Why Are Multinational Organisations Relocating Their Supply Chains to ASEAN?

THE COVID-19 pandemic has brought to light the significance of risk management and the importance of resilient supply chains.

Organisations across various industries recognise the need to invest in strategies that can effectively mitigate disruptions, diversify their sources of supply, and establish robust contingency plans to ensure uninterrupted business operations.

Relocating elements of the supply chain has gained prominence recently as a way for multinational corporations to tighten these networks and reduce their exposure to external risks.

These organisations have become more incentivised to consider relocating some aspects of their supply chain to Southeast Asia, as some countries have established specialised manufacturing bases, as well as supportive transport and logistics infrastructure.

In particular, JPMorgan Chase & Co notes that Indonesia and Vietnam have attracted more foreign direct investment through the supply chain shifts.

How will the trend of relocating supply chain networks to Southeast Asia affect Singapore’s role as a transport hub?

A spokesperson from Kuehne+Nagel can share more insights on why organisations are incentivised to relocate elements of their supply chain to Southeast Asia, and how this will impact Singapore’s role in the global supply chain.

Proposed talking points
- Are we seeing major shifts in the global supply chain?
- Do we see a trend of organisations diversifying their sources of supply to countries in Southeast Asia? If so, why?

- Which sectors or industries will be more incentivised to look at Southeast Asia as a favourable destination to relocate elements of their supply chains?
- How will this trend affect Singapore’s role as a transport hub in the global supply chain?
- How does Kuehne+Nagel assist clients who are looking at reorganising their global supply chain networks?