Abstract
Southeast Asia stands at the crossroads of global supply chains, offering immense strategic and economic significance to international commerce. Its location, coupled with a diverse array of manufacturing assets and deep trade integration, makes the region a magnet for global businesses seeking efficiency, flexibility, and growth. Over recent years, however, the landscape has become increasingly complicated due to heightened geopolitical risks. The region is a stage for great power rivalry, particularly between the United States and China, which has led to export controls, investment scrutiny, and pressures towards supply chain decoupling. Furthermore, Southeast Asia contends with territorial disputes, especially in the South China Sea, domestic political instability, and regulatory fragmentation, all of which introduce new layers of uncertainty for supply chain continuity. Compounding traditional risks are emerging challenges such as cyber threats, climate disruptions, and resource competition, which cut across national and regional boundaries. The ability to navigate these complexities is critical for both businesses and policymakers. This paper integrates recent academic insights to assess the multifaceted nature of geopolitical risk in Southeast Asia and its operational implications for global supply chains. It identifies vulnerabilities and recommends strategic responses, emphasising the need for diversification, adaptability, and resilience. Ultimately, building robust supply chain frameworks will be vital for thriving in an unpredictable geopolitical environment.
Keywords: Geopolitical Risk, Supply Chain Resilience, Southeast Asia, Global Value Chains, Strategic Decoupling, Maritime Security, Political Instability, Risk Mitigation, Regionalisation, Cybersecurity
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