UTCC: SME competitiveness yet to improve in Q1

BANGKOK, 27 May 2016 (NNT) – The University of the Thai Chamber of Commerce (UTCC) has reported a slight reduction in the competitiveness of Thai SMEs in the first quarter but expects them to be more productive this year.

Mr Thanawat Polvichai, Director of the Center for Economic and Business Forecasting at UTCC, disclosed results of a survey on the SME competitiveness index for the first quarter this year, saying the index edged down to 48.4 from 50 during the same period last year.

He said the lack of improvement signified that operators were continuously affected by the prolonged drought, low agricultural product prices, soaring household debt, strict lending criteria of financial institutions and global economic slump. All the negative factors have hampered sales and revenue of SMEs while the competitiveness index is projected to slip further to 48.1 in the second quarter.

However, Mr Thanawat is hopeful that the government’s announcement of SME promotion as a national agenda and issuance of stimulus measures, coupled with tourism growth and a rebound in rubber prices, will help boost the growth of SMEs’ productivity to 3.9-4.6 percent, compared with 3.6 percent recorded last year.


-- NNT 2016-05-27

Productive and Competitiveness are two totally different words which the author appears to have confused. Thailand will not accept competitiveness and goes out of its way to stop it. Eventually it will happen not by design but by necessity.

UTCC: SME competitiveness yet to improve in Q1

He said the lack of improvement signified that operators were continuously affected by the prolonged drought, low agricultural product prices, soaring household debt, strict lending criteria of financial institutions and global economic slump. All the negative factors have hampered sales and revenue of SMEs while the competitiveness index is projected to slip further to 48.1 in the second quarter.

-- NNT 2016-05-27

So nothing to do with the facts that alot of SMEs continue to operate inefficiently and produce poor quality goods/services that nobody wishes to purchase.

I hasten to add there are alot of exceptions to the above statement too.

How does one index competitiveness in Thailand?

Edited May 27, 201610 yr by wabothai

Mr Thanawat is hopeful that the government’s announcement of SME promotion as a national agenda and issuance of stimulus measures

The Prayut government has made promotion and support of SME's a major goal for the last 12 months. But apparently the billions of baht spent and income tax relief has had NEGATIVE effect on their ability to compete. I suspect this so-called competitive index will continue to fall as more ASEAN SME's enter Thailand to compete against Thai homegrown SME's.

Edited May 27, 201610 yr by Srikcir

"BANGKOK, 27 May 2016 (NNT) – The University of the Thai Chamber of Commerce (UTCC) has reported a slight reduction in the competitiveness of Thai SMEs in the first quarter but expects them to be more productive this year."

There always seems to be a 'but expects' with these people. The time-honoured art of bet-hedging.

W

Edited May 27, 201610 yr by Winniedapu