The Office of Small and Medium Enterprises Promotion (OSMEP) announces that starting October 1, the new procurement regulations will require government agencies to allocate at least 30% of their procurement budgets to small and micro enterprises, aiming to provide access to government budgets totaling no less than 400 billion baht.

Mr. Veerapong Malai, Director of OSMEP, revealed that OSMEP has collaborated with the Comptroller General's Department and relevant agencies to draft the new Ministry of Finance regulations on procurement methods for goods and services that the government aims to promote or support (Version 2) for the year .... The goal is to facilitate SMEs' access to the government procurement market, valued at over 1.3 trillion baht annually.

On October 1, the draft regulations will come into effect, making it easier for SMEs to participate in government procurement. There are two key measures: first, at least 30% of the procurement budget for specified goods/services must be sourced from SMEs, prioritizing local SMEs. If there are fewer than three local suppliers, external suppliers may be considered. Second, SMEs participating in e-bidding will receive a preference if their bids exceed the lowest price by no more than 10%.

This draft regulation will assist two groups of entrepreneurs: micro enterprises with annual revenues not exceeding 1.5 million baht or employing no more than five people, and small enterprises with revenues between 50-100 million baht and employing 30-50 people. Both individuals and legal entities can register through the OSMEP website. It is expected that by October 1, SMEs from all industries and service sectors nationwide will register, listing approximately 126,320 products. Currently, 440 SMEs from 41 provinces have registered, with around 1,200 products listed.

“The success of this project depends on how many SMEs register. The government must procure goods or services as stipulated, with at least 30% from SMEs. If the target is not met, a report must be submitted to higher authorities. Achieving this target will enable small and micro enterprises to access government budgets of no less than 400 billion baht,”

In previous government procurements, over 45,000 SMEs participated, with a total value of approximately 550 billion baht. Most of these were medium-sized enterprises in the construction sector, resulting in a majority of the government budget being allocated to medium-sized businesses with annual revenues exceeding 500 million baht. The new procurement regulations will allow smaller enterprises to access more government contracts.

Additionally, to ensure the effective implementation of these measures, OSMEP has prepared plans to build awareness among entrepreneurs through training and has assigned the Comprehensive SME Service Centers (OSSC) with branches nationwide to provide consulting, guidance, assistance, and development for local entrepreneurs to prepare them for entering the government procurement market.

SOURCE: www.bangkokbiznews.com