Singapore lies in the middle of the world’s fastest growing region, Southeast Asia, which should be a boon for trade but the seas that global trade sail on are far from calm, according to panellists speaking at the “Between Promise and Peril: How Asia’s Supply Chains are reckoning with Global Bifurcation” panel. This was part of the Singapore Apex Business Summit’s Future of Trade Forum.
The very title of the panel foreshadowed the discussion, which addressed the current geopolitical issues, supply chain disruptions, the importance of trade agreements as well as how businesses, through strategic partnerships, were working together to keep trade up.
Panellist Phil O’Reilly, managing director at Iron Duke Partners, said: “Business carries on, supply chains aren’t broken. They are stretched and they’re damaged occasionally, and they are more expensive – they’re not broken.”
Part of the reason for this has been the many initiatives globally to keep them healthy. One such local initiative has been the Singapore Trade Data Exchange (SGTraDeX), a digital infrastructure that facilitates trusted and secure sharing of data between supply chain ecosystem partners.
Trade was about growth, it reduces inflation and promotes the spread of technology and ideas, noted Jane Lim, Deputy Secretary (Trade), Ministry of Trade and Industry.
This was why countries such as Singapore have worked hard to negotiate and sign multiple trade agreements. But boosting trade and making supply chains more robust should not just be a government effort but should also be carried out by activities by businesses.
The panellists gave a positive nod to the Singapore Business Federation’s newly launched Centre for the Future of Trade and Investment (CFOTI). The public-private partnership will build a regional community of trade and investment practitioners, thought leaders and government officials. CFOTI’s purpose would be to advance global trade that will be inclusive, sustainable and future-ready.
Discussions on sustainability as well as trade agreements continued well into the next panel session, “Defining the ‘Extra’ in territoriality: Riding the New Wave of Visibility Regulations in Global Trade.”
Panellists discussed the challenges of navigating global trade issues, particularly in the context of sustainability. They highlighted the need for a holistic approach to sustainability, emphasizing the importance of technology, integration and transparency in addressing complex regulations.
Sustainable financing emerged as a crucial topic, with panellists underscoring the role of green finance in supporting sustainable supply chains. They discussed how sustainable financing mechanisms, such as green bonds and sustainability-linked loans, can provide the necessary capital for businesses to invest in eco-friendly technologies and practices.
Panellists also discussed the impact of extraterritorialities on businesses and trade, with concerns raised about protectionism and unintended consequences. Finally, they shared insights on how small businesses can navigate global climate goals and geopolitical tensions through sustainable supply chain management strategies.