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Growing wave of companies announcing supply chain shifts

The number of companies announcing supply chain shifts more than doubled in March-April compared with the first two months of the year, according to a Citi study of 71 companies’ supply chain adjustment announcements.

The trend of MNC’s utilising existing capacity remains dominant (29 out of 71 since 2018), followed by new capacity additions (23 out of 71).

That being said, outsourcing to Asean companies (15 out of 71) has featured more prominently in recent months, especially in labour-intensive industries such as apparels and furniture production. In terms of countries benefiting from supply chain shifts, Vietnam remains the largest recipient (39 out of 84 mentions since 2018).

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