SME D Bank reveals that floods worsen the economy, dragging down the SME confidence index in Q3. Moving forward with debt relief measures and capital injection to support seizing opportunities in Q4, with a recovery trend.
The SME Confidence Index survey for Q3/67 from a survey by SME D Bank in collaboration with Thammasat University indicates that the overall picture has decreased due to many factors such as floods, political risks, and slowing purchasing power. As for the forecast for the next 3 months or Q4/67, there is confidence in recovery from the government’s economic stimulus measures. SME D Bank announced to help strengthen SMEs by pushing measures to suspend principal and interest payments to reduce the burden of expenses, along with additional capital loans with special interest rates, no collateral required, helping to prepare and move forward with businesses at full potential.
Mr. Pichit Mitrawong, Managing Director of the Small and Medium Enterprise Development Bank of Thailand (SME D Bank),
said that SME D Bank, by the “SME D Bank Research and Information Center” in collaboration with the “Thammasat University Research and Consulting Institute”, found that the overall confidence index for the third quarter of 2024 was at 43.63, down from the second quarter of 2024, which was at 52.06.
As entrepreneurs are increasingly concerned, especially regarding the production volume that has decreased from the second quarter, resulting from major pressures such as domestic politics, unclear economic stimulus measures from the government, the slowdown in the economic situation and the sluggish market. In addition, liquidity in business operations has decreased, in line with the decrease in performance and purchase orders. At the same time, there are flood problems that have both direct and indirect impacts, causing business operations to stop in some periods, reduced demand for products and services, and problems in the production and transportation chain.
When considering by business type, confidence decr
eased in all types of businesses, with the construction business having the lowest confidence level at 38.53, while the tourism business had the highest confidence level at 49.26. As for the forecast for the next 3 months (Q4/2024), SME entrepreneurs had overall confidence increase at 49.18, increasing in almost every aspect, especially in terms of business performance, business liquidity, and production volume, as it is expected that the overall economy will improve from economic stimulus measures and entering the tourist season. However, concerns about operating costs remain at a level close to the present.
Mr. Pichit added that the survey results reflect the declining confidence of SME entrepreneurs due to pressures that increase the burden of doing business. Therefore, the bank has taken action to help alleviate the burden by issuing a measure to ‘suspend principal and interest payments’ for bank customers who are directly and indirectly affected in disaster areas as specified by the bank. This will help
reduce the burden of expenses and provide voluntary rights to suspend principal and interest payments for a maximum of 12 months.
In addition, there is a capital injection project, with or without collateral, to support SME entrepreneurs to be ready to move forward with their business and seize the opportunity to receive economic recovery during the tourist season at the end of the year, such as the ‘SME Green Productivity’ loan, which helps to raise productivity to a green business, with an interest rate of 3% per year, fixed for 3 years, a maximum loan amount of 10 million baht, and a 10-year repayment period, and the ‘Smile Biz, Smile Business’ loan, which allows you to borrow after doing business for 1 year, with an interest rate starting at MLR-1% per year, a maximum loan amount of 5 million baht per person, and a maximum repayment period of 5 years, etc.
Source: Thai News Agency