As trade tensions reshape global supply chains, ASEAN nations are shifting focus from short-term fixes to long-term resilience, explored further with Professor Shandre Mugan Thangavelu from Sunway University.
00:00As trade tensions continue to reshape global supply chains, ASEAN nations are looking beyond short-term responses and planning for long-term resilience.
00:11We explore this further with Professor Chandra Mugentang-Gavellu from Sunway University.
00:17So the first stage is to mitigate as much as possible any of this.
00:21The second stage is to look for new markets. Every country is going to make new markets. That's where the BRICS comes in.
00:27So BRICS are not used for reciprocal tariffs. It's used for new markets and innovation and so on.
00:36The third stage is to strengthen ASEAN itself, which means ASEAN trade and ASEAN-based trade, the rule-based trade within East Asia accounts for 85%.
00:46So they need to strengthen that, the ASEAN, the bilateral, ASEAN Plus One.
00:52Chandra highlighted the need to strengthen trade while embracing the green and digital economies to drive innovation, integration and alternative products.
01:03He also noted that the U.S. remains a highly sophisticated consumer market capable of selling high-value products at premium prices.
01:10So Trump wants a tax out of that high-value product.
01:16The question, who's going to pay?
01:18This is a pass-through tax, right?
01:20Producers always pass through this to the consumers.
01:23That's always the pass-through tax.
01:25So the question you asked, will they be hedging?
01:27They'll be hedging, but not, not, BRIC will not be the key.
01:30BRIC might be new markets.
01:32And maybe the countries will consolidate towards a stronger North kind of voice, a North kind of coalition that will become stronger.
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