Forum: Globalisation still good for business

The Covid-19 pandemic has caused unexpected disruptions to global supply chains, but it should not shake the basic foundation of globalisation.

Globalisation has been a blessing to international business. Distribution of work via comprehensive supply chains has increased manufacturing capacity for better and cheaper products.

On the surface, it looks feasible for countries such as the United States and Japan to move production from China back home, but whether the shift could succeed without the support of established supply chains is questionable. Politicians who push for such moves may not know the complexity of establishing good-quality and reliable supply chains.

It takes decades of hard work to build up the system, even with a large volume of trained and skilled labour.

Global supply chains allow for the pooling of talent and resources to utilise each country's strengths to produce products at very competitive prices.

The migration to countries with lower-cost labour will help create more jobs to reduce poverty, while encouraging global cooperation and collaboration. China's success is a good example.

No country is an island in an interdependent world. No country can successfully prosper without trade and contribution from global supply chains.

Paul Chan Poh Hoi

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