The government’s economic stimulus measures, which are scheduled to be rolled out in the final quarter of this year, are expected to help boost business confidence and increase the demand for loans among small and medium-sized enterprises (SMEs).
Pichit Mitrawong, president of the Small and Medium Enterprise Development Bank of Thailand (SME D Bank), said confidence among SME entrepreneurs in the fourth quarter is expected to rise, while loan demand is likely to double compared to the third quarter.
He cited a joint survey conducted by the bank’s Research and Data Center and Excellent Business Management Co on “SME Entrepreneurs’ Confidence Index toward the Economy and Business in the third quarter of 2025 and Future Outlook,” which covered 500 SME entrepreneurs nationwide, across all industries.
The SME confidence index forecast for the fourth quarter of 2025 indicates a more optimistic business outlook, with the index rising to 80.6 compared to 67.1 in this year’s third quarter. This was driven by expectations of higher sales, supported by anticipated government policies to stimulate economic recovery, encourage investment, and promote business expansion, especially among SMEs.
Tourism confidence is likely to continue to grow with the arrival of high season, which will help boost domestic and international tourist spending.
Additionally, the SME confidence index for the fourth quarter of 2025 improved across all regions. The western region recorded the highest level at 90.0, followed by Bangkok and the metropolitan area at 86.9, and the northeastern region at 81.8. The index also increased across all business sectors, particularly tourism services, manufacturing, and construction, reflecting optimism about economic recovery towards the end of 2025.
In the third quarter of 2025, the SME confidence index stood at 67.1, up from 57.3 in the second quarter, supported by the “Tiew Thai Khon La Khrueng” co-payment scheme, which boosted orders, services, and business performance. The micro-enterprise group saw the greatest increase in confidence, benefiting from stronger domestic purchasing power and more widespread income distribution, aligning with tourism services which stood out as the strongest sector.
However, many entrepreneurs still expressed concern about the influx of cheap products from China, Vietnam and India, which threatens their business by taking market share and forces them to cut prices to stay competitive.
For the fourth quarter of 2025, SME loan demand is expected to rise compared to the previous quarter, both for working capital and investment purposes. Together, these account for over 42.2% of loan demand, up from 21.2% in the previous quarter. Tourism businesses in particular showed the highest increase in loan demand, reflecting their readiness to capture the opportunities of the high season, with micro-enterprises also showing rising demand for credit.
Mr Pichit added that in response to this demand, SME D Bank is prepared to provide support by offering loan products in line with government policies for all SME groups, especially tourism.
These loans will support investment, expansion, and improvement projects to meet the needs of the high season, enabling businesses to deliver products and services effectively to both Thai and foreign tourists. The bank will offer these loans at a special fixed low annual interest rate of 3% for the first three years.
