Sabancı Holding Chairman Guler Sabancı’s Year-End Evaluation 2009...

29.12.2009
  • SABANCI HOLDING CHAIRMAN GULER SABANCI’S YEAR-END EVALUATION 2009...
  • “IT IS THE SEEKING OF STABILITY THAT IS THE POINT TODAY, NOT ONLY IN TURKEY BUT THROUGHOUT THE WORLD”
  • “LEADERS SHOULD MAINTAIN A STRESS-REDUCING ATTITUDE SO THAT THE NEEDED ATMOSPHERE OF STABILITY CAN DEVELOP”
  • “CHRONIC UNEMPLOYMENT WILL NOT CEASE TO EXIST”
  • “UNCERTAINTY IN ENERGY PRICES IS ALARMING”
  • “TURKEY CAUGHT THE TRAIN AT KYOTO, YET GOT ON THE WRONG CAR WHERE IT COULD NOT PAY THE FARE”
  • “COPENHAGEN HAS UNFORTUNATELY FAILED TO MEET EXPECTATIONS”
  • “2010 WILL BE THE YEAR OF OVERCOMING THE CRISIS AND OF GROWTH”
  • “THE GEOGRAPHIC AND ECONOMIC POSITION OF OUR COUNTRY OFFERS SIGNIFICANT OPPORTUNITIES FOR GROWTH”
  • “2008 & 2009 WERE YEARS OF EARTHQUAKE, ‘AFTERSHOCKS’ MAY FOLLOW IN 2010 & 2011, BUT WE AT SABANCI STAND ON A STRONG FOUNDATION”
  • “IN THE YEAR 2009, WE SAID ‘SUCCESS IS OUR RESPONSIBILITY’, AND KEPT OUR WORD”
  • “SUSTAINABILITY WILL BE OUR MAIN WAY OF DOING BUSINESS IN 2010”

Guler_Sabancıo_320x240.jpgSabancı Holding Chairman Guler Sabancı has addressed a new year’s message to Sabancı Group employees.

When evaluating the year 2009 in her message, Sabancı has stated her expectations for 2010.  Guler Sabancı’s message is as follows:

Dear Colleagues,

It is the seeking of stability that is the point today, not only in Turkey but throughout the world.  The current financial crisis caused severe damage to many countries.  Therefore, both the developed nations and international organisations are expending energy on the establishment of  increased global stability.

When it comes to our country, developments, particularly occurring in political life, are about to threaten stability.  Futhermore, the atmosphere of a lack of dialogue around the democratic initiative policy entails social tension.  At this point, no doubt, critical missions fall to both the mentors and the political leaders.  Adoption of an attitude to alleviate the tension in society, conducting of the democratic competition in a constructive and tolerance-bearing framework would create an atmosphere of stability which is essential for employment and growth, two essentials to be brought about by our national economy.

-WORLD ECONOMY-

I had underlined that in the year 2009 we would go on suffering the outcomes of the crisis, the new government in the USA would be a source of confidence for the markets, and a certain relief would be felt in the non-financial sector towards the end of 2009.

As a matter of fact, while entering the year 2009 the entire world knew relatively better what to do to cope with the crisis, and it did what needed to be done.  The key point in this field was to save the financial sector from collapse, to provide the markets with the required liquidity, and to help the demand in the non-financial sector survive through aid packages.  The measures implemented by countries in this respect have worked, and a much deeper recession has been avoided.

-2010 and 2011; THE YEARS OF OVERCOMING THE CRISIS-

I believe that semi reasonable growth rates will be recorded worldwide in the years to come.

The touchiest issues of 2010 and 2011 will be, on the other hand, to solve the three main problems which resulted as the side effects of the measures taken to overcome the crisis.

Such solution will involve the controlled reduction of the liquidity excess, the unemployment, and the growing budget deficits.

Although international coordination is necessary, the timing and dosage of the measures to be taken by each country should be determined depending upon its specific conditions.  No unique prescription would be appropriate for such a task.

While countries try to set their economic policies on the one hand, the international institutions define their roles on the other.  In this process, it is a pleasure to see the G-20 assuming a more authoritative role.  The efforts made by both central banks and international organisations for the purpose of sharing and harmonisation of the states’ economic policies are promising for the future.

-CHRONIC UNEMPLOYMENT-

As I have mentioned above, one of the major problems caused by the current period of crisis is chronic unemployment.  The lower growth rates recorded in both the developed and the developing countries gave rise to unemployment of considerable magnitude.  However, it would be highly inappropriate to associate the unemployment with the crisis alone.  As with our country, the problem is structural in many parts of the world.  As a result of the crisis, we have had a period where the interest rates have dropped, and investment aids have been made available.  It is  very likely that these conditions will keep existing for a certain period of time.  Unless actions are taken to decrease the total cost of labour, the increase in the growth rate will not be of much benefit to employment, and capital depth will become greater.

This new period will also be one where business models and the ways of doing business will be called into question again.  Futhermore, the fields of energy and of sustainable environment will stand out as the emerging industries.       

-UNCERTAINTY IN ENERGY-

Another major problem challenging the world will be the continuing increase in energy prices upon the resumption of growth.  The uncertainty about the extent and duration of the increase is, in turn, alarming.

As known, the issue of climate change was discussed at Copenhagen in early December.  The pleasing aspect of THE event was that for the first time in world history leaders from some 120 countries gathered to discuss an issue.  Unfortunately, despite the satisfactory rate of attendance, we can hardly say that the “climate change summit” could completely achieve its goals and satisfy the expectations, in respect of the contents, progress, and results of the negotiations.

-TURKEY OF 2009…-

In Turkey, it is unfortunately the non-financial sector which was hit most  severely by the crisis.  Late 2008 and the larger part of 2009 were marked by trouble.  It is understood that the Turkish economy will record a recession of 6 percent as of the end of the year 2009.  This was a much more significant and depper drop compared to what had been anticipated.  However, as I had stated in my new year's message for 2009, a recovery started by the end of the year in the non-financial sector as well, and the industrial production increased in October by 6.5 percent compared to October 2008.

Having a robust capital structure and a sound financial sector, our country can be assessed to have surmounted the toughest period.  The year 2010 will, however, not be that easy despite the growth rate estimated to be around 3.5 percent.  The measures dictated by the crisis have led to considerable deficits in the budget of the state, and deteriorated the macro balances attained.  These will be required to be re-established over time.  The delicate “crisis-overcoming” balances I have mentioned above on a worldwide basis are essential for Turkey as well.

I am assured that the benefits of the medium-term programme announced recently by the government will develop in the course of time in terms of a diminution of uncertainty.  As contained in the programme, the identification of the problems of the economy, and the suggestions made to solve them are well-devised.  Although the programme contains predetermined and achievable targets, its sub-details and applications will not be secondary in importance to the commitment exhibited.

-TURKEY AND THE EU-

We witnessed that relations with the EU, which constitute one of the most important trust anchors for the national economy, and which should occupy higher places on the agenda, have, in contrary, been loosing their existing position due to the fact of domestic political concerns  gaining in importance.  Work in this field must be accelerated in the year 2010.  It is pleasing that the Environment Chapter has been opened within the framework of the EU accession process.  Evaluation of the EU environment legislation in an integrated approach in the process of climate change is the primary responsibility of the private sector.  And, for purposes of preservation of the Turkish competitive capacity, the state must ensure, as an issue of priority, that the private sector participates in the process actively, through a properly and timely evaluation of such views.

-TURKEY OF 2010...-

As I have stated in the very beginning of my message, the key word for social and economic development is stability.  It is obvious that both economic and social fluctuations affect every segment of the society.

From the economic point of view, the actions to be taken must absolutely contain structural measures to lower labour costs, and to encourage productivity growth.  We must concentrate on such and similar major structural reforms during the year 2010.

After our country’s joining of the Kyoto Protocol, we will be exposed to some regulations which will probably affect our ways of doing business in the forthcoming period.  Besides, the position assumed by Turkey in Kyoto requires to be revised.  Turkey has not missed the train. IT has signed the Kyoto Protocol, and is now there on the train.  Yet, it has gotten on a car which is wrong for which it can not pay the fare.  It must revise its position, and find the ways to transfer to an affordable car.  2010 will be a crucial year in this respect.

I must also gladly mention that it is the Sabancı Group who is the best prepared entity for this new conjuncture.  The point we have reached in terms of the environment is exemplary for both the state bureaucracy, and the private sector organisations.

-SABANCI IN THE YEAR 2009-

Dear Colleagues,

Although we faced conditions in all the sectors in 2009, worse than we had predicted at the beginning, it has been a year where we have implemented what we had planned.

We have seen more clearly in this period the outcome of the work we performed in line with the concept “sustainability” which we had included in our mission four years ago.  While we were preparing our strategic scenarios with projections stretching to 3, 5, 10 years and beyond, we have succeeded in alleviating the impacts of the crisis thanks to our innovative “customer and market orientation enhancing” practices we had launched in order to implement such scenarios.

We have closed in accordance with our targets the year 2009 where we said “SUCCESS IS OUR RESPONSIBILITY”.

I thank you for your efforts and contribution towards all these achievements.


-SABANCI IN THE YEAR 2010-

Dear Colleagues,

The concept of sustainability will again be our main way of doing business.  While we keep working on our post-crisis scenarios, we will also accomplish our projects already started.

The world suffered, in 2008 & 2009, tremors that could simply be called earthquakes as far as the economy is concerned.

Also expected are “aftershocks” in the coming years of 2010 and 2011.  However, we as Sabancı, are a group whose foundation, superstructure and infrastructure are sound and strong.

In the new economic order that has arisen after such a powerful tremor, the geographic and economic position of our country offers opportunities.

I am sure that we will be able to benefit most effectively from such opportunities thanks to our robust and sound structure, and the self-sacrificing and active labour of yours, my dear colleagues; and I trust in you.

I wish a New Year, full of health and serenity, to you all and your families.