Thailand's Economic Resilience Amid Natural Disasters: Recent Earthquake Highlights Preparedness and Response
The March 28 earthquake serves as a critical test for Thailand’s business continuity planning and economic stability strategies.
On March 28, 2023, a significant earthquake, recorded between 4.5 to 4.8 on the Richter scale, struck Myanmar, affecting parts of Thailand, including Bangkok.
In response, Thailand's public and private sectors showcased a high degree of preparedness, with established business continuity plans designed to mitigate the impact of such emergencies.
Deputy Finance Minister Julapun Amornvivat affirmed that the government maintains sufficient fiscal capacity to navigate the crisis, with 150 billion baht allocated for a digital wallet project aimed at stimulating the economy soon.
As of February 2023, the government's public debt stood at 64.2% of GDP, remaining below the mandated ceiling of 70% of GDP. Recently approved medium-term fiscal strategies anticipate an increase in public debt to 69.3% by 2028, underscoring a commitment to economic stability coupled with gradual deficit reduction.
In the commercial sector, Central Pattana (CPN) reported minimal disruption post-earthquake, with foot traffic in its malls returning to normal levels shortly thereafter.
However, Central Restaurants Group Co Ltd faced a drop in restaurant sales by 20-30% on the day of the earthquake.
Nonetheless, operations resumed swiftly, reflecting overall resilience in the sector's capacity to manage disruptions.
Nath Vongphanich of CRG noted the importance of enhancing warning systems and adapting protocols with landlords to ensure safety and compliance.
Post-event analyses suggest companies are likely to conduct structural safety assessments to prevent future risk exposure.
The Thai Future Food Trade Association emphasized preparedness through robust business continuity plans capable of addressing varied crises, including previous challenges such as the COVID-19 pandemic.
Experts from Cushman & Wakefield Thailand highlighted the significance of building insurance and adherence to earthquake-resistant design standards in minimizing potential damages.
Surachet Kongcheep, head of research at the firm, remarked on the structural integrity of many buildings, noting that while older constructions may require special inspections, the majority showed the ability to withstand the recent seismic event without major damage.
The Federation of Thai Industries noted that most factories, built to stringent safety standards, exhibited resilience against earthquake damage, further asserting that operations in eastern Thailand remained unaffected by the tremor originating in Myanmar.
Key infrastructure, such as gas separation facilities operated by PTT Plc, reported no disruptions, underscoring effective emergency preparedness in Thailand’s industrial landscape.
Telecommunication sectors also leveraged their business continuity strategies, with Advanced Info Service (AIS) implementing flexible working arrangements and rigorous office inspections following the earthquake.
Other companies, including SIS Distribution, reported no operational impact, although concerns about the earthquake's effect on consumer spending and tourism were raised.
The data centre industry, represented by Edgnex Data Centres, emphasized high construction standards which reduced vulnerabilities during the earthquake, suggesting a shift in global data centre strategies towards regions like Thailand with lower associated seismic risks.
Microsoft Thailand underscored the critical nature of sustainability and resilience in their operational framework.
The earthquake has highlighted the necessity for ongoing assessments of buildings, especially those completed prior to 2007, which may not fully align with contemporary earthquake-resistance regulations.
Continued diligence in both public safety measures and private sector readiness is pertinent as Thailand evaluates its response and preparedness in the face of natural disasters.
In response, Thailand's public and private sectors showcased a high degree of preparedness, with established business continuity plans designed to mitigate the impact of such emergencies.
Deputy Finance Minister Julapun Amornvivat affirmed that the government maintains sufficient fiscal capacity to navigate the crisis, with 150 billion baht allocated for a digital wallet project aimed at stimulating the economy soon.
As of February 2023, the government's public debt stood at 64.2% of GDP, remaining below the mandated ceiling of 70% of GDP. Recently approved medium-term fiscal strategies anticipate an increase in public debt to 69.3% by 2028, underscoring a commitment to economic stability coupled with gradual deficit reduction.
In the commercial sector, Central Pattana (CPN) reported minimal disruption post-earthquake, with foot traffic in its malls returning to normal levels shortly thereafter.
However, Central Restaurants Group Co Ltd faced a drop in restaurant sales by 20-30% on the day of the earthquake.
Nonetheless, operations resumed swiftly, reflecting overall resilience in the sector's capacity to manage disruptions.
Nath Vongphanich of CRG noted the importance of enhancing warning systems and adapting protocols with landlords to ensure safety and compliance.
Post-event analyses suggest companies are likely to conduct structural safety assessments to prevent future risk exposure.
The Thai Future Food Trade Association emphasized preparedness through robust business continuity plans capable of addressing varied crises, including previous challenges such as the COVID-19 pandemic.
Experts from Cushman & Wakefield Thailand highlighted the significance of building insurance and adherence to earthquake-resistant design standards in minimizing potential damages.
Surachet Kongcheep, head of research at the firm, remarked on the structural integrity of many buildings, noting that while older constructions may require special inspections, the majority showed the ability to withstand the recent seismic event without major damage.
The Federation of Thai Industries noted that most factories, built to stringent safety standards, exhibited resilience against earthquake damage, further asserting that operations in eastern Thailand remained unaffected by the tremor originating in Myanmar.
Key infrastructure, such as gas separation facilities operated by PTT Plc, reported no disruptions, underscoring effective emergency preparedness in Thailand’s industrial landscape.
Telecommunication sectors also leveraged their business continuity strategies, with Advanced Info Service (AIS) implementing flexible working arrangements and rigorous office inspections following the earthquake.
Other companies, including SIS Distribution, reported no operational impact, although concerns about the earthquake's effect on consumer spending and tourism were raised.
The data centre industry, represented by Edgnex Data Centres, emphasized high construction standards which reduced vulnerabilities during the earthquake, suggesting a shift in global data centre strategies towards regions like Thailand with lower associated seismic risks.
Microsoft Thailand underscored the critical nature of sustainability and resilience in their operational framework.
The earthquake has highlighted the necessity for ongoing assessments of buildings, especially those completed prior to 2007, which may not fully align with contemporary earthquake-resistance regulations.
Continued diligence in both public safety measures and private sector readiness is pertinent as Thailand evaluates its response and preparedness in the face of natural disasters.
