the Council of Ministers approved a financing strategy to promote and develop small industries, as proposed by the National Economic and Social Development Board (NESDB).
A loan processing office for small industries was established under the Department of Industrial Promotion, Ministry of Industry’s supervision to provide financial support to small manufacturing businesses. That office later became the Small Industry Finance Office (SIFO). However, the SIFO’s operations and growth were hampered by limited funds, which were dependent on state budget allocations, and cumbersome and inflexible government procedures and regulations.
the government promulgated the Small Industry Finance Corporation Act and the SIFO became the Small Industry Finance Corporation (SIFC) with registered capital of Bt300 million. Its status as a juristic person allowed the SIFC to raise capital domestically and internationally.
the government initiated policies using the SIFC as the primary mechanism to assist small and medium enterprises, key drivers of the Thai economy. The Ministry of Finance recapitalized the SIFC, increasing its equity to Bt2.5 billion