprises, and is part of FTI’s efforts to support struggling businesses during and after the pandemic.

To grow their business, entrepreneurs need to think about how to build and expand their customer base overseas, Klienkrai said.

“Under the Three Go’s policy, small and medium-sized enterprises will have easier access to markets and funding sources,” he said.

Business smart farming

FTI hopes to strengthen the agricultural industry by collaborating with universities to pilot agricultural projects that can support farmers and factory owners.

The project, which uses agricultural technology to add value to produce, was developed by the Rajamangala University of Technology Phra Nakhon in Bangkok.

The university will provide advice on agriculture and innovation, as well as help FTI share the know-how gained from this project with farmers in other states and FTI members across the country, said Natwarapol Laksiriwacharable, chancellor of the university. He says he will.

According to FTI, the agricultural sector generates a value of 1.5 trillion baht and contributes 8% to GDP.

Thailand has approximately 12 million agricultural workers, compared to 6.15 million workers in the industrial sector.

Klienkrai said the project is based on the concept of on-demand agriculture, where demand from industry in a particular region determines which crops and how much farmers grow.

FTI previously established the Agri-Based Industries Institute to work with the government to develop a new generation of farmers who can combine the latest technology and marketing to better sell their products and help drive the economy.

The federation wants farmers to explore ways to add value to their crops, and the move has also been welcomed by the Thai Sugar Corporation (TSMC), which has previously announced that sugarcane farmers will use bio-economy to increase profits. It was suggested that the strategy be adopted.

The bioeconomy uses renewable resources as raw materials to produce energy, food, and other value-added products. TSMC said the division could become a new source of revenue.

Farmers and sugar millers were advised not to rely solely on agriculture as water scarcity could hamper agriculture.

Sugarcane production for the 2023-2024 crop in Thailand, the world’s second-largest sugar exporter after Brazil, has declined due to severe drought.

Sugarcane harvest fell by 11.7 million tonnes from 93.9 million tonnes for the 2022-23 crop, according to the Sugarcane and Sugar Board Secretariat.

TSMC urged farmers and sugar manufacturers to consider ways to develop new products from cane, sugar, and even waste from the manufacturing process.

For example, molasses can be used to make ethanol, and ethanol can be mixed with gasoline to make gasohol. Bagasse, the dried pulp residue of sugarcane, can be sold as fuel for power plants.

Other materials from the sugar industry can be used in the development of pharmaceuticals and biochemical products.

Business future mobility

FTI is also helping small and medium-sized original equipment manufacturers (OEMs), which make up the majority of the 1,700 local auto parts manufacturers, adapt to the rapid growth of EVs.

These manufacturers are adept at producing parts used to assemble internal combustion engine (ICE) vehicles, but will need to learn new technologies to be able to transition to producing parts for EVs.

The cluster under FTI Mobility-ONE (CFM-ONE) was established as a new division to develop Thailand’s automotive industry and help the auto parts supply chain meet the challenges of EV technology.

FTI wants auto parts manufacturers to develop business in partnership with automakers in Japan, Europe, the United States, and China.

According to Sufoto Sukpisan, Chairman of the FTI Auto Parts Industry Club and Secretary General of CFM-ONE, under CFM-ONE, Chinese EV manufacturers will be able to help Thai auto parts companies develop their ICE-related technologies into systems suitable for EVs. They say they are seeking support to make the change.

Chinese automakers are rapidly developing EV and battery technology and increasing investment in Thailand.

According to FTI, Thai auto parts companies should take advantage of this opportunity to keep pace with the growth of the zero-emission vehicle industry.