China to Almighty India Era is coming, it is something undergoing, but recently if you news you will be surprised it has been accelerated. Multinational corporations (MNC) or global companies, how mighty they are when they work together will surprise most people. It will work like a strong wind can make heavy elephants fly, as they flow their capital and funds into one country and disinvest from another.
US and China trade war, and the 2 years COVID-19 pandemic, most of the country is level down or downgrading their living standard. For those who remain jobless is nothing new. Each year we have university new graduates joining the workforce. For those who are unemployed for whatever reason, if they can not join back as soon they can be, most likely whatever job will be taken by those who are hungry to get one, across the globe.
Next normal make the megatrend shift, some industry and occupation is open for work from home, and it will never be filled as the office job anymore. For example, for those who are doing remote support, it regardless where you are. Lot of premium office buildings are now under utilized, as in the past 2 years a lot of the tenants have finally realized they do not need to have an office in the premium location and have huge space, and they are relocating to the second or third level city. Majority of whatever store and shop that is being closed down will not be open in the short time. For multinational corporations that decide to disinvest, one after another, what the impact will be to the local job market? without need to explain further, we just need to see one to two years time, we will saw for some country is accelerated declined, while other is accelerate rising since more and more foreign investment is coming, to fund and build plants, hire local for job. Those country citizens will notice an accelerated rise in their GDP and rise in their spending power.
Recently Walmart is announced for official exit China market, and will going to India, and commit for at least $10 billion commitment to source India-made goods each year. Do not be played by this news. Walmart is just one of them. We can sense for the winds of change. As noted Samsung is completely disinvesting in China and moving everything to Vietnam. Apple, Inc. has decided to chop off the supply chain in China. In the short term you will notice what is going on, but just a matter of 5 years or 10 years, it is a different era.
Competing in the future is all about the nation’s competitive advantage. Create an enabling environment where foreign investors are willing to invest, and locals take part in the opportunities to grow together. That is the government portion of the duties and responsibilities to make sure the nation is foreign investor friendly instead of label as hostile, or ever worst, encourage for disinvest as you can see from some country policy that compete forgot about how the world economies is dependency on what variable and forces that interplay to make a great nation competitiveness. How many can recall Michael Porter Diamond Theory of National Advantage? How many politicians and public policy makers really know what they do and impact on the national competitiveness?
When you sense the wind of change, what will you do and make preparation for the direction of the future, so you are more ready to take the path in front of your business and industry?
E-SPIN Group in the enterprise ICT solution supply, consultancy, project management, training and maintenance for corporation and government agencies did business across the region and via the channel. Feel free to contact E-SPIN for your project requirement and inquiry.