HAKSİAD Chairman Vedat Turgut has urged businesses in Türkiye to adopt cautious investment strategies, avoid excessive borrowing and strengthen cooperation amid growing global economic uncertainty, rising costs and financial market volatility.

Vedat Turgut, chairman of the Association of Just Businessmen and Industrialists (HAKSİAD), said businesses should carefully assess investment risks, monitor developments in global and domestic markets, and prioritize consultation, commercial ethics and solidarity.

In a statement, Turgut said geopolitical conflicts, energy price shocks and protectionist trade policies were deepening uncertainty in the global economy, with repercussions for production, trade and supply chains.

He particularly highlighted the potential impact of developments around the Strait of Hormuz on energy prices, international trade, logistics and supply chains, urging Turkish businesses to closely monitor the situation.

"The cost of living, successive price increases, rising production and operating costs, and difficulties in accessing financing are increasing the burden on our business world every day," Turgut said.

He also pointed to volatility in Türkiye's financial markets, investment funds and capital markets, saying these developments required greater caution in investment and savings decisions.

Warns against excessive borrowing and risky investments

Turgut urged businesses to closely monitor cash flow, debt levels and their ability to meet payment obligations, warning against poorly assessed investments, uncontrolled expansion and excessive borrowing.

He called on entrepreneurs to thoroughly evaluate market conditions, operating costs, financing opportunities and sectoral prospects before committing to new investments.

Real estate, construction, textiles and other industries heavily dependent on imported inputs require particularly careful risk assessments, he said.

At the same time, Turgut identified technology, artificial intelligence, agriculture, food, energy and the defence industry as emerging areas that businesses should follow for potential investment opportunities.

Calls for consultation and business cooperation

Turgut stressed the importance of seeking expert advice and consulting experienced businesspeople before entering new sectors, establishing partnerships or making major investment and borrowing decisions.

He also encouraged businesses to strengthen domestic and international commercial networks, develop joint projects and explore new markets rather than viewing one another solely as competitors.

"Instead of seeing each other as competitors, let us develop reliable collaborations," he said, calling for greater solidarity and a stronger culture of joint business ventures.

Says commercial trust is essential

Emphasizing the importance of business ethics, Turgut urged entrepreneurs to honour their commitments, set realistic payment schedules and avoid taking on obligations beyond their financial capacity.

"Trust is the greatest capital in trade. Money can be earned again, but recovering a lost reputation is much more difficult," he said.

Turgut said the current economic climate required businesses not only to pursue growth but also to protect existing gains, manage risks effectively and prepare for future challenges.

He added that HAKSİAD's headquarters was open to consultation and cooperation with its members and other sections of the business community.

"Strong businesses build a solid economy; a strong economy is built on trust, ethics, production and solidarity," he said. (ILKHA)