THE election of Donald Trump as the next president of the United States may have surprised many even as the US stock markets closed higher on the day of his victory. As the reality of the Trump administration sets in, corporates around the world, including those in Singapore, are wondering how America's vote for change will impact global and local businesses.

It is uncertain if a Trump administration would upend decades of long-standing American policies on free trade, military intervention and fiscal spend. Of particular concern is the impact of a Trump presidency on stock and bond markets and the global economy. The immediate impact has been ambiguous, with early US markets generally moving higher with clear winners in healthcare and financial services sectors, and clear losers in technology and renewable energy sectors.

Investors are also anticipating a sharp rise in US inflation as Mr Trump has promised to increase government spending on infrastructure while his tax policies, if passed, will result in reduced government revenue. To combat the prospect of inflation, the US Federal Reserve may act more decisively to raise interest rates in the coming months. It is likely that markets will continue to move sharply in both directions in the next few days and weeks, as investors work to process the impact of the Trump presidency. Given Singapore's open economy, the ripple effect of any turmoil in the US and global economy will be felt locally.