After Biden's four years in office, S-E Asia emerges as a key winner

Asean benefited from strategic diversification, US involvement and Chinese growth

- Lin Suling, Shannon Teoh, Mara Cepeda and Linda Yulisman

As US President Joe Biden hands over the keys to the White House to Donald Trump, observers say South-east Asia has emerged as a key winner over the past four years as US-China rivalry intensified.

The gains can be quantified, to some extent, in dollars and cents. "US foreign direct investments into the region totalled US$300 billion (S$410.5 billion) just before the pandemic hit. That number has surged over the past five years," Dr Lei Hsien-hsien, chief executive officer of the American Chamber of Commerce in Singapore, pointed out.

Asean became one of the largest destinations for US investments in 2024, at US$480 billion - almost double that of US investments combined in China, Japan, South Korea and Taiwan. The US also came close in 2024 to wiping out China's lead as the top export market for Asean goods, amid a slowing Chinese economy.

Mr Biden deserves some credit. He boosted business opportunities through the Indo-Pacific Economic Framework for Prosperity (IPEF), a signature initiative that promotes collaboration in clean energy, digital economy, supply chains and taxation policy among 14 countries, including seven Asean members.

While critics say it falls short, without granting market access and only backs that commitment with a paltry initial US$150 million of funding, supporters point to its significance in setting a positive tone for businesses in the absence of US participation in a major trade pact like the Comprehensive and Progressive Agreement for Trans-Pacific Partnership.

"IPEF created a conducive environment and brought in US businesses to work with the region in critical sectors of the future like clear energy, cyber security and semiconductors," Dr Lei added, highlighting how US corporate giants, including chipmaker Micron and Google, have expanded operations in the region.