Latest data suggest the much predicted “Massive” SMEs business failure not occurring

By Pooky; 4/23/2013

There are few signs that points to massive SMEs business failure. However, one of PM Yingluck Shinawatra‘s minister, said the government continues to watch the situation closely. Yingluck’s 300 baht minimum wage hike and also the stronger Thai currency Baht, are said to have hurt Thai SMEs greatly and massive numbers of bankruptcy was predicted. However,  new business registration in Thailand continues to be robust. The Deputy Commerce Minister, Nutthawut Saikuay, said today, first quarter new business registration, is at historic high at about 20,000 businesses, a 14% increase over the 4th quarter of 2012.  Business bankruptcy in the first quarter of 2013 fell about 60% from the first quarter of 2012. PM Yingluck have been trying to increase funding access to SMEs through state banks, and have set up a committee, chaired by a high ranking official from the PM Secretarial Office, to help individual SMEs. The committee is currently in an awareness drive to make its assistance contact point widely known. Some Thai think tanks, while saying the more difficult business environment for SMEs is real, it would prove to be a challenge and opportunity for Thai SMEs to move up the production ladder and expand into ASEAN (Source).


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