global supply chains

A global recovery looks underway but Asia won't benefit much from the rebound in coal, iron ore and copper prices.

The strain on global supply chains partly reflects the turn by many governments toward protectionist policies since the openness of the world economy peaked in 2011. And now, the Covid-19 pandemic has caused a supply-shock recession.

Minister Chan Chun Sing calls Singapore and France “strategic partners”. “Our economic relations are growing stronger, enhanced by the entry-into-force of the EU-Singapore Free Trade Agreement (EUSFTA) in November last year,” he notes.

“While we expect manufacturing activity and external demand to pick up as global lockdowns are loosened, any rebound in activity is likely to be modest compared to the size of the fall in 2Q20,” notes Oxford Economics.

Global trade is likely to contact by a third this year due to Covid-19 related measures : World Trade Organization (WTO).

“No one can say how widely the Covid-19 pandemic may spread, and containment may take longer than currently projected,” said ADB’s chief economist Yasyuki Saswada

The spectre of decoupling haunts the global economy, but Singapore may be uniquely prepared to weather the storm.

Supply chains of food clothing and basic supplies across borders remain “functional”. However, “the lockdowns have grounded airlines and reduced air freight,” says Eytan Buchman, chief marketing officer at global freight forwarding operator Freightos.

To Reefknot, this is a worthy investment given Previse’s ability to ensure a more seamless payment of e-commerce suppliers, upon receipt of an invoice. It is unlike the traditional payment patterns.

SINGAPORE (Sept 13): If President Donald Trump succeeds in imposing tariffs of up to US$200 billion on goods from China, who really suffers? Will it be the Americans or the Chinese?