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Supply chain shifts to drive more manufacturing to Asean, India

Supply chain shifts to drive more manufacturing to Asean, India
DIVERSIFICATION of supply chains to create opportunities will require companies to be flexible on factors including land selection.

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The next decade is expected to bring about a significant shift in supply chains, with manufacturing and production locations diversifying across the Association of Southeast Asian Nations (Asean) region and India. According to JLL (NYSE: JLL), Southeast Asia and India are set to benefit from this diversification as companies look to complement their existing bases in China. However, flexibility will be key as companies navigate factors such as land selection and funding options in response to the volatility in supply chains. Governments in Southeast Asia and India are supporting these opportunities and implementing policies to boost their local manufacturing industries. JLL estimates that China currently holds the majority of manufacturing FDI in the region, but the gap is narrowing as other economies in Southeast Asia show potential for growth. Companies will need to carefully evaluate various factors such as costs, market access, infrastructure, labor, and governmental support before determining their global manufacturing investment strategies.