Trump 2.0 raises risks for Phl, Asean

Nomura Global Markets Research warned that a second Trump presidency could bring adverse impacts for Southeast Asia, particularly affecting the Philippines' growth trajectory due to heightened geopolitical risks, volatility in remittances and vulnerabilities in the outsourcing sector.

- KEISHA TA-ASAN

In its Asia Economic Monthly Report, Nomura said that Trump 2.0 would be negative for growth in the Association of Southeast Asian Nations (ASEAN) region, albeit to varying degrees.

"The effects from lower global growth, led by the US and China, would affect small open economies. Increased global policy uncertainty, alongside geopolitical risks, could hurt business sentiment and private investment spending," it said.

Nomura said that Singapore's large open economy may face the strongest headwinds due to weakening external demand and lower export growth.

Malaysia may also be vulnerable, but higher foreign direct investments (FDI) could mitigate the impact of a second Trump presidency.