To achieve the goals of Turkey’s 2023 Vision, various economic, social and infrastructure improvements are underway. By 2023, Turkey aims to achieve a GDP of US$2 trillion, up from US$820.8 billion in 2013. It also hopes to achieve a per capita income of US$25,000 and reduce unemployment to 5%.
Infrastructure projects include:
With rising affluence and a growing number of internet users, consumer electronics will continue to be an important sector of Turkey’s economy. Smartphones and audio-visual products such as digital cameras and video devices form the bulk of consumer electronics purchases, and have seen consistent growth in sales volume. Online retailing has contributed greatly to consumer electronics sales. Such products account for the largest share of e-commerce transactions in Turkey.
Turkey has become one of the fastest growing energy markets in the world. The Turkish Electricity Transmission Company estimates that the country’s demand for electricity will increase at an annual rate of 6% between 2009 and 2023.
An estimated US$130 billion in investments is needed to meet Turkey’s rising energy demand until 2023. The Turkish government is encouraging investors to step in and implement energy projects, with particular incentives for renewable energy.
Proper waste water treatment is still not widespread in Turkey. Under the Wastewater Treatment Action Plan 2023, the government aims to have a total of 2,154 waste water treatment plants by 2023, up from 653 in 2015. Existing plants and sewer systems will also be renovated, and new sewer systems will be built. All of this represents significant opportunities for Singapore firms with expertise in this area.
Turkey's current waste management infrastructure is insufficient for the country's needs. Over 30 million tonnes of waste is produced annually, with the majority going to municipal waste storage facilities and landfills.
In 2015, the European Bank for Reconstruction and Development launched the US$125 million Near-Zero Waste initiative in Turkey. This aims to fund up to 12 investments in areas such as waste recycling and biomass facilities. As Turkey continues to tackle this issue, further opportunities will open up for Singapore firms with expertise in waste management.
Key cities such as Istanbul are starting to face land constraints in the face of rapid development and are looking to develop waste-to-energy plants as existing landfills near full capacity. In 2017, Swiss firm Hitachi Zosen Inova AG was awarded a contract to build a 70MW waste-to-energy plant in Istanbul, set to be the largest in Europe.
The manufacturing sector contributes about 18% of Turkey’s GDP. Turkey’s young and skilled labour force makes it a preferred hub for manufacturing and export. For instance, many MNCs such as Toyota, Ford, Hugo Boss and Nestle have identified Turkey as their production hub. Singapore companies in the manufacturing industry can consider venturing into this market and seize the opportunity to access the local as well as the Middle Eastern and European market.
In addition, Turkey’s large production base, access to high quality raw materials and competitive prices make it a prime sourcing destination. The country exports US$168 billion worth of goods which include motor vehicles, trailers, basic metals, machinery and equipment, textiles, apparel, fur, food products and beverages, metal products and furniture.