Bangkok: The escalating tensions in the Middle East are not only impacting the energy sector but are also beginning to spread to international trade, a key sector of the Thai economy.

According to Thai News Agency, Dr. Wisit Limluecha, Vice Chairman of the Thai Chamber of Commerce and Chairman of the Processed Food and Future Food Strategy Committee of the Thai Chamber of Commerce and the Federation of Thai Chambers of Commerce, believes that the ongoing trade war is putting pressure on the global trading system in terms of costs, logistics, and consumer purchasing power. "The most obvious impact is on higher transportation and energy costs, which ultimately reflects in the price of goods," he said.

Transportation and energy costs are driving up the prices of Thai products. One significant impact is the increase in logistics costs, particularly shipping and insurance premiums, which tend to rise during periods of increased geopolitical risk. Combined with rising oil prices, this has increased the production and export costs for Thai products. Dr. Wisit explained that Thai businesses, especially food and agricultural product exporters, may face a 'double cost' - both increased production and transportation costs - simultaneously.

Global purchasing power is slowing down, impacting export orders. In addition to rising costs, another worrying factor is consumer purchasing power in the global market. When energy prices rise, it leads to higher inflation in many countries, causing consumers to reduce spending, especially on non-essential goods. "Consumers worldwide will be more cautious with their spending, which will directly impact orders from Thailand," he said. For Thailand, which relies heavily on exports as one of its main economic engines, such a change could impact overall economic growth.

Opportunity in crisis: The food market still has potential. However, from an opportunity perspective, Dr. Wisit believes that food products will continue to be in demand even during a global economic slowdown. Especially basic food products or food related to food security, which are still essential for survival. Thailand, as a major exporter of agricultural products and food globally, still has the opportunity to maintain its export levels if it can manage costs and preserve its competitiveness.

Thai businesses need to be "flexible and agile". Amidst global economic uncertainty, Dr. Wisit emphasized that the most important thing for Thai businesses is "flexibility." Entrepreneurs must be able to adapt quickly in terms of cost management, finding new markets, and diversifying business risks. "The world is changing very rapidly today. Businesses that survive are not the biggest, but those that adapt the fastest," he said.