It is a fact that no country can escape the impacts of COVID-19, while the ability to adapt varies from one nation to another.

Developing countries in ASEAN (Thailand, Indonesia, Malaysia, the Philippines, and Vietnam) may be less prepared to cope with the ongoing crisis, and COVID-19 has further intensified the challenges faced by these nations.

Forecasts indicate that countries in this group are likely to experience severe growth impacts and may face increasing uncertainties in the years to come.

According to recent research by McKinsey, there are 5 key strategies for economic recovery, including establishing manufacturing hubs, investing in green infrastructure, digital investments, enhancing workforce skills, and adding value to the food industry. All of these will help accelerate economic recovery and lay the groundwork for future growth.

It is evident that the development of green infrastructure and manufacturing is leading executives worldwide to increasingly decentralize logistics networks from China to other ASEAN countries.

In Thailand, the government has announced a policy to develop the country as a hub for electric vehicle manufacturing, promoting the use of electric cars in state organizations and state enterprises, initiating the use of electric buses and motorcycle taxis, and aiming to create 100 smart cities within the next 20 years. Emphasizing green infrastructure is a significant step towards sustainable growth.

As for preparing the ASEAN workforce for the future of the digital age, McKinsey's research in Thailand in 2019 on the future of work indicated that by 2030, there will be numerous new job positions arising from economic growth, surpassing the positions that will be replaced by machines. These new jobs will require new skills, with Thailand expected to face a shortage of over 7 million workers with digital skills from 2015 to 2030.

The pandemic has shifted perspectives on digital technology, transforming it from a strategic tool to a necessity for daily operations. Businesses must adapt to accommodate remote work, alongside changing consumer behaviors that increasingly favor e-commerce channels.

Building resilience through food security: This pandemic has impacted food security in three main areas: loss of income, changes in transportation channels affecting demand patterns, and supply chain disruptions. These effects have been felt in both low-income and high-income countries.

Governments in developing economies within ASEAN should prioritize increasing agricultural productivity to enhance the competitiveness of local agricultural products and expand the agricultural sector into value chains that are closer to consumers, creating added value through processing, packaging, and retail.

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Authors from McKinsey & Company include Mr. Koshik Das, Senior Partner and Chair of McKinsey Southeast Asia, Ms. Nopamas Siwakritkul, Senior Partner and Chair of McKinsey Thailand, and Ms. Rebecca Yeo, Associate Partner at the Singapore office.

SOURCE: www.bangkokbiznews.com