SCMAP Perspective is our fortnightly column on PortCalls, tackling the latest developments in the supply chain industry, as well as updates from within SCMAP. On this column, Henrik Batallones recaps this year’s Asian Logistics, Maritime and Aviation Conference in Hong Kong.
Leadership through collaboration
We at SCMAP were privileged to once again be a supporting organization of this year’s Asian Logistics, Maritime and Aviation Conference in Hong Kong. Co-organized by the HKSAR government and the Hong Kong Trade Development Council, the two-day event once again brought together industry leaders to discuss trends and developments affecting global trade and supply chains.
I have been attending this event – mostly in person, save for those online years during the height of the pandemic – for ten years now, and it’s fascinating to see what topics preoccupy the sector throughout the years. It is very much a reflection of the concerns of global economic stakeholders, particularly in our region, which has seen a lot of growth and attention in the past decade. In the last half of the 2010s it was about improving trade connections, particularly as e-commerce was taking a stronger hold in the region. It was not so much about catering to domestic online shopping – China had been leading the way in the region for some time – but about catering to audiences abroad, especially customers in Southeast Asia who turned to Chinese products and Chinese marketplaces for cheap goods.
Of course, as we transitioned to the 2020s it was about resilience, in light of both the COVID-19 pandemic and, prior to that, increasing tensions between China and the United States, and the looming threat of a trade war under the Donald Trump presidency. (This year, with a second Trump term imminent, this was curiously not tackled.) By now, some of the approaches – embracing digitalization and tackling sustainability – are familiar to us, but also discussed then were diversifying supply chains, reducing reliance on one source and ensuring the ability to respond quickly to potential disruptions and black swan events.
Now that we are able to fly back to Hong Kong, the hot-button topic is sustainability. A topic so broad it hits every aspect of our supply chains, from decarbonizing transport to promoting the circular economy, requires multiple rounds of discussion, as the need to shield our planet from the worst impacts of climate change – and our businesses from the worst disruptions – becomes more keenly understood. There is also a stronger understanding of the role of competitive supply chains in business and economic growth, a point drilled down during the pandemic, and whose lessons we are finally able to apply with less pressure of uncertainties now.
All of this comes with the backdrop of Hong Kong establishing itself as a key logistics hub. From its earlier stated goal of being a “superconnector city” to its role as a key node of the Greater Bay Area initiative – and further out to countries taking part in China’s Belt and Road Initiative – the city’s established strengths in logistics is key to its continued competitiveness.
Inevitably, I think of the Philippines and its recent moves to become a more competitive player in global supply chains. We may not have as much resources as Hong Kong or Singapore, but the past decade has definitely seen strides in improving domestic connectivity – and without this, efforts to tackle international connectivity cannot be maximized. I talk often in this column about stronger collaboration between the public and private sectors, leading to game-changing initiatives that served us well during the early days of the pandemic, ensuring continued movement of goods and unfettered access to markets. Stronger investment in infrastructure – made possible by a stronger and more reliable fiscal standing – has become a tipping point for increased investment in both manufacturing, logistics and retail. For a consumption-driven economy like ours, this is critical.
One of the key takeaways I got from this year’s ALMAC is the continued need for stakeholders to collaborate towards common goals. Not just to policy makers, but between erstwhile competitors, too. I was thinking about whether there’s an inherent conflict between the ideas of collaboration and leadership – particularly the idea that it’s best to be an early starter and pave the way than to find common ground with other players. But it’s in collaboration – especially the early stages – where we better understand what the lay of the land is and how we can address issues, whether it be through improved processes or new technologies or, perhaps, a whole-hearted embrace of more sustainable practices. There can be leadership in collaboration.
I wonder what next year’s ALMAC will have in store. With uncertainties of a more geopolitical kind (see my previous column) potentially looming, what will be the hot-button topic?