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.
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.
To cope with these challenges, Mr Wirat said networking among SMEs could be the most viable solution. Companies facing differing challenges can collaborate through joint ventures or mergers that leverage their respective strengths.
The association's flagship event, MAI Forum 2025, serves as a platform for such collaboration. Held under the theme "Armed for Opportunity", the June 21 event at CentralWorld's Centara Grand Hotel gathers 119 Market for Alternative Investment (MAI)-listed firms and partners, offering opportunities for partnership discussions and capital connections.
"We will identify each company's pain points and encourage joint ventures during the forum. This is not just an investment event, but rather a survival toolkit," he said.
Seminar topics include investment portfolio restructuring, the impacts of US tariffs, and debt clinic sessions tailored to small business needs. High-potential companies that lack capital could attract investors during the event, said Mr Wirat.
The association expects 20-25 firms or 10-15% of MAI-listed companies to join Jump+, a programme initiated by the Stock Exchange of Thailand to support business expansion through strategic investment.
Prapan Charoenprawatt, president of the MAI, said its market capitalisation is 230 billion baht, with 224 listed companies across eight sectors. There are about 100 companies in the initial public offering pipeline to list on the MAI, he said.
"We expect the number of listed companies to reach 300 by next year, marking significant growth in Thailand's SME sector," said Mr Prapan.
Chakchai Boonyawat, fund manager at Capital Market Development Fund (CMDF), said the fund has co-sponsored this forum for several years and noticed increased interest from younger investors.
"SMEs contribute 70-80% of the Thai economy. These firms have different shareholder structures and strategic development paths compared with large corporates," said Mr Chakchai.
CMDF's role is to act as a financial intermediary to enable investors to connect with company executives and make informed decisions. Follow-up meetings and continuity from these engagements are key to increasing long-term investor interest, he said.
The MAI Forum 2025 provides a vital boost for SMEs seeking direction, funding and collaboration during challenging economic times, said Mr Chakchai.