Thai businesses shift to liquidity-preservation mode amid economic uncertainty and cash crunch
Businesses enter liquidity-preservation mode to cut costs and sustain supply chains, especially those in real estate and event organization.
The Thai and global economies are facing intense instability from a mix of risk factors: the lingering impact of Trump-era tariffs sparking trade wars, escalating geopolitical conflicts, and weakening investor and consumer confidence. These dynamics have pushed consumers to tighten spending and businesses to adopt a “wait and see” stance—particularly in the real estate sector, which was already slowing and further hit by a recent earthquake.
Event organizers, whose business models rely heavily on cash flow, are also experiencing the worst liquidity crisis in a decade. Clients—both government and private—are delaying payments, triggering a domino effect that affects organizers and suppliers alike.
"Without sufficient liquidity, businesses won’t just slow—they’ll stop completely," warned Prasert Taedullayasatit, President of the Thai Condominium Association. He noted that while conditions in Q1 were better than the trough in Q3 2024, most businesses and consumers are still pulling back due to ongoing uncertainty. The greatest concern now is the potential ripple effects of U.S. policy on Thailand’s real estate market.
To survive, businesses are conserving cash, delaying new investments, and carefully managing debt obligations, especially corporate bonds. Some firms are restructuring loans and relying on central bank support to stay afloat.
Real estate reject rates soar, stalling the entire sector
Sunthorn Sathaporn, President of the Housing Business Association, revealed that mortgage rejection rates have surged from 5–10% pre-COVID to a concerning 45%. With buyers unable to secure loans, developers are pausing new projects, freezing demand in the process.
System-wide proposals to restore confidence include developers cutting costs and pricing more competitively, buyers improving credit profiles, and financial institutions offering more flexible mortgage terms—such as mortgage insurance for emergencies. A particularly notable proposal: 'Khun Ku, Rao Chuay' – or 'You Borrow, We Help' scheme, where the government would subsidize 0% interest for the first 3 years on home loans under 7 million baht, has been submitted to the government to consider.
Event industry in coma due to cash shortage
According to Upathum Nisitsukcharoen, President of the Creative Event Business Association, the event industry is in a near-dead state, plagued by liquidity shortages and delayed payments. This situation, reminiscent of a deflationary spiral, dates back to COVID-19, when businesses burned cash to stay afloat without revenue, only to find no real recovery post-pandemic.
Cash is king—In crisis and beyond
Ratt Trakulthai, Chief Marketing Officer of Food Passion, operator of Bar B Q Plaza, emphasized the ongoing importance of liquidity, not just during crises. The company remains financially stable and focuses on smart spending and ROI-driven marketing strategies.
SCG tightens financial management to boost resilience
Thammasak Sethaudom, CEO of Siam Cement Group (SCG), reported a Q1 2025 profit of 1.099 billion baht and cash reserves of over 43 billion baht, reflecting the group’s strengthened financial measures. SCGP, a packaging arm of SCG, also emphasizes cash flow and cost control, while preparing to leverage overseas production bases and explore high-potential export markets.
