Unexpected exit from TUSIAD at minimum wage

SAFAKNA TURKEY – Orhan Turan, chairman of the Turkish Association of Industrialists and Entrepreneurs (TÜSİAD), made statements about economic policy in a program he was a guest of Bloomberg HT. Regarding the size of the minimum wage for 2023, Turan said: “It is possible to increase the minimum wage, which is higher than inflation, with a share of social security. An employer must protect its employees from inflation.

“50 YEARS AGO THERE WAS A STRATEGY OF THE FAR EAST”
“The most important thing today is qualified personnel. Speaking about the fact that we should not lose qualified human resources and attract them to Turkey, Turan said about the strategy of cheap labor: “I don’t think Turkey’s competitiveness can be sustainable with low TL and cheap labor. This was the strategy of the Far East 50 years ago. A competitive exchange rate is cheap to increase exports with the help of labor. When you do this, you breathe for 5-6 months, but you can’t make it sustainable.”

“WE ARE REPORTINGLY SEEING A SLOWER IN EXPORTS”
In his speech, Turan said that exports were negatively affected by the euro/dollar parity and stated that he clearly sees a slowdown in exports since September. Turan used the following statements in its assessment of working capital and companies’ access to credit:

“In 2022, the needs of companies for working capital increased. A company with $100,000 in working capital needs $200 or even $400,000 last year. The real sector should have free access to financing. Recently, access to finance has been difficult, except for exporting companies. If only we could say that access to commercial credit is convenient. Getting investment loans and obtaining long-term loans is not easy. Credit limits should be increased for companies.”