What To Know
- Kasikorn Research Center (K-Research) has reported a consistent year-on-year rise in the number of SME shutdowns between 2021 and 2024, with closures jumping from 19,237 in 2021 to a staggering 23,551 last year.
- In a related address, Sakkapop Panyanukul, assistant governor for monetary policy at the Bank of Thailand, echoed the concern, stating that US tariff policies and internal inefficiencies have left many Thai SMEs at a tipping point.
Bangkok Business News: Mounting Losses and Wave of Closures
Thailand’s small and medium-sized enterprises (SMEs) are bracing for yet another turbulent year as global trade uncertainties and domestic weaknesses converge to create a punishing environment. According to fresh data released by two major research houses, Thai SMEs are suffering from rising losses, an alarming rate of business closures, and looming threats from trade liberalization policies with the United States.
Many Thai SMES are facing problems or are collapsing
Image Credit: AI-Generated
Kasikorn Research Center (K-Research) has reported a consistent year-on-year rise in the number of SME shutdowns between 2021 and 2024, with closures jumping from 19,237 in 2021 to a staggering 23,551 last year. Many of these affected businesses had registered capital of less than 100 million baht. Even more concerning, between 2020 and 2023, over 106,000 SMEs—or 26% of all small enterprises—experienced consecutive annual losses. This Bangkok Business News report highlights how weakened domestic consumption, the influx of cheap imported goods, and the structural fragility of Thailand’s economy have left SMEs increasingly exposed.
K-Research warns that sectors including electrical appliances, construction, steel, agriculture, and food services remain particularly vulnerable. A continued lack of competitiveness and adaptability could spell further closures across these industries in the coming year.
US Trade Pressure and Internal Struggles
Siam Commercial Bank’s Economic Intelligence Center (SCB EIC) also raised red flags. It cautioned that if Thailand fully opens its markets to US agricultural and livestock products—such as pork, poultry, and corn—local SMEs may face an additional blow. While this move could offer consumers lower prices, it would raise production costs and devastate small-scale farmers and domestic suppliers already struggling to compete.
In a related address, Sakkapop Panyanukul, assistant governor for monetary policy at the Bank of Thailand, echoed the concern, stating that US tariff policies and internal inefficiencies have left many Thai SMEs at a tipping point. While the central bank has been engaging with business operators, the challenges persist.
Shifting Strategies for Survival
Despite the gloomy outlook, some Thai entrepreneurs are proactively adapting. SMEs in the agriculture sector are beginning to shift toward high-value products and pivoting into adjacent markets like animal feed. Others are exploring new export destinations beyond the US in a bid to diversify risk and revive profitability.
Nonetheless, many manufacturing industries—even those showing sales growth—are simultaneously experiencing declining market share. This troubling paradox is evident across several sectors including petrochemicals, furniture, textiles, passenger vehicles, and steel-based products.
As global economic uncertainties grow and domestic inefficiencies persist, Thailand’s SME landscape appears set for further disruption unless bold reforms and targeted support measures are swiftly implemented. The road ahead remains difficult, but innovation, market diversification, and policy support could provide a lifeline.
For the latest on Thai SMES, keep on logging to Bangkok Business News.