MNCs must manage their transfer pricing amid disrupted supply chains

THE Covid-19 pandemic could change the way businesses are carried out globally. Governments, whether in developed or developing countries, are continuously developing strategies to cope with the ongoing impact as a result of the virus, particularly in areas like healthcare, global trade and the economy.

Several countries and cities have been placed under lockdown, and many countries have issued travel advisories or border restrictions in an effort to contain the spread of the virus. This has also been the case in Singapore, where the government has progressively tightened advisories and restrictions in response to how the situation has unfolded over the past months.

These measures would have repercussions on the global economy. In particular, multinationals (MNCs) with a global supply chain will be hit by many of the measures or curbs being put in place. MNCs would now have to review their existing supply chain with a view to restructuring or relocating some of their operations to cope with the impact.