The potential is huge given Southeast Asia’s strategic location between Asia-Pacific and the western hemisphere.
According to Asean Federation of Forwarders Associations president Alvin Chua, the regional grouping could leverage on this advantage to serve as the centre from which goods from across the Asia-Pacific can be shipped onwards to the rest of the world.
All that is needed for this industry that could potentially be worth trillions of dollars is for the right infrastructure to be put in place, Chua told FMT on the sidelines of the Thailand International Logistics Fair here.
Such infrastructure will have to be commensurate with global logistics requirements, he added.
Chua said that apart from the weak infrastructure, Asean would need to overcome other key challenges, including improving customs procedures and easing trade barriers.
“Asean is poised to be a leader in the provision of sustainable logistics services in the future,” he said.
“In that future, global logistics connectivity will be seamless to ensure uninterrupted trade at a previously unheard of level.
“Logistics is the life-blood of modern economies. It underpins the efficient delivery of goods and services across borders,” he added.
Chua said there is also a need to promote greater sustainability in its infrastructure while also prioritising green technology, artificial intelligence, digital innovation and seamless logistics.
He said consistency in regulatory requirements, inclusiveness and people mobility are also essential to minimise documentation, thereby enhancing the delivery system.
Chua, who is also vice-president of the Federation of Malaysian Freight Forwarders, said that under the Master Plan on Asean Connectivity (MPAC) 2025 blueprint, the foundation has already been laid for a more integrated Asean.
He said a study has also been conducted to determine the best approach to enhance trade and logistics infrastructure through the MPAC.
Ultimately, the plan is to make Asean the world’s leading logistics player.
“Efficient intra-region connectivity is crucial to unlock the full potential of trade within Asean, to attract foreign investment and to enhance global competitiveness,” he said.
Given that nearly half of the world’s maritime trade routes pass through Asean, there is a need to improve logistics, he said.
He said steps will be taken to ease congestion, lower the cost of delivering goods and services across borders while speed and reliability will be enhanced.
This will be achieved through the development of a supply chain framework.
Deputy permanent secretary of the Thai commerce ministry Vannaporn Kutudat said Bangkok places great emphasis on developing the infrastructure given that logistics are key to driving the economy and enhancing competitiveness.
“Logistics service providers must sharpen their competitive edge, enhance their potential, adapt and keep pace with the world’s fast-changing technological development to meet customers’ needs,” Vannaporn said.
She added that her government’s “Ignite Thailand” industrial initiative is aimed at promoting her nation as a world-class business hub through multi-lateral collaboration and networking with Asean countries.