Recommendations for Supporting SMEs in the Transition to Circular Economy: A perspective on Thailand
Thailand's Ministry of Industry has proposed the circular economy framework as the future direction of “Factory 4.0” for Thai industries. Despite policies to promote circularity, Thailand has yet to achieve its full circular potential. SEI’s research highlights opportunities in: i) improving information and education; ii) encouraging regulation and policies; iii) financial incentives and penalties; and iv) improving access to technology and infrastructure for circularity.
Under the national framework of ‘Factory 4.0’, the Thai Ministry of Industry proposes the circular economy model as an alternative to the traditional linear economy production process of ‘take, make, dispose’, and as a catalyst to increase competition and growth in the Thai economy. Despite policies to promote circularity, the implementation of circular economy in Thailand has just started and there is still room for interventions to achieve its full potential. MSMEs – owing to their model being more agile, quick to pivot and respond to changing local market demands – should be a key focus of new measures.
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