The size of SMEs' firstquarter business increased 11 per cent year on year to Bt955 billion and will likely expand 3.84.2 per cent for the full year, the Office of Small and Medium Enterprise Promotion said yesterday.
Directorgeneral Yuthasak Supasorn said SMEs would grow in line with the overall economy. SMEs' 11percent performance was close to the 12 per cent enjoyed by the overall economy in the quarter. The overall economy should expand 44.5 per cent for the full year.
"SME expansion is due largely to the overall economic recovery. Exports have risen continuously since early this year, Thai Khemkhaeng stimulus funds are being disbursed, and crop prices have improved," he said.
Still, SMEs took a big hit from the recent political turmoil, which caused figures for tourism and domestic consumption to plunge. And severe drought is hurting the agricultural sector.
Last year saw 41,220 SMEs set up, down 3.57 per cent from 2008.
In January of this year, with the economy picking up and consumption increasing, 4,641 SMEs were established, up 40.5 per cent year on year. In February, the number increased 35.8 per cent year on year to 4,493.
Thai National Shippers' Council (TNSC) chairman Paiboon Ponsuwanna said with demand in all corners of the world picking up, Thai SMEs should focus more on export markets.
However, they should not focus on major ones like Europe, the United States and Japan, but rather on smaller markets.
For higher bargaining power against baht appreciation and higher shipping rates, SMEs should set up a group or become TNSC members.
Paiboon said rates for the ThaiUS and ThaiJapanese routes had increased by US$800 to $1,000 (Bt26,100 to Bt32,600) per container for the period from May 2010 to April 2011.