Panel says export boom not reaching small companies

The Joint Standing Committee on Commerce, Industry and Banking (JSCCIB) is exploring new measures to support small and medium-sized enterprises (SMEs) that have yet to fully benefit 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, said 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.

In May, capacity utilisation was only 59.6%, according to the Office of Industrial Economics.

Many SMEs outside the formal system are also missing out on the benefits of economic growth.

To address this, the JSCCIB plans to work 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 said.

A recent survey conducted with the Stock Exchange of Thailand found that revenues at around 330 SME companies have continued to decline, pressured by the economic slowdown and intensifying competition.

This stands in contrast to Thailand's export sector, which the JSCCIB expects to grow by 8-10% this year.

Pimjai Leeissaranukul, chairwoman of the Federation of Thai Industries, said 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.

On infrastructure, Poj Aramwattananont, chairman of the Thai Chamber of Commerce, said 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, which it views as a more sustainable alternative.