Bangkok--10 Jul--Ogilvy Public Relations Worldwide Even though small and medium-sized business leaders in Asia Pacific view their Thai counterparts as less competitive than last year, Thai business leaders are confident about their own growth prospects. According to the UPS Asia Business Monitor 2008, optimism remains strong with 60 percent of Thai small-to-medium enterprises, or SMEs, expecting to do better than they did last year and 52 percent expecting an increase in their workforce. The UPS Asia Business Monitor is an annual survey that has tracked the competitiveness of SMEs, across 12 countries in Asia Pacific since 2005. Forty-four percent of the 1,201 SMEs leaders in the survey rated Thai SMEs prospect for growth in 2008 as good, a drop from 50 percent in 2007. “The Thai economy has remained stable in spite of the changes in the political environment. The Thai people are very resilient and this is shown through the optimism in the survey on their growth prospects,” said Greg Carstens, Managing Director, UPS Thailand. According to the survey, the greatest growth opportunities are found in Manufacturing, Automotive and Agriculture, Forestry and Fishing. However, the most lacking areas are in government support, the ability to innovate and access to overseas markets. Also lacking for the SMEs is the use of effective supply chain management in their businesses. Fifty percent of the Thai SMEs surveyed are either under-utilising, neglecting or not using supply chain management in their business. “It’s evident from this year’s UPS Asia Business Monitor findings that SMEs in Thailand see the lack of access to overseas markets and lack of knowledge and expertise in supply chain management as two of the major obstacles they face in growing their business. The fast-growing trend of e-commerce has opened completely new markets and forced the international trading system to adapt. As an enabler of global commerce, UPS is uniquely positioned to help Thai SMEs become more competitive by leveraging our expanded capabilities from express package delivery to total supply chain and e-commerce solutions,” Mr. Carstens shared. The UPS ABM 2008 identified a critical shift in the top three business concerns of Thai SME leaders. In 2007, Thai SMEs were most concerned with the quality of products and services. This year, the issue of political and economic stability (57%) is keeping most Thai SMEs awake at night, followed by retention of quality employees (55%) and customer loyalty/retention (46%). Regarding drivers for the recovery of Thai economy, Thai SMEs feel that education (59%) and government support (47%) will most help the economy recover and catch up with its neighbours. Other top-line highlights revealed by the UPS ABM 2008 include: U.S. economic woes create uncertainty in the region The possibility of economic downturn in the United States is creating anxiety among SMEs in the region. Forty percent of Thai SMEs are concerned their businesses will be hampered in a U.S. economic downturn. The China paradox While fewer SMEs regard China as a threat compared with 2007, the UPS ABM 2008 shows that mixed feelings still linger. SMEs in Thailand feel that China presents both a boost and a threat to businesses in the market. Sustainability considerations An overwhelming 81 percent of SMEs polled feel that the government should take a more active role in sustainability, while another 51 percent of SMEs feel large corporations should take on more responsibility. However, an overwhelming 71 percent of Thai SMEs think it is the responsibility of the individual citizen. Limited impact from global quality demands While the majority of SMEs have not been affected by the recent international crackdown on food and product safety, Thai SMEs (20%) feel that their businesses have been hampered. This is possible due to mounting pressure to comply with international standards. Based on the survey findings, UPS held a symposium with industry insights on how SMEs in Thailand can gain easier access to the world of international commerce and how good supply chain management can improve overall business operations and reduce costs. Themed “E-Commerce: Gateway to World Market for Thai SMEs,” the exclusive seminar featured a number of industry veterans on topics relating to e-commerce opportunities in Thailand, effective fund management, effective ways to build brands on the Internet and UPS role on e-business. About UPS ABM 2008 The UPS Asia Business Monitor (ABM) is an award-winning annual survey that began in 2005. This year, the UPS ABM 2008 surveyed 1,201 company owners, proprietors, CEOs, Managing Directors and other top management across 12 markets — Australia, China, Hong Kong, India, Indonesia, Japan, South Korea, Malaysia, Philippines, Singapore, Taiwan and Thailand. UPS is the world’s largest package delivery company and a global leader in supply chain and freight services. With more than a century of experience in transportation and logistics, UPS is a leading global trade expert equipped with a broad portfolio of solutions. Headquartered in Atlanta, Ga., UPS serves more than 200 countries and territories worldwide. The company can be found on the Web at UPS.com. For further information : Sahasaya Panichapong ([email protected]) Ogilvy Public Relations Worldwide Ltd. Tel. 0 2205 6605 Monrudee Theeraworwit ([email protected]) UPS Parcel Delivery Service Limited. Tel. 0 2728 9091