Bangkok: SME D Bank forecasts the SME confidence index to improve to 68.9, expecting further increases in Q1/2026. This reflects the readiness of Thai entrepreneurs to continue their businesses amidst various challenges, and the continued need for loans to improve liquidity for SMEs. According to Thai News Agency, Mr. Pichit Mitrawong, Managing Director of the Small and Medium Enterprise Development Bank of Thailand (SME D Bank), revealed that the SME D Bank survey on the "SME Business and Economic Confidence Index, Q4 2025 and Future Forecast" showed improved confidence in Q4 2025, reaching 68.9, a slight increase from Q3 2025's 67.1. Looking ahead to Q1 2026, SME entrepreneurs also have a more positive outlook on business trends, with the index rising to 75.1 from 68.9 in the previous quarter. Key factors contributing to this improved confidence include the onset of the high season for tourism, the recovery of domestic tourism, and confidence in government economic stimulus measures. The SME business conf idence index for the first quarter of 2026 increased across almost all business sizes and industries, particularly micro and small businesses, which showed the highest levels of confidence. This reflects expectations of a recovery in domestic demand due to anticipated economic stimulus measures, despite other unfavorable economic factors. The components of the confidence index in Q1/2026 improved in almost all aspects, especially investment, which surged significantly from Q4/2025. This reflects that entrepreneurs are regaining confidence and seeing an opportune time to invest after a long wait for a recovery. Key factors driving increased investment by SMEs include economic growth, increased demand for goods/services, and ease of access to funding. The main purposes of investment are replacing old machinery, increasing efficiency, and reducing costs. While the demand for SME business loans increased in Q1 2026, primarily for working capital and followed by investment loans, most entrepreneurs plan to maint ain their growth rate similar to the previous year in 2026 rather than investing for rapid growth. Their main strategies include improving marketing strategies coupled with cost management and efficiency improvements. However, entrepreneurs are concerned about high raw material costs and insufficient capital, which will be significant obstacles to business growth in the coming year (2026). Mr. Pichit added that the survey, conducted before the natural disaster in southern Thailand and the political situation, showed that SMEs still need working capital loans, followed by investment loans and refinancing. Loan needs are broken down as follows: micro businesses needing less than 1 million baht, small businesses needing 1-5 million baht, and medium-sized businesses needing more than 5 million baht. This reflects the need for continuous business growth, with loan amounts clearly proportional to the size of the business. Furthermore, most entrepreneurs plan to maintain their growth level similar to the previous y ear in 2026, focusing on improving marketing strategies coupled with cost management and efficiency enhancement. SME D Bank is ready to offer its "Development and Capital Injection" services, including "finance" options such as low-interest loans with a fixed rate of 3% per year for the first 3 years. These include: 1. "Igniting SME Power" loan, 2. "SME Green Productivity" loan, and 3. "Beyond Empowering SMEs" loan. This supports SMEs across all sectors in seizing business opportunities during the tourist season, enabling them to invest, expand, and improve their production and services to cater to both Thai and international tourists. This is coupled with comprehensive development services available 24/7 through the DX by SME D Bank platform and various online channels such as the LINE Official Account: SME Development Bank and the website.