Navigating Geopolitics: Impact on Business and Technology

Set against the backdrop of the US elections, the Singapore FinTech Festival 2024 was set against the backdrop of the US elections taking place that same week. In light of this, a particular focus was paid to geopolitics during the week. This session delves into the evolving landscape of geopolitics and its impact on businesses, particularly in the context of techno-nationalism and global supply chains. Speakers shared insights into the growing contestation in the global order and how companies can navigate these challenges.

1. Techno-nationalism and global reorganisation:

• Techno-nationalism refers to how nation-states use technology to pursue national security, economic strength, and societal stability.
• Key elements include weaponising supply chains, de-risking, reshoring, innovation mercantilism, techno-diplomacy, and a hybrid Cold War between major powers.

2. Global connectivity vs. contestation

• Despite geopolitical tensions, the world remains deeply connected, with regions like Asia showing high levels of integration.
• The contestation arises from geopolitical conflicts, elections, and shifts in multipolarity, which affect business operations globally.

3. Geopolitical resilience for businesses

• Companies are investing in three key areas to manage geopolitical risks: insight (structured sources of geopolitical intelligence), oversight (adjusting business models), and foresight (planning for both known and unknown risks).
• The increasing complexity of geopolitics requires businesses to rethink their global strategies and models.

4. Opportunities amid geopolitical risks

• While geopolitical risks are rising, opportunities exist in sectors like industrial policy, defense spending, and new trade corridors, particularly in areas like semiconductor ecosystems and emerging markets.

In a rapidly changing geopolitical landscape, businesses must develop strategies that balance risk and opportunity. By investing in insight, oversight, and foresight, companies can navigate the complexities of techno-nationalism and global supply chains while identifying new growth areas.

Speakers: