National Trade Blueprint

12 National Trade Blueprint The Need for a National Trade Blueprint The global environment in which Malaysia competes changes rapidly, with demographic changes, digital acceleration, the rise of Asia in economic power as well as the growing global demand for sustainability. These changes provide enormous opportunities for all Malaysian exporters to take advantage of the growing export markets. At the same time, growing protectionist sentiments have the potential to impede the open global trading marketplace, along with unexpected events such as Covid-19 which add to the risk of global supply chain. Responding to Megatrends Nevertheless, more accessible markets also mean more competition abroad. Malaysian exporters need to be agile and stay ahead of global competitors by embracing innovation and developing an in-depth understanding of demand in key markets. Malaysia must prepare for the future and consider the implications of trends which will transform the trade and investment landscape globally. In developing the NTBp, Malaysian exporters and their ecosystem players (e.g. government and industry bodies, research, education institution and etc.) must consider what the global landscape will look like in the coming decades. • Further risks are generated as global value chains (GVCs) become more complex. Some examples include pandemics, trade restriction, demand shocks, corruption, currency fluctuations, ICT disruptions, theft, etc. Failure to mitigate and prepare for these events can cause significant damage. • The global gap in the cost of production is seen to be shrinking. Further, supply chains is expected to be shorter in the coming years. • It is expected that competition will be intense among exporting countries to drive growth with cost factors being less relevant. • With the continued development of digital technology and e-commerce, the way consumers shop is evolving. • It is becoming increasingly important for businesses to stay on top of digital trends and having the right digital presence to gain influence in the market. • Exponential growth in population, with projected population of 11.1 billion by year 2100. Africa is expected to see the highest population growth. With the aging population, there will be rising challenge in developing products to cater for older population. • This represents potential opportunities to diversify into new markets. • Asian countries are gaining economic dominance, with increasing middle-class population expected to exceed 60% by 2030. This is a significant driver of domestic demand. Emergence of mini economies also represent target markets for exporters. • As consumers become increasingly aware and emotionally engaged in issues of environment and ethical business practices, export products will need to be sustainability driven in order to remain competitive in the global market.