Hat Yai Businesses Seek 40m Baht Flood Recovery Loans

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Businesses in Hat Yai, Thailand, are urging the government to increase flood recovery loans to 40 million baht per firm. Only 20% of affected businesses have reopened after severe flooding. The local economy remains in crisis, with many shops suffering extensive damage.

The Songkhla Chamber of Commerce President, Songpon Changsirivathanathamrong, highlighted the city's economic woes. Damage to electrical systems and infrastructure has hampered recovery efforts. The current loan ceiling of 1 million baht is deemed insufficient, with calls for a higher limit and 0% interest for six months.

Songpon outlined possible recovery scenarios: a quick V-shaped rebound, a K-shaped recovery favoring large firms, or an L-shaped decline resulting in prolonged stagnation. He suggested initiatives like the “Let’s Go Halves Plus” scheme to boost tourism and utility relief to support struggling businesses.

Sittipong Sitthipatprapha, of the Hat Yai-Songkhla Hotel Association, reported 3 billion baht is needed for rehabilitation, with only 50-60% of hotels reopened. Tourist arrivals through the Sadao checkpoint are low, and efforts to revive tourism are critical. Sittipong emphasized continuous national-level activities and stimulus during festivals.

Sivath Suwannawong from the Songkhla Tourism Industry Council noted tourist volumes are at 10% of normal, stressing the need to reduce bureaucratic barriers. He highlighted private-sector initiatives, including using platforms like LINE MAN Wongnai, to support damaged restaurants and maintain economic activity until government aid arrives, reported The Nation.

Key Takeaways

• Businesses in Hat Yai seek increased recovery loans following severe flooding.

• Proposed government support includes a tourism co-payment scheme and utility relief.

• Private-sector initiatives are crucial for short-term economic stability until aid is distributed.

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Adapted by ASEAN Now from The Nation 2026-01-07