Singapore's state-owned investment company Temasek warned in an interview that Trump's election as US president may not necessarily be beneficial for the world economy and financial markets.

Rohit Sipahimalani, Chief Investment Officer of Temasek International, stated that the Trump administration will lead to a slowdown in global economic growth, ultimately affecting American businesses.

Sipahimalani said in an interview on Tuesday, "The traditional view and consensus I know is that Trump's presidency is more beneficial for the market now." He cited hopes for lower taxes and stronger regulation. But looking ahead to 2025, the situation is not clear

Investors around the world are on edge before next week's US presidential election. According to a recent survey, for investors holding stocks and Bitcoin, Trump's victory will be more advantageous than his Democratic opponent Harris.

Sipahimalani said that while Harris' victory would benefit emerging markets, the opposite could happen if Trump wins.

He said, "If Trump wins, it could mean a stronger US dollar and higher interest rates than Harris in power. Tariffs will bring uncertainty, which has never been good for investment. In fact, I believe this is not only detrimental to emerging markets, but also to the world." He added that this would "affect global growth.

It is understood that Temasek is one of the world's largest state-owned investment companies, with a net investment portfolio value of SGD 389 billion (USD 294 billion). In recent months, the company's strategy has undergone a significant shift, deploying more capital in the United States and recently announcing plans to invest $30 billion in the US over the next five years. Nevertheless, Sipahimalani predicts that the market in 2025 will be more volatile than in recent years.

He stated that the market severely underestimates' tail risk ', which refers to events with a low probability of occurrence but would have a significant impact if they occur. The Chief Investment Officer added that, given that 25% of the revenue of S&P 500 constituent companies comes from abroad, the slowdown in global growth will also have a direct impact on US listed companies.