For this private debt firm, ‘Asia for Asia’ offers silver lining amid US tariff threats

[SINGAPORE] The “Asia for Asia” trend of rising intra-regional trade is likely to offset the potential impact of US tariffs on Asia, said Sabita Prakash, managing director of private credit firm ADM Capital.

“The outlook for Asian countries’ exports gives us food for thought. But, the huge difference over the past five years is what we call Asia for Asia, where Asia has increasingly begun to depend on itself for end-use markets, outsourcing or funding. We feel this will offset some of the issues arising from the trade wars.”

One of its portfolio companies, for instance, is a Vietnamese business which manufactures modular housing for New Zealand. “In the past two to three years, Vietnam has successfully used the China+1 strategy to improve its relationships. We’ve done some deals that are not dependent on what happens between the US and Vietnam...