The exciting future of Thai SMEs in 2020

March 6, 2020

• Developments in EEC expected to spur SME growth
• Stimulus ready to ensure growth remains on track

Small and Medium Enterprises, unlike what its name suggests, have a massive and consequential contribution in generating 43% of Thailand’s GDP in 2019. The growth of private consumption is poised to increase in momentum, driven by a rise in both farm and non-farm incomes and an increase in non-farm employment. Coupled with the acceleration of Public Private Partnership (Fast Track), investments in infrastructure projects will heighten, SMEs are expected to ride on and grow with the spurred consumption and infrastructure spending.

The Office of SMEs Promotion posted a positive expected SMEs’ Trade and Service Sentiment Index. This reflected the positive sentiment amongst SME entrepreneurs, largely contributed by the positive effect from the development of the Eastern Economic Corridor (EEC). Many businesses share the view that their revenue growth is expected to grow with the positive progress in the eastern provinces of Rayong, Chon Buri and Chachoengsao.
This positive sentiment is further supported by the increased digital readiness due to the onset of digital transformation of Thai SMEs that begun a couple of years ago. According to a study by Cisco Systems, Thailand’s SMEs ranked third in digital readiness in ASEAN. Empowered by greater digital and IT capabilities, Thai SMEs are poised to increase their revenue and reduce their costs as they are more able to capture greater market share and implement cost savings.

Stimulus package on the pipeline

Unfortunately, one of the major headwind SMEs will face would be from the COVID-19 and the uncertainties from the global trade wars on Thai SMEs. The Tourism Authority of Thailand expects a fall in foreign visitors and tourism revenue. While the National Economic and Social Development Council revised its forecasts for 2020 economic growth to 1.5%-2.5% from 2.7%-3.7%.

However, these headwinds are to be mitigated by the government, according to Suachai Panitchapakdi, former chief of the WTO, the government has maintained a healthy level of capital in its reserves and will be able to deliver stimulus packages if need be. The finance minister has also announced this month that the government stimulus should start in April after the passage of a delayed 3.2 trillion Baht budget bill.

Additionally, the Thai government has been focusing on domestic growth and investments which has shifted the over reliance on global demands. There has been an increase in improving infrastructure, connecting people and linking it to trade through the government’s aggressive push to develop the Eastern Economic Corridor, improving bilateral trade relations with Cambodia, Laos, Myanmar and Vietnam through investments in infrastructure. Thai SMEs will be also be able to utilize and enjoy tax privileges and financial support given by the government. This will help increase net profit margins for local SMEs.

Regionally, Thai SMEs will also be able to take advantage of the reduction of trade duties, free flow of investments and capitals due to the fruition of the Asean Economic Community established in 2015. This will allow greater export volumes and larger market penetration into the region, especially with the expansion of export infrastructures in the EEC.

All in all, 2020 is a year that puts SMEs on an inflexion point where developments in EEC and ASEAN will thrust growth. Hence, investing in SMEs should not be missed in this crucial year.

Sinwattana has many Equity crowdfunding deal flows for you to ride on the growth of SMEs and many of Sinwattana’s deals are set for expansion and high revenue growth multiples. Speak with our investments team at 02-233-3723 or email us at to find out more. 

Investors who register on the Sinwattana platform will experience a deep dive into Thailand’s investment landscape and enjoy multiple new investment opportunities in the coming year. To join Sinwattana as an investor, click here.

About Sinwattana: Sinwattana is Thailand’s Securities Exchange Commission (SEC) approved equity crowdfunding platform for local/international retail and accredited investors. Managed by a team of seasoned investment professionals and led by serial entrepreneur, Hong Sin, Kwek, Sinwattana filters and curates companies for investors to invest. Sinwattana provides support to its portfolio companies by creating growth opportunities through its network of strategic partnerships. Sinwattana’s goal is to revolutionize the business economy by evolving the sources of funding, organised around the belief that “Never Let Funding Be Your Showstopper”, empowering the next generation of businesses and investors. For more information, go to