Thailand: SMEs' confidence rises

[webfact]

SMEs' confidence rises



BANGKOK: -- Confidence of small-and-medium enterprises (SMEs) rose for the first time since mid last year as political concerns eased after the miltary takeover, and subsequent supporting policies, according to TMB Bank's economic analysis center.

The rising confidence of SMEs was revealed by Mr Bencharong Suwannakhiri, the director of TMB Analytics, a research unit of TMB Bank, in the TMB SME Sentiment Index survey of 1,177 SMEs in 71 provinces. across the country.

The survey showed SMEs confidence in third quarter rose 1.4 points from 36.6 to 38.0, which was the first increase since the index began to contract in mid-2013.

The improvement was especially apparent for businesses in the Central Region and Greater Bangkok.

However, the index remains well below 50 points, meaning that the SMEs were still not very confident, attributing lackluster regional economy which weighed on consumer spending power.

But SMEs believed that the situation would improve over the next three months due to an expected improvement in the economy that will be brought about by clearer government policies.

The survey also revealed that the index measuring political concerns showed a significant improvement in the third quarter of 16.8 points from 37.8 in the previous quarter.

SMEs in the agricultural sector showed the most concerns about business income following sharp declines in the prices of several farm products.

In a sub-index of regional business income, the South posted the lowest level at 36.9 during the July-to-September period, compared with 36.8 in the previous quarter, in accordance with falling prices of its key products such as rubber and oil palm.

The confidence in income of Northeast SMEs fell to 39.1 from 48.4, the Central region edged lower to 39.2 from 40.9, and the North decreased to 43 from 44.9.

The agricultural sector accounts for about 10% of GDP and 40% of employment.

Mr Benjarong said SMEs’ worries about income due to falling crop prices could have an impact on SME loans of the banking industry.

He disclosed that banks recently faced higher bad SME loans as a result of the rice pledging scheme, but the problems at the moment were from economic factors, particularly the decline in agricultural prices in line with their global slowdown.

But he expected GDP growth this year will be lower than the research unit’s projection of 2%, as effects from the government’s stimulus package will be delayed to next March.

However the 2015 economic growth forecast at 4%, will be maintained, citing government investments are main drivers.

Source: http://englishnews.thaipbs.or.th/smes-confidence-rises/


-- Thai PBS 2014-10-28

[RustBucket]

Absolute rubbish.

How did the shenanigans on the streets of BKK pre coup have any effect on an SME?

It is all about how much money the consumer has in the pocket.

More like the last government withholding 120 Billion baht from farmers slowed down local economies in rural Thailand. That's about it.

But goes to show just how fragile the Thai economy is doesn't it.

Imagine what will happen when the Chinese economic bubble bursts and the US economy tanks at the same time Thailand is entering the AEC. Next year is promising to be a very interesting year in economics.

[marcusd]

T thai M military B bank says it all.

SME have confidence? I live in Chiang Mai just back fro Bangkok. I do not think too many SME's are happy about the situation and Hotels are not that busy and we are only a little while away from Loy Kratong when Hotels are usually 75% plus full at this time of year.

it is going to be very interesting as I do not think the average mr and mrs Thailand has enough spending power to create a self sustaining economy

[Chris Lawrence]

'The Director-General of the Office of Small and Medium Enterprises Promotion, Mr. Patima Jeerapaet, said that there are currently 2.74 million SMEs, accounting for 98.5 percent of all enterprises in Thailand. They generate employment for 11.78 million people, representing 80.4 percent of the country’s total employment.'

'They account for more than 96 percent of all enterprises and 50 percent to 85 percent of domestic employment in ASEAN. The contribution of SMEs to GDP in this region is between 30 percent and 53 percent and the contribution of SMEs to exports is between 19 percent and 31 percent.'http://thailand.prd.go.th/view_news.php?id=7063&a=2

From a 2013 report, but the figures above sound important to GDP and employment.

'During the 10-month period, Thailand saw the registration of almost 60,000 new SMEs. The number accounts for a rise of 13.5 percent over the same period of the previous year. A total of 11,070 SMEs suspended their operations during the same period. This number represents a decline of 2.4 percent.' was also reported.

The survet above sounds for show.

So how many SME's failed which is attributed to the rice pledging scheme? Now that would be more interesting?

[rickirs]

There is a maximum score of 100 for the index. Scores above 50 indicate positive sentiment. Conversely, scores below 50 indicate negative sentiment.

Some other comments made by Suwannakhiri:

- "weak confidence among SMEs in their capability to generate revenue in the third quarter was largely due to the low prices of key crops such as rubber, rice and maize."

- "Low crop prices goods have affected agricultural operators' incomes, which in return reduces the consumption of durable goods, such as pickup trucks, motorcycles and home appliances."

- "In terms of the supply chain, meanwhile, less agricultural machinery and agrichemicals is purchased due to reduced incomes ..."

- "However, the confidence index regarding the capability to generate revenue in the third quarter declined to 42.1 points from 44.7 in the previous survey, due to concern over the economy and competition, which became the most worrying factor among SMEs, taking over from political affairs."

- "Concern over economy and competition jumped to 48.1 points from 31.1 previously, while worry over political matters improved to 16.8 points - from 37.8 in the prior quarter."

- "While the government's measure to help farmers has maintained their short-term revenue, it is not enough to get them back on an income-growth path"

This does report lend to a great amount of optimism for 2015.

[Thai at Heart]

11.78 million people, representing 80.4 percent of the countrys total employment.'

Huh?

There are only 13mn total employees in the country?

[Thai at Heart]

There is a maximum score of 100 for the index. Scores above 50 indicate positive sentiment. Conversely, scores below 50 indicate negative sentiment.

Some other comments made by Suwannakhiri:

- "weak confidence among SMEs in their capability to generate revenue in the third quarter was largely due to the low prices of key crops such as rubber, rice and maize."

- "Low crop prices goods have affected agricultural operators' incomes, which in return reduces the consumption of durable goods, such as pickup trucks, motorcycles and home appliances."

- "In terms of the supply chain, meanwhile, less agricultural machinery and agrichemicals is purchased due to reduced incomes ..."

- "However, the confidence index regarding the capability to generate revenue in the third quarter declined to 42.1 points from 44.7 in the previous survey, due to concern over the economy and competition, which became the most worrying factor among SMEs, taking over from political affairs."

- "Concern over economy and competition jumped to 48.1 points from 31.1 previously, while worry over political matters improved to 16.8 points - from 37.8 in the prior quarter."

- "While the government's measure to help farmers has maintained their short-term revenue, it is not enough to get them back on an income-growth path"

This does report lend to a great amount of optimism for 2015.

Since when is a rubber middle man considered an SME?

Farmers sell to middlemen who sell to factories? They consider the middle men SME? What a load of guff? Or they consider a farmers and SME? Well that's even more stupid.

Or they consider the factories to be SME? Well they are all multi billion baht businesses so they aren't SME.

Might be better to stop considering agribusiness as anything to do with an SME. Smallhold farming is not an SME. It is farming. Very weird survey.

[Robby nz]

11.78 million people, representing 80.4 percent of the countrys total employment.'

Huh?

There are only 13mn total employees in the country?

That is only those employed by others on a formal basis.

It does not include self employed like farmers, fishermen, stall holders, contractors or small businesspeople.

Look around outside of the big cities and you will see that they make up the bulk of the employed.

[Thai at Heart]

11.78 million people, representing 80.4 percent of the countrys total employment.'

Huh?

There are only 13mn total employees in the country?

That is only those employed by others on a formal basis.

It does not include self employed like farmers, fishermen, stall holders, contractors or small businesspeople.

Look around outside of the big cities and you will see that they make up the bulk of the employed.

But they talk about farming income being an issue. So are farmers in there or not. So what is the definition of an SME. There are more than 12 million formal employer people in the country. But what is the definition of an SME, because it appears to me that they have a very very broad definition in this case in order to get to 11 mn employed.

This must be covering everything from a restaurant to a builders merchant. The total economy has 11mn people that include farmer income considerations?

Massive double count in here.

What are the SMEs concerned about farming revenue? That to me is farmers.

[Christie Paul]

And the forecast for tonight is....

DARK!

[Cake Monster]

Give the SME,s Government subsidised loans and they are happy for the cheaper money.

= confidence.

[rakman]

New business motto:

We Suck Less!