Clients – both government and private – are delaying payments, triggering a domino effect that affects organisers and suppliers alike. — The Nation
BANGKOK: The Thai and global economies are facing intense instability from a mix of risk factors: the lingering impact of Trump-era tariffs sparking trade wars, escalating geopolitical conflicts and weakening investor and consumer confidence.
These dynamics have pushed consumers to tighten spending and businesses to adopt a “wait and see” stance – particularly in the real estate sector, which was already slowing and further hit by a recent earthquake.
Additionally, event organisers, whose business models rely heavily on cash flow, are also experiencing the worst liquidity crisis in a decade.
Clients – both government and private – are delaying payments, triggering a domino effect that affects organisers and suppliers alike.
“Without sufficient liquidity, businesses won’t just slow – they’ll stop completely,” warned Prasert Taedullayasatit, president of the Thai Condominium Association.
Furthermore, he noted that while conditions in the first quarter of the year (1Q25) were better than the trough in 3Q24, most businesses and consumers are still pulling back due to ongoing uncertainty.
The greatest concern now is the potential ripple effects of US policy on Thailand’s real estate market.
To survive, businesses are conserving cash, delaying new investments, and carefully managing debt obligations, especially corporate bonds.
Some firms are restructuring loans and relying on central bank support to stay afloat.
Housing Business Association president Sunthorn Sathaporn revealed that mortgage rejection rates have surged from 5% to 10% during pre-lockdown times to a concerning 45%.
With buyers unable to secure loans, developers are pausing new projects, freezing demand in the process.
System-wide proposals to restore confidence include developers cutting costs and pricing more competitively, buyers improving credit profiles and financial institutions offering more flexible mortgage terms – such as mortgage insurance for emergencies. — The Nation/ANN
