Thai CEOs fault govt’s failure to halt economy’s decline
December 25, 2013 Leave a comment
CEOs fault govt’s failure to halt economy’s decline
The Nation December 25, 2013 1:00 am
The majority of CEOs do not see parliamentary dissolution as the answer to the political stalemate, according to a survey.
Asked about Thailand’s political situation, 78.8 per cent of 306 CEOs said dissolution was not a way out. Rather, they believed in comprehensive reform to defuse the current political situation and to ensure long-term prosperity for Thailand. The survey, conducted jointly by Krungthep Turakij and Dhurakij Pundit University Research Centre (DPURC) was carried out from November 10-December 13. It aimed to find out the CEOs’ perspective on the current business and economic performance during November to December, a time when political strife is prevalent in Thailand.
The survey showed that the apparent decline in CEO confidence in Thailand is partly due to the government’s failure to prevent a further decline in the Thai economy. Other factors that influenced the index are the political instability, and the reduced purchasing power from rising living costs. The economic index has been in negative territory for the fourth consecutive month, at -27 in November. It is expected to fall further to -31 in December.
According to the survey, the five most important factors (on a scale to 5) affecting business performances in the past month are: overall political instability (4.5); Thailand’s economy (4.4); reduced demand (4.3); costs of raw materials (3.9); and the world economy (3.8).
The four business performance indices – which include revenue, cost, liquidity and employment – are pointing towards a rather pessimistic future.
The November revenue index is at -24, and expected to rise to -21 in December. The cost index fell to 33 in November, and is expected to fall even further to 27 in December. Though the reduced cost signifies an improvement, the fact that it remains positive indicates rising costs, though at a slower rate than October.
The liquidity index has improved slightly to -9 in November due to pessimistic outlooks for revenue and cost indices. It is expected to fall again to -10 in December, however. Additionally the liquidity index’s seventh consecutive monthly fall can make businesses more vulnerable to unexpected shocks. The employment index fell to -4, and is expected to rise slightly to -2 in December.
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