SINGAPORE (Jan 23): US president Donald Trump’s focus on “America First” during his inauguration speech is set to threaten the free trade and regional security Asia currently enjoys.

According to Bank of Singapore’ chief economist, Richard Jerram, Trump appears to think of trade as a “zero-sum game” where “if others are benefitting, then America must be losing”. By that same thread, Asia could now become the loser, after having been “the biggest winner from the globalisation of the past three decades”.

The problem is, trade is in fact a “win-win” situation, allowing countries to focus their resources on areas where they can be the most productive. When Trump attempts to use protectionist policies to restart the local car industry, steel industry or even the textile industry, it shifts the country’s resources into lower productivity.

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