The shift in geopolitical dynamics has spurred many regional firms to rethink their supply chain strategies. Along with long-drawn pandemic effects, it is crucial to acknowledge the evolving trade landscape.
The ASEAN Conference 2023, held last year in Singapore, provided a platform for thought leaders to share insights on, among other topics, emerging shifts within ASEAN’s supply chains. This ranged from new trade corridor developments to actionable strategies that businesses can tap to seize opportunities. The latter covered areas such as integrating innovative human capital management, sustainability, and digitalisation efforts within supply chain models.
Navigating shifts and trends
The pandemic caused major disruptions in ASEAN, eliminating nearly nine million jobs in the region. How then do we navigate such black swan events in the age of “business as unusual”?
Ian Wong, Managing Director, Group International Management, UOB, talked about seeing crises as opportunities. He advocated for a shift in perspective within organisations, from mere attractors of investments to enablers of meaningful, sustainable job creation in ASEAN.
Beyond its wealth of natural resources and formidable trade and manufacturing capabilities, ASEAN’s key strength lies in its human capital. With a population surpassing 600 million, of which two-thirds belong to the working age group, the region possesses a vast and dynamic pool of talent poised to contribute to its economic development.
Despite ASEAN having a predominantly young workforce, it is essential to acknowledge the projected rise in the region’s ageing population by 2040. Ian believed in leveraging the strengths of this workforce, dispelling the misconception of lower productivity in seasoned professionals.
Ian Wong (middle), Managing Director, Group International Management, UOB, during a panel discussion at the ASEAN Conference 2023.
"Investing in mentorship and coaching culture is vital. We should equip these 'young seniors' to be effective mentors, passing down accumulated wisdom and knowledge."
Ian Wong, Managing Director, Group International Management, UOB
Developing a strong mentoring and coaching culture not only deepens employee engagement but also prepares colleagues for retirement on a high note, ensuring they remain purposeful and rejuvenated even in their final decade or two of their working careers.
During crises, organisations must empower employees to pivot and be flexible, enabling them to emerge stronger and seize new prospects. This necessitates strategic talent development, crucial for not only navigating uncertainties in the business landscape but also ensuring sustainable outcomes.
Transforming supply chains through green technology
Certain disruptions demand attention, and in the realm of sustainability, ignorance is no bliss – a critical existential challenge not just for Singapore but for the entire world.
At the conference, Mr Gan Kim Yong, the Minister for Trade and Industry of Singapore, underscored the urgency of addressing climate change through global cooperation. He also emphasised the country’s commitment to reducing carbon emissions by exploring alternative options such as importing electricity and pioneering carbon tax signals.
As major nations tighten environmental, social, and governance (ESG) regulations, businesses and their suppliers will need to navigate more stringent standards. However, companies need to see sustainability as more than a compliance measure, but a strategic business choice.
Being a first mover in adopting sustainable business models can provide a significant edge in the competition. It also opens up avenues for companies in various sectors, including green financing, carbon services, carbon credit trading, and the development of electric vehicle (EV) infrastructure.
Fostering digital trust for an interoperable ASEAN
The once prevalent buzzword of 'globalisation' has given way to the preference for localisation or 'slow'balisation, reflecting the growing emphasis on supply chain resilience.
The COVID-19 pandemic has been a powerful catalyst, emphasising the need for an ecosystem-based approach to trade, with digitalisation at the forefront. Transforming a business’ supply chain through digitalisation provides businesses with increased visibility, enabling them to understand and grasp what an ideal value chain flow should be within its ecosystem.
So Lay Hua, Head of Group Transaction Banking, UOB, during a panel discussion at the ASEAN Conference 2023.
“In the pursuit of sustainable and innovative disruptions, there is no one-size-fits-all solution. It begins by recognising the unique complexities of your operations, understanding your verticals, forging partnerships, and aligning with financial institutions that resonate with your business.”
So Lay Hua, Head of Group Transaction Banking, UOB
Collaboration and confidence in this system, then, are crucial for ASEAN nations as they leverage and enhance each other's capabilities. Such collaborative efforts foster the development of a sustainable ecosystem, marking a paradigm shift from the traditional point-to-point trade approach to an ecosystem-to-ecosystem mindset.
This transformation is essential to meet the evolving demands of the global trade landscape. It not only streamlines operations but also ensures a more resilient and adaptable supply chain, capable of withstanding disruptions.
Grasping the supply chain reality
ASEAN is on a trajectory to emerge as the fourth-largest economy in the world by 2030, with a projected GDP growth of 4.6 per cent in 2024.
Paving the way for a new chapter on the world stage, the region’s story unfolds at the crossroads of strategic changes and regional potential in today's dynamic trade landscape.
UOB embraces digitalisation and is keen to collaborate to leverage the power of data within a company’s supply chain. Its array of Financial Supply Chain Management solutions represent its commitment, tailored to provide comprehensive support for a business’ supply financing journey, from beginning to end. Furthermore, the Bank is also ready to continue its support for Singapore businesses that wish to expand overseas.
Signing of MOU between UOB and Singapore Business Federation.
At the ASEAN Conference 2023, UOB renewed its Memorandum of Understanding (MOU) with Singapore Business Federation (SBF) to support the expansion of Singapore businesses, particularly in the ASEAN region.
The expanded MOU scope includes:
Collaboration on joint initiatives and internationalisation activities that promote trade and investment between Singapore and other countries as part of GlobalConnect@SBF;
Facilitation of Singapore businesses' internationalisation efforts; and
Support each other's business activities/events: To raise awareness of potential business and investment opportunities to Singapore businesses.
As ASEAN charts its course towards economic prominence, adaptability and collaboration will become key to a prosperous and resilient future. If you are keen to take your business abroad, UOB is ready to partner with you on your expansion journey.
About this event
The ASEAN Conference is an annual event that brings together key decision makers from both the private and public sectors predominately in ASEAN to examine various business and investment related topics, with the vision to help regional business communities tackle challenges, explore opportunities and concretise deals in ASEAN and beyond.
Organised by Singapore Business Federation and jointly supported by UOB, Rajah & Tann Singapore and RSM Singapore as founding partners, the ASEAN Conference features high level speakers from Singapore and other ASEAN states to offer insights and contribute to the dynamic growth and development in ASEAN.
Important notes and disclaimers
This article shall not be copied, or relied upon by any person for whatever purpose. This article is given on a general basis without obligation and is strictly for information only. The information contained in this article is based on certain assumptions, information and conditions available as at the date of the article and may be subject to change at any time without notice. You should consult your own professional advisers about the issues discussed in this article. Nothing in this article constitutes accounting, legal, regulatory, tax or other advice. This article is not intended as an offer, recommendation, solicitation, or advice to purchase or sell any investment product, securities or instruments. Although reasonable care has been taken to ensure the accuracy and objectivity of the information contained in this article, UOB and its employees make no representation or warranty, whether express or implied, as to its accuracy, completeness and objectivity and accept no responsibility or liability for any error, inaccuracy, omission or any consequence or any loss or damage howsoever suffered by any person arising from any reliance on the views expressed and the information in this article.
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