Geopolitics is reshaping global trade, positioning Malaysia, other ASEAN nations, and the Global South as key winners. In this episode of Enterprise Explores, we speak with Aparna Bharadwaj, Managing Director & Partner at BCG Singapore and Global Leader of BCG’s Global Advantage Practice, as she unpacks the forces transforming international trade and what today’s business leaders must understand to navigate this dynamic landscape.

Drawing on insights from BCG’s report ‘Great Powers, Geopolitics, and Global Trade’, the conversation dives into how North America is reducing its reliance on China, while ASEAN and other Global South markets are emerging as key players.  Aparna explains the domino effect of shifting trade flows, the impact of rising tariffs, and the strategic importance of building geopolitical muscle in today’s volatile market.  The discussion highlights opportunities for diversification, the benefits of resilient supply chains, and the potential for nations like Malaysia to capitalise on these trends. 

Here are some AI-generated key highlights from the conversation:

Global Trade Shift: Trade is moving from free-market ideals to systems driven by geopolitics, economic security, and shifting corridors, sparked by the US-China trade slowdown and rising economic nationalism.

Key Trade Corridors: Expect a $160 billion shrink in US-China trade, rapid growth in China–Global South flows, and significant increases in US–India trade—creating a domino effect across regions.

ASEAN & Malaysia’s Edge: ASEAN, especially Malaysia, benefits from a "China plus X" strategy thanks to pragmatic policies, special economic zones, and opportunities in the halal market.

Impact of US Tariffs: US tariffs, a pillar of the "America First" policy, and potential reciprocal measures are reshaping supply chains and trade balances globally.

China’s New Focus & Global South: China is pivoting away from the West toward increased trade with ASEAN, BRICS+, and the global South, where faster GDP growth and resilient FDI flows prevail.

Business Strategies: Key recommendations for businesses include strengthening supply chain resilience, building geopolitical intelligence, exploring new growth markets, considering nearshoring strategies, and diversifying market footprints.

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