Investor Presentaiton
Appendix 7 Why trade matters: relevance and evolution of trade
1 Key trends reshaping trade
Shift from West to East
■ Middle Income population growth in Asia (3.5bn by 20301)
■ Growth in intra-Asian trade; RCEP, ASEAN, CPTPP
Faster Covid-19 rebound in the East
Business model/ sector transformation
Sector transformation (e.g. real estate, retail, tourism)
■ New business models: platform-based and sharing economy;
shift from B2B to B2C; business "as a service"
Supply chain resilience
■ Focus on risk, including diversification (67% of businesses
want a more secure supply chain²)
■ No single point of failure
■
Traceability and transparency
■
Digitisation; growth in online and non-physical trade
Digitisation, eCommerce, IOT, cloud-based services
Non-physical/ Services; fastest growing area in trade
■ Platform proliferation; digitally connected supply chains
Protectionism, trade block divergence
■ Protectionism/ government intervention; push for re-shoring
and domestic sourcing
Growth in intra-regional trade
Sustainability, new social contract
■ 85% of businesses see environmental sustainability as priority²
■ 91% of businesses agree on the need to rebuild their business
on firmer environmental foundations²
Release of unparalleled big data, allowing businesses to connect to yet unseen opportunities
with agility and precision, and to operate more sustainably for the long-term
1.
Source: Global Economy and Development: The unprecedented expansion of the Global Middle Class, 2017
2.
Source: HSBC Navigator report, 2020
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