As Brexit becomes a reality, will that signal to other blocs that nothing is cast in stone? By Rai Vikhnod
It looks like getting along isn’t something we do too well as humans.
With the United Kingdom (UK) voting to leave the European Union (EU) by a slim 51.9%–48.1% (around 1.27 million votes) it does point to a move away from seeking safety in numbers. The notion of the collective is being rattled.
Of the 30 million who voted, those within London, Scotland and Northern Ireland were keen to keep the EU as a 28-country bloc, as business ties are best forged with a larger marketplace. Wales and the rest of England were keen to leave.
How then will Brexit affect UK as the world’s fifth-largest economy? The next couple of years, as the pullout takes place, would provide more answers. And the Pound dropping to its lowest level against the US Dollar since 1985, could point prophetically towards the UK’s fate. Global money markets are going to be in turmoil and Singapore will have to face the impact of this.
Britain’s Prime Minister David Cameron, a strong supporter of the Remain group, has announced he will step down by October. A majority of the members of Parliament were also for staying, but will now have to scramble for strategies to make plan B work.
Whether it’s the huge $16.3 billion the UK forks out to be part of the EU or the open borders to immigrants that threaten to add to the 13% of the residents who came in from other countries, this result could see other countries seriously considering leaving the EU.
Could this also spell challenges ahead for other blocs where fiscal and physical might tend to determine who calls the shots?
In a world that seems to embrace disruption, anything is possible.