Southeast Asia has flourished as a dynamic region of manufacturing for the electrical and electronics (E&E) sector. Today, large quantities of electronic devices and electrical appliances are produced here. From ICs, components and electronics assemblies to finished consumer and industrial electronic products, Southeast Asia has been a major supplier meeting the demand of the world’s markets. More than 80% of the world’s hard drives, for example, are made within ASEAN.
Looking ahead, ASEAN’s main GDP drivers will be the Philippines, Vietnam and Malaysia. Boosting annual growth to 6% as a result of urbanization, the favourable geographic location for the manufacturing supply chain and the low cost of labour. This will also generate more R&D and electronic manufacturing services (EMS) as the middle class starts to expand over the next five years, accelerating the consumption of electronic components.
As the U.S.-China trade war continues to rumble on, Southeast Asia is likely the “final winner” in this game, especially as companies start to shift their China production bases to ASEAN to evade the effect of these new tariffs. However, the ASEAN region still proves to be a difficult and largely fragmented market with many variances in language, culture and business maturity. With deviations in governmental policies, taxation schemes and political instability, from country to country, ASEAN continues to pose its challenges. What opportunities does this bring to Southeast Asia? What are the emerging or potential markets worth observation, and what are the challenges when companies attempt to expand into the ASEAN market? In this eBook we delve into a variety of topics, from manufacturing, Industry 4.0, EVs, distribution networks and education.