Malaysia ranks second in Asia Pacific for global connectedness
03 Dec 2020
Malaysia ranks second among Asia Pacific countries and 16th out of 169 countries for global connectedness based on international flows of trade, capital, information and people, according to the DHL Global Connectedness Index (GCI) 2020.
The country is also positioned with Cambodia, Singapore, Vietnam and Netherlands as among top outperformers to have punched well above their weight in terms of international flows based on economic strength, size and location.
“Malaysia had been extraordinarily strong in delivering great quality with 20 to 30 per cent growth mainly driven by e-commerce and the outlook is expected to be equally positive while being one of the fastest growing countries,” DHL Express chief executive officer John Pearson said at a virtual press conference today.
The report said Malaysia is ahead of its peers in terms of the depth of its global connectedness which exceeded expectations on both depth and breadth scores.
It also said Southeast Asia countries benefitted from linkages with wider Asian supply chain networks as well as Asean policy initiatives promoting regional economic integration.
Globally, it said current forecasts implied that the index would fall significantly in 2020 due to the distancing effects of Covid-19 on societies such as closed borders, travel bans and grounded passenger airlines after holding steady in 2019.
“Nonetheless, the pandemic is unlikely to send the world’s overall level of connectedness below where it stood during the 2008 and 2009 global financial crisis.
“Trade and capital flows started to recover and international data flows surged during the spreading of the pandemic as in-person contact went into the online world, boosting international internet traffic, phone calls and e-commerce,” it added.
In a separate statement, DHL Express Malaysia and Brunei managing director Julian Neo said Malaysia has benefitted from globalisation which increased the competitiveness of the economy and positioned the country as a key manufacturing site for global brands.
“While the pandemic has restricted movement and impacted businesses, it has also brought on many opportunities and opened doors for cross border trade,” he added.