Bangkok: The pulse of Thai SMEs in the midst of the "Thai Helps Thai Plus" campaign reveals ongoing struggles for small businesses, with hybrid loan debt on the rise and an urgent need for comprehensive solutions beyond mere financial distribution.
According to Thai News Agency, while the "Thai Helps Thai Plus" project, a government initiative where the government covers 60% and the public 40%, has generated considerable enthusiasm akin to the "Half-Price Plus" scheme, challenges persist for small and medium-sized enterprises (SMEs).
A survey by the Office of Small and Medium Enterprises Promotion (OSMEP) comparing Q4 2025 with Q1 2026 highlights the precarious state of Thai SMEs. The data indicates a sharp decline in the green group, representing continued growth, from 21% to 6%. Conversely, the yellow group, which requires support but makes no new investments, rose from 61% to 72%, and the red group, suffering losses and requiring new loans, increased from 18% to 22%. Mr. Saengchai Theerakulvanich, Chairman of Strategy at the Thai SME Federation, noted a significant impact on small business owners, with those reporting continued growth dropping from 24% to 5%.
The situation is exacerbated by an increase in SMEs with "hybrid debt" - a mix of formal and informal debt - rising from 40% to 47%. Many businesses are forced to seek informal loans due to financial mismanagement, suggesting a need for government-led financial innovations to refinance such debt formally and promote better financial discipline.
Mr. Saengchai identified three primary obstacles for Thai SMEs: insufficient competitiveness, inadequate domestic purchasing power, and outdated government policies. He emphasized the urgent need to enhance standards, innovate, and leverage AI for efficiency improvements. Despite economic stimulus efforts, sustainable purchasing power remains lacking, and outdated laws require a shift from regulatory to supportive frameworks to prevent corruption.
For Thai SMEs to achieve sustainability, Mr. Saengchai advocates for systemic integration beyond temporary economic measures. This includes government support in equipping businesses with digital technology, blockchain, and ESG skills. He stressed the importance of seizing opportunities from crises to foster innovation and improve Thai livelihoods, underscoring the need to listen to the grassroots economy for effective policy design.