TOBB Türkiye Sectoral Economy Council Convened

Speaking at the opening of the council, TOBB President M. Rifat Hisarcıklıoğlu stated that real sector companies have a great difficulty in accessing credit and said, "If we want the abundance of growth to be reflected in all segments of society, we must support our SMEs and ensure that they have access to appropriate financing opportunities." said.

Hisarcıklıoğlu said that the Council is a very important platform that brings together the public and private sectors and where problems and suggestions can be conveyed directly to the executive authority.

Stating that it is very valuable, very important and pleasing that many of the issues they raised in previous assemblies have been resolved in the past, Hisarcıklıoğlu said, “We believe that you will bring solutions to the issues we will bring to the agenda now, as in the past. The most important thing for us is to see our state on our side, just like today. Of course, we are experiencing some problems in the economy. But we do not despair and do not give up the fight.” he said.

Hisarcıklıoğlu stated that having experienced people in economic management at work gives them morale and that they believe that together they will bring the economy to a stronger foundation.

Stating that the growth data announced today also increases hopes for the future, Hisarcıkıoğlu said, "Despite the stagnation in global economies and the earthquake disaster of the century, the Turkish economy continued to grow in the last quarter of the year thanks to its strong domestic consumption and completed 2023 with a growth of 4,5 percent." he said.

“WE SHOULD REDESIGN THE TAX SYSTEM”

Hisarcıklıoğlu stated that the presidents of the sector councils gathered the most requested issues and prepared solution suggestions, and listed the suggestions as follows:

“Our real sector companies are experiencing great difficulty in accessing credit. If we want the abundance of growth to be reflected in all segments of society, we must support our SMEs and ensure that they have access to appropriate financing opportunities. Secondly, we must redesign the tax system, which becomes more complex every year and makes investment and production difficult. Third, in the OECD index, we have the most rigid labor market, including the Scandinavian countries. Everyone suffers from this too. Our employers will be able to provide more employment. Our legislation almost discourages this. It also prevents our citizens from accessing more job opportunities and earning more. Working life should be viewed with an approach that rewards employment, not penalizes it. Fourth, investment permit processes are very complex. Moreover, our investors do not know or cannot predict what will happen to them during the investment process, what legislative changes, what different bureaucratic approaches they will encounter. This prevents investments from increasing at the pace we want. For this reason, investment permits and government incentives should be monitored and coordinated from a single point. Fifthly, we must solve the investment location problem in order to pave the way for investments.”

“A NEW INDUSTRIAL BASIN SHOULD BE PLANNED IN THE CENTRAL ANATOLIA-EASTERN MEDITERRANEAN BELT”

Drawing attention to the share of industrial investments in the country's surface area, Hisarcıklıoğlu continued his words as follows:

“In Germany it is 4 percent, in Italy it is 2,8 percent, even the OECD average is 2,4 percent. In our country, it is only 3 per thousand. In order to survive in global competition, our industry operates in an area that is one tenth of its competitors in the world. A master plan should be prepared to increase industrial lands and financing solutions for land purchase and building construction should be developed. Thus, our industrialists should utilize their limited capital by investing in more productive areas. “Again in this context, a new industrial basin should be planned in the Central Anatolia-Eastern Mediterranean zone.”

“WE TRUST THE EXECUTIVE AND REFORMIST STYLE OF DOING BUSINESS OF OUR MINISTERS”

Recalling that there was a huge earthquake last year, which was considered the "disaster of the century", Hisarcıklıoğlu said, "With the new industrial basin, we can reduce the risk in Marmara and at the same time open up space in Marmara for high-tech and larger value-added investments." he said.

Underlining that, as the business world, they want predictability above all else and expect a road map for the future, Hisarcıklıoğlu concluded his words as follows:

“We think that the Medium Term Program prepared under the leadership of our Vice President, Mr. Cevdet Yılmaz, is also very important in order to make business plans and move forward with confidence. Thanks to him, as someone who always attaches importance to consultation and common sense, he always met with us and received our opinions and suggestions, including on this issue.

We; We are ready to run, work, produce. With God's permission, we will overcome all the troubles and continue on our way. “We will continue to produce and work to make our country stronger, richer and more prosperous.”

“THE ISSUES TO BE VOICED BY SECTOR REPRESENTATIVES ARE EXTREMELY IMPORTANT”

In his speech at the opening of the Council, Vice President Cevdet Yılmaz stated that they prepared a 57-item action plan at the Investment Environment Improvement Coordination Board (YOIKK), which includes representatives of relevant ministries and private sector, and that they plan to declare it tomorrow.

Stating that they see all the meetings under the umbrella of TOBB, where they take the pulse of the business world, as an opportunity to strengthen the economic structure together with the stakeholders, Yılmaz stated that they see TOBB as the kitchen of reforms regarding economy and trade, in line with the perspective adopted by President Recep Tayyip Erdoğan for 21 years.

Yılmaz stated that they prepared and implemented road maps, especially the Medium Term Program (MTP) covering the period 2024-2026 and the 2024th Development Plan covering the period 2028-12, in consensus with representatives of the business world.

Explaining that they shaped their structural reform agenda in line with the feedback and expectations from the business world representatives, Yılmaz stated that the issues expressed by the sector representatives who undertake production, employment, investment and export in all corners of Turkey are extremely valuable and important to them.

Yılmaz stated that they are always with the sector representatives and said, “We are determined to increase our country's achievements in the field of economy and finance and to look to the future with confidence with our Turkey Century vision. "With the experience of a century of Republic, we will carry our country, both public and private, to much higher levels." said.

“WE ARE IMPLEMENTING POLICIES THAT WILL HELP THE SECTORS SEE THE FRONT CLEARLY”

Stating that the weak course of global growth continues due to the ongoing effects of the Covid-19 epidemic and the Russia-Ukraine war, Yılmaz said that geopolitical risks increase the volatility of prices and risks.

Yılmaz emphasized that in the World Bank Global Economic Expectations Report published last month, the global growth expectation was announced as 2024 percent, remaining unchanged for 2,4, and 2025 percent, decreasing by 0,3 points for 2,7, and said, "In such a global climate, our economy has been decreasing since last year. We are implementing policies that reduce uncertainty and enable all sectors to see the future more clearly. "We are working to fight inflation, ensure fiscal discipline, balance growth, reduce the current account deficit and strengthen our reserves," he said.

Stating that many data in the economy are expressed in proportion to national income, Yılmaz said, “Now that our national income has been revealed, we have revised some of our data accordingly. According to our first calculations, if we talk about the latest figure, we have a national income exceeding 1,1 trillion dollars. For the first time in our history, we passed the 1 trillion dollar level and exceeded the 1,1 trillion dollar level. Thus, we have consolidated our position as the 17th largest economy in the world in nominal terms. In addition, our 11th position in purchasing power continues, of course. When we look at it proportionally, the current account deficit is a critical issue for us. Our current account deficit reached up to 60 billion dollars in the middle of last year. It fell to 45 billion dollars at the end of the year. We see that the ratio of current account deficit to national income decreased by 4 percent. This was exactly the prediction we made in the Medium Term Program. “We see that this prediction holds true.” he said.

The council continued closed to the press after the opening speeches.