Thailand’s cabinet has approved a sweeping support package totaling 267 billion baht — roughly 8.3 billion U.S. dollars — aimed at rescuing small and medium-sized enterprises (SMEs) facing severe liquidity stress, the finance minister announced today.

The plan includes 217 billion baht in soft loans from state-owned banks and 50 billion baht in loan guarantees to ease funding constraints and reduce borrowing costs for smaller firms.

The finance minister underscored the urgency of the measure, noting that Thai SMEs were “running out of breath” under current conditions where liquidity has dried up.

The government estimates the package will directly benefit some 107,000 businesses.

Economists expect the move to add about 0.36 percentage points to Thailand’s economic growth in 2026.

The announcement comes against a backdrop of sluggish economic performance: the Thai economy expanded by just 1.2 percent year-on-year in the third quarter — the weakest growth in four years — weighed down by headwinds including high household debt, a strong baht and U.S. tariffs hurting exports.

Officials have signalled that the injection of liquidity aims not only to preserve small firms but also to stabilise employment, protect supply chains and fortify the country’s broader economic base.

By supporting SMEs — often described as the backbone of Thailand’s economy — the government seeks to prevent further contraction and lay the groundwork for a more robust recovery.

While the stimulus gives breathing room to many smaller businesses that were at risk of collapse, analysts warn that long-term structural reforms will be necessary to ensure sustainable growth.

For now, the package represents a bold and immediate attempt to arrest economic decline and support the sectors most vulnerable to financing pressures.

The funds are expected to begin flowing to qualified SMEs in the coming weeks, as state banks and guarantee agencies mobilise to implement the programme.