Economy
Thailand’s SME Competitiveness Index Declines in Q2 2026
The University of the Thai Chamber of Commerce reports a drop in SME competitiveness, with micro-enterprises facing the most significant challenges due to high operational costs.
According to a report from Khaosod Online, the University of the Thai Chamber of Commerce (UTCC) has released its SME Competitiveness Index for the second quarter of 2026. The index fell to 45.1, a decrease of 0.8 points from the previous quarter. Notably, all sub-indices—covering business conditions, operational capability, and sustainability—remained below the 50-point threshold, indicating ongoing fragility within the sector.
Thanavath Phonvichai, President of the UTCC, noted that while sales figures showed some improvement, profit margins remained stagnant due to high overheads, particularly fuel costs. Micro-sized businesses are currently the most vulnerable, recording the lowest index score of 43.1, compared to 47.8 for small businesses and 50.7 for medium-sized enterprises. By sector, manufacturing performed best at 49.1, bolstered by export growth, while the trade sector lagged at 44.9.
For residents and travelers, this economic climate may influence the pricing and availability of local goods and services. While the manufacturing sector shows resilience, the broader SME landscape remains under pressure. Observers are now looking toward the July-August period to see if declining fuel prices will provide the necessary relief to improve competitiveness. It remains to be confirmed whether these cost pressures will lead to significant changes in consumer prices or business closures in the coming months.
Translated from Thai.
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