Countries at our century focus more on cold war ethics rather than actual forms of war. This would include different effects that takes place towards countries’ economy due to political disputes. This was definitely seen with Singapore as the United States government has released statements that affects the overall work of the banks.
This trade tension between both countries might have another negative effect on the banks in Singapore. According to statements released by CEO’s of OCBC and UOB the first quarter results were slowed down due to US President Donald Trump statements on Singapore. Further negative effects are expected if both countries had more tensions.
DBS chief executive Piyush Gupta commented on the case saying, “The longer-term issue is obviously on how much the tension goes beyond trade and if it winds up creating other Cold War-like conflicts between a China world versus a non-China world. From the nature of the dialogue and conversations going on between China and US, it doesn’t seem to be headed that way as the dialogue seems to be productive.”
This was all caused from a single tweet released by the US president Trump saying: “The Trade Deal with China continues, but too slowly, as they attempt to renegotiate. No!” The overall effect from the case includes a slowdown in the economy of the country and a huge loss in the banks of Singapore. A few banks in Singapore has flagged a critical case with the bank due to the huge drop in funds in their first quarter.