Southeast Asia’s economic corridors, building resilience amidst global and regional friction
30 Aug 202510 min read
Summary
- The region is becoming an increasingly vital part of global trade as companies diversify production away from China. Economic corridors such as Thailand’s Eastern Economic Corridor, Indonesia’s Omnibus Law framework, and the Philippines’ Luzon Economic Corridor are attracting foreign investment through infrastructure, logistics, and manufacturing growth.
- Initiatives like the Greater Mekong Subregion, Indonesia-Malaysia-Thailand Growth Triangle, and Brunei Darussalam-Indonesia-Malaysia-Philippines East ASEAN Growth Area are strengthening transport, energy, and digital networks. These corridors enhance regional self-reliance, reduce supply chain risks, and boost cross-border trade and industrial development.
- Despite the economic momentum, political and security tensions such as the border conflict between Thailand and Cambodia highlight vulnerabilities in regional stability. Sustainable progress will depend on geopolitical cooperation, trust-building, and long-term planning that prioritizes both economic growth and continuity of trade.
Southeast Asia is subtly growing as an important part of global commerce as emerging risks shake the region. But as the recent brief border skirmish between Thailand and Cambodia revealed, regional connectivity also faces challenges from within.
SEA countries have long used economic corridors to connect markets and enhance regional self-reliance. As global commerce faces growing tensions, these established and evolving networks are playing a more prominent role. But as the global economy continues to shift, could these corridors be key to Southeast Asia's emerging role in supply chains?
Fragile supply chains
On April 5, 2025, US President Donald Trump imposed a 10% tariff on almost all imports to the United States. He also raised tariffs on Chinese goods from 34% to 104%, claiming that other countries were taking advantage of the US.
These bold trade actions caused major disruptions in the global economy. Supply chains were affected, and companies faced growing uncertainty. Large firms like Apple and Nvidia, which rely heavily on Asian manufacturing, saw sharp drops in market value due to concerns about rising costs and unpredictable trade rules.
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