Amid Thailand's ongoing economic challenges, both small and medium enterprises (SMEs) and major corporations are feeling the impact. The World Bank recently downgraded its economic growth forecast for Thailand in 2024 to 2.4%, underscoring the country's economic slowdown.
Nava Chantanasurakon, managing director of Sahaviriya Steel Industries Public Company Limited (SSI), Thailand's first HRC producer and Southeast Asia's largest fully integrated flat steel producer, said the slow economic recovery has severely affected SMEs and led to plant closures. SSI, a significant player in the steel industry, acknowledges that these impacts extend to their operations as well. According to Nava, private sector discussions are increasingly focused on the fragility of the Thai economy, which is growing at a slower rate compared to other ASEAN countries. He emphasized the importance of cautious business management and careful risk management during these uncertain times.
Despite the challenges, Nava expressed hope that the current economic situation would not escalate to the severity of the 1997 financial crisis, known as the "Tom Yum Goong" crisis. However, he acknowledged the troubling signs, including high household debt and declining real estate and car sales. Economists fear a potential crisis, but Nava remains optimistic due to Thailand's strong economic fundamentals.
In summary, Thailand's economic slowdown is impacting all sectors, including the steel industry represented by SSI. While the situation is challenging, strategic management, innovation, and collaboration are seen as vital to navigating these tough times and driving future growth.
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