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The problem could get worse as the Bank of Thailand Act no longer allows the central bank to perform the role of a low-cost liquidity provider. Therefore, small- and medium-sized firms will have to seek funding sources from the commercial banks, which have recently conducted screenings to avoid non-performing loans.

This is a big issue that the government and those financial authorities responsible should be prepared to deal with. Small- and medium-sized companies should be the foundation of the economy. The proportion of Thai small- and medium-sized firms is small compared to big industries.

If the liquidity crunch happens, it will further erode the competitiveness of smaller entrepreneurs because their companies are not in a position to use other financial instruments such as bond issues to finance their business expansion.

The government will need to consider options on how to help these companies. For instance, the government will have to accelerate using the fiscal budget in projects that create employment.

The Bank of Thailand's Monetary Policy Committee will have to seriously consider whether it's time to lower the interest rate, as the inflation threat has subsided.

And most important of all, these small- and medium-sized firms will have to learn to manage their resources wisely to survive the current economic turmoil.