Export Boom Fails to Reach Small Firms, Highlighting Thai Economic Gaps

The Joint Standing Committee on Commerce, Industry and Banking (JSCCIB) is exploring new measures to support small and medium-sized enterprises (SMEs) that are not fully benefiting from Thailand's robust export growth and rising foreign direct investment. Payong Srivanich, chairman of the Thai Bankers Association and chair of Wednesday's JSCCIB meeting, stated that while exports and investment are expanding, they have not translated into stronger employment or higher production in traditional industries. "Capacity utilisation remains low, reflecting limited momentum in the real economy," he said. According to the Office of Industrial Economics, capacity utilisation was only 59.6% in May, indicating sluggish momentum in the real economy. Many SMEs outside the formal system are also missing out on the benefits of economic growth. To address this, the JSCCIB plans to collaborate with the Federation of Thai SMEs to classify businesses in sectors such as retail, tourism, and energy, enabling more targeted government support. "This will allow the government to know what SMEs really need and provide the right assistance," Mr Payong explained. A recent survey conducted with the Stock Exchange of Thailand revealed that revenues at around 330 SME companies have continued to decline, pressured by the economic slowdown and intensifying competition. This contrasts with Thailand's export sector, which the JSCCIB expects to grow by 8-10% this year. Pimjai Leeissaranukul, chairwoman of the Federation of Thai Industries, noted that exports are being driven by booming demand for electronics and semiconductors linked to AI infrastructure. "Exports have increased to the point that GDP should rise by more than 2.3%, with employment also improving," she said. Despite this, the JSCCIB has maintained its GDP growth forecast for 2026 at just 1.6-2.0%, citing prolonged conflicts in the Middle East that have pushed up oil prices, freight costs, and global uncertainty. Inflation is projected at 2.5-3.0% this year. Regarding infrastructure, Poj Aramwattananont, chairman of the Thai Chamber of Commerce, announced that the JSCCIB opposes the government's proposed 1-trillion-baht Land Bridge project, warning of environmental and community impacts. "The project faces major ecological challenges, including biodiversity loss, which must be carefully considered," he said. Instead, the JSCCIB supports the "missing link" railway project connecting Chumphon and Ranong provinces, viewing it as a more sustainable alternative.