The highly-anticipated US elections are now over, and Joe Biden has been elected to be the new occupant of the White House. While it may have been an American affair, but the repercussions of the elections are global. As one of the world’s economic powerhouses, American policies greatly affect the trade and economy in other countries.
Joe Biden’s presidency will certainly bring about some changes to American trade and foreign policies, which will ultimately have an impact on Singapore as well. But why do these changes matter?
Read on to find out why the US elections play a significant role in our local businesses.
US is a key trading partner to Singapore
While it’s still too early to predict, President-elect Joe Biden’s may potentially lead the US to rejoin the Trans-Pacific Partnership (TPP), a trade deal among 12 countries, including Singapore. The US was withdrawn from the deal in 2016 under President Trump. The possibility of the US rejoining the TPP would be beneficial to Singapore and other members in the trade deal. The US could make a big difference in implementing TPP rule frameworks, some of which are those that Singapore has been diligently trying to craft in the areas of supply chain, digital trade, transparency and resiliency.
If the US rejoins the TPP, it would positively affect Singapore’s businesses in sectors such as trade technology. Mr Biden is also expected to adopt a more rules-based trade approach that opens markets to US goods.
US-China relations affect Singapore
Although there is much anticipation of the US and China finally striking a deal in trade, this may not happen any time soon. Foreign policies are unlikely to change as Mr Biden has mentioned that he intends to take an aggressive stance against China’s economic behaviour. He confirmed that he does not have plans to lift trade war tariffs imposed on China before conducting a thorough review of the Phase One trade deal and consulting US allies.
As a country that’s small and reliant on trade, our local businesses can be heavily affected by rivalry between superpowers. For instance, due to the uncertainty regarding the US and China’s trade talks, Singapore’s stock market has taken a downward turn.
To cushion your company from adverse financial effects of such rivalry, reach out to a trustworthy audit firm in Singapore that offers corporate accounting services for your company. At Ackenting Group, we offer an extensive suite of corporate advisory solutions as well as accounting and bookkeeping services to help manage your business’ finances and maintain your stability during times of economic challenges.
Possibility of better US-Asia ties
Mr Biden’s presidency is set to embrace multilateralism once again and look towards strengthening alliances with countries worldwide. Mr Biden has pledged for the US to rejoin the World Health Organisation and Paris Climate Agreement upon taking office in January next year. The Biden administration could significantly improve US-Asia ties, with greater predictability, professionalism, structure and stability for the region. This ultimately improves our trade relations with the US that could affect local businesses.
While it goes without saying that these factors greatly affect Singapore’s trade and businesses, the future is still unpredictable. Therefore, it’s essential to protect your business’ finances nonetheless by engaging with a reputable audit firm that can advise you accordingly.
If you require any assistance on accounting services, feel free to drop us an email at johnwoo@ag-singapore.com or contact us at +65-66358767. At Ackenting Group, we offer a complimentary 30 minutes online consultation for us to better understand your business requirements.
