CEO's expect 'GDP growth below 4.5%'
CEOs expect Thailand's economic growth to stay below 4.5 per cent, given the slowdown in the global economic recovery, while expressing concern over Thailand's political situation and economic policies impacting business operations in the latter half of t
Surong Bulakul, president of Thai Listed Companies Assocation, said that 57 per cent of CEOs surveyed expected the Thai economy to expand lower than 4.5 per cent. In the December survey, most CEOs anticipated the Thai economy to grow higher than 4.5 per cent.
The CEO Survey on “Thai Economy’s Perspectives in the Latter Half of 2013” questioned top executives from 75 listed companies (in the Stock Exchange of Thailand and the Market for Alternative Investment) in nine industries.
More than one-fourth of CEOs (28 per cent) saw a slowdown in the global economic recovery, particularly in Europe, China and the United States, as the highest risk to Thailand’s growth, said Surong, who is also chief financial officer at PTT.
Other risks to growth revolve around Thailand’s political stability and the government’s economic policy, the baht fluctuation and lower domestic purchasing power.
Regarding the baht, the CEOs surveyed suggested that the government let the Thai currency move in line with the market mechanism, while collecting taxes on foreign capital seeking short-term profits.
Upbeat on second-half
Most CEOs expected the Thai economy to improve in the next six months, while anticipating their industries would see business expansion. The highest risks to business operations are posed by the country’s economic team and economic policy, domestic political stability and social conflicts, the survey said.
The CEOs expressed no concern about liquidity, lending by commercial banks and liberalisation of trade, investment and services.
“After the overseas roadshow, investors are still worried about uncertain government policies such as the energy price, public debt and the rice-pledging scheme,” Surong said.
To deal with risks, 99 per cent of the CEOs intended to increase production and service efficiency. Other improvements were expected in employee skills, patterns of products and services, and technology, the survey said.
In the next 12 months, about 73 per cent of the CEOs planned more investment, while only 7 per cent lowered their investment.
About 79 per cent of the CEOs expected domestic economic problems to have the highest impact on their investment plan.
About 53 per cent of the CEOs saw no impact from the current interest rates on their business operations, while 27 per cent witnessed a negative impact.
About 43 per cent expected the lending rate to remain the same.
