Chua Hak Bin, senior economist at Maybank Kim Eng, said in its regional economics report, titled “Cross-border bank lending and shifting supply chains,” that foreign direct investment (FDI) applications and commitments to ASEAN have surged. He said the US-China trade war is prompting multinational companies to reconfigure their supply chains and reduce their overdependence on China. He added the COVID-19 outbreak would likely reinforce the shifts in manufacturing supply chains from China, with Japanese automakers speeding up their relocation plans. Chua said rising foreign bank claims on ASEAN members is consistent with the shifts in supply chains toward the region. He added most multinational companies are relying on foreign banks, rather than domestic banks, to fund their capacity expansions.

Source: Philippine Star February 21, 2020 15:56 UTC