SME efficiency expected to fare better in H2
Small and medium-sized enterprises showed lower efficiency and competitiveness in the first quarter of the year amid the economic slowdown and lower consumption, but their efficiency is expected to revive in the second half along with the economic recover
SMEs have lower efficiency and competitiveness mainly in production, while service and tourism Industries showed stronger growth.
Thanavath Phonvichai, director of the University of the Thai Chamber of Commerce’s Economic and Business Forecasting Centre, said yesterday that SMEs’ contribution to the economy was expected to grow steadily by 2.8 per cent to Bt4.5 trillion. That is in accordance with overall gross domestic product, which is projected to expand 3 per cent this year.
To help promote SME development, the government should provide a package of measures such as soft loans and restructured tax collections, he said.
Based on a survey of 1,400 businesses, the SME efficiency index fell 1.4 points to 47.6 in the first quarter of the year from the final quarter of last year. An index level below 50 points reflects weak efficiency and competitiveness.
The SME competitiveness |index was at 50 points, while the SME sustainability index was at 51 points.
The survey found SMEs have lower efficiency and competitive-ness because of lower sales and profit, low liquidity and bigger debt burdens.
Most SMEs said their sales would pick up by only 0-5 per cent this year.
