Thailand's Competition Commission Sets New Credit Term Limits to Protect SMEs

Key summary

The Competition Commission of Thailand (CCT) has published new regulations in the Royal Gazette on October 2, 2026, establishing maximum credit term limits for transactions between large businesses and Small and Medium Enterprises (SMEs). The rules, effective from November 2, 2026, cap payment periods at 30 days for agricultural products and up to 45 days for general trade, production, and services. Deputy Prime Minister Supachai Sudthip, who heads the Ministry of Commerce, is driving this initiative to address liquidity issues caused by delayed payments. The CCT aims to ensure fair trading standards, reduce reliance on loans for SMEs, and assist over 3 million businesses. According to the Thai SME Council, reducing payment terms from 60 to 45 days could circulate approximately 250 billion baht into the economy, while a reduction from 90 to 45 days could increase liquidity by about 750 billion baht.