Singapore’ Development Bank of Singapore (DBS) sees Indonesia will be included in the Southeast Asian countries who get benefit from the diversification of the global supply chain, as businesses and governments worldwide look at ways to diversify production from China following disruptions caused by the COVID-19 outbreak.

“Diversification will continue on and markets like Vietnam, Bangladesh, India, Indonesia, benefit from that diversification,” DBS group head of global transaction services John Laurens said during a virtual media briefing on Monday (July 7), listing the ASEAN countries and other low-cost markets as beneficiaries of the shift.

The COVID-19 pandemic has severely disrupted the global supply chains. The World Trade Organization has estimated that global trade will fall 18.5% year-on-year in second quarter of this year. Meanwhile, the International Monetary Fund has projected the volume of goods and services trade to shrink by 12% in 2020.