Thai SME Confederation warns of three major risks to business
Saengchai Teerakulwanich, president of the Thai SME Confederation, said the top concern for small and medium-sized enterprises (SMEs) next year is the “debt trap”, as soaring household and business debt levels are preventing entrepreneurs from expanding or investing further.
The second major risk is geopolitical tensions, particularly the ongoing conflict between the United States and China, along with emerging rivalries, which are tightening global economic conditions and directly impacting Thailand’s trade and export sectors.
The final challenge involves labour and technology capability, especially the need to upgrade workers’ skills to keep pace with technological and digital-economy changes, as well as improving access to new technologies such as artificial intelligence (AI), which will be key to future competitiveness.
For the final four months of this year, SMEs are most in need of economic stimulus measures to boost liquidity — particularly a proposed “Khon La Khrueng Plus” co-payment scheme, which would better support small businesses.
Madam Dear warns Thai economy’s structure lagging behind global trends
Watanya “Madam Dear” Bunnag, co-CEO of Liberator Securities, said Thailand’s overall economy remains sluggish, with several pressing issues that require urgent government attention.
Her biggest concern, she noted, lies in structural economic problems, particularly the country’s transition into an ageing society, which has led to a shrinking workforce and declining labour productivity, while the government must allocate a growing share of its budget to welfare for the elderly.
She also warned that Thailand’s productivity remains far behind global standards, especially in integrating new technologies into its production and supply-chain systems.
“The most critical issue is improving the quality of our people — especially skill development, which is essential for structural economic progress. This should be a key challenge for the government,” Watanya said.
She added that although the current government has only four months left in office, this period is “crucial” for laying the groundwork for long-term structural reform to be carried on by the next administration.
Watanya acknowledged that the government has introduced short-term economic stimulus measures but stressed the need for more targeted debt-relief policies for both entrepreneurs and citizens, as the burden of high debt continues to hinder investment and economic growth.
Businesses urged to manage liquidity and prepare for uncertainty
Nuttaphong Kunakornwong, CEO of SC Asset Corporation Plc, said the real estate sector continues to face challenges similar to those seen earlier in the year — including delayed purchasing decisions amid both domestic and international uncertainty, high household debt, weaker consumer spending power, and excess supply leading to price wars.
“Liquidity management is now more important than ever. Developers must ensure strong cash flow and diversify their businesses to mitigate risks from volatility,” he said.
Nitinai Sirismatthakarn, CEO of King Power Corporation, noted that the era of globalisation has accelerated change, leaving private businesses most concerned about the rapid pace of transformation.
“What we need most is political and economic stability to allow for proper business planning,” he said, “Four months is a short period for the new government, but if it can implement clear and stable policies and lay a long-term foundation for the next four years, that would be very positive.”
He added that the strong baht could hurt Thailand’s tourism industry — one of the country’s key revenue drivers — not only in the duty-free sector but also among small local vendors.
As for concerns over a possible sovereign credit rating downgrade, he said that a decline in international confidence would inevitably affect the private sector, leading to higher borrowing costs.
Regarding the use of AI, he said it remains new to many industries. King Power is currently implementing its High Performance Organisation (HPO) restructuring project, which includes branch closures in Sriwaree, Pattaya, and Mahanakhon, along with a voluntary resignation scheme to improve efficiency.
“AI is not meant to replace people but to upskill them — to help employees learn how to use AI effectively. We’ve begun applying it to data analytics for sales and promotions, and plan to expand it to product categorisation,” Nitinai said.
Concerns over declining purchasing power
Kessara Thanyalakpark, managing director of Sena Development, expressed concern about weakened purchasing power caused by rising household debt.
“Purchasing power is a key driver of the economy. If we rely solely on government spending without restoring people’s ability to spend, it will be difficult for the economy to move forward,” she said.
She noted that household debt remains a chronic issue undermining the foundations of the Thai economy. Although the government has begun implementing various policies, the short four-month timeframe poses a major constraint — especially when it comes to launching practical short-term measures that can deliver immediate results.
“In many cases, the policies themselves were good, but they were never properly implemented, leaving the private sector without the intended benefits,” Kessara said.
On the issue of Thailand’s sovereign credit rating, she compared it to the collective credit standing of all Thai people. “If the country’s fiscal position is perceived as weak, borrowing costs — both domestic and international — will inevitably rise,” she said.
From a corporate development perspective, she emphasised that people and technology must advance together. At Sena Development, the company’s approach is not to replace humans with AI, but to use it to make people smarter and enable them to perform more meaningful work.