Rising household debt, increasing non-performing loans among small and medium-sized enterprises (SMEs) and strengthening of the baht are all compounding the problems. Higher bad SME loans and household debts have been cited as among the key reasons for the lack of consumption to drive economic growth. The SME sector plays a vital role in the development of the economy all across this region. Experts have warned the SME sector to be more innovative in its product range while looking at ways to hedge their exposure to foreign exchange volatility. Domestic consumption could help push economic growth but the SME sector needs to be revived first.

Source: Bangkok Post July 22, 2017 22:07 UTC