World Video | Defence | Foreign Affairs | Natural Events | Trade | NZ in World News | NZ National News Video | NZ Regional News | Search

 


Nurture High Value Added Suppliers to Capitalize

Nurture High Value Added Suppliers to Capitalize On Electronics Supply Chain, Says Analysis

Issued By the APEC Committee on Trade and Investment

Medan, Indonesia, 5 Jul 2013 - Nurturing the development of high value-added suppliers is the most effective way for APEC economies to benefit from the global electronics supply chain, recommends a recent APEC Policy Support Unit report presented to the APEC Committee on Trade and Investment on  Tuesday in Medan.

The report focuses on the higher value-added supplier portion of the supply chain, known as intermediate electronic goods, as these suppliers capture the largest share of value-added. Case studies were conducted on the supply chains of smartphones, laptop PCs and LCD flat panel televisions.

For example, the global electronics supply chain of the Apple iPhone begins with research and development, and design in the United States, high value components from suppliers in Japan and Korea, followed by final assembly in China.

“The majority of intra-regional trade between APEC Asian economies is made up of supplier or intermediate electronic goods,” explained John Larkin, Chair of the APEC Committee on Trade and Investment. “This intra-regional trade in the electronics supply chain is one of the reasons the Asian region continues to grow despite slowdowns in the US and Europe.”

The report suggests that component suppliers are based in a small group of economies—Korea, the United States, Japan, Chinese Taipei. Developing economies, particularly Malaysia, Thailand, Mexico, and Viet Nam, then compete for a share of total supply chain value represented by assembly of parts and final products. China, historically a final assembly point, is now increasingly participating as a higher value-added supplier of component parts, the report found.

“With the gap between the two sides narrowing, this provides the opportunity for other enterprising developing APEC economies to follow China’s lead,” said Dr. Akhmad Bayhaqi, Senior Analyst at the APEC Policy Support Unit which conducted the research.

“Ultimately, economies in the world compete for high value-adding jobs in globally dispersed supply chains and upgrading workforce skills stands above all as the most common policy priority,” explained Dr. Bayhaqi.

“Capturing higher value-added activity can help emerging economies avoid the middle income trap and slowing per capita growth,” added Dr. Bayhaqi.

To move up the supply value chain, the report recommends APEC economies nurture human capital through technical skills training and more flexible immigration policies. Developing greater research and development, and design capabilities will also help a region’s suppliers capture higher value-added activity. 

Other forms of valuable government support include access to financing, education for suppliers on trade regulation variations in the region, wider regional free trade agreements, regional intellectual property rights protection and a combination of localized financial incentives and advanced infrastructure to nurture the electronics industry cluster.

APEC economies are also strongly advised to address key challenges that may reduce the competitiveness of certain suppliers or regions. Some of these challenges include shorter product life cycles, natural disasters and trade barriers.

“Global Supply Chain Operation in the APEC Region: Case Study of the Electrical and Electronics Industry,” by the APEC Policy Support Unit, is available for download at this link.

ENDS

© Scoop Media

 
 
 
 
 
World Headlines

 

Julie Webb-Pullman: Palestinian National Unity Government

A national unity government. Elections. A new-look PLO. Community reconciliation. Big hopes, even bigger expectations as representatives of the Palestinian Liberation Organisation (PLO) and Hamas came to an agreement in Gaza today to form a national unity government and hold elections. More>>

ALSO:

Whaling: Japan’s Institute for Cetacean Research In Defiance Of World Court Ruling

The ICR Today Filed Court Briefs Stating They Intend to Return to Antarctica to Hunt Whales in 2015-2016; Will Seek to Enjoin Other Sea Shepherd Entities from Obstructing Their Operations More>>

Ukraine: UN Urges 'Maximum Restraint' Amid Situation In East Ukraine

Deeply concerned by the deteriorating situation in eastern Ukraine, United Nations Secretary-General Ban Ki-moon has called for maximum restraint and appealed to all sides to work towards calming the situation, which has the 'growing potential' to ... More>>

United Nations: Children Can Now Lodge Complaints With The UN

GENEVA (14 April 2014) – United Nations child rights experts have hailed a new treaty that allows children to complain directly to the UN Committee on the Rights of the Child about alleged violations of their rights. More>>

India: Election But A Ritual In Nation Lacking Rule Of Law

The Asian Human Rights Commission (AHRC) congratulates the people of India for their participation to elect the 16th Lok Sabha. The process has attracted, as usual, considerable media attention across the world. Media claims the process to be 'the largest democratic ... More>>

Solomon Islands: Thousands Remain Affected After Flash Floods

An estimated 52,000 people remain affected in the worst-hit areas of Honiara and greater Guadalcanal following last week’s devastating floods which killed at least 23 people. More>>

ALSO:

World: Some 437,000 People Murdered Worldwide In 2012 - UN

Almost half a million people across the world lost their lives in 2012 as a result of intentional homicide, with the highest murder rates logged in the Americas and Africa, and the lowest in Europe, Asia and Oceania, the United Nations Office on ... More>>

Central African Republic:: Security Council Establishes UN Peacekeeping Mission

Deeply concerned about the deteriorating security situation and ongoing human rights abuses in the Central African Republic (CAR), the Security Council today approved the establishment of a nearly 12,000-strong United Nations peacekeeping operation ... More>>

ALSO:

Parliament: NZ Sending Aid Flight To Solomons

Foreign Affairs Minister Murray McCully has announced further support for the response to severe flooding in Solomon Islands. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
World
Search Scoop  
 
 
Powered by Vodafone
NZ independent news