Standard Chartered has projected a bright future for Malaysia’s exports, forecasting a surge to US$425 billion by 2030, equivalent to an impressive yearly growth rate of 6.8%.
With its promising export outlook, Malaysia will play a pivotal role in the expansion of the global trade ecosystem, expected to flourish to US$32.6 trillion at a 5% growth rate by the end of this decade. This forecast stems from the bank’s “Future of Trade 2023: New Opportunities in High-Growth Corridors” research report.
Standard Chartered underscored that trade corridors centered in Asia, Africa, and the Middle East would outstrip the global trade growth rate by as much as four percentage points. Consequently, this leads to a trade volume of US$14.4 trillion in these regions, making up 44% of the total global trade by 2030.
Particularly for Malaysia, the bank identified India, Indonesia, and Vietnam as its fastest expanding export corridors. Projections show that by 2030, Malaysian exports to India could reach US$18 billion (with a 10.1% CAGR), Indonesia could hit US$12 billion (9% CAGR), and Vietnam could total US$13 billion (8.7% CAGR).
The report also underlined Malaysia’s strategic plan to bolster its primary export sectors and infrastructural facilities. Noteworthy projects include the expansion of Kuala Lumpur International Airport and the establishment of the East Coast Rail Link to link the country’s western and eastern coasts.
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By 2030, Malaysia’s machinery and electrical industry is projected to constitute a significant 53% share of exports, with a 2021-2030 CAGR of 6.8%. It will be followed by metals and minerals (19% share; 5.9% CAGR) and the agriculture and food sector (6% share; 9.2% CAGR).
Patricia Wong, the regional head of global subsidiaries for Asean and country head of corporate, commercial, and institutional banking at Standard Chartered Malaysia, credited Malaysia’s robust trade growth to various factors, especially its solid trade alliances with vital markets. She added that the bank’s wide network serves as a strong catalyst in enhancing Malaysia’s trade capabilities amidst major infrastructural improvements.
Additionally, Standard Chartered outlined the significant role of digital supply chain finance solutions in spurring global trade growth. They estimated that by 2030, these digital innovations could boost exports by 7.5% across 13 surveyed markets, resulting in a staggering increase of US$791 billion. The bank also highlighted the solutions’ potential in fostering financial inclusivity for SMEs, enabling companies to uphold environmental, social, and governance standards, and mitigating fraud and monitoring costs.
This news is based on Malay Mail’s article.
