A new report by the Asia Business Council, featuring the Asia Manufacturing Diversification Index, assesses the preparedness of ten emerging Asian economies vis-à-vis China in a new world of global trade, as multinational businesses look to adopt “China-plus-one” or even “China-plus-many” strategies in export manufacturing, and intra-Asian trade continues to soar. It offers a strategic roadmap for countries aiming to increase their investment appeal by identifying new growth opportunities and overcoming obstacles in the face of global supply chain shifts and escalating trade tensions.
The Philippines, Indonesia, Vietnam, India, and Thailand have benefited from global supply chain diversification and are poised to capitalize on their large labor pool and potential consumer market to reach the next level of development
In a more competitive world with multiple economic hubs, the once-dominant influence of East-West superconnectors is waning. Hong Kong must capitalise on the Greater Bay Area, Belt and Road Initiative and focus on ‘sweet spot’ sectors where China and other regions seek better cooperation.
For all the talk of the benefits reshoring and ‘de-risking’ can bring domestic workers, they also introduce new risks to people’s way of life. Neither the US nor China can afford to ignore these new risks, including limited job creation, expensive subsidies and greater material costs.
Hong Kong, Singapore, South Korea and Taiwan have managed to hold their own against developed economies in other regions for decades. However, amid geopolitical fragmentation, game-changing technological advancements and social divisions, they need to adapt quickly.
From electricity to public transport and logistics, more inter-regional cooperation and investment is needed, as well as innovation. Hong Kong can both serve as a conduit for mainland Chinese investment into Southeast Asia and provide sustainability finance expertise.
Hong Kong has long been a service-based economy reliant on finance, tourism, trade logistics and professional services. But as the Chinese economy shifts towards domestic consumption, Hong Kong must change too, to maintain healthy economic and job growth.
A decade ago, Asia’s millennials were optimistic the region would set aside conflicts and become more united to meet global challenges such as climate change. Today’s Generation Z, who grew up amid rising geopolitical tensions and major economic disruptions, are no longer so hopeful.
As Asian economies face recession worries, many are putting climate action on the back burner – but climate resilience goes hand in hand with economic stability. Setting ambitious energy and sustainability targets supports green growth.
As Asian economies face recession worries, many are putting climate action on the back burner – but climate resilience goes hand in hand with economic stability.
