An intraregional supply chain network, covering not just finished goods but also other areas of the supply chain ladder such as raw materials and intermediate goods, has been established by the relocation of firms, thereby underpinning the global competitiveness of the region.
This integrated supply chain network would not have been possible without the second change I wish to point out, that is, trade liberalization, with the increase in FTA agreements between economies both inside and outside the region. This trade liberalization is most pronounced in the Korean and ASEAN economies. Intra-regional and cross-regional trade in ASEAN economies is growing much faster than the global average.