Summary of Concerns & Proposals Regarding Thaiโค SMEs & restaurant Businesses (100% Origin)
this document details โteh concerns of Mr. Sorathep Rojpojanarat, President of the Restaurant Businessโ Owners Club, regardingโ the economic โคchallenges facing Thai SMEs, particularly restaurant businesses, โขand โproposes solutions for government โคsupport. His views align with the โgovernment’sโ direction of investment,especially in renewable/clean energy and related international trade.
Key Concerns:
* โค Impending Cash Flowโ Crisis: Restaurants, especially SMEs, are facing a critical cash flow โขshortage expected to worsenโ substantially in early 2025 due to slow tourism andโค a weak โeconomy. Manny have only 3 months of โขoperationalโข funds remaining.
* Collateral Issues: Entrepreneurs lack sufficient assets for collateral,โข having already used them to secure loans during the COVID-19 pandemic.
* โฃ Rising SME Debt: โฃOverdue debt (Stage 2) is upโข 15% and bad debt (Stage 3) isโ up 9%, indicating a fragile system with many businessesโฃ operating โas “zombies” and at risk of becoming Non-Performing Loans (NPLs).
* Access to Capital: The loan application process is overly complex, leading to frequent rejections despite โinitial investment in design โฃand construction, causing meaningful financial damage.
*โฃ Digital Adaptation Challenges: Whileโ supportive of government initiatives like digitalโค platforms andโ POS systems, many small, older, and non-VAT registered restaurants are not โyet prepared for theseโ changes andโ require support and understanding.
Proposed Solutions & requests to the government:
*โ Dedicatedโ Credit Line: โ Establish a specific credit line ofโข approximately 30 billion baht specifically โฃfor restaurant businesses,separate from general SME loans,to ensure direct access to funding.
* โฃ low-Interestโฃ Loans โข& Guarantees: Continueโ and expand the Ministry of Finance’s low-interest loan (soft โขloan) measures and TCG โguarantees,recognizing โthe lack of collateral.
* Debt Relief Measures: Implement a temporaryโค suspension of principal payments, allowing businesses to pay only interestโข for 1-2 years, followed by a gradualโ return to full payments, to prevent โNPL status.
* โฃ Simplified Loan Criteria: Adjust loan application criteria to make it easier for SMEs to access credit โand strengthen the overall โขeconomy.
* Support for Digital Transition: Provide understanding and compensation to help smaller,less digitally-equipped restaurantsโ adapt to new technologies.
* Investment Support: The speakerโฃ acknowledges and supports the government’s investment direction, particularly regarding renewable/clean energy and its link โฃto international trade, but emphasizes the need for โคaccessible funding to enableโ SMEs to participate and benefit.
In essence, Mr. Sorathep advocates for increased liquidity and financialโค support for SMEs, particularlyโข restaurants, toโ navigate current economic challenges and capitalize โon government-supported investment opportunities. He stresses โขthe importance ofโฃ addressing the systemic issues hindering access to capital and facilitating a smooth โtransition to โขnew technologies.