Singapore’s economic growth is expected to remain robust, even if President-elect Donald Trump returns to the White House, according to insights from
Singapore’s economic growth is expected to remain robust, even if President-elect Donald Trump returns to the White House, according to insights from RHB. While some short-term market volatility could arise from the reintroduction of Trump-era policies, experts believe the nation’s strategic diversification and supply chain shifts will continue to provide stability.
RHB highlighted that Singapore stands to benefit from businesses implementing the China Plus One strategy — diversifying supply chains beyond China — a trend expected to persist regardless of Trump’s political return.
To mitigate potential market fluctuations linked to Trump’s policies, RHB suggests investors prioritise defensive stocks, including UOB (which is benefiting from ASEAN growth), Raffles Medical, Sheng Siong, and ST Engineering. These stocks are seen as resilient options amid market uncertainties.
RHB outlined three main reasons why concerns about Trump’s return should be minimised:
Global economic growth will likely remain stable: Despite possible protectionist policies impacting China and ASEAN, RHB believes that any resulting market volatility won’t significantly disrupt global economic trends.
Trump’s policies could bolster the US economy: Measures such as extending tax cuts and reducing corporate taxes are likely to fuel US growth, potentially pushing GDP rates beyond the projected 2% for 2025.
Market sentiment post-election tends to improve: Historical trends such as those seen with the S&P following most elections suggest a recovery in market confidence after presidential races, with the exception of the 2008 contest between Barack Obama and John McCain.
These insights suggest that while uncertainties may arise, Singapore’s strategic positioning and diversified trade relationships will likely safeguard its economic growth in the face of geopolitical shifts.
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