In its Future of Trade: New Opportunities in High-Growth Corridors report today, the banking group emphasised the rapid growth of India, Indonesia and Vietnam as key trading partners for Malaysia.
The report stated that Malaysia’s exports to India would reach US$18 billion (RM80.6 billion) with a compound annual growth rate (CAGR) of 10.1% by 2030, followed by Indonesia (US$12 billion; 9%) and Vietnam (US$13 billion, 8.7%).
In line with the projected exports growth, the report added that Malaysia has made significant investments to strengthen its key export infrastructure.
Among those investments are the expansion of the Kuala Lumpur International Airport and the East Coast Rail Link, which improves connectivity between the peninsula’s west coast and its east coast.
Machinery and electricals are expected to dominate exports in 2030 by making up 53% of the share of exports with a CAGR of 6.8%.
This is followed by metals and minerals with an expected market share of 19% and a 5.9% CAGR, and agriculture and food (6%; CAGR: 9.2%).
The bank’s regional head of global subsidiaries for Asean, Patricia Wong, said Malaysia’s competitive trade growth is driven by a number of factors, particularly its strong trade ties with key markets.
“With the country’s trade capabilities set to be enhanced from major upgrades to its logistics infrastructure, the bank’s (Standard Chartered) extensive network lends a strong leverage as the gateway right at the heart of global trade routes connecting Malaysia to the world,” she said.
The group also projected that global trade is set to reach US$32.6 trillion (RM153 trillion) with a growth rate of 5% by 2030.
“Trade corridors anchored in Asia, Africa, and the Middle East will outpace global trade growth rate by up to 4%, driving trade volume in these regions to US$14.4 trillion (RM67 trillion) and to account for 44% of global trade by 2030,” its statement read.
The report included a survey of more than 100 global business leaders, who shared that among the top challenges facing them are rising geopolitical tensions, volatile commodity prices, poor infrastructure quality, high inflation and economic sanctions, tariffs or export bans.