Three shocks end Asia's 'just in time' supply chain model
Three major disruptions in six years—Covid, the Ukraine conflict, and the Hormuz crisis—have ended Asia's commitment to efficiency-at-all-costs supply chains. According to Jakir Ahmed, an economist at IbisWorld, these events show serious disruption is now regular. Shay Wester of the Asia Society Policy Institute notes that disruption is now a recurring trade landscape feature rather than an exception. The Hormuz crisis left little room for denial among governments and businesses once wedded to frictionless globalization.
Key facts
- Three shocks in six years: Covid, Ukraine, Iran (Hormuz).
- Asia's 'just in time' supply chain model is ending.
- Jakir Ahmed, economist at IbisWorld, says serious disruption is now regular.
- Shay Wester, director at Asia Society Policy Institute, says disruption is recurring.
- Hormuz crisis was the final shock for many Asian governments and businesses.
- Covid was initially seen as a once-in-a-generation anomaly.
- Ukraine conflict was viewed as someone else's problem by Asia.
- The article is from SCMP Week-Asia economics section.
Entities
Institutions
- IbisWorld
- Asia Society Policy Institute
- SCMP
Locations
- Asia
- Ukraine
- Iran
- Hormuz
- Zaporizhzhia