Asian Trade Relations

Asia is home to many of the world’s most powerful and advanced markets, including China, Singapore, Malaysia, South Korea, India, Hong Kong, Indonesia and Japan. According to KPMG/HSBC Emerging Giant Markets in Asia-Pacific 2022, the key diver for the emergence of these giants can be attributed to three main drivers:

Demographics: The Asia Pacific region boasts a growing population, a swelling workforce, and a burgeoning consumer class. Digital Advancements: The region is home to a rapidly expanding population of digital natives. Dynamic Market Movements: Better access to the Internet, growing prosperity, and improved education have fostered a new class of digital entrepreneurs who are adept at identifying and filling gaps in the regional market. (KPMG/HSBC 2022)

Over the years, cargo shipments along the Middle Corridor, also known as the Trans-Caspian International Transport Route (TITR), have surged. This route is a multilateral institutional development linking the containerized rail freight transport networks of the People’s Republic of China (PRC) and the European Union through the economies of Central Asia, the Caucasus, Turkey, and Eastern Europe.

Goods moved along the corridor grew from approximately 350,000 tons to 530,000 tons between 2020 and 2021. However, Russia’s 2022 invasion of Ukraine and the West’s subsequent economic sanctions on Moscow notably boosted the corridor’s use. Central Asian countries remained neutral in the conflict, leveraging opportunities in having an alternative to the Russiandominated Northern Corridor and better infrastructure to support greater intra-regional trade.

Cargo shipments along the Middle Corridor jumped to 3.2 million tons in 2022. Some now predict that the Middle Corridor’s capacity will skyrocket to 10 million tons, given Turkey’s completion of the Marmaray railway under the Bosporus Strait, enabling rail cargo from Central Asia to travel directly into the heart of Europe.

Singapore: A Benchmark for Africa

Beyond the African continent, I had the opportunity to explore the bustling trade hub of Singapore. As a key trade partner for many African nations, Singapore has consistently demonstrated that economic progress and sustainable development can go hand in hand. The lessons that this city-state offers can serve as valuable benchmarks for emerging economies.