ASEAN will gain new supply chain role

Subject

Asia's changing role in global supply chains.

Significance

Asian supply chains and their role in the global economy are undergoing far-reaching change. They are shifting from a low-cost model based on a set of particular exports to Western developed countries to prioritising high value-added trade and putting stronger emphasis on Asian markets. Handling a wider variety of products and matching rapidly changing demand is becoming a top priority, making the role of technologically advanced suppliers of key inputs, including small and medium companies (SMEs), increasingly important.

Impacts

• Demographic change will catalyse changes in consumption patterns and supply chains.
• Supply chains' development will drive demand for automation technology.
• South-east Asian supply chains will be constrained until infrastructure improves.