business leaders pessimistic: report

The report surveyed more than 7,200 businesses across 36 countries.

According to the survey, Thai business leaders responded negatively on revenues, with an overall balance of -14 per cent, similar to their negative revenue perspective at the start of 2008.

Meanwhile, they followed the pessimistic trend with a balance of -11 per cent for exports, indicating that many do not expect any significant increase in overseas sales this year.

Business leaders across the world expect weak increases in exports, with a balance of +4 per cent, and limited opportunities to increase revenues (+11 per cent) and prices (+14 per cent). A balance of -5 per cent was recorded for a marginal drop in profitability this year.

The results around the world show a significant downward trend from last year, with a drop of more than 50 percentage points from last year's global average for revenue expectations.

Peter Walker, senior partner of Business Consulting for Grant Thornton in Thailand, said revenue was driven by domestic sales and exports - both of which have been impacted by consumer demand and investment levels at home and abroad.

The combined survey responses of Thai business leaders, through reflecting the general pessimism caused by local politics and the global economic situation, are probably realistic and should enable them to make appropriate plans for the year, he said.

Walker said Grant Thornton's advice to businesses in the short term was to focus on cost-cutting, productivity improvements and maintaining strong customer relationships. Businesses should take advantage of the economic downturn by purchasing distressed assets at bargain prices, but only when it fits with long-term strategic objectives.