PATTAYA, Thailand – Thailand’s small and medium-sized enterprises (SMEs) continue to face mounting challenges from rising operating costs, tightening liquidity, and economic uncertainty, according to a new survey by the University of the Thai Chamber of Commerce. The university’s Institute for Trade Strategies (ITS) reported that the SME Competitiveness Index fell to 45.9 in the first quarter of 2026, down from 47.4 in the previous quarter. A reading below 50 indicates contraction or weakening business conditions. The survey, conducted among 659 entrepreneurs nationwide, found that overall business conditions slowed during the opening months of the year.
The Business Situation Index fell to 45.4, down 2.4 points from the previous quarter, while the Business Capability Index declined to 47.2. The Business Sustainability Index also weakened to 45.2.
Micro-enterprises were found to be under the greatest pressure, recording an overall index of 37.6. Researchers said the sector continues to struggle with inventory management, cash flow constraints, and branding challenges. Small businesses posted an index of 45.3, while medium-sized enterprises were the only category to remain above the neutral 50-point level at 52.5, indicating continued expansion and stronger competitiveness. Among business sectors, manufacturers recorded the highest overall score at 47.6 and the strongest business capability rating at 48.7. Retail and trading businesses posted a lower score of 44.4 amid weaker consumer spending and declining orders, while service-sector firms recorded 45.9, showing some improvement compared with the same period last year. The survey also examined the impact of higher energy prices linked to tensions in the Middle East. More than 71% of respondents said they had experienced moderate to severe impacts from rising energy costs.
About 38.8% of business owners expect operating costs to increase by between 5% and 10%, while another 32.8% anticipate cost increases of less than 5%. Most SMEs said they could maintain current prices for only about three months if higher energy costs persist. More than one-third of respondents indicated they may need to raise prices by an average of 8% if conditions do not improve. The survey further revealed growing concern about Thailand’s economic outlook, with nearly 75% of respondents believing the economy will deteriorate if the energy crisis continues.
Business owners urged the government to introduce additional support measures, including reductions in electricity, fuel, and transportation costs, easier access to low-interest financing, and expanded marketing assistance to help SMEs reach new customers. Respondents also called for tax reforms and adjustments to better reflect current economic conditions and strengthen the long-term competitiveness of Thailand’s SME sector. (TNA)
