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Political Elections That Investors Here Might Want To Keep An Eye On

The U.S. Presidential Elections is a major political election for the world and is scheduled to take place later this year. But, it is not the only important poll going on this year.

Here are a few other upcoming major elections in other parts of the world that investors in Singapore might want to take note of.

The Philippines – General election

The Philippines is heading for the polls soon with its citizens voting for their local officials all the way up to their next president.

Concerns about the Philippines’ economy, corruption, relationship with China, and the threat of terrorism in the south would be key issues that the country’s citizens are looking out for during the elections.

For Singapore investors, there are companies that count the Philippines as one of their largest geographical markets. One such firm is Del Monte Pacific Ltd (SGX: D03). Investors in companies with heavy exposure to the country might want to learn about how the policies of different political parties or presidential candidates might change the business landscape for them.

Thailand – Constitution referendum

The political situation in Thailand has not been smooth over the past few years. In 2014, the Thai military staged a coup and took over political control of the country as the National Council for Peace and Order (NCPO).

But, the military has promised to re-establish democracy in the country. To that effect, the NCPO has plans for a new constitution and new elections this year.

In Singapore’s stock market, companies such as Thai Beverage Public Company Limited (SGX: Y92) and Super Group Ltd (SGX: S10) have big exposure to Thailand. When the country was roiled by political uncertainty, the duo’s businesses were affected. If Thailand is able to establish stronger political stability in the near future, would that be a positive?

Australia – General election

Australia has been through a number of leadership changes over the past six years since 2010. In that timeframe, the country has seen four unplanned switches in personnel for the Prime Minister role. The current Australian Prime Minister, Malcolm Turnbull, recently announced that the country would be holding a general election in July 2016.

Some of the bigger issues confronting Australians right now include the country’s economic growth, immigration problems, terrorism, and even political infighting.

For investors in Singapore’s stock market, there are many real estate companies that are invested in Australia. Examples include Frasers Centrepoint Ltd (SGX: TQ5)Ascendas Real Estate Investment Trust (SGX: A17U), and Singapore Telecommunications Limited (SGX: Z74).

Foolish Summary

For long-term investors, most political elections should not be a significant driver of investment decisions. But, given the volatile global economy and the rise of populism in many countries, major policy changes might have lasting effects on businesses operating within affected countries. As investors, we should know the risks we are taking on.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore writer Stanley Lim owns Super Group and Frasers Centrepoint Ltd.