Strength Through Diversification: Opportunities across Asia Pacific

DIVERSIFICATION OF MANUFACTURING IN ASIA PACIFIC

As the region continues to develop and mature, the manufacturing

Mainland China has made rapid advances in its manufacturing sector, in part spurred by technological development and automation but also supported by increasing labour costs, which on average have risen 10% per annum over the past decade (Figure 2). These factors, together with government policy such as “Made in China 2025” and a greater focus on sustainability, have driven a marked shift to higher order goods production and the development of a “modern industrial system”. For example, mainland China has taken a leading position in the production of electric vehicle batteries, photo-voltaics and quantum sensors.

sector has responded.

FIGURE 2: MONTHLY MANUFACTURING WORKER COMPENSATION (USD)

Source: Moody’s Analytics, National Statistics Agencies

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DRIVERS OF CHANGE IN ASIA PACIFIC