Fast-growing Asia will remain as the growth engine of the world despite global uncertainties, with the region being a major force behind global trade growth, according to a recent meeting of business leaders.

The region  is at the centre of a profound rewiring of international trade, investment and capital flows, with geopolitics and geoeconomics continuing to reshape global trade patterns, finds panellists speaking during Standard Chartered-sponsored “Asia in the changing world order” panel discussion – held at the World Economic Forum Annual Meeting in Davos, Switzerland last week – which discussed key strategies to tap into the region’s opportunities to secure sustainable, long-term growth.

Panellists included Benjamin Hung, Standard Chartered’s international president; Oliver Jenkyn, Visa’s group president of global markets; Neeraj Aggarwal, Boston Consulting Group’s chair for Asia-Pacific; and Carlson Tong, Hong Kong Exchanges and Clearing’s chairman.

Companies, panellists note, are setting up new supply chains of goods and services, and this is driving the growth and development of new and emerging geographies and trade corridors, such as the South-to-South corridor, the Intra-Asia Regional corridor and the Intra-Asean ( Association of Southeast Asian Nations ) corridor. 

Asia’s wealth creation is also expected to outpace that of the rest of the world. With a fast-growing affluent and middle class in the region who are increasingly seeking cross-border diversification, the panel’s general consensus is that, there is a growing shift in asset classes and rise in wealth advisory needs across Asia’s wealth hubs.

Digital economy

The region’s digital economy is seen by panellists as a key area of continued growth. Asia’s large and populous markets, coupled with its rising digital penetration, are leading to a surge in digital ecosystems, which will continue to shape the region’s future prosperity.

One of the instruments that will be central to the transformation of cross-border payments is central bank digital currencies, which will make transactions faster, cheaper, as well as more transparent and accessible.

Sustainability

Asia’s increased focus on sustainability, Standard Chartered argues, serves as a key driving force with huge sustainable financing and green infrastructure needs expected to generate significant opportunities.

In a region as diverse as Asia, however, accelerating the net-zero transition will require coordinated approaches and close collaboration between government, multilateral and private sector stakeholders that meet the principle of a just transition for each market. 

Connectivity

A key takeaway from the panel discussion is the need for greater collaboration and connectivity in an increasingly fragmented world. There is a huge opportunity, the bank shares, to create value – especially for institutions who can play a super-connector role – through differentiated products and services, and by connecting their clients with markets, opportunities and sustainability.

“Asia is emerging as an epicentre of economic activity and is expected to deliver 50% of global GDP growth during this decade,” Standard Chartered’s Hung states. “Structural opportunities, including global supply chain shifts, wealth creation, the rise of the digital economy and sustainability will continue to power the region’s transformation.

“In times of uncertainty and turbulence, the importance of connectivity will be much more acute, and organizations like our bank can play a key role in addressing some of the biggest challenges we face today in Asia and beyond – from mobilizing capital to supporting sustainable development, to helping facilitate a just energy transition, and improving financial inclusion and participation through innovation.

“Collaboration, fostered by sensible and pragmatic policy approaches is key to ensure continued connectivity.”