DHL subsidiary of the German logistics company Deutsche Post DHL has released their Global Connectedness Index (GCI), this is the fifth edition of the index that provides a detailed analysis of globalization, measured by international flows of trade, capital, information and people.
Due to the improvements in the supply chain networks and ASEAN policy initiatives promoting economic integration in the Asian region, the CGI showed that the Southeast Asian nations Cambodia, Malaysia, Singapore and Vietnam exceeded expectations by a significant margin.
The world’s second most connected country once again was Singapore and was also the sole Asia Pacific Country to feature in the top 10. One country in the region that had performed well is Myanmar, which climbed up 23 places to 133rd position.
DHL Express Asia Pacific CEO, Ken Lee said, “While the results for Singapore and the North Asian powerhouses of Japan and South Korea bring few surprises, the Index highlights just how rapidly Southeast Asia is plugging into the global economy. The establishment of the ASEAN Economic Community in late 2015 appears to have brought significant improvements to trade flows, particularly with reductions in trade tariffs and better access to ports and logistic hubs”
Mr. Lee continued, “The out-performance of emerging markets like Cambodia and Vietnam, coupled with Malaysia’s outpacing of expectations in the face of local economic uncertainty, suggests that ASEAN will continue to grow even amidst broader global volatility.”
“While business leaders still face hurdles to greater breadth and depth of trade connectivity, some challenges like infrastructure, technology and skills training are already being addressed jointly by governments and industry.”
In 2017 the top five most globally connected countries in the world were the Netherlands, Singapore, Switzerland, Belgium and the United Arab Emirates. Even though the trade connectivity in Southeast Asia is growing at a rapid rate, the region remains less connected to the rest of the world overall.
As well as individual rankings for each country, the 2018 index measures the current state of globalization based on the depth (intensity of international flows) and breadth (geographical distribution of flows) of countries’ international connections.
This report is the first to represent a comprehensive assessment of developments in globalization across 169 countries and territories since the 2016 presidential election in the United States and Brexit referendum in the United Kingdom.