Extract 1 – Export-Oriented Industrialisation and Regional Trade Dynamics

While large, resource-rich economies often focus on strengthening internal domestic consumption, many rapidly growing Southeast Asian nations rely heavily on export-oriented industrialisation. High integration into global trade networks is frequently seen as a key driver of productivity gains, technological spillover, and poverty reduction, though it leaves these nations highly exposed to external demand shocks. Fig. 1.1 tracks GDP and population changes across selected Southeast Asian economies over the last decade.

Fig. 1.1 – GDP and Population of selected Southeast Asian economies (2015–24)

The success of these outward-looking strategies depends heavily on the composition of national exports. For example, Malaysia and Vietnam have successfully established themselves as vital nodes in the electronics and electrical goods global supply chains, whereas countries like Indonesia are more susceptible to commodity price cycles. Fig. 1.2 details the absolute export values of goods and services for these countries in 2024.

Fig. 1.2 – Exports of Goods & Services of selected Southeast Asian economies in 2024

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