Businesses must shield themselves from global volatility, seminar hears
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Leading companies in four sectors - food, banking, rubber and tourism - have recommended that business operators focus on boosting efficiency and risk management to ensure sustainable growth amid a volatile global economy.
Surapon Vongvadhanaroj, chief executive officer of Surapon Foods, said yesterday that the food business was unable to avoid the prospect of lower export growth due to the global slowdown. He made the remark at the “Thailand’s Biggest Questions: How to Prosper” seminar hosted by the Thammasat Economics Association.
“When the food sector faces slower export growth, Surapon makes our staff understand the need to help manage costs and our financial burden,” he said.
He suggested that operators whose businesses are affected by the global economy should include hedging in their business plans. Exporters and importers are not bankers, so they should not speculate on foreign currencies, Surapon warned.
Many companies have decided to downsize their businesses because they do not have enough cash flow, so financial discipline must be maintained, he said.
Teeranan Srihong, president of Kasikornbank, said companies should build up immunity against economic uncertainty. The global economic volatility is expected to be prolonged, and this will influence the movement of fund flows, so the country has to invest in infrastructure to help businesses form this immunity. Pongsak Kerdvongbundid, honorary president of the Thai Rubber Association, said rubber farmers must be flexible when conducting economic agriculture because the price of rubber is volatile.
Piyaman Tejapaibul, president of the Tourism Council of Thailand (TCT), said to enhance competitiveness in this industry, the country should add culture to tourism, as Thailand is facing a lack of new investment as a destination for tourists.
Political instability is one threat to the tourism industry, especially if protest rallies turn violent, she said.
Piyaman said the TCT projected that the number of tourists in 2014 would expand by 8 per cent to 28 million and attract revenues of Bt2.02 trillion, or growth of 12 per cent. However, that prediction depended on the political situation remaining non-violent.
