Donald Trump is in line to become America’s 45th president after claiming a surprising victory in the US election. He triumphed over Hillary Clinton after collecting the necessary Electoral College votes and will replace current President Barack Obama. The popular vote, which counts all casted ballots, has yet to be tallied.
Trump spoke over the phone with Clinton and the two exchanged congratulations on the race. Once Trump assumes office, it will end eight years of Democratic control of the White House.
Asia has not reacted to the news well, with Japan’s Nikkei index plummeting more than five percent upon the announcement Trump had won the US election. It was the biggest one-day drop since the Brexit vote when the UK chose to leave the European Union.
Leaders in the region are still trying to make sense of the presidential upset with Singapore Prime Minister Lee Hsien Loong telling Bloomberg that while many would celebrate the result, others would be surprised and disappointed.
“Like the Brexit referendum in June, Mr. Trump’s victory is part of a broader pattern in developed countries — reflecting a deep frustration with the way things are, and a strong wish to reassert a sense of identity, and somehow to change the status quo,” Lee stated.
There is also some concern as to what a Trump presidency will mean for the Asia Pacific’s economy. The former television star has stated numerous times that he would review and possibly withdraw from several trade agreements which could impact the region as a whole.
“The world is globalising and if the US, which is one of the economic powerhouses, is going to put up walls, I don’t see that as good for the world economy,” Clarita Carlos, a political science professor at the University of the Philippines, told AFP news agency. “They can practically slow down economic growth for everybody. He is a businessman. He should know better.”
According to Winston Lee, Regional Head of New Projects at PropertyGuru, Trump’s victory would likely affect emerging markets in Asia that are heavily tied to America’s economy and the US dollar.
“Cambodia, for instance, where real estate is transacted in US dollars, might see property values drop due to the expected declines in the greenback. This is likely to attract property investors, drawn by the relatively lower prices,” he said.
Hari Krishnan, CEO at PropertyGuru Group, added: “We expect the real estate market in Singapore and the region to see muted increases or even declines, as investors adopt a wait-and-see attitude to see how the dust settles.”
