Don't get paralysed by downturns but focus on a sustainable business

DEFLATING commodity prices are rippling through the world and regional economies. The cycle of growth over the past decade, fuelled by the commodity consumption boom, has reversed. The economies of South-east Asian nations have been among the hardest hit, starting with natural resource extraction companies and rippling outwards to related suppliers and manufacturers and industrial transportation providers.

Yet as we monitor the impact on wider and wider circles of related industries, something interesting happens. The negative effects of low commodity prices begin to dissipate and eventually, turn positive.

Industries for which commodities are a significant direct cost will benefit, not suffer, from reduced costs.