Indonesia will benefit from the diversification of the global supply chain as multinational companies are looking into ways to reduce reliance on China to manufacture their supplies following the outbreak of COVID-19, Southeast Asia’s largest bank DBS has said.
During a virtual media briefing on Monday, DBS group head of global transaction services John Laurens explained that the shift of major supply chains into ASEAN countries would be part of the “new normal” for businesses.
“Diversification will continue on and markets like Vietnam, Bangladesh, India, Indonesia, benefit from that diversification,” Laurens said, listing the ASEAN countries and other low-cost markets as beneficiaries of the shift.
The COVID-19 pandemic has severely disrupted the global supply chains. The World Trade Organization (WTO) has estimated that global trade will fall 18.5…
