The Thai and global economies are grappling with significant instability caused by a mix of factors, including the lasting effects of tariffs from the Trump era, escalating geopolitical tensions, and weakening confidence among investors and consumers. These pressures have led to reduced consumer spending and a cautious approach from businesses, particularly in the real estate sector, which was already facing a slowdown and was further impacted by a recent earthquake.
Event organizers, who rely heavily on cash flow, are facing their worst liquidity crisis in a decade. Payment delays from both government and private clients have created a ripple effect, severely impacting organizers and suppliers alike.
“Without adequate liquidity, businesses won’t just slow down—they’ll come to a halt,” warned Prasert Taedullayasatit, President of the Thai Condominium Association. While conditions in the first quarter of 2025 were better than in the previous quarter, businesses and consumers are still holding back due to ongoing uncertainty. A major concern is the potential impact of U.S. policies on Thailand’s real estate market.
In response, businesses are focusing on conserving cash, postponing new investments, and managing debt obligations carefully, particularly corporate bonds. Some are restructuring loans and seeking support from the central bank to survive.
Real Estate Sector Struggles with High Rejection Rates
Sunthorn Sathaporn, President of the Housing Business Association, revealed that mortgage rejection rates have surged from 5–10% before COVID-19 to 45% now. As buyers struggle to secure loans, developers have paused new projects, leading to a freeze in demand.
Several proposals are being considered to restore confidence. These include cost-cutting measures by developers, more competitive pricing, improved credit profiles for buyers, and flexible mortgage terms from financial institutions—such as emergency mortgage insurance. A notable proposal is the “Khun Ku, Rao Chuay” scheme, which would offer 0% interest on home loans under 7 million baht for the first three years, subsidized by the government.
Event Industry Faces Severe Cash Shortages
Upathum Nisitsukcharoen, President of the Creative Event Business Association, stated that the event industry is in a near-crisis state due to cash shortages and delayed payments. This situation, rooted in the cash burn during the COVID-19 pandemic, has prevented the industry from fully recovering even post-pandemic.
Liquidity Remains Key for Business Survival
Ratt Trakulthai, Chief Marketing Officer of Food Passion, operator of Bar B Q Plaza, emphasized the importance of liquidity beyond times of crisis. The company remains financially stable by focusing on smart spending and marketing strategies that ensure a strong return on investment.
SCG Strengthens Financial Position
Thammasak Sethaudom, CEO of Siam Cement Group (SCG), reported a Q1 2025 profit of 1.099 billion baht and cash reserves exceeding 43 billion baht, thanks to stronger financial management. SCGP, the group’s packaging arm, continues to prioritize cash flow and cost control while exploring new opportunities in overseas production and high-potential export markets.
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