Strength Through Diversification: Opportunities across Asia Pacific

• Intra-APAC trade has increased 5-fold in USD dollar values since 2000, further growth is expected which will force supply chains to become more regionally focussed. • As mainland China continues to move up the value chain, new manufacturing and logistics hubs are emerging, especially across South East Asia and India creating opportunities across the region. • Although labour pools are deep compared to Europe and US, talent is heavily concentrated within the region. At the same time, there is great variability in skill levels, meaning investment in capability and capacity building. • Port throughput capacity also needs to be expanded across much of the region. India and South East Asian markets, cumulatively account for 19% of throughput of the world’s top 50 ports, while China accounts for 45%. • Sectoral trends are also driving the need to redesign supply chains to incorporate greater flexibility, automation and resilience while also reducing input costs and accommodating greater sustainability initiatives. • Occupiers of logistics and industrial space can capitalise on these opportunities by expanding into new markets and/or expanding existing facilities to meet the forecast growth in demand. However, they would be well advised to undertake rigorous supply chain mapping and location analysis to help ensure the optimum design of their manufacturing and distribution strategy. • For investors and developers, opportunities will flow from leveraging existing relationships with tenants to aid their expansion through providing bespoke solutions. In turn, this will provide opportunities to deploy capital and expand portfolio sizes.

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STRENGTH THROUGH DIVERSIFICATION: OPPORTUNITIES ACROSS ASIA PACIFIC