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Jun 21, 2024
Southeast Asia’s Green Supply Chains
Southeast Asia Forum 2024
Summary
In Southeast Asia, environmental, labour and human rights (broadly ‘green’) questions have been met by rising scepticism and worry about trade protectionism, just when the region’s record of containing deforestation and its “green premiums” or profits from stricter (Western) criteria exports have never been better. Drawing on fifteen years of observations while embedded with value-chains, this paper provides an analysis of key drivers and contexts informing forecasting for selected sustainable products from Southeast Asia: the ubiquitous palm oil (claimed to be in half of many supermarket products), natural rubber (used in gloves and tires), and solar panels. Beyond traditional supply-and-demand factors, the paper examines how oligopolies, oligarchies, and opinions impact the outlook. A hot topic is the EU’s regulatory push for smallholder-farmer inclusive supplies that are free of deforestation. How are Southeast Asians responding? Let’s consider why Indonesian tycoons and Thailand’s smallholders may be in pole position, how market share relates to market reputation, and the impact of US-China trade war issues. The paper also touches on the latest observations on ‘green’ chemicals and ‘green’ data centres in Malaysia, China’s ‘green’ (or not) BRI supply chains in Indonesia, and why China might desire certifications for a spiky stinky fruit.
In this episode, Prof John Sidel talks with Yu-leng Khor from the Singapore Institute of International Affairs to explore sustainability in Southeast Asia’s key supply chains at the second session of the Southeast Asia Forum 2024. Yu-leng Khor is a commercial economist focussed on tropical agribusiness, commodities, critical minerals and renewable energy.
Please find out more by checking our website https://www.lse.ac.uk/SEAC and following us on Twitter, LinkedIn, Facebook and Instagram.
Thanks to Jonas from Pixabay for the intro music.
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Dialogues on Southeast Asia
"Dialogues on Southeast Asia" is hosted by the Saw Swee Hock Southeast Asia Centre (SEAC), a cross-disciplinary, regionally-focused academic centre at the London School of Economics and Political Science.