Malaysia tops the ranking of Southeast Asian nations in the just-released 2017 Agility Emerging Markets Logistics Index. Malaysia ranked fourth in the overall index, which offers a snapshot of industry sentiment and a ranking of the world’s top 50 leading emerging markets by size, business conditions and infrastructure and transport connections.
China, the world’s second-largest economy, was again the No. 1 emerging market ahead of India, which climbed to No. 2, its highest-ever index ranking. They were followed by the United Arab Emirates (UAE), Malaysia, Saudi Arabia, Indonesia, Brazil, Mexico, Turkey, and Russia.
“Malaysia’s open economy and continued investment in infrastructure have positioned it as an attractive export location,” said Agility Global Integrated Logistics chief executive officer of Asia Pacific Chris Price in a statement released in Switzerland yesterday.
“The country continues to develop and upgrade its economy with an aim to achieve a high-income status by 2020. It is likely to remain an Asean leader and a country that other emerging markets look to as they develop their own long-term strategic blueprints,” he added.
Of the 50 countries in the index, Malaysia was second behind only the UAE in market connectedness, which measures the effectiveness of a country’s domestic and international transport infrastructure.
Among the smaller economies in the index, those with annual gross domestic product of US$300 billion (RM1.33 billion) or less, Malaysia had the best market size and growth attractiveness rating. The index, now in its eighth year, reflected stagnation in global growth and turbulence in emerging markets. There were no changes among the top 10 countries, but scores for seven of the 10 countries — China, Malaysia, Saudi Arabia, Indonesia, Brazil, Mexico and Russia — shrank. Transport Intelligence, a leading analysis and research firm for the logistics industry, compiled the index.
Transport Intelligence chief executive John Manners-Bell said: “Uncertainty and volatility have characterised many emerging markets last year.
“This has been compounded by the political environment in Europe and the United States, which will have direct consequences on trade with Latin America, Asia and Africa.”
Other 2017 index highlights:
- Logistics executives surveyed say the health of China’s economy is likely to set the tone for emerging markets overall.
- Seventy-six per cent of survey respondents say China’s economy is slowing, but only 17 per cent say the slowdown is significantly hindering the transport and logistics sector. Nearly 66 per cent say a slowing Chinese economy would not alter their business or expansion plans in China.
- Iran climbed eight spots to No. 18 in the index and climbed from 9th to No. 15 among countries as respondents say it has the most potential to grow as a logistics market. Iran’s gains were the largest of any country in the 2017 index or survey.