Asia forms the backbone of the world economy, powering vital supply chains from electronics hubs in Taiwan and South Korea to garment factories in Bangladesh. Yet, in recent years, disruptions such as semiconductor shortages, geopolitical tensions between China and the US, tensions in the Middle East and logistical bottlenecks have rippled across economies in Japan, Malaysia, and India. These issues reveal the fragility of global supply networks and highlight the pressing need for resilience. As Indo-Pacific nations forge pathways to recovery, there are lessons for countries like Bangladesh to navigate these global shifts effectively.

The Covid-19 pandemic exposed and exacerbated vulnerabilities in global supply chains. Semiconductor shortages became one of the striking examples, severely impacting industries reliant on electronics. Disruptions in chip manufacturing in Asia cascaded across global industries. Geopolitical tensions further compounded these issues, particularly trade disputes between the US and China, with tariffs and sanctions disrupting established supply routes.

The Russia-Ukraine conflict and recent Middle East tensions rubbed salt into the wounds, increasing costs in energy and agriculture and causing shipping delays due to rerouting around conflict zones. These shipping bottlenecks led to higher fuel consumption, longer transit times, and more CO2 emissions, complicating sustainability efforts. Furthermore, labour shortages including visa restrictions -- particularly in the shipping industry -- highlighted the human dimension of supply chain fragility. The reliance on alternative transport modes, such as airlift and trucking, introduced further complications, including higher costs and logistical challenges.

In response to these disruptions, Indo-Pacific economies have adopted a range of strategies to build resilience in their supply chains. One of these approaches has been diversification. Businesses have expanded their supplier bases across multiple countries to reduce reliance on a single region, minimizing risks associated with geopolitical tensions.

Digitalisation has emerged as a cornerstone of supply chain resilience. Advanced technologies such as artificial intelligence, blockchain, and the Internet of Things are being employed to enhance visibility and efficiency. Automation and robotics are also being leveraged to mitigate risks associated with labour shortages and improve productivity.

Sustainability has also become a central focus. Countries are increasingly adopting environmentally friendly practices, such as reducing carbon footprints and integrating green technologies. This two-fold focus on resilience and sustainability positions the Indo-Pacific region as a leader in adapting to new global economic realities.

For Bangladesh, these strategies offer valuable lessons. As the country seeks to strengthen its role in global supply chains, it can draw inspiration from its Indo-Pacific counterparts. Diversifying export markets and reducing overreliance on a few sectors, such as garments, will be crucial. Investing in technological upgrades, particularly in automation and digital infrastructure, can enhance productivity and competitiveness. Regulatory reforms in labour and environmental standards will align Bangladesh with international trade norms, paving the way for integration into trade blocs like the Regional Comprehensive Economic Partnership (RCEP).

Bangladesh can also leverage its strong ties with the EU to modernise its infrastructure. The EU's Global Gateway initiative offers investment opportunities in ports, transportation networks, and digital infrastructure. By prioritising these areas, Bangladesh can navigate the challenges of global supply chains while positioning itself as a competitive player in the evolving economic landscape.

For Bangladesh, embracing these strategies will not only address immediate challenges, but also lay the foundation for long-term growth. Strengthening resilience and sustainability in supply chains is not just an economic imperative -- it is a pathway to securing a more stable and prosperous future.

The writer is chairman of Financial Excellence Ltd. This piece is the excerpt of a discussion at the recently held Bay of Bengal Conversation.