UOB Study: 3 in 4 Thai companies have a positive outlook for 2023

Editorial Staff

UOB Study: 3 in 4 Thai companies have a positive outlook for 2023

UOB Thailand has conducted the Business Outlook Study 2023: Thailand Report, revealing positive sentiments among SMEs and large corporations. The findings underscore the overall business sentiment in Thailand and provide key strategies that corporates can adopt to expedite future growth in the post-pandemic environment.

Mr. Tan Choon Hin, president and CEO of UOB Thailand, said, "Our recent study draws insights from 530 senior executives from SMEs and large enterprises across 10 industries in Thailand[1] regarding their business sentiment and perspectives as the country recovers from the pandemic. It is encouraging to see that SMEs and large corporations hold a positive outlook for the country's economic recovery. They express a keen interest in expanding their operations abroad, embarking on digital transformation, and integrating sustainability practices as catalysts for new growth."

The 76% or three in four executives, have witnessed improvements in their business performances in 2023. Notably, the manufacturing and engineering sectors display a higher degree of optimism, with 85 % expressing positivity, followed by real estate and hospitality at 80 %, and consumer goods at 79 %. This positive sentiment aligns with the majority of respondents (74 %) who anticipate a favourable business outlook for 2023.

Regarding revenue growth, the majority of businesses expect consistent increases over the next three years. A remarkable 90 %, or nine in ten businesses, anticipate revenue growth in 2025. Key business priorities for 2023 include tapping into new customer bases (37 %), distinguishing themselves from competitors (35 %), reducing costs
(32 %), exploring new revenue sources (30 %), and digitalising their business models (29 %).

According to the survey, nine in ten businesses report ongoing challenges due to high inflation since 2022. Sixty-one per cent note that high inflation has led to increased operating costs, with over half experiencing a rise in raw material expenses (56 per cent) and a decline in profit margins (44 %).

Moreover, the study reveals that geopolitical conflicts, particularly the Russia-Ukraine disputes, have also disrupted supply chain management across various industry sectors.

The study indicates that nine out of ten respondents have identified overseas expansion as a priority over the next three years.