President Donald Trump is back, what does that mean for the Philippines?
Michael McCullough
Chairman at KMC Savills / Founder of KMC Solutions / Angel Invester
The 45th and now 47th President of the United States is poised to have a more significant impact on the world during this administration compared to his previous one.
Let's explore the three areas of the Philippines that could be most affected:
1) Immigration Policies
Stricter US immigration policies could affect the remittances sent by Filipino workers (OFWs) in the US, which are a significant source of income for many families in the Philippines. Reduced remittances could impact domestic consumption, real estate investments, and economic stability.
2) Foreign Policy and Security
Trump's stance towards China is crucial for the Philippines, especially concerning the West Philippine Sea. A confrontational US approach could embolden the Philippines to assert its territorial claims, but an unpredictable or diminished US presence might embolden China, potentially destabilizing regional trade and security. Trump's antiwar attitude and focus on Greenland and the Panama Canal might reduce or stop some of the defense budget spending towards building new bases in the Philippines.
3) Trade Policies
Trump's "America First" approach emphasizes reshoring American jobs and reducing dependence on foreign labor (H1B Visas have been in the news). This could affect the Philippines' Business Process Outsourcing (BPO) industry, which heavily relies on US clients. Any push to bring jobs back to the US might reduce the demand for outsourcing services, impacting millions of Filipino workers and the nearly $40 billion annual revenue from this sector. That being said, the US Unemployment rate is historically low, and we have yet to see widespread job losses from AI disruption.
Finding the Best and Brightest Talent for Offshore Outsourcing Teams.
1 个月The rapid growth of high rise apartment blocks around Manila and Cebu, some of which are more than 50 stories high, would surely be effected by a reduction of Filipino OFW’s in the USA. Most local workers, even in good jobs, could never afford to own them.
Independent Consultant at the Development Academy of the Philippines (DAP)
1 个月Good points but we have to consider what the new Secretary of State Rubio is saying about keeping US stance on China’s abusive behavior in the SCS that disturbs the freedom of navigation and peace with neighboring island states and reassurance of America’s ‘iron clad’ defense treaty with the Philippines.
Cash Application Accounts Receivable
1 个月I hope with help of Trump business runs without any hickups and output of that hopefully we all should receive good hikes
Head Copywriter at Grant Investment Management LLC
1 个月Terry Grant check this article out. Mike himself is an American fella that's made the Philippines his home.
Some solid observations. It’ll be interesting to see how the Trump Administration billionaire cabinet will impact US - China trade policy. Secondly, the US 36 trillion dollars national debt will have a major impact on interest rates. Moreover, Trump taxes policy will be even more interesting. I see common sense in trade policy. But, not much common sense in domestic tax policy. AI transformation requires a ton of electrical power. The US has not spent evenly nor consistently on its own infrastructure in decades. If you have investments outside the US, I see opportunities. I’m bullish on the next 4 years as the second Trump Administration takes root.