What to Do with Your Money - An Asian Perspective

By Alfred Chia, CEO of SingCapital

April 12, 2025

What to Do with Your Money - An Asian Perspective

President Trump’s tariff policy is not just a domestic economic maneuver; it is reshaping the global order of trade. The sudden imposition of tariffs on key trading partners has triggered significant uncertainty, sending shockwaves across global markets and contributing to a broad-based selloff.

As the world’s largest economic powerhouse, the U.S. holds outsized influence over global trade flows and investor sentiment. When America sneezes, the world catches a cold — and this time, Asia is watching closely while recalibrating its strategies.

From an Asia perspective, countries are actively responding — through trade negotiations with the U.S., diversifying export markets, and adjusting monetary and fiscal policies. While this period of transition may be turbulent, there is optimism that a new equilibrium will emerge. The U.S. has a vested interest in restoring stable trade relationships to safeguard its own economic growth, and that will likely lead to constructive recalibration over time.

Evaluate Your Portfolio — Stay Calm, Stay Invested

As markets reel from uncertainty, it's natural to see equity portfolios under pressure. But long-term investors know that volatility is a feature of markets, not a flaw. This is not the time to panic, but a time to be strategic.

Asia-based investors should avoid emotional decision-making and instead start looking for opportunities. The sharp correction in the "Magnificent 7" — U.S. tech giants — has brought valuations down to more attractive levels. These are fundamentally strong companies with global revenue streams, many of which serve Asia's digital economy too. Beyond tech, many quality businesses globally and within Asia are now trading at compelling valuations. While no one can time the bottom, value hunting can begin.

Currency Risk — Hedge for Stability

Trade tensions often lead to competitive devaluation as countries seek to maintain export competitiveness. We’re already seeing currency volatility as governments react to the new tariff landscape.

For Asian investors, this is a signal to diversify across currencies. Holding assets denominated in U.S. dollars, or in gold as a time-tested store of value, can offer a hedge against domestic currency weakness. Some may also consider moderate exposure to digital assets like Bitcoin, which are increasingly seen as non-correlated to traditional markets, though this should be done with caution and within one’s risk appetite.

Inflation and Consumer Behavior — The Waiting Game

If tariffs are not managed with care, they could trigger inflationary pressure in the U.S., which will in turn affect global prices. However, in Asia, the story could be different.

Excess production capacity in China and other manufacturing hubs may lead to a flood of affordable goods, from electronics to automobiles, as exporters seek alternative markets. This dynamic could benefit Asian consumers — but only if local protectionism doesn’t take hold.

Still, this is a good time to be prudent with big-ticket purchases. If a major buy isn’t urgent, waiting could offer better prices in a more stable environment.

Retirement Planning — Stick to the Plan

Retirement is a long game. Short-term volatility, no matter how dramatic, should not derail long-term planning. Across Asia, aging populations are a growing concern, and governments are encouraging citizens to prepare early.

This environment underscores the importance of staying invested in long-term retirement vehicles, be it CPF in Singapore, EPF in Malaysia, or private pension plans elsewhere. Market downturns can even be an opportunity to invest at lower prices, enhancing long-term growth potential.

Asia’s Long-Term Outlook — Resilience and Relevance

Despite short-term market disruptions, Asia’s long-term growth story remains intact. With a growing middle class, continued urbanization, and digital transformation across industries, Asia will continue to be an important contributor to global economic growth — and a vital part of the U.S. supply chain and consumer base.

As the U.S. repositions its trade strategy, Asia will not only adjust — it will innovate, collaborate, and grow.

Disclaimer: The views expressed in this article are for general information purposes only and do not constitute anyform of recommendation or financial advice. Readers are encouraged to consult a licensed Financial AdviserRepresentative before making any financial or investment decisions.