DTI stresses predictability, coordination to strengthen ASEAN supply chains

The Department of Trade and Industry, through the Philippine Trade and Investment Center-Singapore, underscored how ASEAN supply chain resilience increasingly depends on predictable rules and stronger cross-border coordination amid technological competition.

Speaking at a workshop on Feb. 11, 2026 hosted by the S. Rajaratnam School of International Studies, Nanyang Technological University, PTIC-Singapore Commercial Counsellor Carla Regina Grepo stressed how firms are redesigning their ASEAN footprint around policy risk, with tariffs, export controls and cross-border data rules shaping investment and operational decisions.

“Firms now design for predictability, not just cost. When you ask what they prioritize, it’s very consistent: compliance, clarity, speed, power, logistics, and talent,” Grepo said while noting common concerns from Singapore-based investors.

She added that amid technological competition that has loomed within and beyond the region, predictability of compliance, customs processes, energy reliability, logistics and talent availability now weighs as heavily as cost in supply chain placement decisions.

Philippines’ ASEAN Chairship

With the Philippines’ ASEAN leadership in 2026 at a time of stiffer technological competition, Grepo observed that the country’s prosperity corridors agenda reinforces the importance of reducing internal friction and improving execution in relation to strengthening the supply chain.

The prosperity corridors focus on linking production hubs, logistics nodes and markets through better physical, digital and institutional connectivity.

She cited relevant priority deliverables including strategic trade management, the ASEAN power grid operationalization, the ASEAN Digital Economy Framework Agreement, the Semiconductors Strategic Framework and Critical Minerals Coordination, among others.

Grepo said the semiconductor industry will serve as a “stress test” for the region given how there is complementarity among ASEAN countries across their expertise on design, fabrication, testing and packaging.

“The industry forces coordination as the value chain is cross-border by design— from design to fab (fabrication) to ATP (Assembly, Test, and Packaging manufacturing) to logistics,” Grepo said.

She added that inclusivity will help spread capacity and risks in the region, which can be reflected through integrating micro-, small- and medium-sized enterprises including women- and youth-led enterprises into the regional supply chain.

The region is home to over 70 million MSMEs, which makes up 97-99 percent of all business establishments, based on ASEAN data.

These firms contribute to the region’s employment (85 percent), economic output (44.8 percent) and national exports (18 percent) significantly.

Separately, ASEAN is indispensable in the global supply chain, with the region’s gross domestic value reaching over USD 4 trillion in 2024, based on data from the International Monetary Fund.

This makes it the fourth largest economic bloc in the same year.

Despite uncertainties looming, Grepo is optimistic that ASEAN can take advantage of firms’ need for predictability and better regional coordination.

“While tech competition tightens constraints, it also creates investment openings. ASEAN wins when we reduce internal friction and improve execution,” she added.

Grepo served as panelist for the session titled “ASEAN’s Supply Chain Resilience in the Era of Technological Competition” organized by the Centre for Multilateralism Studies of RSIS-NTU.

The panel, moderated by Dr. Dipinder Randhawa, Senior Fellow at RSIS, also included Naomi Wilson, Senior Vice President, Asia and Global Trade, at the Information Technology Industry Council; and Liu Han-Wei, Associate Professor of Law, Singapore Management University.

The event included participants from the academe, diplomatic circles and local business associations.

The Department of Trade and Industry leads the inter-agency ASEAN Philippines 2026 Committee on Business and Investment Promotion.