UPS STUDY FINDS PHILIPPINES’ INTRA-ASIA TRADE VALUE COULD TRIPLE BY 2030

MANILA, Philippines, March 2022 – Trade between the Philippines and 11 other Asian markets could triple by 2030, according to an industry study released by UPS. Titled, Clearing the Runway for Intra-Asia Trade, the study sheds light on trade growth drivers, potential headwinds, and multistakeholder action required to unlock the 2030 opportunity. 

Search UPS Intra-Asia Study to find the full report.

Trade in just 12 key markets, referred to in this study as the Asia 12, accounts for 88% of intra-Asia trade today, and these markets are poised to consolidate this position further. UPS found that trade within these 12 markets could more than double in value from USD 6.4 trillion in 2020 to USD 13.5 trillion in 2030. 

For the Philippines in particular, the country has an opportunity to build on rapid growth in the previous decade – particularly in the manufacturing sector – which could see trade with the Asia 12 more than triple from USD 113 billion in 2020 to USD 393 billion in 2030. There are also significant opportunities for Filipino businesses in areas such as digitalization, building supply chain resilience and multilateral cooperation in international trade. 

Intra-Asia trade holds incredible potential over the coming decade, built off the immense economic success that key regional economies have accomplished in recent years. Through the strength of UPS’s global network and extensive brokerage expertise, the company has been helping Asian governments, industry partners, and customers navigate global trade over the last five decades. This report combines that expertise with fresh insights to explore opportunities and challenges in intra-Asia trade for the next ten years and beyond.

Manufacturing segment set to drive the Philippines’ intra-Asia trade growth

Four product segments – retail, industrial manufacturing and automotive (IM&A), high-tech, and healthcare – accounted for 75% of the Philippines’ intra-Asia trade in 2020 and are expected to fuel the growth. The IM&A segment stands to be the largest by value in 2030, more than trebling from 2020 levels as the country aims to serve as a global and regional hub for the automotive and electronics sectors.

Meanwhile, trade in the high-tech segment, which constituted 41% of the country’s intra-Asia trade in 2020, could more than double in value, riding the wave of digitalization which will create significant demand in this segment across Asia. 

Philippine-based businesses can plan for both headwinds and opportunities by diversifying supply chains into resilient trade routes and targeting high-value and high-growth trade routes, such as IM&A, healthcare, and retail trade with economies like Japan, as well in the high-tech segment with Hong Kong and Vietnam.

Filipino MSMEs need to digitalize

While intra-Asia trade holds significant potential, there exist a number of barriers that, unless addressed, may stagnate trade within the Asia 12. Filipino businesses surveyed indicated tariffs and other punitive measures as the top barrier, followed by shortage of labor and skills in the logistics industry, and lack of harmonization of standards.

In addition, there is significant room to digitalize the Philippines’ logistics network, with many companies – including micro, small and medium-sized enterprises (MSMEs) – still relying on costly and time-consuming paper-based processes. While the COVID-19 pandemic has accelerated adoption of digital technologies within the Philippines, adoption of digital payments and digital supply chain tools has fallen behind.

“MSMEs play a vital role in both the manufacturing and employment economies of the Philippines – it’s in all our interests to do what we can to build a thriving small business community and the rapid growth of e-commerce is a huge opportunity to do that,” said Russell Reed, managing director UPS Philippines.

“Our role at UPS is to continue providing the support and solutions businesses need in areas such as trade compliance, mitigating customs delays and improving customer experience. It’s also about making supply chains more efficient and easier to manage so businesses can grow in a way that keeps them profitable, successful and sustainable for the long term.”

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About UPS 

UPS is one of the world’s largest companies, with 2022 revenue of $100.3 billion, and provides a broad range of integrated logistics solutions for customers in more than 220 countries and territories. Focused on its purpose statement, “Moving our world forward by delivering what matters,” the company’s more than 500,000 employees embrace a strategy that is simply stated and powerfully executed: Customer First. People Led. Innovation Driven. UPS is committed to reducing its impact on the environment and supporting the communities we serve around the world. UPS also takes an unwavering stance in support of diversity, equity and inclusion. More information can be found at www.ups.com, about.ups.com and www.investors.ups.com.

Developing Young Tech Talents is Crucial to Support the Growth of E-Commerce

MANILA, SEPTEMBER 24, 2021 - E-commerce continues to play a significantly important role in the Philippine market and is estimated to be worth US$12 billion by 2025. As more consumers turn to e-commerce, and as more businesses capitalize on the potential of the emerging digital economy,  there is also a rising demand for qualified tech talents. According to Linkedin, tech roles make up the majority of “emerging jobs” in the region, with robotics engineer, cyber security specialist, and javascript developer roles making the job trend list. 

Shopee, the leading e-commerce platform in Southeast Asia and Taiwan, prepares and nurtures students and professionals for the digital landscape through its various talent development initiatives. One of these is the Shopee Apprentice Program which is an internship program designed to develop young tech talents into leaders through high-impact projects, specialized learning and development training, and mentorships led by Shopee leaders. 

Martin Yu, Director at Shopee Philippines, said, “As the demand for tech roles rises, Shopee will continue to train and equip the next generation of leaders through initiatives like the Shopee Apprentice Program. We will ramp up our efforts to provide proper mentorship and a well-rounded work experience for individuals joining our internship program.”

These Participants of the Shopee Apprentice Program highlight how they gained significant professional and personal growth to jumpstart their careers in e-commerce. 

For Kyla, the Shopee Apprentice Program was an enriching experience. With a specialization in data science and analytics and equipped with advanced coding skills, she created end-to-end training portals during her stint with the Shopee Business Intelligence Team. “Even though the entire program was held virtually, Shopee translated their work culture online which is a great factor in my whole experience as an apprentice. I learned a lot from my mentors and also improved my skills in terms of presentation, time management, and communication. The program encouraged me to step up and be more confident to drive better results with what I do. I am glad a lot of people supported me throughout my whole Shopee journey,” Kyla shared.

Lance, another Shopee Apprentice Program participant, said that his experience was eye-opening, improved his problem-solving skills, and helped him understand the industry better. He worked with the People Team and displayed exemplary standing not only when it comes to his studies but also with his work at Shopee. “With Shopee, I learned how to look at a multifaceted problem, break it down into its constituent parts, and build it back together to form a comprehensive, results-driven strategy. With this mindset, I was able to drive concrete impact by implementing workable solutions that will help drive the business forward.”

After finishing the program, Kyla highly recommends other individuals check out the program for growth and new learnings. “For those who want a career in e-commerce and tech, the Shopee Apprentice Program can definitely equip you with the necessary skills through their mentorships, training, and projects. You can definitely drive your own growth as well as bring value and positive impact to Shopee through this internship. If you are up for a challenge to do meaningful work, the Shopee Apprentice Program might just be for you,” Kyla shared.

For more information about the Shopee Apprentice Program, visit https://careers.shopee.ph/apprenticeprogram/.  To check out other career opportunities at Shopee, check out https://careers.shopee.ph/. 

Buy Load, Pay Bills, and Scan to Pay with ShopeePay. Download the Shopee app for free via the App Store or Google Play.

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About Shopee

Shopee is the leading e-commerce platform in Southeast Asia & Taiwan. Shopee connects shoppers, brands, and sellers across Asia and other fast-growing markets, empowering anyone to buy and sell anywhere and at any time. 

 

Shopee offers an easy, secure, and engaging experience that is enjoyed by millions of people daily. It offers a wide product assortment, supported by integrated payments and logistics, as well as popular entertainment features tailored for each market. Shopee is also a key contributor to the region’s digital economy with a firm commitment to helping brands and entrepreneurs succeed in e-commerce.

 

Shopee is a part of Sea Limited (NYSE:SE), a leading global consumer internet company. In addition to Shopee, Sea’s other core businesses include its digital entertainment arm, Garena, and digital financial services arm, SeaMoney. Sea’s mission is to better the lives of consumers and small businesses with technology.