Thai SME survey finds 50.4% expect cost rises in six months
An official survey finds 21.7% of Thai small and medium-sized firms opt to raise prices and 11.2% accept lower profits to retain customers.
- A survey by the Office of Small and Medium Enterprises Promotion (OSMEP) found that 50.4% of Thai SMEs expect their business costs to increase over the next six months.
- The primary drivers cited for the expected cost hikes are higher prices for raw materials, increased transport and logistics costs, and rising energy prices.
- In response to rising costs, the most common strategy for SMEs is to raise their own prices (21.7%), followed by cutting other expenses (12.7%) and accepting lower profits (11.2%).
A survey by the Office of Small and Medium Enterprises Promotion (OSMEP) found that 50.4% of Thai small and medium-sized enterprises (SMEs) surveyed expect business costs to rise over the next six months. Thansettakij reported the findings on October 24, 2026.
Sangchai Theerakulwanich, chairman for strategy at the Federation of Thai SMEs, told Thansettakij that rising costs were putting businesses under pressure as consumer purchasing power weakened.
For the six-month outlook, OSMEP found that 36.7% of Thai SMEs surveyed expected costs to remain unchanged, 9.6% anticipated a decline and 3.3% were unable to make a forecast.
21.7% of Thai SMEs opt to raise prices
Price increases were the most common response to rising costs in OSMEP’s survey, chosen by 21.7% of businesses. Another 12.7% chose to cut other expenses, while 11.2% opted to accept lower profits to retain customers.
Other responses in the Thai SME survey included negotiating prices with suppliers or business partners (7.8%), improving operating processes (7.8%), reducing staff or changing employment arrangements (6.8%), switching suppliers or raw material sources (6.3%) and cutting marketing expenditure (6.1%).
Further approaches selected by Thai SMEs surveyed included reducing production capacity (5.3%), lowering inventory levels (3.6%), delaying investment (3.4%), adopting digital technology to cut costs (3.3%), borrowing or finding additional funding (2.8%) and investing in machinery or automation to improve efficiency (1.2%).
Thansettakij’s report noted that Thai SMEs selling highly competitive products faced the risk of customers buying less when prices increased. Supplier negotiations, process improvements and technology were among the approaches businesses used to maintain competitiveness.
Raw materials and energy drive Thai SME cost pressures
Higher market prices for raw materials were the leading factor cited in OSMEP’s survey for increases in the cost of materials and goods, at 24.7%. Transport and logistics costs and energy prices were each cited at 11.7%, followed by stronger market demand (11.1%) and price adjustments by suppliers, business partners or other supply-chain participants (10.5%).
Other cost pressures identified in the Thai SME survey included global raw material prices and labour costs, each at 5.8%, material shortages or sourcing difficulties (5.1%), wars or international conflicts (4.4%) and import taxes or duties (3.7%).
Further factors cited in the Thai SME survey were government taxes and fees (2.9%), baht fluctuations (1.4%), online platform fees (0.8%), interest or financial obligations (0.3%) and new regulations or standards (0.1%).
Looking ahead over six months, Thai SMEs surveyed by OSMEP were concerned about electricity and fuel prices, transport costs, supplier price increases, exchange-rate volatility and inflation. Online advertising expenses and platform fees were also concerns.
Electricity bills were a heavy or very heavy burden for 7.3% of Thai SMEs surveyed by OSMEP, moderate for 39.9% and slight for 42.7%, while 10.1% could not assess the impact. Medium-sized enterprises were the most affected, followed by small and micro-enterprises.
SME financing difficulties compound flood disruption
Sangchai said Thai SMEs’ access to finance and liquidity had deteriorated for more than 16 consecutive quarters. Flooding had also disrupted business operations, creating further challenges for economic growth, financing business recovery and returning to normal trading.
The Thais Help Thais Plus programme had helped support smaller businesses, but coverage remained limited, particularly for grassroots enterprises, according to Sangchai.
Government assistance for Thai SMEs needed to meet four priorities, Sangchai said. Businesses wanted quick and easy access, targeted and comprehensive support, measures that strengthened competitiveness, and tangible results that could be sustained.
Sangchai calls for debt and energy pricing reforms
Sangchai called for structural reforms alongside immediate assistance for Thai SMEs, including action on household debt, bad debt and informal borrowing. Improving access to formal financial institutions and making electricity and fuel pricing more transparent and fair were also priorities.
Thailand’s transition towards higher-value economic activities should spread income and opportunities more widely, Sangchai said. Bringing SMEs into domestic and international value chains and supply chains would expand business opportunities and strengthen long-term competitiveness.
Sangchai called on the government to expand effective assistance programmes, set clear performance indicators, spend public funds prudently and ensure value for money. Coordinating support schemes to maximise productivity would help measures address SMEs’ actual problems and keep businesses operating through economic difficulties.
Source: Thansettakij
