“We believe Singapore will continue to profit” — Experts say SG can withstand Donald Trump’s return

SINGAPORE: Singapore’s resilient growth momentum is expected to withstand the return of President-elect Donald Trump to the White House, despite potential short-term market volatility from Trump-era policies, according to RHB.

According to the Singapore Business Review, RHB said, “Singapore will continue to profit from trade diversification and the movement of supply chains by enterprises pursuing the China Plus One strategy.”

RHB said they expect this to continue even if Donald Trump returns to the White House.

To manage potential market uncertainties, RHB advised investors to focus on defensive stocks like UOB, which benefits from growth in ASEAN, Raffles Medical, Sheng Siong, and ST Engineering, to weather any short-term volatility linked to Mr Trump’s return.

RHB outlined three reasons investors should not worry about Mr Trump’s return.

First, they believe any volatility from Trump-era policies won’t be enough to disrupt global economic growth. While potential protectionist-led policies may hurt China and ASEAN, RHB thinks it’s too soon to expect a significant downturn.

Second, RHB pointed out that Mr Trump’s policies, including extending tax cuts, reducing corporate taxes, and exempting various incomes from personal tax, are likely to boost US economic growth, possibly surpassing the forecasted 2.0% GDP for 2025.

RHB also noted that post-election, market sentiment often improves, as seen in S&P trends following most elections, with the exception of the 2008 race between Barack Obama and John McCain. /TISG

Read also: Singapore dollar, Malaysian ringgit, and Thai baht face sharp decline in Asia as US dollar surges after Trump’s presidential election victory

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