Thai SME Confidence Index Climbs Above Baseline for First Time in Five Months
Thai small and medium enterprise confidence rebounded above baseline in July 2025 for the first time in five months, driven by government stimulus programs, though business owners worry about sustaining growth once support expires in Septem
Deputy Director Panita Shinwatcharoen of the Small and Medium Enterprise Promotion Office announced that the SMESI for July 2025 improved to 50.8 from 47.8 in the previous month, marking a return above the baseline level of 50.0 for the first time in five months. Despite lingering pressures from Middle East tensions affecting shipping costs and supply chains, the index recovered significantly thanks to government short-term economic stimulus, particularly the Thailand Helping Thailand Plus programme delivered through the Paotang mobile app. The trade sector index reached 52.0 while services rebounded to 50.9, with three-month forward confidence rising to 52.9 for the August to October period, reflecting optimism about the year-end tourism season.
However, entrepreneurs remain cautious about consumer purchasing power once the Thailand Helping Thailand Plus programme expires in September, and cost pressures continue to weigh. Nearly 82% of SMEs report strain from fuel, electricity, raw material, and online platform fees, with over half facing digital costs exceeding 15% of sales revenue. About 43% of entrepreneurs have called on government to design simpler, faster, and more precisely targeted support measures to address sustained cost burdens.
Government procurement represents a significant opportunity worth 1.3 to 1.8 trillion baht annually. The office and the Comptroller General's Department have successfully promoted the Thai SME GP scheme, achieving over 600 billion baht in SME government procurement in 2024, representing 33.7% of total procurement value. Recent figures show SME procurement reached 371.245 billion baht, or 55.8% of total value, with over 180,000 participating enterprises. To expand opportunities and prevent large businesses from misusing SME privileges, the office and Comptroller General's Department are revising the Thai SME GP criteria effective October 1, 2025 in three key areas: offering a 10% price score bonus for SMEs verified through ultimate beneficial ownership (UBO) checks; adding a 5% price bonus for SMEs issuing electronic tax invoices to promote digital adoption; and adjusting cumulative contract value criteria from size-based limits to a combined ceiling of 500 million baht.
