REGIONAL REPORT excluding India , is recovering , led by Bangladesh , due to higher-thanexpected exports and remittances , notwithstanding the recent spike in infections . Outlooks in Maldives , Nepal , and Sri Lanka are affected by weak tourism and limited policy space ,” commented the IMF earlier this year .
It also pointed out that the changing external environment is an essential driver of risk in the region , given Asia ’ s outward orientation to trade and capital flows . For export-oriented economies in Asia , with strong links to the United States , the U . S . fiscal expansion will provide positive spillovers through the trade channel . But U . S . interest rates are already on an upward trajectory , and this is spilling over to Asian emerging market economies . If U . S . yields rise faster than markets expect , or if there is miscommunication about future U . S . monetary policy , adverse spillovers through financial channels and capital outflows , this could present challenges by compromising macro financial stability .
The green agenda
Pollution is a major issue in countries such as China .
If adopted and implemented correctly , it has been estimated that Industry 4.0 has the potential to increase 30-40 % of productivity
markets . This also applies to local companies in China , many of whom have become sophisticated and sizable . While their core manufacturing capabilities remain in their home country , they recognize that by being in only one country they lack the flexibility to adapt to geopolitical risks . So they have been exploring secondary manufacturing locations such as in Vietnam , Indonesia , Thailand and Malaysia to diversify their risk and exposure ,” commented Citi Commercial Bank .
“ With the emergence of Vietnam as a viable manufacturing base and Indonesia increasingly opening up , ASEAN has the infrastructure to encourage Taiwanese , as well as Chinese and Korean companies , to shift parts of their production bases to Vietnam , Indonesia and Malaysia ,” it added .
The Asia Pacific smart manufacturing market is expected to register a CAGR of 7 . 57 % from 2021 to 2026 , according to a new ReportLinker report . Manufacturing is one of the most significant contributors to Asia- Pacific ’ s economy and is undergoing a rapid transformation .
“ With the Made in China 2025 initiative allowing relocation manufacturing back to China , the Southeast Asian countries are under pressure to ascertain and minimize the risk of labour issues and Industry 4.0 . This is currently impacting smart manufacturing development in the region . The majority of companies in the region are not familiar with the benefits of Industry 4.0 on productivity and growth . If adopted and implemented correctly , it has been estimated that Industry 4.0 has the potential to increase 30-40 % of productivity ,” commented the report .
Indonesia is south-east Asia ’ s largest economy , most populous country and a G20 member . The country has responded with a comprehensive policy package to cushion the impact of the COVID-19 pandemic but is facing another wave of infections .
“ Growth in the ASIAN economies has been marked down to 4.5 per cent , given still high COVID-19 caseloads in Indonesia , Malaysia and The Philippines , which will slow the pace of normalisation in contact intensive sectors . The outlook for tourism is also expected to remain subdued , affecting prospects in Cambodia , Laos and Thailand . The humanitarian crisis in Myanmar gravely concerns us all . In addition to the tragic loss of life , we project that the coup will have a devastating impact on livelihoods , that could last well into the medium term . South Asia ,
A renewed structural reform drive is essential to boost productivity and output potential , while fostering greener and more inclusive growth . Asia Pacific faces an existential threat from not addressing climate change because first , and foremost , Asia contains a number of the world ’ s largest emitters , including China , India , Japan , Indonesia and Korea . It also includes some of the world ’ s most polluted cities .
In addition , the region includes some of the most vulnerable countries to climate change , and climate-related natural disasters ( i . e . vulnerable Pacific Island economies ). The required investments to address adaptation needs are monumental , and far exceed the investment capacity of these countries . This is therefore a huge issue both for the large emitters and for the countries that are facing huge adaptation costs and climate risks .
“ Large emitters have understood very well the need to confront this challenge . In the recent past , we have seen the large emitters commit to carbon neutrality in 2050 , or 2060 . This included both advanced economies like Japan or Korea , and it also included very notably China . We have seen the beginnings of the set of measures that these countries plan to achieve their commitments . We have seen , for example , in China the Coal Tax and the National Emission Trading Schemes . Japan ’ s Third Supplementary Budget features a number of interesting investments in its green future . India has recommitted to its Paris Accords , and there is indeed certainly the potential for India to
China is an integral part of Asia ’ s growing shift to intelligent applications
42 | sheetmetalplus . com | ISMR October 2021