Confidence low for businesses this year : MTI survey
View(s):While business prospects for this year are better than 2012, businesses feel that this year the level of confidence compared to end 2011 is lower, according to the MTI 2013 CEO Business Outlook Survey.
“What concerns corporates about the economy is the balance of payment, governance, inflation and FDI/ exports,” MTI CEO Hilmy Cader said, addressing a forum of management accountants recently at CIMA’s (The Chartered Institute of Management Accountants) Chairman and Board induction. He said that 53 per cent of the respondents felt that the business environment for their particular industries/domains was below what they had anticipated at the beginning of the year.
He added that tourism, infrastructure and construction were seen as positives. “But with tourism while some say that we have not missed the bus, they also say that the bus hasn’t yet taken off.” What concerns corporates about their own businesses is the escalating costs, he said, noting that many have frozen new recruitments.
“Also many said that consumption levels will decline. Some 52 per cent of the CEOs said that their businesses will fare better this year, compared to 2012. Overall (however) the concerns outweigh positives for this year,” he said. He added that demand generation, cost optimization and foreign exchange generation are seen as ‘oxygen’ for corporates this year.
“We clearly see a major thrust towards cost optimisation and in some cases slowing down the ambitious growth plans that corporates had in 2010-11,” he said. Reyaz Mihular – Partner – Head of Advisory Services of KPMG Ford Rhodes Thornton and Co. was elected as CIMA Sri Lanka Board Chairman for this year at the meeting.
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