Trump’s win brings uncertainty to America’s foreign policy, political strategy, and trade policies. How this will affect Singapore will remain unknown until Donald Trump releases clear statements regarding trade and global security. Trump does not have a well-known track record in Asia, and how his administration will affect Singapore’s relationship with the United States and the rest of the world is still largely up in the air.
Donald Trump’s victory caused markets in the United States to drop, which will negatively impact global markets. Though the American dollar may not lose much value, stock markets across Asia, including Singapore, are expected to see an immediate decline. On November 9th, the day after the United States’ Election Day, stocks in Singapore finished 1 percent lower.
Singapore has an open economy that is heavily dependent on the global economy. If volatility increases in global financial markets, Singapore’s economy will likely be indirectly affected. The United States is one of Singapore’s largest trade partners. If the United States follows through in creating significant barriers to trade, it will adversely affect Singapore’s economy. Likewise, if Asian neighbors such as Thailand, South Korea, Taiwan, and Malaysia are adversely affected, that will lead to a powerful, indirect negative effect in Singapore.
It is likely that the Trump presidency will reassess the United States’ global security and defense commitments, including those in Southeast Asia. Singapore currently benefits from America’s defense policies, which balance Chinese assertiveness in the area. Changes to America’s global defense policies could significantly affect the way that Singapore handles national security.
TRADE AND EMPLOYMENT
For the duration of time that there is still uncertainty about the United States’ economic policy, job creation in Singapore is likely to remain slow.
Throughout his electoral campaign, Donald Trump has been an outspoken opponent of the Trans-Pacific Partnership (TPP), a free-trade pact that eleven Pacific-Rim nations, Singapore included, signed with the United States. It is unclear whether or not the TPP is still up for negotiation, or if it will be done away with altogether. If passed through Congress, the TPP will ease trade between Singapore and the United States.
It is extremely unlikely that the Trump administration will pass the TPP, even with significant alterations.
SINGAPOREANS WHO LIVE AND VISIT THE UNITED STATES
Donald Trump’s electoral campaign has been filled with anti-minority, including anti-Muslim, rhetoric. For Singaporeans who work, visit, or study in the United States, Trump’s presidency could be cause for concern about the safety and practicality of continuing to travel to America, especially for Muslims.
However, electoral campaign promises often do not translate to official U.S. policy, and it is possible that Singaporean Muslims visiting or living in the United States will remain unaffected.
In June, when Brexit surprised the world by taking leadership in Great Britain, Singapore’s economy was also immediately affected. However, it had fully recovered by June.
Singapore’s market has already risen to higher levels than it did the day after Trump’s election, starkly contrasting the market after current President Barack Obama’s election in 2008 which immediately rose and then declined.
About the Author:
Morris Edwards is a content writer at CompanyRegistrationinSingapore.com.sg, he writes different articles related to Singapore Company Formation and Business Registration and topics about Economy and Business Services in Singapore.