Global supply chain shift sparks competition for FDI

The PwC Singapore survey showed companies are moving ahead with long-term plans to move their supply chains

KUALA LUMPUR: Malaysia faces competition for foreign direct investment (FDI) from the ongoing global supply chain shifts.

Other regions and countries are also benefiting from such investments due to their own unique advantages, a survey published on a whitepaper called New Anchors Reshaping Supply Chains revealed.

The survey, carried out by PwC Singapore and commissioned by Eastspring Investments, showed business leaders expect India, Mexico, South-East Asia, Emerging Europe and South America to gain from the ongoing supply chain realignment investments.

Business leaders particularly see India as having significant future importance owing to the ongoing manufacturing boom in the country.

The survey showed companies are moving ahead with long-term plans to move their supply chains due to the various challenges of geopolitics, trade disruptions, climate events and rising costs.

Apart from geography, PwC Singapore partner Sidharta Sircar said other factors that will set a market or country apart for FDI consideration include the overall ecosystem and maturity of local capabilities of the market.

“The local demand in the area is important as well – whether they are emerging hubs for demand within the market or the region in a broader sense – are some of the factors that clients do consider,” Sidharta said at a panel discussion of the whitepaper findings.