Current crisis facing Thai businesses ‘worse than during Covid-19’
A mix of factors such as the rapid technology transition, global polarisation and economic slowdown have plunged the Thai business sector in a crisis more severe than what it encountered during the Covid-19 pandemic, the Marketing Association of Thailand said on Wednesday.
Association president Buranin Rattanasombat said business operators were expected to face those challenges until next year.
The business sector would be affected by changes in technology for the next five to 10 years, as well as the global polarisation, which would aggravate, he warned.
He said artificial intelligence (AI), Internet of Things, eco-friendly manufacturing and biotechnologies would play an important role in business operations.
Consumers would prefer online shopping instead of going to physical stores, he predicted, adding that retailers would offer products both offline and online by launching their own digital platforms.
“The question for the association is how to enable Thai businesses to adapt themselves, and encourage small entrepreneurs to adopt technology to boost competitiveness,” he said.
Buranin said the business sector and marketers also have to cope with the global economic slowdown. He explained that the economic growth of many countries is low, including China (5 per cent), Europe (0.6 per cent) and Japan (less than 1 per cent). The Thai economy expanded lower than 2 per cent, he said.
“The technology transition, global polarisation and economic slowdown have triggered difficulty in manufacturing,” he said, adding that a decline in purchasing power due to rising household debt also affected business operations.
Amid the gloomy economic situation, Buranin said the business sector would gain positive sentiment if the interest rate was lowered, there was further recovery in tourism and the government’s budget expenditure.
He advised relevant agencies to work on five issues in order to cope with challenges in the remainder of this year:
- Boost morale of Thai business operators with positive news and encouragement
- Adopt AI to promote equality among people along with boosting the economic growth
- Collaborate with other countries to penetrate the global market
- Enable small and medium-sized enterprises to access different markets
- Promote eco-friendly projects to build economic sustainability
“Businesses must change innovatively to compete in the global market along with boosting the country's growth,” he said.
