A recent HSBC Global Trade Pulse report indicates that Asian businesses are increasingly adapting to the evolving trade landscape, with a significant shift towards intra-Asian trade. The survey reveals that 68% of Asian respondents now feel more certain about trade policy impacts compared to six months ago, as the initial shock of the “Liberation Day tariffs” begins to subside.
The report highlights a decrease in expected revenue impact from supply-chain disruptions, with Asian firms forecasting a 13% negative impact over the next two years, down from 18% previously. In Singapore, 79% of businesses remain optimistic about trade growth, demonstrating enhanced supply chain resilience and risk management.
Asian companies are increasingly focusing their trade strategies within the region, with 41% planning to increase reliance on Southeast Asia, 34% on East and North Asia, and 29% on South Asia. Aditya Gahlaut, Regional Head of Global Trade Solutions, Asia at HSBC, noted, “Our research data suggest that companies in Asia are adapting to the new environment. Though their concerns around revenue have eased slightly, they remain alert to risks.”
Runa Baksi, Head of Southeast Asia, Global Trade Solutions at HSBC, emphasised the importance of supporting clients through uncertainties, stating, “The HSBC Trade Pulse Survey highlights the resilience and optimism of businesses in Singapore, and we are committed to empowering them with the tools and insights needed to navigate these challenges.”
As the trade map continues to evolve, Asian firms are poised to leverage regional opportunities, ensuring competitiveness amidst global uncertainties.
