Most Asean countries see drop in logistics ranking
Singapore, Malaysia, Thailand and Indonesia all outperformed the East Asia & Pacific regional average in the Logistics Performance Index, part of the bi-annual report published by the World Bank Group, “Connecting to Compete 2016: Trade Logistics in the G
Though being above the average, all Asean countries except Singapore, Myanmar and Cambodia declined in the rankings compared to two years ago.
They did better than the overall average for timeliness, which means shipments frequently arrive at their destination within the expected time, but they do not do so well on infrastructure provision. This suggests more investments in infrastructure may improve these rankings.
Thailand's score in the 2016 ranking was 3.26, a decrease from 3.43 in 2014. Its ranking also fell from 35th to 45th. Thailand is among four countries showing negative change in the two years, aside from Malaysia, Haiti and Tajikistan.
Among 167 countries, 135 show no change in the performance.
Countries such as Cambodia and Myanmar improved their performance, which shows that the willingness to reform and implement good practices and policies directly impact fluidity of cross border trade.
Compared to two years ago, Germany ranked first for the second time in a row, followed by Luxembourg, Sweden, the Netherlands and Singapore. Singapore was among the world’s Top 10 performers, ranking 5th overall, and topped the list of Asean countries.
On timeliness, the frequency with which shipments reach their destination within the scheduled or expected time, a key criteria impacting a country’s logistics performance, Asean countries scored higher than the overall average. Singapore had the largest improvement in the timeliness indicator, in 2016 compared to 2014, a testament to the service delivery performance in the sector here, the World Bank said.
“Singapore’s strong ranking in the Logistics Performance Index can be attributed to our robust ecosystem comprising of major logistics firms operating their regional and global functions here, and our consistent efforts to drive operations excellence through public-private collaborations. These factors put Singapore in good stead to maintain our position as a leading global logistics hub. However, we cannot rest on our laurels. We will need to continue to encourage the growth of supply chain innovation and to strengthen our logistics capabilities, so that Singapore remains a strategic choice for companies to navigate the increasingly complex supply chains in intra and inter region trade,” said Lee Eng Keat, director for Logistics, Singapore Economic Development Board.
The report found that the “logistics gap” between more and less developed countries persists – high income countries on average score 45% higher on the LPI than low income countries. While low performers appeared to be closing this gap in past surveys, this trend has reversed in 2016, and the gap between top ranked countries and those at the bottom of the list has widened.
But income alone does not explain performance - countries such as Cambodia and Myanmar improved their performance, which shows that the willingness to reform and implement good practices and policies directly impact fluidity of cross border trade.
Infrastructure continues to play a big role in assuring basic connectivity and access to gateways for most developing countries. In all income groups, survey respondents reported that infrastructure was improving. However, in all Asean countries except Singapore and Malaysia, the scores for infrastructure were lower than the overall scores.
"Beyond freight forwarders, shippers and carriers, those who benefit from well performing logistics and connectivity are producers and consumers, particularly small firms and the poor. Tracking connectivity through a nation's logistics performance is a critical measurement of a nation's ability to export competitively, import efficiently and improve productivity," said Jordan Schwartz, director of the World Bank Group’s Singapore Hub for Infrastructure and Urban Development.
