Standard Chartered’s new research ‘Future of Trade 2030: Trends and Markets to Watch’ projects that global exports will almost double from USD17.4 trillion to USD29.7 trillion over the next decade
Malaysia will be a key driver of this global trade growth, with its exports projected to grow at an average annual rate of more than 8 per cent to cross USD498bn by 2030.
Additionally, the research found that 43 per cent of global corporates currently do or plan to source/manufacture in Malaysia within the next five to 10 years. This is evidence that Malaysia will be a major driver of global trade growth over the next decade.
Future Growth Corridors
Mainland China and Singapore will continue to be the largest export corridors for Malaysia, accounting for 19 per cent and 17 per cent of total exports in 2030, respectively. India is a fast growing export corridor for Malaysia with 11.8 per cent average annual growth from 2020 to 2030.
Future Growth Sectors
Malaysia is investing to become a regional logistics hub and building advanced manufacturing capabilities. The following sectors will dominate exports in 2030:
• Machinery and Electricals
• Metals and Minerals
• Agricultural and Food
Global trade will be reshaped by five (5) key trends:
• the wider adoption of sustainable and fair-trade practices
• a push for more inclusive participation
• greater risk diversification
• more digitisation
• a rebalancing towards high-growth emerging markets
Almost 90 per cent of the corporate leaders surveyed agreed that these trends will shape the future of trade and will form part of their five to 10-year cross-border expansion strategies.
Asia, Africa and the Middle East will see a ramp-up in investment flows, with 82 per cent of respondents saying they are considering new production locations in these regions in the next five to 10 years, supporting the trend towards rebalancing to emerging markets and greater risk diversification of supply chains.
Enabling Sustainable Supply Chains
The research found a significant trend towards the adoption of sustainable trade practices in response to climate concerns and a rising wave of conscious consumerism.
However, while almost 90 per cent of corporate leaders acknowledged the need to implement these practices across their supply chains, only 34 per cent ranked it as a ‘top three’ priority for execution over the next five to 10 years.
Abrar A. Anwar, Managing Director and Chief Executive Officer, Standard Chartered Malaysia, said: “Trade connectivity is a crucial engine in promoting economic development and the international expansion of Malaysian companies. In addition to expanding intra-regional trade pathways, the corridors of the future will still cut across continents.