Mark Millar Asia Rising in 2014.........
“Asia Rising” is one of the most significant developments that will impact transport and logistics in 2014. We will
witness an exciting cocktail of new business opportunities in Asia, driving massive increases in trade flows, impacting
logistics networks and supply chain ecosystems.
Notwithstanding the recent WTO global agreement achieved in Bali, three major multilateral trade agreements will
come into play during 2014 to drive substantial progress in facilitating and empowering growth in international trade
for all Asian economies.
AEC – preparation for the regional economic integration of Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar,
the Philippines, Singapore, Thailand and Vietnam into a single ASEAN Economic Community from 2015, will harmonise
tariff-free flows of goods, services, people and funds across ten jurisdictions comprising 600 million people.
TPP - the Trans Pacific Partnership will provide Asian economies - Australia, Brunei, Japan, Malaysia, New Zealand,
Singapore and Vietnam – with preferential-tariff multi-lateral access to Canada, Chile, Mexico, Peru and USA markets.
RCEP – the Regional Comprehensive Economic Partnership joins the ten ASEAN nations together with trading partners
Australia, China, India, Japan, Korea and New Zealand, forming a trading block containing almost half the world’s
population, with USD21 trillion GDP and 27% of global trade.
The resulting opening of markets in 2014 will coincide with a massive influx of new and increasingly middle-class
consumers, spurred by increasing economic prosperity across the whole spectrum, converging with the very efficient
and well established local Asian production bases of significant proportions of the world’s consumer goods.
OECD estimate that by 2030, the world’s middle class population will increase to 4.9 billion people, some 3.1 billion
more than in 2010. Asia will deliver 85 per cent of this growth – around 2.6 billion new middle class consumers, whose
spending will account for almost two-thirds of middle class spending globally.
China is experiencing dramatic shifts in its economy. Multinational companies initially came to China to capitalise on
the abundant supply of low-cost labour and incentives to establish operations in Special Economic Zones. They are
now just as - if not more - interested in the opportunity to sell products to the huge and rapidly expanding Chinese
consumer market – “they came for the workers, and stay for the shoppers.”
At the same time, urbanisation is accelerating. Across Asia, during the next decade some 500 million people will have
access to electricity in their homes for the first time, driving exponential demand for a whole range of consumer
household products. China alone is forecast to create more than 200 new cities with a population greater than 1
million people by 2025.
Asia comprises a diverse range of economies across the continuum of emerging, developing and developed markets,
with widely varying levels of sophistication and maturity in their supply chain and logistics landscapes. In addition to
geographic, economic and political complexities, there are significant challenges resulting from developing regulatory
environments, inadequate infrastructure and talent shortages.
However, with informed insights from experienced business partners providing deeper understanding about the
region, companies can benefit from both production and consumption opportunities across the region.
Businesses should therefore embrace the complexity and actively engage the knowledge and networks required to
overcome the challenges and capitalise on the smorgasbord of new business opportunities.
Mark Millar MBA, FCIM, FCILT, GAICD leverages 25 years global
business experience that provides value for clients with their business
strategies in Asia. As a speaker, moderator, MC and conference
chairman at over 300 events in 22 countries, Mark works closely with
clients to enhance their delegate experience and deliver unprecedented
value with his knowledge and energy. [email protected]