Thai SMEs still optimistic on prospects

Greg Carstens, UPS Thailand country manager, and country marketing manager Monrudee Theeraworwit yesterday announce the results of the company’s latest survey, which found that heads of small and medium-sized enterprises in the Asia-Pacific viewed their

Although many Asia-Pacific executives of small- and medium-sized enterprises (SMEs) view their Thai counterparts as less competitive now than last year, most Thai SMEs are confident about future growth prospects, says a recent report by US-based express-delivery giant UPS.

Its "Asia Business Monitor 2008" survey said optimism remained high among 60 per cent of Thai SMEs, as they expect to perform better than last year. About 52 per cent expect to expand their workforce.

The annual survey has tracked the competitiveness of SMEs in 12 markets since 2005. Participants are from Australia, China, Hong Kong, India, Indonesia, Japan, South Korea, Malaysia, Philippines, Singapore, Taiwan and Thailand.

Only 44 per cent of 1,201 SME leaders in the survey rated Thai SMEs as having good prospects, down from 50 per cent last year.

"The Thai economy has remained stable despite changes in the political environment. Thais are very resilient, and this is shown through their optimism in the survey," said Greg Carstens, managing director of UPS Thailand.

The report said the best opportunities in Thailand were found in the manufacturing, automotive, agriculture, forestry and fishing industries.

Key weaknesses include poor government support, weak innovation and limited access to markets abroad.

Also lacking is the use of effective supply-chain management. Half of Thai SMEs in the survey are underusing, neglecting or not using supply-chain management.

"The fast-growing trend of e-commerce has opened completely new markets and forced the international trading system to adapt," said Carstens.

UPS is positioned to help Thai SMEs become more competitive by leveraging its expanded capabilities from express package delivery to total supply chain and e-commerce tools, he said.

The report identified a critical shift in the top three business concerns of Thai SME leaders.

Last year, local SMEs were most concerned with the quality of products and services. This year, the issue of political and economic stability (57 per cent) is keeping most of them awake at night, followed by retention of quality employees (55 per cent) and customer loyalty/retention (46 per cent).

Regarding drivers for the recovery of the Thai economy, Thai SMEs feel that education (59 per cent) and government support (47 per cent) will most help the economy recover and catch up with its neighbours.

Other highlights in the report include:

lUS economic woes create uncertainty in the region. The possibility of a downturn in the United States is creating anxiety among SMEs. Forty per cent of Thai SMEs are concerned their businesses will be hampered by such an event.

lWhile fewer SMEs regard China as a threat compared with last year, the survey showed that mixed feelings still linger. SMEs in Thailand feel China presents both a boost and a threat.

lAn overwhelming 81 per cent of SMEs polled feel the government should take a more active role in sustainability, while 51 per cent said they want large corporations to take on more responsibility. About 71 per cent of Thai SMEs think it is the responsibility of individual citizens to foster change.

lThe majority of SMEs have not been affected by a recent global crackdown on food and product safety. Thai SMEs (20 per cent) feel their businesses have been hampered, due to pressure to comply with international standards.

The "Asia Business Monitor 2008" surveyed 1,201 company owners, proprietors, CEOs, managing directors and other top management.

Based on the findings, UPS held a symposium on how SMEs in Thailand can gain easier access to the international commerce and how good supply-chain management can improve overall operations and reduce costs.

Themed "E-Commerce: Gateway to World Market for Thai SMEs", it featured a number of industry veterans on topics relating to e-commerce opportunities, effective fund management and ways to build branding.