Friday, November 11, 2016

Trump affect

Following are some Trump's proposals and my point of views: -

Proposal: Decreased American Investment in M'sia due to reduce US corporate tax.
Answer: By reducing US corporate tax, will not being back their manufacturing. It finds no sense to make a product yourself if you can buy it cheap on somewhere. The economy of scale is not there and it will burden more US people living cost. You will just buy a product if there is few cent cheaper.

Proposal: Lead to Capital flight to the US from M'sia.
Answer: If it really happen, it makes more difficult for Trump to create more jobs opportunity in US, as RM is weakening, so it is more worth to invest in Malaysia than US.

Proposal: TPPA will be scrapped off.
Answer: This yet to happen, so any affect?

Proposal: Impose 35% tax higher on goods from China and Mexico.
Answer: It will cause recession to China and Mexico, as well as US itself. So he won't do it.

Everything he talked in the election regarding policy and economy are required to go through the House and the Senate. It won't be so easy to make it happen.

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Please note that all data given are merely blogger's opinion. It is strongly recommended that you do your own analysis and research before investing.