Recent disruptions from trade wars and tariff talks have not changed the long-term transition of global supply chains toward a more inventory-heavy strategy which places greater value on logistics to mitigate risks, executives from logistics builder and fund manager Equalbase Group and its investment management unit Northmod said at Mingtiandi’s Singapore Forum 2025 on Tuesday. Watch the full recording>>
“What has happened and is continuing to accelerate is the diversification of supply chains. That is a demand driver, especially for this region,” said Nicholas Bischoff, chief executive of Equalbase in a spotlight interview with Mingtiandi founder Michael Cole at the event, which was sponsored by Yardi.
Uncertainty injected by the trade war, has fortified demand for geographic diversification in Asia’s supply chain ecosystem, he added.
“When we engaged with our customers ten years ago, the decision was ‘Can we compare Malaysia to Vietnam, to Thailand, to Indonesia? Where should they go to?’ The conversations we’re having today is ‘Okay. We want to go in all of these countries. How much do we need in each of the country to be risk diversified?’” said Bischoff.
Diversification and Sustainability
After trade talks between US and Chinese officials in Geneva in recent days, the two countries reduced tariffs on goods to about 30 percent for the next 90 days, while American authorities continue to demand new trade deals with most countries in Asia.
Equalbase CEO Nicholas Bischoff speaking at the Mingtiandi Singapore Forum
Given these rapid changes, many companies are taking a wait and see approach, while some manufacturers have stepped up production to export more goods into the US before the tariff moratorium expires, said Jon Sim, investment director of Northmod.
“However, these things don’t change much of our long-term thesis. There is a fundamental rejig of the global supply chain, a global push for higher quality assets, and a focus on sustainable buildings. We don’t think these will change in the next couple of years. And we will continue to explore investment opportunities in this space,” said Sim.
Among the longer term changes that the logistics specialists see is a shift from “just in time” to “just in case” in supply chain management which emphasises building up inventory to preserve production capacity.
Having started amid pandemic disruptions, the trend toward warehousing more supplies is expected to continue in the long term, with Bischoff seeing customers now placing a higher value on logistics and storage. “It’s more expensive to have your factory shut down for three months than paying a few more dollars for your storage,” he said.
Malaysia Sheds in High Demand
Based in Singapore, Equalbase has a strong presence in Malaysia, where the developer and fund manager has seven key projects in hubs including Penang and Johor, according to the company’s website. It also has two projects in Singapore and three in South Korea.
Malaysia has been a key growth market for the group, with Sim seeing particular promise in cross-border government initiatives for industrial projects in Johor, which borders Singapore as the southernmost state in Peninsular Malaysia.
“Johor has always been a sub-market of Singapore over the last 20 to 30 years…And the most recent evolution is the Johor-Singapore SEZ (Special Economic Zone). We do see a lot more activities [in Johor] coming from Singapore and international players,’’ he said.
In January, Singapore and Malaysia signed an agreement on the Johor-Singapore Special Economic Zone, which aims to attract 100 projects in ten years to the economic zone bridging the border between the two countries.
Equalbase and Sunway Group, a Malaysian conglomerate, have jointly invested RM 8 billion ($1.7 billion) for development of a five million square foot logistics hub in Johor’s capital Johor Bahru. The development will be built in four phases, with Phase 1 yielding three carbon-neutral warehouses spanning 2.2 million square feet to be operational in the first quarter of next year.
Beyond the company’s current presence, Equalbase is also evaluating opportunities to enter new markets including other Southeast Asian countries, Japan, and Germany as these destinations attract attention from logistics investors, said Sim.
A Panel in Pictures
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