SME loan demand deteriorates in Q1Confidence among small and medium-sized enterprises (SMEs) fell sharply in the first quarter, driven by mounting concerns over rising costs linked to the energy crisis and a slowdown in lending, according to the latest survey by the SME Development Bank of Thailand (SME D Bank). The decline was attributed to concerns over rising oil prices and higher production costs, which have affected orders and business operations. As a result, 62.2% of SME loan demand remains focused on working capital to maintain liquidity and cope with rising energy costs, rather than on expansion. Mr Phichit said global energy volatility caused by geopolitical tensions has led to higher production costs across the business sector. The programmes include: the SME Green Productivity Loan, with a maximum loan of 30 million baht for investment in clean energy machinery and equipment; the Beyond SME Loan, with maximum lending of 30 million baht to enhance business efficiency; and the SME Empowerment Loan, with a cap of 1 million baht per recipient, supporting small firms in accessing funding without collateral.

Source: Bangkok Post March 24, 2026 23:17 UTC