Asia-Pacific companies are facing growing pressure to relocate supply chains as tariffs reshape global trade, while businesses worldwide are placing greater emphasis on unlocking cash tied up in operations, according to a new report by Citi Institute.
The report, The World Rewired: Shifts in Global Trade and Foreign Direct Investment, found that 46 percent of Asia-Pacific companies identified tariff exposure as a leading reason for relocating supply chains, exceeding the 44 percent recorded in Latin America and just 2 percent in North America.
The findings underscore the region’s exposure to shifting trade policies as companies reassess sourcing, production locations and cross-border supplier networks.
Liquidity management is also becoming a greater corporate priority. Globally, 72 percent of companies ranked releasing trapped liquidity among their top priorities for the next 12 months, up from 66 percent earlier in 2026. Meanwhile, 64 percent cited identifying cash locked within supply chains as a key driver of working capital strategy, compared with 55 percent previously.
“Now treasury teams are turning to a related question: where is our cash sitting, and how quickly can it be put to work?” said Adoniro Cestari, Citi Services global head of trade and working capital solutions.
Despite tariff and geopolitical disruptions, Citi’s payment data showed global flows increasing 40% year-on-year in the first half of 2026. Technology-related payments rose 50 percent globally, including 60 percent growth in Asia, reflecting continued investment in artificial intelligence infrastructure.
Cross-border technology payment flows from Taiwan to Singapore surged 90 percent, highlighting the growing importance of Asian economies in technology supply chains and investment networks.
Earlier findings from Citi’s February 2026 report offer further regional context. Shipments from North and East Asia to South Asia and ASEAN increased 44 percent, while Latin American exports to South Asia and ASEAN climbed 82%, suggesting that shifting trade routes could create opportunities for Southeast Asian markets.
For the Philippines, these developments could open avenues to attract investment and participate in diversifying regional supply chains. However, the report does not establish that the country has secured additional investments or export orders as a result.
The broader message is that supply chain resilience increasingly depends not only on where companies source goods, but also on how efficiently they manage liquidity and deploy capital amid persistent trade uncertainty.
