Smaller firms see confidence slip in Q2: survey
Thailand's business confidence index among micro, small and medium-sized enterprises has slipped from 62.9 in the first quarter to 61.7 in the second, according to survey by Radar Global, a Hong Kong-based market research agency.
The research shows that only 33 per cent of respondents were positive about the country’s economy over the next six months, down from 40 per cent in the first quarter.
Meanwhile, 87 per cent were positive about their own company’s financial prospects and 78 per cent were positive about their own industry’s prospects.
The most pessimistic for continued improvement in the economy is the manufacturing sector at 26 per cent, while the finance industry at 8 per cent was least pessimistic.
About 93 per cent said the availability of credit for their company was easily or somewhat available – the highest of all surveyed countries – and 50 per cent expect to seek financing in the coming 12 months.
Some 43 per cent expect the regulatory environment to become more restrictive – the highest of all seven countries surveyed.
As 46 per cent of companies expect their workforce to increase over the coming 12 months, 46 per cent expect their headcount to remain about the same and only 8 per cent expect some shrinkage; 32 per cent of firms with up to 10 employees expect to increase their workforce, compared with 55 |per cent of those with 51-250 employees.
Of the respondents, 86 per cent thought local banks had a positive reputation while only 76 per cent thought the same of international banks.
When asked what the three main barriers to local business were, 68 per cent said political instability, 57 per cent said corruption and 36 per cent said the high cost of labour, followed closely by red tape with 32 per cent.
Radar Global has launched a quarterly sentiment index of business confidence, economic outlook and bank reputations among micro, small and medium-sized enterprises (MSMEs) in seven emerging markets – China, Egypt, India, Malaysia, the Philippines, Thailand and the United Arab Emirates.
The survey was the first of its kind across multiple emerging markets. The survey findings are based on 4,600 interviews with finance managers and other business leaders of companies with fewer than 250 employees during the first half and represents a good mix of industries and company sizes.
Grant Beuzeval, co-founder and director, said that although momentum appears to be improving among government bodies and financial institutions to support, nurture and sustain MSMEs, these measures are being implemented too slowly for the likes of the business owners.
