Is Asia the new engine room for globalisation?
Countries like Singapore, along with its developing neighbours in ASEAN, are driving greater connectivity between Asia and the rest of the world. The world’s economies remain highly connected despite rumours of globalisation’s demise. That’s one of the main findings of DHL’s latest Global Connectedness Index (GCI), which charts the progress and current state of globalization using hard data about trade, capital, information, and people movements worldwide. The latest GCI discovered that despite growing protectionist sentiment in some parts of the world, globalisation has continued to advance.“Asia Pacific economies have grown increasingly connected to the rest of the world as their industries and talent bases mature,” says globalisation expert Professor Pankaj Ghemawat, who led the research on the GCI. “Given the rhetoric that we’re seeing in Europe and America, businesses should expect an even greater role for Asia in globalisation moving forward, creating significant opportunities for sales and supply chain networks based in the region.” The region’s geography and cultural commonalities have lent themselves well to greater interconnectedness. Of the five countries that outperformed expectations most on the depth dimension of global connectedness, four of them hailed from South East Asia: Cambodia, Vietnam, Malaysia, and Singapore. Countries in East Asia and the Pacific also have, on average, the second-highest intra-regional share of international flows in trade, capital, information, and people. And Singapore turned out to have both the deepest and largest international flows of any city surveyed, with Hong Kong close behind. “Hotspots” exhibit both great depth and volume in their connections with other cities. “Initiatives like the ASEAN Economic Community (AEC) and Belt and Road foreshadow greater cross-border economic ties between East Asian countries, supported by increasing integration across supply chains and migration policies,” says Ghemawat. “At the same time, Singapore and Hong Kong have engineered a renaissance in digital […]