ASEAN’S FOOD SECURITY NEXUS 2023

·       Welcome Remarks by the Malaysia Global Business Forum (MGBF)

·       Keynote Address by a Malaysian Minister

·       Photo Opportunity: Investment MoU and Photo with selected VIPs

ASEAN plays an integral role in the functioning of the Indo-Pacific region’s economic framework. It sits both geographically and historically at the centre of an area that is home to more than half of the world’s population. How will organisations foster trade and investment among the diverse nations? Bilateral and multilateral free-trade agreements should be seen as the first step in a process which will shape the way businesses are executed now and in the future.

Advanced technology, innovative farming practices and empowered communities coupled with increased levels of productivity and poverty eradication need to be seen as the dual goal of any discussion on food security. The need for improved efficiency throughout the supply chain will secure the resilient future required by all nations in ASEAN. Will regional collective development be the forerunner of success or will each country need to strengthen their respective food industries?

As consumers globally become more environmentally conscious, companies must not only adopt but inculcate sustainable business practices as a matter of survival. As ESG and Sustainable Development Goals (SDGs) continue to take root, the agriculture sector has considerable gaps that need addressing. Businesses which source materials from ASEAN or have a considerable manufacturing footprint in the region will need to align with global purchasing trends and destination market requirements. Failure to address these concerns will have an impact on brand reputation, as well as customer and investor retention.

The growth of the middle class in ASEAN has ensured the exponential growth of demand for higher valued food throughout ASEAN. One key area that is often overlooked in macro level trade figures is the higher margin specialty food sector. Often produced by SMEs and family-based companies and cooperatives these products are in high demand. Yet, many smaller organisations find it challenging to export to international markets. How will the effective business linkages be made to ensure that these products are plugged into regional supply chains and menus?

Many businesses have the stated goal to expand internationally. The media headlines are a mix of multimillion-dollar trade deals or shifting geopolitical goalposts that wreak havoc on tariffs and trade conditions. On the interpersonal level, businesspeople are interested in establishing new markets and the next profit story. The strategies for business expansion need to be cognisant of the cultural realities of ASEAN as individuals, corporations and nations alike look for an inclusive model for future cooperation.

Growing more food alone is not going to solve the future demands of the various consumers throughout the diverse populations of ASEAN. Technology will be a key enabler at the nexus of the mega trends of population growth, demand growth, energy requirements and consumer experience. All this within the context of food-based inflation and growing concerns of food insecurity in a region that has its fair share of climate and political disruptions. How will businesses build a resilient future? Will they be homegrown heroes, or will ASEAN be caught in the negative cycle of a net food importer?

Success breads success, but it also lends itself to a new type of geopolitical tool, the weaponisation of supply chains. Defined as the removal, or threat of removal, of supply of a critical component to a country or an economy, on the flip side, attacks on successful competitive supply chains can be played out in the local and international media at a considerable cost to reputation and shareholders.  While these may be geopolitically motivated, they are often perpetrated on individual organisation with attacks in the media and social media. In recent years, the idea of friendshoring has emerged as a knee-jerk reaction to this trend but the wheels of global supply-chains take time to turn and a social media attack campaign can be rolled out in the blink of an eye.

The global economy of the future will be dominated by corporations that can provide innovative solutions of the lifestyle and subsistence requirements of large groups of people in a way that makes each individual feel unique and special. This has created a logistics problem, a data problem and a management problem that requires defining. How will an innovative approach to logistics and the movement of talent impact the way we look at supply chains in the region? How critical will regional logistics infrastructure projects be in driving efficiency in a region of over 660 million people?