BOI warns businesses to brace for new world order as wars raise energy and logistics costs
BOI warns businesses to prepare for a new global order as conflicts push up energy, transport and logistics costs and threaten supply chains
Board of Investment (BOI) has warned the business sector to prepare for the impact of rising global conflicts and wars, saying they are becoming part of a new world economic order.
Narit Therdsteerasukdi, secretary-general of the Board of Investment, said escalating tensions in several regions are now having an unavoidable impact on the global economy and businesses, particularly through rising operating costs and growing risks to the stability of global supply chains.
He said the current effects can be clearly seen in two major areas: higher business costs driven by rising energy prices, freight charges and logistics expenses, and increasing signs that some raw materials may face shortages or sharp price increases.
“The war situation is affecting businesses in two important ways: higher energy and transport costs, and the risk that some raw materials will begin to run short or see prices surge. These are issues that businesses must prepare for,” he said.
From an investment perspective, he said the conflicts now unfolding in many parts of the world should not be viewed as merely short-term events. Instead, they are a continuation of long-building geopolitical and geoeconomic tensions that are now driving a long-term reshaping of the global economic order.
“The conflicts we are seeing are not temporary events. They are becoming part of a new world order and will remain with the systems of the economy, trade, finance and investment for a long time,” he said.
