BANGKOK, 24 July - A UOB survey reveals three-quarters of businesses are confident in Thailand's economic recovery this year, with SMEs and large companies looking to expand overseas. adapt to digital and support sustainability
The UOB Business Outlook Study 2023 (SME & Large Enterprises) conducted by UOB reveals that SMEs and large corporations are confident in the Thai economy. business confidence survey report Business trends and key strategies used by leading Thai companies as the main guideline to drive business growth after the COVID-19 pandemic.
Mr. Tan Choon Hin, President of United Overseas Bank (Thai) Bank of Thailand, said, “The report recently compiled the opinions and visions of 530 SME and corporate executives covering 10 industry groups in the country. Regarding the growth prospects of the organization and business recovery after the COVID-19 epidemic situation has subsided. The survey found that SMEs and large corporations are confident that the business sector is entering a recovery state. and still want to expand the business abroad Digital Empowerment Ready to adopt sustainability strategies as a guideline to drive strong growth of the organization The business sector is confident in earnings growth: 76 percent or three-quarters of executives surveyed are confident that corporate performance in 2023 is likely to increase. Manufacturing and engineering were the most confident (85 percent), followed by real estate and hospitality (80 percent) and consumer goods (80 percent).
In addition, the majority of companies are confident that their revenue will continue to increase over the next three years, with more than 90% or 9 out of 10 of businesses believing they will see profits return by 2025. The top goals for businesses this year are looking for new customers (37%), differentiating from competitors (35%), reducing expenses (32%), finding new sources of income (30%) and adopting digital technologies (29%).
While high inflation is affecting business operations and supply chains, the survey found that since 2022, 9 out of 10 businesses continue to be affected by rising inflation. Businesses bear higher costs of doing business (61%), higher raw material costs (56%) and lower profits (44%). In addition, political conflicts, especially from the war between Russia and Ukraine, have led to higher inflation and jeopardized supply chain management in many industries, with more than two-fifths of businesses finding that rising costs from inflation caused supply chain management to suffer from a shortage of raw materials. and reserve raw materials that will be used in business operations
However, most businesses believe that inflation will subside within 6 months to 2 years, in line with UOB's economic assessment that Thailand's inflation rate has reached its peak and has gradually leveled down since the end of 2022 due to continuously falling energy prices. In addition, the global supply chain system has adjusted in a better way. Look for opportunities to expand business abroad.
The survey found that 9 out of 10 executives are interested in looking for opportunities to expand their business overseas in the next three years, mainly to increase revenues, seek profits and build an international presence for organizations in new markets. The survey found that large organizations such as wholesale and export businesses (96%) want to expand their business overseas the most. more than the Asian average (89 per cent) and that of ASEAN (83 per cent). Singapore, Vietnam and Malaysia, along with China, are the top destinations for businesses looking to expand, with more than a third interested in expanding outside of Asia.
The main challenge faced by businesses when expanding overseas is Lack of knowledge of laws, regulations and taxes, as well as lack of partners that can work together effectively, moving forward to adapt to the digital age. along with highlighting strategies for sustainability and digital adaptation And the idea of doing business sustainably is becoming a business trend that is in trend around the world. Including Thailand in the past 2-3 years.
The survey found that companies are ready to use digital technology in their business operations. and promoting sustainability strategies to increase management efficiency. More than 9 out of 10 businesses or 92 percent have adopted digital technology in at least one business unit, which is higher than the average in Asia (87 percent) and ASEAN (86 percent). Businesses that use digital technology can reach more customers. And help to serve customers more efficiently. Most businesses, especially SME entrepreneurs, adopt digital technology in their business processes. Approximately 60 percent of businesses seek advice from banks on how to use digital technology to increase work efficiency. and make coordination with government agencies And connecting with third parties is more convenient.
In terms of their interest in sustainable business practices, 96% of companies care about sustainable business practices. Businesses see a sustainability strategy as a boost to a company's reputation. It can also attract new employees and investors. The survey also found that although more than nine in 10 Thai businesses have made commitments to reduce greenhouse gas emissions to net zero, only 51 percent have taken sustainability seriously, with more than one-third of businesses worrying that implementation of sustainability initiatives will cost them more and hurt their bottom line.
The recent COVID situation has been a catalyst for companies in Thailand to increase their digital capabilities. and embedding sustainability strategies to deal with the coming crises. which can still adjust to make the business profitable and grow forward in the midst of uncertain situations Companies that are not ready to adopt environmental, social and governance concepts may lose business opportunities.
Source: Thai News Agency
