KUALA LUMPUR, Malaysia – Southeast Asia is the “latest China” and must be at the middle of the worldwide supply chain, in accordance with the pinnacle of an influential regional business organization.
Arsjad Rasjid, chairman of the ASEAN Business Advisory Council (ASEAN-BAC), said in an interview that the 10-member Association of Southeast Asian Nations (ASEAN) must be the world’s “supply chain.”
“ASEAN should be the global supply chain; “ASEAN is the new China,” Arsjad said last week in an interview with Al Jazeera.
Arsjad, who also heads the Indonesia Chamber of Commerce and Industry, believes the bloc is on target to switch China “tomorrow” resulting from the region’s abundance of nickel and other key minerals.
“Food and agriculture are also important in ASEAN countries,” said Arsjad, who visited Kuala Lumpur to satisfy with government officials and business leaders.
The remarks come as China and Chinese corporations, particularly in critical sectors akin to advanced chips, face increasing restrictions imposed by the West amid Beijing’s geopolitical rivalry heated by Washington. The tensions have prompted industry titans akin to Apple, Google and Samsung to hunt latest manufacturing bases outside China, particularly in Vietnam.
ASEAN-BAC, the private sector arm of ASEAN, is devoted to facilitating regional economic cooperation and integration. This yr, Indonesia serves because the ASEAN chairman.
According to the US Geological Survey, Indonesia has the world’s largest nickel reserves at 21 million tonnes, accounting for nearly 1 / 4 of the world’s nickel reserves. The Philippines has the fourth largest reserves, with 4.8 million metric tons. Nickel is a key ingredient within the production of stainless-steel, electronic devices and electric vehicles.
“Indonesia produces 40% of the world’s nickel mining. “If we include the Philippines, the share increases to 50-60 percent,” Arsjad explained.
Indonesia, together with Thailand and Vietnam, goals to turn out to be a key player in the electrical vehicle supply chain, attracting investment by tapping large nickel reserves.
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