HQTS Latest Supply Chain & Trade Updates Across Asia – Report #15

With a wide range of service locations across Asia, HQTS has collected important supply chain and trade-related information to help you fully understand the current situation affecting your business.

Here’s our latest report based on recent developments across the continent.

China

Mainland China is pretty much completely back to normal with all schools and restaurants having opened. Chinese citizens basked in the familiar bustle of the holiday rush over Golden Week as thousands flocked to various tourist attractions across the country at the start of October including The Great Wall.

Bangladesh

Restriction policies on traveling, logistics and business operations:

The number of confirmed Covid-19 cases in Bangladesh continues to rise again as the country experiences a second wave of infections. The government is currently deciding on whether to implement another lockdown and schools have extended closures while continuing to rely on remote learning.

Financial and trading policies:

It was previously estimated that Bangladesh’s economy would grow by 1.6% in the current 2020-2021 year due to the negative impacts of the Covid-19 outbreak. There has been a decline in exports due to continued low external demand and a decline in remittances due to the return of workers from overseas.

India

Restriction policies on traveling, logistics and business operations:

Cases in India have fallen by almost 20% but experts are warning that the virus is still spreading in rural areas. With more than 1.1 million samples have been tested daily on an average. The government has permitted the reopening of schools in phases after Thursday October 15.

Financial and trading policies:

India’s economy contracted a record 23.9% by the end of the second quarter and the World Bank has projected its GDP to plunge by 9.6% which is a further drop from its previous forecast of a 3.2% fall.

Growth is expected to rebound to 5.4% in FY22, according to the World Bank, assuming virus-related restrictions are completely lifted.

Vietnam

Restriction policies on traveling, logistics and business operations:

Vietnam is continuing to control its coronavirus numbers. The country has, however, recorded one imported case from Russia.

Financial and trading policies:

Vietnamese officials have lowered their expectations for the country’s economy. Vietnam’s $260bn economy has grown by 6% or more each year since 2012 but is only expected to grow by 2% in 2020.

Malaysia

Restriction policies on traveling, logistics and business operations:

Malaysia’s new Covid-19 cases have fallen; however, the death toll is rising and experts are advising that a targeted lockdown is now the best way to manage the situation. If the spread continues, people could once again be forced to stay at home.

Financial and trading policies:

The Malaysian economy lost more than $654,700 a day during the lockdown period. Unemployment grew from 3.3% to 5.3% in May and the country’s GDP fell by 17.1% during the second quarter of 2020.

The Philippines

Restriction policies on traveling, logistics and business operation:

Schools in the Philippines began classes at home online this week and more malls have reopened even though an increase in coronavirus cases has been recorded. Restaurants can now operate around the clock and malls can open until 11pm, while salons and barbershops can run at 75% capacity.

Metropolitan Manila and five other cities will remain under general quarantine restrictions with more businesses and public transport allowed to partially operate on the condition people wear face masks, shield and socially distance.

Financial and trading policies:

For years, the Philippines was one of the world’s fastest growing economies and it is now forecasted to see a 6.9% economic contraction this year, worse than the government’s initial projected 5.5% decline.

Singapore

Restriction policies on traveling, logistics and business operations:

Singapore announced cruises will begin again next month, but in order to keep crew and passengers safe amid the coronavirus pandemic, the ships will make no stops and simply return to the port they left.

Financial and trading policies:

Singapore’s economic decline is expected to have slowed significantly in the third quarter as the city-state loosened coronavirus restrictions. GDP is expected to contract by 6.8% from the same period a year earlier. The economy had shrunk 13.2% in April-June – the worst performance on record as the country went into lockdown.

Indonesia

Restriction policies on traveling, logistics and business operations:

Indonesia has reimposed lockdowns as virus infection rates have reached a new daily high. Central government officials are trying to thwart the Jakarta governor’s plan to reinstate large-scale travel restrictions in the capital, refuting his claim that hospitals are running out of beds for coronavirus patients.

Financial and trading policies:

Indonesia’s independent central bank must be brought under closer political control to help the government generate jobs and economic growth following the virus outbreak, according to the lawmaker charged with drafting a bill to reform the institution.

GDP is forecast to decline 0.6% to 1.7% this year. The government previously had estimated the economy could grow 0.2% or shrink by as much as 1.1%.

Thailand

Restriction policies on traveling, logistics and business operations:

Covid-19 has been well contained in Thailand and the country will start allowing foreign tourists in again from this month. The Special Tourist Visa scheme will proceed as planned.

Financial and trading policies:

The economic impact of the coronavirus pandemic has been severe, with Thailand expecting its GDP to contract by 7.8% in 2020.

Pakistan

Restriction policies on traveling, logistics, and business operations:

Pakistan is seeing a rise in Covid-19 cases again after the government ended almost all restrictions. The Pakistani government has closed more than 200 restaurants and some wedding halls after violation of social distancing rules.

Financial and trading policies:

With a GDP growth rate of 0.5% among the lowest of all South Asian nations, the World Bank has warned Pakistan about external financing. According to a report, a downfall of 7.7% is expected from Pakistan’s economy. However, it’s also suspected that the next year could see a rise of 4.5%.

About HQTS

With over 25 years of experience in quality assurance, HQTS is ready to help your business build meaningful and robust supplier relationships across Asia. Our many service locations are prepared to be your one-stop-shop for your inspection needs, including factory audits, production monitoring, pre-shipment and sorting inspections, and everything in between. This will allow you to know exactly what’s happening on the ground and keep close tabs on your suppliers. Contact us today to find out how we can help you navigate current quality control challenges.