Many companies believe Thailand's private sector is well-equipped with business continuity plans designed to address various emergencies.
However, the Myanmar earthquake on March 28 that shook parts of Thailand served as a reminder that companies cannot let their guard down, as emergency procedures need to be updated and refined to ensure resilience.
STILL MANAGEABLE
Deputy Finance Minister Julapun Amornvivat said the government still has sufficient fiscal space to handle the crisis.
According to Mr Julapun, the government has funds available to stimulate the economy through the digital wallet project, totalling 150 billion baht, which will be gradually disbursed in the near future.
He said the prime minister instructed all agencies to implement measures to respond to earthquakes, aiming to restore public confidence as quickly as possible.
According to data from the Public Debt Management Office, as of February the government's public debt tallied 64.2% of GDP, below the ceiling of 70% of GDP.
The government already approved a medium-term fiscal plan for 2026-2028, under which public debt is expected to rise to 69.3% of GDP by 2028.
The objective of this fiscal plan is to continue running a budget deficit to maintain economic stability, while focusing on gradually reducing the deficit to an appropriate level in the medium term.
This approach aims to improve fiscal strength and sustainability under a restorative approach, according to the Finance Ministry. The plan emphasises fiscal policy alignment with monetary policy to sustain economic stability, while strengthening fiscal discipline to bring the deficit back to a normal level.
PREVENTIVE MEASURES
Nattakit Tangpoonsinthana, chief marketing officer at Central Pattana (CPN), said both the public and private sector have been preparing emergency action plans and fire-related evacuations for quite some time.
The recent earthquake served as a reminder that the operating procedures for emergencies need to be updated and refined, he said.
The company continues to develop and implement preventive measures as circumstances evolve, said Mr Nattakit.
Following the earthquake on March 28, foot traffic at CPN's malls has nearly returned to normal, he said.
Nath Vongphanich, president of Central Restaurants Group Co Ltd (CRG), said the quake dented the company's restaurant sales by 20-30% on that day.
In the absence of any other emergencies, this incident should not affect long-term spending, he said.
Several of CRG's restaurants reopened on March 29, with all locations back in operation since April 2.
"It is too early to say if the natural disaster will have a lasting effect, but we remain cautious and proactive," said Mr Nath.
He said authorities need to improve warning and alert systems.
CRG will adjust its protocols to align with landlords, as many of its stores are shared spaces, said Mr Nath.
"If there are changes in protocols by our landlords, we will adapt accordingly," he said.
Visit Limlurcha, president of the Thai Future Food Trade Association, said the private sector is prepared with business continuity plans designed to address various crises, including pandemics such as Covid-19 and floods, ensuring seamless business operations.
Following the earthquake, companies will likely have engineers inspect facility structures for safety, he said.
There has been no disruption to exports so far, as transport and logistics continue to operate normally. Remote work has allowed teams to remain productive through work-from-home arrangements, said Mr Visit.
BETTER PROTECTION
Building insurance, earthquake-resistant designs, avoiding cost-cutting in construction, and annual building inspections can help to minimise risks from earthquakes, said Surachet Kongcheep, head of research and consultancy at property consultancy Cushman & Wakefield Thailand.
He said all completed and future buildings should have building insurance to reduce the financial risk from earthquake damage.
"Although there may be increased costs from insurance premiums, which are expected to rise following the severe impact of the recent earthquake in Thailand, it is considered worthwhile over the long run if another quake occurs," said Mr Surachet.
He said future building designs should minimise earthquake risks. Based on the damage observed in some condos on March 28, features such as cantilevered floors connecting buildings and asymmetrical structures should also be avoided, said Mr Surachet.
"Minimising construction costs to the lowest possible level also opens a building up to risk," he said. "It's not worth cutting costs if it leads to damage that can't be measured, such as fatalities."
Annual building inspections and immediate structural assessments following an earthquake can also reduce risk, said Mr Surachet.
Many buildings in Bangkok completed prior to 2007 were built before regulations on weight, resistance, durability and earthquake vibration resistance were enacted that year. These buildings require special inspection or diagnosis, as they are at greater risk than buildings designed after 2007, he said.
However, the design standards for buildings built before 2007 are sufficient to withstand earthquakes of the magnitude experienced on March 28, as no significant damage occurred in many buildings, said Mr Surachet. This indicates these buildings can withstand seismic forces, even though they were not designed with modern earthquake-resistant factors such as those built after 2007, he said.
The earthquake in Bangkok likely ranged from 4.5 to 4.8 on the Richter scale, as Thailand is not an earthquake hotspot. Most buildings remained intact, meeting minimum standards, said Mr Surachet.
"However, in-depth structural inspections would enhance confidence in Bangkok's buildings, helping to reduce panic. A swift and thorough survey of all building types is crucial for reassurance," he said.
LOW RISK
Many factories are solidly built and are not vulnerable to earthquake damage in the future, said Chen Namchaisiri, previous chairman of the Federation of Thai Industries (FTI).
Though some factories are located in Ayutthaya or provinces adjacent to Bangkok, their construction must meet safety standards, he said.
"Owners make a long-term investment with a huge budget to build a factory. They cannot let their buildings collapse," said Mr Chen.
Factories situated in eastern Thailand face reduced risk from a quake in Myanmar, he said.
Gas separation plants and gas delivery systems operated by national oil and gas conglomerate PTT Plc were not affected by earthquake, said chief operating officer Wuttikorn Stithit.
The FTI said earlier large factories that receive gas through pipelines were initially worried because the underground facilities cannot be seen. Pressure checks of equipment by technicians found everything was normal, said Kriengkrai Thiennukul, chairman of the FTI.
BUSINESS CONTINUITY PLANS
Somchai Lertsutiwong, chief executive of Advanced Info Service (AIS), said the company leaned on its business continuity plan to deal with the earthquake.
Mr Somchai said the plan can be adjusted to various crises and the company learned from past experiences, especially the pandemic.
After the earthquake, AIS let some employees work away from the office, and some moved from high-rise offices to its low-rise offices. The company completed inspections of its high-rise offices after the tremor and had third-party experts check them again for maximum safety, he said.
Somchai Sittichaisrichart, managing director of SIS Distribution, said there was no impact from the earthquake on its business. He said SIS considers risk management from two angles: possible damage from the quake and the chance a tremor will occur again.
Mr Somchai said the company is concerned about consumer purchasing power as the earthquake will worsen spending and household debt, and could affect tourism.
Supparat Singhara na Ayutthaya, general manager of Southeast Asia at Dubai-based Edgnex Data Centres by DAMAC, said the data centre industry faces a limited impact as most are built with high standards, and there was no service disruption during the quake.
"Global customers should re-evaluate the size of data centre deployments in Japan and Indonesia given earthquake risk and consider deployments in Thailand and Malaysia, which could serve as replacement hubs," he said.
"Ensuring sustainability and resilience is a top priority for every organisation to prepare for risks," said Dhanawat Suthumpun, managing director of Microsoft Thailand.
Maintaining cost efficiency, agility, and having a response plan is crucial, he said.
A search and rescue dog climbs on rubble as recovery teams try to find trapped people in a collapsed Bangkok building on March 29. AFP
