Ömer Koç: Türkiye has an opportunity with its production infrastructure and location

SERKAN ARMAN - Koç Holding Chairman Ömer Koç said that in a period when global balances are changing, Turkey has important opportunities with its production infrastructure, geographical location and entrepreneurial capacity.

Leading representatives of the business world came together in Elazığ for the 27th Business World Summit of the Turkish Business Confederation (TÜRKONFED). Making a speech as the guest of honor of the summit, Ömer Koç stated that trade corridors, production bases and logistics networks have become the basic elements of global competition again and said, "Türkiye is in a central position in this equation."

Reminding that 40 percent of goods trade and 30 percent of services trade are made with the European Union (EU), Koç said that the EU's tendency to position Turkey as an external partner becomes permanent, which carries a great risk for Turkey.

Stating that inflation is still very high and financing costs impose a significant burden on the real sector, Koç also noted that the real appreciation of the Turkish lira increases the pressure on exporters.

'Genocide in Gaza is a disgrace to the West'

Ömer Koç said that the rules-based order established after the Second World War was largely arbitrarily eroded by the USA. Koç also said the following about what happened in Gaza: "While the genocide in Gaza turned into a human tragedy, the inadequacy of international law and the institutions responsible for protecting it was also revealed. The unconditional support of Israel by the USA, the UK and the European Union made possible this terrible genocide, which is a disgrace to the West. Unfortunately, Europe no longer has the slightest moral credibility, and this will have grave consequences that will affect all of us."

'Let's be producers of technology, not users'

In his speech at the summit, TÜRKONFED Chairman Süleyman Sönmez said that industrial production could not enter a strong and permanent growth path after the high levels at the beginning of 2022. Stating that cash flow, price pressure and access to finance have become heavy burdens, Sönmez emphasized that the business world knows the value of permanent stability and said, "For this reason, we are willing to bear an enormous price during the disinflation process." Pointing out that although the share of medium-high technology products in exports has reached 44.1 percent, 79 percent of SMEs are still operating in low-technology sectors, Sönmez said, "We should make Turkey a producer of technology, not a user."

FIRATSİFED President Prof. Dr. Yasemin Açık, on the other hand, reminded that more than half of the total bank loans were collected only in Istanbul, Ankara and Izmir, and said, "Turkey's next growth story should be written outside Istanbul, in Anatolia."

The potential will increase when the terrorist scourge is over

Stating that efforts to establish peace and stability in the nearby geography and especially in neighboring countries are very important, Ömer Koç said: "We evaluate the efforts to end the scourge of terrorism in our country in this context. When these processes are concluded positively, the economic potential of Turkey as a whole, but especially our Eastern and Southeastern regions, will greatly increase."

Koç also said the following about the conditions of economic resilience: "The prerequisite for permanent stability is a fully functioning democracy with its institutions and rules and a management approach dominated by the rule of law. The smooth functioning of justice within a solid legal framework is the basic condition for a reliable and predictable economic development. Such predictability is essential for long-term investment decisions to be made in Turkey and for the economy to gain resistance against external shocks."