PRAXIS 2025: Future-proofing trade through trust

AWANI

As protectionism and global trade tensions rise, countries are pushed to rethink their economic playbooks. Datin Lorela Chia discusses the need for Malaysia to build trust alongside trade routes.

Transcript

00:00As protectionism and global trade tensions rise, countries such as Malaysia are pushed to rethink their economic playbooks.

00:08Awani International Correspondent, Fei Kuan, reports from Praxis 2025 on the call to build trust alongside trade routes.

00:30Now rising protectionism is of course creating major havens for Malaysia as trade, climate and even connectivity come under pressure.

00:38So to unpack what this means for Malaysia and the region, I'm joined by Datin Lorela Chia.

00:44She is the founding president of the Malaysia Association of Sustainable Supply Chains.

00:49As of late in Malaysia, we've heard a lot about the need to diversify our markets and to reduce reliance on traditional trade partners.

00:57So in the face of rising protectionism and supply chains now under pressure, what do you think?

01:04Have we as a country actually done enough and where do you see the biggest opportunities for deeper cooperation moving forward?

01:12I think first, true to the thing, I think we should not look at things in a fragmented way.

01:20So we used to say break down silos, so that's actually what it is.

01:25Number one is to stop looking at things from a piecemeal perspective.

01:30That's still a fragmented lens.

01:32If you're wearing a fragmented lens, the solution you have would be fragmented, right?

01:37And that's not really future-proofing.

01:39I think right now what we can look at is what I would like to call a trust infrastructure, right?

01:46To put it very simply, I think in times of difficulty or uncertainty, who do you want to trade with?

01:58Who do you want to deal with?

02:00These are people you trust, right?

02:02So relationship building and trust building.

02:05What does this mean in a practical sense?

02:07I think when you talk about infrastructure, people think about airports and roads and ports and all that.

02:14But what the other things, the credibility of our data, the reliability of certifications,

02:20because ESG is how countries and sectors evaluate things, right?

02:26The transparency of our supply chains, these all build trust.

02:31And collectively, they form a trust infrastructure.

02:33And one would say that if your trust infrastructure is strong enough and reliable enough

02:40and people buy into that, then it's easier for you to move things,

02:46it's easier for you to negotiate things, it's easier for you to look for new markets,

02:51it's easier for you to innovate, it's easier for you to find partnerships.

02:54So in that sense, are we doing enough there?

02:58I think that should be the question.

02:59Yeah, looking further ahead at these long-term steps, then.

03:03I do wonder, though, because as mentioned in your session earlier,

03:07that we can't expect things to immediately bounce back even after U.S. President Donald Trump's second term comes to an end.

03:14And in that sense, when we're looking at the bigger ecosystem,

03:18it's important for Malaysia to kind of prioritise reforms to ensure that we're not just adapting

03:24to the shifting global order and the new generation trading order,

03:28but rather being part of it and helping to reshape it.

03:32So I wonder where that trust infrastructure comes into play then,

03:35especially with a landscape that's always dominated by major powers.

03:40That's an interesting question.

03:43You see, when we talk about adapting, we're responding.

03:47So when we respond, it's like the narrative about ESG, right, beginning with compliance.

03:52So when we talk about adapting, we are still talking about what we need to do

03:56and how we adapt to that.

03:57That's compliance, right?

03:59Then for individuals or even businesses, we need to move from compliance, being forced to do something,

04:06into ownership, putting off personal values into it as individuals,

04:10and for companies looking at it, how does this generate competitive advantage, right?

04:15But for individuals to mature, we really need to move towards stewardship.

04:20So beyond embedding my personal values into what I believe in or what I'm doing,

04:25I need to look into how I'm nurturing the other people, the people around me, my ecosystem, right?

04:32For businesses, this means how do I look at what was a compliance,

04:38which is now a competitive advantage, how do I use that as a launchpad for innovation?

04:43And this entire string, right, trust infrastructure is about the credibility of your data,

04:49it's about the credibility of certification.

04:52So it's everywhere at every stage.

04:54It's also a mindset, it's also a behaviour change.

04:58Once you have that, I think it's easier to look at how we can lead as opposed to follow.

05:04All right.

05:05Well, thank you so much, Datin, for sharing your insights.

05:08That was Datin Lorela Chia from the Malaysia Association of Sustainable Supply Chains.

05:14I'm Fei Kuan, reporting here from Praxis 2025.

05:17Back to you, Industry.

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