Mid-year insights: Opportunities amid globalisation’s discontents

IN THESE days of waning US-centric investment, some investors are betting that US President Donald Trump’s tariff rhetoric may not translate into action, while others pursue strategies tilted toward industrials-heavy nations that may be benefiting from increased defence spending. Either way, the tide turned decidedly global during the first half of 2025.

Diversification vs tariff sensitivity

Building upon lessons from the Russia-Ukraine war, the United Kingdom recently unveiled plans to significantly raise defence spending and accelerate the development of next-generation security capabilities.

The notable rise tracks the trend we’ve seen in military expenditure across the globe, which reached US$2.7 trillion last year – an increase of 9.4 per cent in real terms from 2023. We believe this localisation of defence production should continue to spur job growth and revitalise smaller industrial centres.