Nail Olpak, President of the Foreign Economic Relations Board (DEİK), said that industrialists are having difficulty in international competition and that decreasing orders give negative signals about the course of events. Emphasizing that the business world expects support that will not put the program in difficulty, Olpak said, “Giving support does not always mean giving money. Giving morale and wisdom is also support.”
Underlining that the business world needs morale, DEİK President Nail Olpak stated that support can be provided to give hope to the market without disrupting economic policies.
Olpak, who made three suggestions for this, suggested, “The 2 percent rate in the credit limitation of SMEs can be re-evaluated, the 2 percent foreign exchange support given by the Central Bank can be increased, and the rate of foreign currency exchange can be lowered.” The business world, whose complaints about the exchange rate not being in line with inflation have increased, is looking for alternative solutions. DEİK President Nail Olpak listed his suggestions that can give morale to the market without disrupting the current economic program.
“Even talking about moving production abroad is bad”
Noting that there is a skid in the exchange rate at the moment, Olpak stated that the 2 percent rate in the credit limitation of SMEs should be re-evaluated and SMEs should be given breath and said, “I am not saying this in the sense of beating big companies. It is necessary to give life water to SMEs. They have another area they are struggling in. The supports to be given will not disrupt economic policies. Secondly, the 2 percent foreign currency support given by the Central Bank can be increased. We can support these without increasing the dollar from TRY 33 to TRY 39 today. The third is the foreign currency exchange rate. The foreign currency exchange rate was 70 percent before and went from 40 percent to 30 percent. Fortunately, we are now talking about the increase in our foreign exchange reserves. At this point, we can re-evaluate the currency exchange issue and bring it down. These are small steps, but they do not disrupt economic policies, on the contrary, they give hope to the market. There is a great need for morale right now.”
Underlining that the business world is in agreement with the economic program implemented, Olpak said, “We are in agreement with this program, but it does not mean that we have no complaints. We are talking about the support that can be given without disrupting the program. Support does not always mean giving money. Giving morale and wisdom is also support. At the end of the year, we will start to look ahead. It looks like we will lose a little bit in this period. In today’s reality, unfortunately, we have started to hear about concordats and bankruptcies in the market. One of the most talked about issues is the relocation of production facilities. We used to hear about Western Europe and Egypt, but now we are also hearing about the Maghreb, such as Algeria and Tunisia. It is worse now than it was then. In other words, the fact that these situations are being talked about is worse than the statistical reality is not good. If these issues are discussed in the business world, it creates pessimism. Half of the economy is expectation management. Because it is oriented towards the future. And the data we receive is not very good.”
“Overseas contracting income could be tripled”
Olpak pointed out that overseas contracting companies are bold, have a good track record, do quality work, are competitive and fast, and said, “But we are throwing in the towel at the point of financing. We have to compete with European Eximbanks. Our Eximbank has to be strong in both its capital and borrowing in credit resources. If we can provide Eximbank with some capital support, we can rapidly increase overseas contracting revenues. It is possible to triple this. We can see 90 billion dollars. It is not a 10-year process, we can get results quickly. Technical consultancy will pave the way for contracting. We need to strengthen these companies and encourage them to buy bigger companies from abroad without waiting for them to grow. If we give incentives, when we take steps today, we will reap the fruits in 2025. Consultancy is important because these companies define the door handle. If we are successful here, we will also develop exports of goods. There is an opportunity to grow service exports and goods exports together.”
“15 percent tax is greater than 0 percent”
Underlining the need to increase transit trade, Olpak said: “However, it cannot happen from today to tomorrow. There is a trade that goes through commodities. The Netherlands, Switzerland and Dubai are very good at this. These examples can apply the 25 percent corporate tax to you at a rate of 19 percent or lower, depending on the amount of investment. When we explained this for many years, we were told that ‘there would be a loss of corporate tax’. Since there is no tax advantage in Turkey like in competitor countries, our companies benefit from this advantage abroad. We explained that this practice would be beneficial with its solutions. This is a special business. We are following this issue, it is an area that needs to be corrected. The revenue administration should also think positively. A 15 percent tax is greater than 0 percent.”
Negative signals from automotive and chemicals
The only issue where we have an advantage over China in rich markets is logistics. China aims to reduce the time it sends its goods by sea in 45 days to 7-9 days by train. It is trying to gain an advantage with the Belt and Road project. We cannot gain an advantage only with the fee we will receive from the train passing through the Central Corridor. Should we build a logistics base or talk about something else? This country can be a social state for its citizens. However, social assistance that exceeds its purpose should be reviewed. The support we demand for industry and trade is small compared to social assistance. We have difficulties in the foreign market. Although it is not yet reflected in the statistics, negative signals have started to come from automotive and chemistry. If we receive this signal from sectors that receive long-term orders, the situation is getting worse.
“Emissions Trading System revenue should be used for green economy”
Recalling the meeting of the Coordination Board for Improving the Investment Environment (YOIKK), DEIK President Nail Olpak said, “One of the most important topics was green transformation. I call this expression green economy. What needs to be done is to create a recycling economy. The Climate Law will be submitted to the Parliament when it opens. There are a few touches left in the Emissions Trading System (ETS). It will also be submitted. How revenue will be generated from the ETS and where it will be spent were also discussed. One of our most important emphases is that the revenue should be spent for the green economy. If it is going to be used to cover earthquake deficits, it will be of no use to us, we will continue to be beaten. We are on the side of industry and trade. There should be an attraction for industry and trade. The next meeting will be in November, this issue will again be among our most important agenda.”
