Business
Many Small Companies in Thailand Facing Bankruptcy
Many small and medium-sized companies in Thailand are facing bankruptcy as they struggle with falling income, rising costs and a lack of liquidity due to the impacts of the pandemic, a Chamber of Commerce survey showed on Friday.
Approximately 3 million small and medium-sized businesses power Thailand’s economy.
According to SMEs (Small and Medium-Sized Enterprises) surveyed by the University of the Thai Chamber of Commerce, the economy will grow only 1%-2% next year. SMEs contribute about 40% of the gross domestic product and 15 million jobs, according to the university.
Almost half of the respondents said they were likely to close their businesses and needed more liquidity to remain in business.
In today’s economy, it is quite obvious that SMEs are just waiting to die. The economy will slowly recover if SMEs are not supported, university president Thanavath Phonvichai said at a news conference.
The survey found that small businesses are most likely to declare bankruptcy in the service, trade, and industrial sectors.
According to Mr. Thanavath, the government should lend a hand to firms and create jobs. This will allow night businesses to flourish, which account for 20% of GDP and over 3 trillion baht annually.
