AMERICAN TARIFFS : WHAT IF VIETNAM, INDONESIA, CAMBODIA, SINGAPORE 'CRACK' UNDER PRESSURE? KIAMAT MAKIN DEKAT.

 The Singapore PM (short video below, do listen) has addressed the Singapore Parliament over the new US Tariffs. Basically he is saying they cannot do much against the US. He does say that Singapore will now look to do more business with its "partners" in ASEAN. When your far away neighbours fail you, you have no choice but to go back to your nearer neighbours.

I did listen to our own clowns talking. They really do not seem to understand what they are talking about at all.

Here is my advise : pay attention to what Vietnam, Cambodia and Indonesia are doing. Plus Singapore. With almost US$500 Billion GDP Vietnam is ranked 3rd or 4th largest economy in ASEAN (after Indonesia, Thailand, Philippines?)

Vietnam's exports make up 90% of its GDP. Their exports to the US in 2024 were over US$136 billion. They have a huge trade surplus with the US (over US$120 billion). And Vietnam imposes tariffs of about 46% on American imports. So the new tariffs against Vietnam are going to hit them quite hard - maybe cost them between 1% - 2% of their GDP. So Vietnam is panicking.

Vietnam was perhaps the first ASEAN country to call the Trump people and said they are ready to talk over the tariffs. Vietnam is ready to do a deal with the US over the tariffs.

Which I think will happen. If Vietnam cuts a deal with the US, Cambodia and Indonesia will follow suit. Otherwise new FDI investments will bypass Cambodia, Indonesia and go more into Vietnam. Indonesia and Cambodia will lose out.

The same thing with Malaysia. If Vietnam cuts a tariff deal with the US then will Tesla come to Malaysia or Tesla will go and invest in Vietnam? Bebudak kampong boleh faham ke? Of course all the FDI will now flow to Vietnam. Or to Indonesia or Singapore and whichever ASEAN country cuts a tariff deal with the US. All FDI, tak kira from Kyrgyzstan, Kazakhstan, Uzbekistan or Loozebekistan. 

So keep an eye on Vietnam. Its every country taking care of their own interests.

Here is the soalan cepu mas : do you take care of the country's interests first, the peoples' interests first or do you take care of the cronies, the monopolies, the oligopolies and the GLCs interests first?  

Kiamat makin dekat.

The views expressed here are those of the author/contributor and do not necessarily represent the views of MMKtT.