Intel has shifted some of their manufacturing to Malaysia, Apple, and Lego to Vietnam, and Murata to Thailand. We're seeing so many global manufacturers set their sights on Southeast Asia — let's talk about why! 

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🌏️ So attractive

Manufacturers find Southeast Asia attractive for its advantageous geographic, regulatory, and demographic characteristics.

Confluence. Many major trade routes converge in the region. 

• $3.4 Trillion in goods pass through SEA each year. 

Labor. The large talent pool allows companies to keep up with rising global demand. 

Friendly regulators. Southeast Asian governments are inviting foreign businesses to take advantage of the region's inexpensive labor, tax incentives, and improved infrastructure!

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💪 Friend-shoring 

The global supply chain is changing drastically. This can be traced back to both the pandemic and geopolitical tensions. 

Diversification. Many global companies are now incentivized to diversify their supply chain. 

• "Friend-shoring," also called "near-shoring" and "ally-shoring," are the trending terms for many of those moving their supply chain away from China to turn to nations perceived as more reliable partners. 

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📈 So very expensive 

Market prices surged during the pandemic and have not returned to pre-pandemic rates. 

• It is now 4 times more expensive to move a 40ft container
• Also, it takes 3-4 days longer! 

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🔮 What now? 

Experts say that the pandemic was not the cause of the problem — but simply what revealed how inefficient it was in the first place. 

New tech! Many inefficiencies must be addressed, and new tech can be our solution! 

• 🤖 More automation. There are labor shortages all across the board. Robotics and warehouse automation could be the solutions
• 💚 Sustainability. From consumers to regulators, everyone is starting to care more about our environment (as we should). From monitoring emissions to ethical labor practices, tech to provide visibility and oversight is needed
• 💲 Can't forget fintech. How money flows within the supply chain is not to be ignored. We'll likely see more and more embedded finance solutions to make sure money flows where it should, when it should 

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