Flood damage in southern provinces could cost SMEs up to 15 billion baht: OSMEP

The Office of Small and Medium Enterprise Promotion (OSMEP) has assessed that the flooding in seven southern provinces is causing massive economic damage, particularly in Hat Yai, Songkhla, a hub for hundreds of thousands of SMEs.

Wittawat Lamsam, Assistant Director of OSMEP, stated that the daily losses for SMEs in Hat Yai alone amount to approximately 1.5 billion baht. If the situation continues for a month, total losses could reach 10-15 billion baht, putting SMEs in a severe crisis, with no income and increased costs, potentially rendering many businesses unsustainable.

There are over 200,000 SMEs affected by the flooding in the seven provinces, primarily businesses such as shopfronts, retailers, and those with significant inventory. These businesses are facing challenges in terms of both operations and stock losses.

Wittawat further explained that the OSMEP is speeding up recovery measures to prevent the damage from escalating into a regional economic crisis. These urgent measures include:

• BDS (Business Development Support) initiatives: Increasing the financial aid ceiling from 200,000 baht to 500,000 baht to help businesses repair their facilities and recover essential costs.
• Exclusive public procurement rights: Allowing SMEs in the flood-affected provinces, particularly Hat Yai/Songkhla, to access government contracts first, ensuring a quick flow of income back into the economy.
• Business recovery loans: Providing urgent liquidity to purchase new stock and repair equipment, aiming to get businesses back on their feet as quickly as possible.

"Immediate assistance is critical before the damage worsens into a long-term burden," Wittawat added. "We are working with several agencies to implement these measures and respond to the rapidly deteriorating situation."