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MOL Joins MOF to Drive Quality Workers to Entrepreneurship

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                The Deputy Labour Minister joined the MOU signing ceremony on “TCG SMEs Must Win” for the TCG Soft Loan Plus loan guarantee project, ready to drive workers’ skill development initiatives to become entrepreneurs.

                On September 15, 2020, Deputy Labour Minister Prof. Narumon Pinyosinwat joined the MOU signing ceremony on “TCG SMEs Must Win” for the TCG Soft Loan Plus loan guarantee project. The initiative is a collaboration between the Thai Credit Guarantee Corporation (TCG) and financial institutions. Deputy Finance Minister Mr. Santi Promphat and Chairman of the Board for the Small Industry Credit Guarantee Corporation (TCG) Mr. Banyong Wisetmongkolchai, attended the ceremony Vayupak Room 4, 4th Floor, Office of the Permanent Secretary of Finance.

                Prof. Narumon said the Ministry of Labour’s Department of Skill Development (DSD) had consulted with TCG and would sign the agreement soon. In the past, the Ministry of Labour has helped those affected by the coronavirus outbreak, covering both formal and informal workers by enhancing professional skills and knowledge. In addition, there are also self-employed people and SMEs. TCG will come to assist those who have been trained and have received a certificate from the Department of Skill Development so that they can access funding sources. The TCG has prepared the project, and the DSD has offices scattered in all 77 provinces, which will allow it to aid grassroots groups. After training, many participants face a lack of funding to operate a business. Therefore, the TCG will support to help resolve these problems. The Ministry of Finance will act as a connection to the workers through skills development, providing more opportunities to access capital sources, which will also resolve unemployment, an urgent item to be resolved amid the country’s economic crisis.

                For the loan guarantee model, TCG will serve as a guarantee for SMEs. It is a mechanism that can expand the results of credit over several times the state budget. In addition to the Soft Loan Plus program, there are other important guarantee programs, such as TCG Won, an important measure that TCG uses to undertake its guarantees, to add assistance covering various operators’ bases, which can help promote economic growth. Besides helping SMEs gain access to funding, it has established a financial advisory center with SMEs, which provides knowledge to help resolve financial problems without any charges. This gives SMEs, self-employed entrepreneurs, and unemployed people the chance to get guarantees and credit.