Economic impact of Taiwan flare-up seen as manageable, but risks linger for S'pore and region

An aerial view shows an empty Keelung Harbour in Taiwan, as China's People's Liberation Army holds a four-day live fire drill around the island, on Aug 4, 2022. PHOTO: AFP
China's People's Liberation Army conducts a long-range live-fire drill into the Taiwan Strait from an undisclosed location on Aug 4, 2022. PHOTO: REUTERS
Tourists look on as a Chinese military helicopter flies past Pingtan island, on Aug 4, 2022. PHOTO: AFP
A Taiwanese coast guard personnel stands guard at a station along the coast of Taiwan, on Aug 4, 2022. PHOTO: EPA-EFE
Smoke trails from projectiles launched by the Chinese military are seen as tourists look on from Pingtan island, on Aug 4, 2022. PHOTO: AFP
A large screen on a building showing promotion for the Chinese People's Liberation Army is seen past pedestrians in Beijing, on Aug 4, 2022. PHOTO: AFP
New: Gift this subscriber-only story to your friends and family

SINGAPORE - The economic impact of the geopolitical tensions over Taiwan appears manageable so far but analysts fear there could be some short-term glitches in trade flows.

They also said that in the long run, the widening gulf between the world's two largest economies - China and the United States - will reinforce the ongoing shift in global trade and investment flows towards safer pastures, such as the Asean region, a trend with implications for Singapore.

Already a subscriber? 

Read the full story and more at $9.90/month

Get exclusive reports and insights with more than 500 subscriber-only articles every month

Unlock these benefits

  • All subscriber-only content on ST app and straitstimes.com

  • Easy access any time via ST app on 1 mobile device

  • E-paper with 2-week archive so you won't miss out on content that matters to you

Join ST's Telegram channel and get the latest breaking news delivered to you.