SMEs look to each other for funding

Small and mid-cap firms are facing greater obstacles in accessing funds through traditional channels, prompting them to forge strategic collaborations and pursue mergers and acquisitions (M&As) to survive the economic turbulence.

- NUNTAWUN POLKUAMDEE

The MAI Listed Company Association (maiA) said many small and medium-sized enterprises (SMEs) may need to rely on M&A or business partnerships to weather the crisis.

A growing number of listed SMEs are facing liquidity constraints this year due to tightened lending by financial institutions and cautious investor sentiment, making it harder to raise capital through equity or bond markets, said Wirat Sukchai, president of maiA.

"Access to funding is severely limited this year, and many SMEs are running out of conventional options. Banks are more cautious with lending, and both stock and bond markets are challenging for smaller firms due to perceived business risks," he said.