12.02.2015 İstanbul
The Union of Chambers and Commodity Exchanges of Turkey (TOBB) President M. Rifat Hisarcıklıoğlu stated that the period of no elections for 4 years following the elections would be a great opportunity for Turkey and said, “Structural reforms must be implemented with all haste following elections.”
Hisarcıklıoğlu, at the İstanbul Chamber of Commerce (İTO) February
Meeting, stated that the perception that the exports in Turkey are handled
primarily by large companies, however, 59% of exports are being conducted by
SMEs.
Pointing out that SMEs contribute greatly to the diminishing current
deficit, Hisarcıklıoğlu, Turkey 40% of imports in Turkey are conducted by SMEs.
The rate of exports meeting imports in Turkey is 60% while the same rate
stands at 90% for SMEs, stated Hisarcıklıoğlu and reported that SMEs are the
least foreign dependent businesses.
Hisarcıklıoğlu said, “Solution to Turkey’s current deficit lies with
SMEs. That is why we must provide support and strengthen SMEs.”
Emphasizing that 65% of exports are conducted cash against goods and
that this represents a risk, Hisarcıklıoğlu said, “We are presenting an
unsecured account. This is a great risk. This rate increases each year. Last
year it was 61%, this year it’s 65%. Soon we may experience difficulty in
collecting our money. Eximbank has resources to this end. We should be using
Eximbank’s export insurance when exporting. Ideally, we would be trading
against cash but there is too much competition. The opposite is true in
imports. We buy 49% of imports with cash; we’re selling against credit but
buying cash.”
Stating that currency and credit interest rates are very important for
them, Hisarcıklıoğlu reported that these two factors directly burden them.
Touching on the issues presented by taxes on employment, Hisarcıklıoğlu
reported that the tax burden in Turkey on employment is almost twice that of
OECD. Turkey’s biggest issue is employment.
Hisarcıklıoğlu stated that TOBB, the Ministry of Labor and Social
Security, the Ministry of National Education and the Turkey Employment
Institution (İş-Kur) have taken on the burden of implementing the Specialized
Vocational Training Centers (UMEM).
Pointing out that the province which makes use of UMEM the least is
İstanbul, Hisarcıklıoğlu said, “In this regard, if you employ personnel through
UMEM, your tax burden is decreased by 18%. What saddens me the most is the fact
that the ones making use of this project the most are foreign companies. They
know what’s going on, we don’t.”
- “Structural reforms must be
implemented with all haste following elections”
Rifat Hisarcıklıoğlu spoke in regards to opportunities and risks
presented by 2015, “Turkey is a country integrated with the world’s economy.
That is why we are automatically effected by any changes happening in the
economies of the world. The Fed’s currency decisions, if implemented, will push
us into a period when finding money will be difficult. On the other hand, a
decision which will provide advantages to countries like ours has been
announced by the4 European Central Bank stating that they will revert to
monetary expansion policies. This is very important for countries with current
deficit like us.”
Stating that structural reforms must be implemented with all haste
following the 2015 elections, Hisarcıklıoğlu said, “Between 1998 and 2002, per
capita income in Turkey was 4,000$. In line with the structural reforms
implemented in 2002, Turkey leapt forward. There was a 2.5 times increase in
per capita income. There has not been another instance of time in Turkey’s past
this achievement has been seen before. However, with the 2008 crisis, we came
to a standstill. Trying to come out of the crisis, we forgot about structural
reforms. We’ve been stuck at 10,000$ per capita income for the last 7 years.
Following the July of 2015, there will be no elections for 4 years. Structural
reforms are implemented in periods without elections. If structural reforms are
implemented Turkey’s economy will gain new momentum.”
- İTO Board President Çağlar
TOBB Board Vice President and İTO Board President İbrahim Çağlar,
touching on their visit to the President Erdoğan last week wherein he had
expressed the importance he puts on İstanbul and İTO members, “I saw once again
that his hard work and dedication for the country gives power to our efforts.”
Çağlar reported that they had found opportunity to relay their views and
suggestions to the highest level during their visit to the Prime Minister
Davutoğlu with the TOBB President Hisarcıklıoğlu.
Çağlar also touched on their efforts at the World Economic Forum held in
Davos last month.
İbrahim Çağlar stated thatthey would be launching the 2015 Global Vision
Project next week with a press meeting.
Commenting on the latest Trade Activity Index figures, Çağlar reported
that increases are viewed in all fields; production, trade, service and general
commercial activity.