E-commerce to be key engine of global trade, says HSBC chief

HSBC (0005) chief executive Georges Bahjat Elhedery believes that e-commerce platforms will be the key engine of global trade in the future.  

Speaking at the HSBC Global Investment Summit in Hong Kong -- being held until Thursday -- he noted that 20 percent of total global sales now come from online purchases, fundamentally transforming not only shopping habits but also production, supply chains and sales.

Research and development, logistics, warehousing and marketing have been further promoted to shift.

He added that the pandemic has accelerated this shift.

He highlighted that most of the world’s 20 fastest-growing trade corridors are in Asia, amid the Association of Southeast Asian Nations strengthening ties with China and India -- both with a population of over 1.4 billion.

He projected that by 2030, intra-Asia trade flow will grow by 65 percent, adding US$400 billion (HK$3.12 trillion) annually.

STAFF REPORTER