KUALA LUMPUR: Malaysia’s exports are projected to hit US$425 billion by 2030 at an annual growth rate of 6.8 per cent, said Standard Chartered.
The country would be a key driver of global trade growth which is set to reach US$32.6 trillion with a growth rate of five per cent by 2030, the bank said in a statement in conjunction with its Future of Trade 2023: New Opportunities in High-Growth Corridors research report.
It said trade corridors anchored in Asia, Africa and the Middle East would outpace the global trade growth rate by up to four percentage points, driving trade volume in these regions to US$14.4 trillion and account for 44 per cent of global trade by 2030.
“For Malaysia, export corridors to India, Indonesia and Vietnam are among the fastest growing,” it said.
Malaysia’s exports to India would reach US$18 billion with a compound annual growth rate (CAGR) of 10.1 per cent in 2030, followed by Indonesia (US$12 billion; nine per cent) and Vietnam (US$13 billion; 8.7 per cent).
Based on the report, the bank said Malaysia would invest to strengthen its key export sectors and infrastructure, with the expansion of the Kuala Lumpur International Airport and East Coast Rail Link connecting the west coast with the east coast, being the main upgrade initiatives.
It said the country’s machinery and electrical sector would account for 53 per cent share of exports in 2030 with a 2021-2030 CAGR of 6.8 per cent, followed by metals and minerals (19 per cent; 5.9 per cent) and agriculture and food (six per cent; 9.2 per cent).
Standard Chartered Malaysia’s regional head of global subsidiaries for Asean and country head of corporate, commercial and institutional banking Patricia Wong said Malaysia’s competitive trade growth was driven by a number of factors, chief of which is its strong trade ties with key markets.
“With the country’s trade capabilities set to be enhanced from major upgrades to its logistics infrastructure, the bank’s extensive network lends a strong leverage as the gateway right at the heart of global trade routes connecting Malaysia to the world,” she said.
Additionally, Standard Chartered said that digital supply chain finance solutions would be a game changer in this global trade growth scenario.
“By 2030, increased adoption of digital supply chain finance solutions could drive up exports by 7.5 per cent in the 13 surveyed markets, an uplift of US$791 billion.
“Digital supply chain finance solutions can also help drive greater financial inclusion and participation for small and medium-sized enterprises, help companies track adherence to environmental, social and governance criteria and reduce the risk of fraud and cost of monitoring,” it added. – BERNAMA
