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Rebalanced and resilient: the urgency of supply chain transformation in Asia Pacific
![A final warning Few companies escaped the impact of COVID-19. But the pandemic is just the latest in a history of disruptions. The past decade has also seen: [2011] Japanese earthquake and tsunami [2011] Thailand floods [2016] Brexit [2018] The US-China trade war [2020] COVID-19 pandemic [2020] Global semiconductor shortages And global trade uncertainty remains near an all-time high: [data from IMF World Trade Uncertainty Index here, perhaps from 2010 onwards] 102: How many new trade-restrictive measures were implemented between October 2018 and October 2019 alone. Climate-related disasters and cyber attacks are also increasing, giving rise to both local and global supply chain disruptions. For example: 300 million: How many people globally live in areas expected to be chronically flooded by 2050. 40%: of CEOs in Asia Pacific are extremely concerned about cyber attacks threatening their growth.](/gx/en/asia-pacific/supply-chain/supplychain-5.jpg)
![And global trade uncertainty remains near an all-time high: [data from IMF World Trade Uncertainty Index here, perhaps from 2010 onwards] 102: How many new trade-restrictive measures were implemented between October 2018 and October 2019 alone. Climate-related disasters and cyber attacks are also increasing, giving rise to both local and global supply chain disruptions. For example: 300 million: How many people globally live in areas expected to be chronically flooded by 2050. 40%: of CEOs in Asia Pacific are extremely concerned about cyber attacks threatening their growth.](/gx/en/asia-pacific/supply-chain/supplychain-7.jpg)
Rebalanced and resilient: the urgency of supply chain transformation in Asia Pacific
Pressures have long been mounting on businesses to review the globalisation of their supply chains. But the COVID-19 pandemic has presented both a final warning and an opportunity for Asia Pacific to rethink and rebuild.
Consumer markets in Asia Pacific are growing rapidly, while the supplier and production landscape matures and diversifies. Increasing standards are also driving the adoption of regionalisation models, in which companies not only manufacture in Asia Pacific, but also source from and sell to the region.
Meanwhile, economic protectionism and trade uncertainties are on the rise, along with the need to address threats linked to sustainability.
But just as multiple drivers are pushing businesses to transform their supply chains, there are numerous factors making such transformation more achievable than ever.
The dip in economic activity caused by COVID-19 has created the need and opportunity for many businesses to begin overhauling their legacy systems to build new ones, capable of meeting expected resurgent demand in Asia Pacific while engineering resilience against multiplying risks.
Low interest rates and bond yields have made capital more available and affordable, creating a window of opportunity to invest in transformation initiatives or make strategic acquisitions.
But much is still to be done. Suppliers in Asia Pacific must be moving toward ensuring they can meet the demands of multinationals wanting to establish a wider footprint in the region, strengthening quality standards, reliability and network visibility as needed.
Governments in Asia Pacific also have a vital role to play in promoting local innovation, enhancing infrastructure and using custom policies to boost stakeholder collaboration.
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