KUALA LUMPUR (Feb 10): Malaysia has been named among the top ten attractive nations to logistics providers, freight forwarders, shipping lines, air cargo carriers and distributors.
In a statement yesterday, freight forwarding and contract logistics provider Agility said Asia-Pacific nations led all emerging market regions with China, India and Indonesia being the world’s top emerging markets in the 12th annual Agility Emerging Markets Logistics Index, a broad gauge of competitiveness based on logistics strength and business fundamentals.
It said the Index ranks 50 countries by factors that make them attractive to logistics providers, freight forwarders, shipping lines, air cargo carriers and distributors.
Agility said that among ASEAN countries, Vietnam climbed three spots to No. 8 overall. Indonesia (3), Malaysia (5) and Thailand (11); the Philippines rose one spot to No. 21.
Agility said China and Vietnam were virtually alone in the world in 2020, posting positive gross domestic product growth for the year after being hit early by economic fallout from the COVID-19 pandemic.
The firm said early 2020 supply disruptions in China prompted some to question whether the country would experience an exodus of manufacturing by multi-nationals seeking to diversify sourcing and production.
But the 1,200 logistics industry executives surveyed for Agility’s Index indicate little desire to uproot from China or other markets, preferring by a two-to-one margin to protect their supply chains by accelerating adoption of digital tools and technology (41.3%) as opposed to pursuing multi-shoring, near-shoring or reshoring strategies (21.9%).
Of those who would consider moving out of China, more respondents chose Vietnam as a preferred production hub than any other country (19.6%).
Other Asian markets – India (17.4%), Indonesia (12.4%), Thailand (10.3%) and Malaysia – are the next leading choices.
Only 7.8% of industry executives say relocating production from China would mean reshoring to their home countries.
Asia-Pacific is the region that more respondents believe will recover from the global pandemic by the end of 2021. Of those surveyed, 55.9% predict an Asia-Pacific economic recovery in 2021; 53.1% believe Europe will rebound.
Agility Senior Vice President of Sales & Marketing Asia Pacific, Andy Vargoczky said Asia Pacific experienced great turmoil in the beginning of 2020 due to the COVID-19 crisis, but it has rebounded strongly, led by the powerful performance of China and Vietnam.
He said the region is on track for a full recovery this year.
“India, Indonesia, Malaysia, Thailand and Vietnam continue to improve their supply chain infrastructure and capabilities, showing why they are leaders in domestic and international logistics,” he said.
Agility said across 50 countries, China, India and Indonesia rank highest in the Index for domestic logistics.
It said China, India and Mexico are on top for international logistics with Vietnam 4th, Indonesia 5th, and Malaysia 7th.
UAE, Malaysia and Saudi Arabia have the best business fundamentals, it said.
Source: Bernama – 10 February 2021 (Wednesday)