Small-size and low-tech firms have suffered the most from the COVID-19 crisis, according to research conducted by the United Nations Industrial Development Organization (UNIDO), part of the United Nations Country Team in Thailand.
The Impact Assessment of COVID-19 on the Thai Industrial Sector, highlights that small-size and low-tech firms have suffered due firstly to reduced orders and secondly to a shortage of inputs including raw materials due to the disruption of the supply chain.
Reduced orders have led to a fall in revenue, which has compounded the shortage of cash flow, leaving small firms struggling. If containment measures are extended for a longer period, nearly half of the small size firms could be severely impacted.
Firms do not see laying off of employees as a primary coping measure. Cutting operational costs, accessing loans, and using technology are preferred options to deal with the immediate impact of the pandemic.
Deferment of tax payments, reductions of social contributions and operational costs, including rent and utility payments, and improved loan terms are amongst the supportive measures most preferred from the government.