SOUTH-EAST ASIA (Bernama): Malaysia has been ranked as the top market of choice for global corporates in the South-East Asia region, according to Standard Chartered’s latest survey.
The report titled "Future of Trade: Resilience”, revealed Malaysia as Asean’s star performer with more than 35 per cent of companies surveyed looking to increase or maintain trade activities.
It stated that over half of corporations from China and the United States (US) - Malaysia’s first and third largest trading partners respectively - express interest to trade with and manufacture in Malaysia.
"Trade corridors within Asean are also set to see more activity, with Thailand and Indonesia looking to source more from Malaysia while the Philippines and Vietnam are intending to export more to this market,” the report said.
The survey results also showed that Singapore corporates plan to set up manufacturing facilities in Malaysia to take advantage of some compelling features of the market’s outlook.
"The recently-announced Johor-Singapore Special Economic Zone, for example, aims to streamline bilateral trade and investment in sectors that include manufacturing, logistics and technology.
"These zones reduce the risk of disruption from geopolitical tensions, minimise the impact of tariffs and lower costs by offering conducive labour markets and policy incentives - the three priorities our respondents look for when choosing a location,” it said.
The report drew on insights from 1,200 C-suite executives and senior leaders at global corporates, who shared their views on global trade prospects and corporate strategies for the next three to five years.
Meanwhile, the report stated that Malaysia is among the six markets besides India, China, Indonesia, the United Arab Emirates (UAE) and the US, which stand out as locations of interest for sourcing, manufacturing and exporting.
"Supply chain realignment is corporates’ first-choice strategy to support resilience and business growth in response to the current macroeconomic and geopolitical environment.
"Markets in Asia will continue to drive trade growth in the next three to five years, with the Middle East rising in prominence and the US remaining a heavyweight. These markets offer unique advantages,
from scale and cost efficiencies to innovation hubs and access to high‑growth consumer bases,” it said.
It said trade corridors in these six markets are set to see robust activity in the next three to five years, with many corporates strengthening their sourcing from and exporting to nearby markets, pointing to further regionalisation in Asean and the Middle East.
Standard Chartered Malaysia chief executive officer Mak Joon Nien said that the report reveals that 76 per cent of corporates in Malaysia see geopolitical conflict as the top issue in shaping the future of trade, followed by trade tariffs (62 per cent) and emerging technologies (58 per cent).
These findings paint a complex yet compelling future for trade as corporates navigate around the fact that the same trends that threaten to disrupt operations can also be opportunities in shaping global trade. - Bernama
