BANGKOK, Thailand – Thailand’s SME confidence index improved in the first quarter of 2025, rising from 55.21 to 62.40, driven by economic recovery, increased orders, and stronger investment.
The trend is expected to continue in the next three months, with the Small and Medium Enterprise Development Bank of Thailand (SME D Bank) preparing low-interest financial support to assist businesses.
Pichit Mitrawong, Managing Director of SME D Bank, stated that the SME Research and Data Center found a significant boost in business confidence among SMEs, particularly in the manufacturing and tourism sectors. The strongest confidence levels were observed in micro-enterprises at 65.20, reflecting the impact of economic stimulus measures. Business owners across all regions, from major cities to secondary provinces, reported similar levels of optimism.
Performance indicators showed 53.20% of SMEs reported increased earnings, up from 30.40% in the last quarter of 2024, with growth in orders leading to higher production and liquidity. However, concerns remain over rising costs of raw materials, volatile energy prices, and high financial fees, which continue to pressure overall business confidence. Looking ahead to the second quarter of 2025, confidence is projected to rise further to 70.10, supported by sustained consumption and government infrastructure investments. However, concerns over operational costs are expected to intensify, particularly for businesses in construction and secondary cities.
Investment sentiment remains positive, with 52.20% of SMEs seeking financing in the next three months, primarily for working capital at 41.20% and business expansion at 11.00%. While demand for investment loans is moderate, most SMEs have sufficient liquidity and internal resources for expansion. Businesses in secondary provinces exhibited greater demand for financing compared to those in major cities, especially in preparation for seasonal changes under La Niña conditions affecting market activity.
To address rising costs and support SMEs in expansion and climate adaptation, SME D Bank is launching low-interest loans at 3% fixed for the first three years, with repayment terms of up to 10 years.
The bank is offering three key financial products: “SME Power Loan” with a 1.5 million baht limit for small businesses, “Beyond SME Loan” up to 15 million baht for business upgrades, and “SME Green Productivity Loan” up to 10 million baht to finance clean energy adoption and efficiency improvements. These measures aim to ease financial burdens while enhancing SME competitiveness in a shifting economic landscape. (NNT)
