The pessimism of Thai CEOs has reached record levels with global economic woes and local political instability, according to an international business report by Grant Thornton.
The survey across 36 economies found that the -63% despondency score of Thailand's business leaders was topped only by corporate sadsacks in Spain and Japan, with values of -65% and -85%, respectively. The survey was conducted in early December, right after the airport closures, when national gloom hit an all-time low.
Although the 2007 credit crisis failed to dent the sunny outlook of Thai CEOs, their optimism has since vanished. Over 2008 their mood plunged from +30% to -34%, and it is now hitting an all-time low, according to Peter Walker, partner of Grant Thornton business consulting in Thailand.
Along with the CEOs in 33 of the 36 economies surveyed, Thai bosses list fading consumer demand as far outweighing all their other worries.
Yet CEOs elsewhere often stayed positive despite this concern. Directors in Botswana, India, Brazil and the Philippines topped the chart with values over +50% as "emerging economies realise that it [the global slowdown] could offer real opportunities".
Thailand's neighbours, including Asean members and China, also shared a positive outlook.
Mature economies like the US (-34%) and the European Union (-38%) were overwhelmingly negative, while trading blocs with emerging economies like Latin America (+11%) and Asia Pacific (+3%) looked on the bright side.
Overall, CEOs around the world are at their bleakest since the survey was launched in 2003. Pessimists also outweighed optimists for the first time, resulting in an overall balance of -16%. The dubious honour of the biggest mood swing went to Hong Kong executives, whose confidence plummeted from +81% to -49%.
Mr Walker advises CEOs and politicians in Thailand to provide "strong and clear leadership". He suggested that politicians spur consumer spending and the economy with infrastructure investments, while CEOs should defend their businesses in the short term but develop strategies for the long term.
"Businesses that make smart moves now will emerge as the leaders of the future. In the not-so-distant future, the economy will recover and a new commercial environment will emerge, but it could look very different to the current one," he said.
http://www.bangkokpost.com/business/economics /9216/thai-ceos-look-on-the-dark-sidePublished: 6/01/2009 at 12:00 AM
Newspaper section: Business
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