Virtual POC2021: Countries Will Be Looking To Amend Broken Global Supply Chains

Speaking at the Virtual POC2021’s Palm and Lauric Oils conference, Director of the Economic Studies Programme in the Jeffrey Cheah Institute on South East Asia at Sunway University, Professor Yeah Kim Leng has highlighted the three post-outbreak rebuilding themes for the global economy.

He said the key factors attributing to the economic landscape of the three post-outbreak rebuilding themes are the vaccine-powered containment of the outbreak and the policy support in key large economies.

However, the setbacks are the variation in the recovery strength and the greater adverse impacts on women, youth, the poor, the informally employed, and contact-sensitive sectors like hospitality and tourism.

The first post-outbreak rebuilding theme is to boost healthcare systems and supply chains in each country.

“Due to the Covid-19 outbreak, we will see countries encourage their government to invest more into healthcare to prepare themselves in the future. For example, Malaysia needs to double their GDP for healthcare as currently it sits at a low of two percent. Doubling it could mean so much more for our country’s healthcare systems,” Professor Yeah added.

The second theme, the accelerated shift to digital and smart economy which includes automation, Artificial Intelligence (AI), robotics and Internet of Things (IoT) in the industry leverages digital technologies to enhance economic efficiency and effectiveness of public delivery systems.

Post-outbreak reconfiguration and shortening global supply chains is one of the six themes that Professor Yeah presented in the virtual conference as the world faced its second worst economic downfall since the second World War as reported in the IWF World Economy Outlook 2020.

“With the reconfiguration and shortening of global supply, global enhancement for global cooperation and global public goods can exist due to countries seeking the best method to recover and strengthen broken economic bonds.

As that happens, a peaceful economic transition from uni-polar to multi-polar can happen as well,” he concluded.

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