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Monetary tightening amid heightened uncertainty: implications for emerging markets

17 March 2022

Sue Trinh, Head of Macro Strategy, Asia

The U.S. Federal Reserve (Fed) raised policy rates by 25 basis points, as had been widely expected. The accompanying detail of the statement and press conference leaned hawkish. Sue Trinh, Head of Macro Strategy (Asia), considers the potential implications for emerging markets.



The U.S. Federal Reserve (Fed) raised policy rates by 25 basis points, as had been widely expected. The accompanying detail of the statement and press conference leaned hawkish:

  • The new dot plot shows a median projection for the benchmark Fed funds rate to end 2022 at about 1.9% and rising further to about 2.8% in 2023
  • Fed Chair Powell signaled that a 50 bps increase remains a possibility, adding "every meeting is a live meeting"
  • On quantitative tightening, the Fed indicated it would come at a "coming meeting", likely as soon as May
  • Finally, St. Louis Fed President James Bullard dissented in favor of a half-point hike, the first vote against a decision since September 2020.

In all, the Fed is signaling a much faster pace of tightening in the face of significantly higher than previously anticipated inflation of 4.3% this year, even as it cut its forecast for GDP growth from 4% to 2.8%.

The latest disruption to global supply chains and surge in commodity prices due to the Ukraine crisis has amplified the dilemma facing major central banks, including the Fed. On one hand, these disruptions will push headline inflation (and inflation expectations) even higher; on the other, it’ll amplify the squeeze on real incomes, economic activity, and core inflation further ahead. Tightening into this environment risks exacerbating the downside risks to economic growth. There’s very little monetary policy in isolation can do to address cost-push inflation.

Yet many central banks are pushing ahead with monetary policy normalization, from Bank of Canada and European Central Bank last week, to the Fed this week. Quite apart from the questionable efficacy of tightening into a negative global supply shock, this dynamic has important implications for global liquidity. Global liquidity growth has slowed markedly—from a record 21.5% in March 2021 to 5.4% last week, the slowest rate since April 2020.1  A declining global liquidity impulse is most relevant to emerging-markets (EM) growth and earnings, but it also has broader relevance to risk assets.

Chart 1: Annual growth in global money supply

Source: Bloomberg, Macrobond, Manulife Investment Management, as of 14 March 2022. YoY refers to year over year.

We’re still of the view that policymakers’ concerns over high inflation will ultimately give way to worries about slower growth. Without structural reform, the real economy is in no shape to absorb any amount of tightening. We’re aware this may sound difficult to believe, especially when the popular press has been at pains to tell us how many economies have recovered COVID-19-related damage. But no one ever asks, “is this actually good enough?”

We’ve argued that the prepandemic level of output was nothing to aspire to and that policymakers were, perhaps, aiming too low. At the end of 2019/early 2020, before anyone knew what the word COVID-19 would come to represent, this was the state of the global economy:

Chart 2: World real GDP versus trend

Source: Food and Agricultural Organisation of the United Nations, Maddison Project Database, World Bank, Macrobond, Manulife Investment Management, as of 14 March 2022. 

This is what the U.S. yield curve has been signaling for months. Most prominent among those, the euro-dollar futures and, of course, the 2-year/10-year yield curves, which are flatter today than at any point in the past 18-24 months. The near inversion is happening at extremely low nominal levels, which highlights the precarious state of the global economy. In our view, attempts to rein in rampant cost-push inflation by normalizing interest rates and shrinking balance sheets look a lot like policy errors. We anticipate a dovish Fed pivot in Q3 and the Fed’s tightening cycle to ultimately fall short of the market’s current pricing1 in terms of its pace, magnitude, and duration.

Do we need to worry about another Fed tantrum in emerging markets?

A question that we keep coming across is whether we will witness another episode of taper tantrum (like we did in 2013 and, to a lesser extent, in 2018) if and when the Fed embarks on a tapering exercise?

From a macro perspective, there are two ways to answer this question. Let’s start with the positive: broadly speaking, emerging-market economies are in a stronger position now relative to before.

In 2013 and 2018, many EMs were heavily exposed to external financing. Current account deficits were commonplace, as were limited foreign exchange (FX) reserve buffers to deal with bouts of currency depreciation. This devolved into a negative feedback loop in many instances; however, this time around, those vulnerabilities aren’t as stark.

  • External positions have improved—The collapse in domestic demand due to pandemic-related restrictions helped to strengthen external balances through most of 2020 and 2021. Within Asia, India and Indonesia have made strong improvements on this front. In other parts of the EM universe, South Africa and Poland stand out.
  • EM central banks have built up stronger FX reserve buffers—Within Asia, India and Thailand have made strong improvements on this front. Outside of Asia, the Czech Republic and Colombia stand out.
  • EM FX valuations aren’t as stretched—In real effective exchange rate terms, EM currencies are generally weaker relative to 2013 and therefore less prone to sharp depreciation risk. Within Asia, Singapore and Malaysia are better placed to deal with any upcoming periods of volatility relative to 2013. Latin America, however, is notably weaker on this front, with Colombia, Peru, and Chile being the most vulnerable.

That said, it’s worth noting that the nature of risk in EM has changed in important ways.

  1. The growth differential between EM economies and developed-market economies has narrowed
    In our view, the economic growth outlook for EM is relatively more depressed versus 2013 and 2018. The traditional growth advantage EM offers relative to developed markets has been eroding for years and is a phenomenon that predates COVID-19.
  2. Real interest rates in EM are generally more negative
    Real interest rates in most EM economies are in negative territory. This implies that regardless of how high nominal interest rates in EM economies may seem, they might not be able to prevent foreign capital outflows should the Fed’s tapering trigger capital flight. Some EM economies have begun to tighten policy to head off this risk at the expense of lower economic growth.
  3. Fiscal positions among EM economies are generally weaker
    The pandemic has depressed tax revenues just as governments were ramping up public spending in the face of the pandemic. As a result, fiscal deficits widened sharply across EM. Wider fiscal deficits mean higher public debt-to-GDP ratios. While EM economies tend to have lower debt levels than their developed peers (where debt typically exceeds 100% of GDP), they won’t have a free hand to use central-bank-funded fiscal stimulus to support economic activity. In our view, EM economies with high debt and heavy dependence on foreign capital could risk a severe test of policy credibility if the Fed tapers.
  4. EM reliance on international funding conditions is generally higher
    Whether EM policymakers can support their local economies amid continued COVID-19 outbreaks in the event the Fed tapers will also depend on a number of additional factors. Key among them is the degree to which government finances rely on international funding conditions—even if most debt issuance is denominated in the local currency, governments may still be exposed to international conditions if foreign investors own a high proportion of their local-currency debt.
  5. Some EM economies have become more reliant on foreign-ownership in the local debt and equity markets
    Another constraint on policy action is the risk of disorderly portfolio outflows. EM economies with a high level of foreign ownership in local debt and equity markets relative to official foreign exchange reserves are at the greatest risk. Where foreign ownership is low compared with central bank foreign exchange reserves, such as in India, policymakers have greater scope for action, all else being equal.

Chart 3: EM economies are running out of space for conventional monetary easing
Current real policy rate versus 10-year average (%)

Source: National central banks, National Statistic Offices, Macrobond, Manulife Investment Management, as of 14 March 14 2022.

The March FOMC meeting told us that the Fed is still prepared to proceed with rate hikes to fight near-term inflation. Meanwhile, geopolitical risks and risk aversion remain elevated and looks set to continue rising. Add in an extended stagflationary environment and we’ll be looking at macroeconomic conditions that are typically not conducive for EM; however, should investors throw the baby out with the bathwater? The answer, in our view, is “No.” In fact, a comprehensive analytical approach reveals a high degree of differentiation within this asset class. As such, relative value can be captured in a diversified manner, even amid bouts of heightened global market volatility.

That said, it’s clear that investors will likely need nerves of steel in the coming weeks and months. The determined effort by global central banks to normalize rates amid heightened uncertainty and low visibility isn’t likely to help. Without meaning to sound glib or opportunistic, we believe this is an environment that favors an active investment approach. Investors should proceed with caution.

 

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1 Bloomberg, Macrobond, Manulife Investment Management, as of 14 March 2022.

2 Bloomberg, Macrobond, Manulife Investment Management, as of 14 March 2022.

 

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These Terms shall be subject to, governed by, and construed in accordance with the laws of Singapore, and you hereby submit to the non-exclusive jurisdiction of the Singapore Courts.

 

Disclaimer (Singapore Investors)

 

Please read carefully these Terms and Conditions of Use (these "Terms") relating to access and use of this website. By clicking "accept" at the bottom of this page, you confirm that you agree to the Terms and Global Terms, and are an investor domiciled in Singapore. By clicking "accept" below, you also confirm that you consent to the setting of cookies on this machine to remember site preferences and track user activity. If you do not agree to be bound by or comply with the Terms or the Global Terms, or do not consent to the use of cookies, please do not access or use this website.
 

This website is operated by Manulife Investment Management (Singapore) Pte. Ltd. ("Manulife Singapore"), which is an entity regulated by Monetary Authority of Singapore. Manulife Singapore is a member of the Investment Management Association of Singapore (IMAS), and a fund management company included under the Central Provident Fund Investment Scheme (CPFIS).
 

Manulife Singapore reserves the right, in its sole discretion, to change, modify, add to, or remove portions of these Terms at any time. We suggest that you check these Terms periodically for changes. Any changes, modifications, or additions to, or deletions from these Terms shall be notified to you by, and effective upon, posting on this website. You agree that such notification of changes shall be sufficient notice for the purpose of this clause. If you use this website after we post changes to the Terms, you are deemed to have accepted the Terms as changed. If you do not agree to be bound by the changes, you shall immediately cease all access and/or use of this website. Manulife Singapore expressly reserves the right to monitor any use of this website.


You agree:- (i) to comply with all the notices, guidelines, rules and instructions pertaining to the use of the website as issued by Manulife Singapore from time to time and/or made available at this website, including all specific terms and conditions governing use of specific aspects of the website set out in any additional terms and conditions; (ii) to abide by all applicable laws and regulations in your use of the website; (iii) not to impersonate any person or entity or to falsely state or otherwise misrepresent your affiliation with any person or entity; (iv) not to upload or distribute in any way files that contain viruses, corrupted files or any other similar software, programs, macros or files that may impair or damage the operation of another's computer or handset; and (v) not to post, promote or transmit through the website any unlawful, harassing, libellous, harmful, vulgar, obscene or otherwise objectionable material of any kind or nature.


The information provided on this website is intended solely for use by Singapore residents and is not intended for distribution to, or use by, any person or entity in the United States, or any jurisdiction or country where such distribution or use would be contrary to law or regulation, or which would subject Manulife Singapore (including its affiliates) (collectively hereafter "Manulife") or any of Manulife's products or services to any registration requirement within such jurisdiction or country. Nothing on this website shall be considered as a solicitation to buy or an offer to sell a security or service to any person. Manulife Singapore does not claim that any products or services referenced in this site are available in any particular jurisdiction or appropriate for any particular investor. If you choose to access this website from a location outside Singapore, you do so on your own initiative, and you are responsible for compliance with any applicable local laws. By proceeding you are representing and warranting that you are either resident in Singapore or the applicable laws and regulations of your jurisdiction allow you to access the information on this website.


Manulife Singapore may from time to time without giving any reason or prior notice, upgrade, modify, alter, suspend, discontinue the provision of or remove, whether in whole or in part, this website and shall not be liable if any such upgrade, modification, suspension or alteration to the website prevents you from accessing the website or any part or feature thereof. The information and/or any other material contained in the website may be modified, deleted or replaced from time to time and at any time in the absolute discretion of Manulife Singapore. Any changes, modifications, or additions to, or deletions from these Terms or Global Terms shall be effective upon posting on this website. If you access this website, including the country-specific sections, after changes are posted to the Terms or Global Terms, you further acknowledge the Terms or Global Terms as changed and agree to be bound by them.


You will indemnify Manulife and their officers, directors, employees and agents in respect of any third party claim for any injury, loss, damage or expense occasioned by or arising directly or indirectly from your use of this website or any information or content therein, and/or the use or supply of information to a third party provided in breach of any of your obligations under these Terms.

 

Limitation of Liability on System and Transmission over the Internet

Manulife, or any of their respective directors, officers, employees or agents shall not liable for any event of Force Majeure, any virus or other harmful component affecting the website or any server that operates it, any interception of data or communications in connection with the public nature of the internet, any problems or technical malfunction of any telephone network or lines, computer online systems, servers or providers, computer equipment, software failure of any email or entry to be received on account of technical problems or traffic congestion on the Internet, telephone lines or at any website, or any combination thereof, including any loss of opportunities or profit arising from any time delay, system disruption or interruption, transmission blackout, delayed transmission or any incorrect data transmission, or any injury or damage to the computer or other electronic devices or property of any person accessing their website or any other person related to or resulting from accessing the websites or downloading any materials from the website of Manulife Singapore or any third party.


Manulife, or any of their respective directors, officers, employees or agents shall not be liable for any and all losses, injury (including special, indirect and consequential losses), damages, rights, claims and actions of any kind resulting from accessing or downloading any materials from the website of Manulife Singapore or any third party, including without limitation, personal injuries, death and property damage.


Except as specifically set forth herein or where the law requires a different standard, we shall not be responsible for any loss, damage or injury or for any direct, indirect, special, incidental, exemplary, or consequential damages, including lost profits, arising from or related to the system, equipment, browser and/or the installation or maintenance thereof, access to or use of the website, failure of electronic or mechanical equipment, the internet, the system, or communication lines, telephone or other interconnect problems, bugs, errors, configuration problems or incompatibility of computer hardware, software, the internet, or the system, failure or unavailability of internet access, problems with internet service providers, problems or delays with intermediate computer or communications networks or facilities, problems with data transmission facilities or any other problems you experience due to causes beyond our control.

 

Intellectual Property

All copyrights, trademarks, logos, service marks, trade names, or other intellectual property displayed on, or used in conjunction with, this website are proprietary to Manulife, unless otherwise indicated. All intellectual property and proprietary rights in the content, including but not limited to text, software, code, scripts, webpages, music, sound, photographs, video, graphics, graphical user interface, forms, diagrams or other material contained in the website belong to Manulife or the applicable third party service provider unless otherwise indicated. Manulife reserves all rights with respect to intellectual property ownership of all material on this website, and will enforce such rights to the full extent permissible by law. The material accessible on or through this website is made available for personal browsing and printing purposes only. You may access material displayed on this website for your non-commercial use only provided that you also retain all copyright and other proprietary notices contained on the materials. Users of this website may not otherwise:

  1. copy, reproduce, modify, sell, republish, post, transmit, or distribute in any way material from this website without the express, written permission of Manulife; 
  2. use, copy, modify, or display any Manulife name, logo, text, or graphic image without Manulife's express, written permission;
  3. display any of the pages, text, images, or other content of this website using "framing" technology without Manulife's express written permission; 
  4. use or reproduce the pages, text, images, or other content from this website for any purpose other than browsing or printing for personal, non-commercial use only; 
  5. take any action to create an impression of affiliation, sponsorship, or endorsement between any user and/or website and Manulife; or 
  6. insert a hyperlink to this website (or any part thereof) on any other website or webpage or "mirror" any material contained on this website on any other server or establish and/or maintain, on any website or webpage, any in-links, frame-links and/or any other type of hyperlinks to this website or any part thereof.


The website may contain content posted, emailed or otherwise submitted by you and/or, in the case of the website, by other users of the website (“User Content”). Manulife Singapore has the right to access and examine any User Content and may in its absolute discretion move, remove or disable access to User Content or cause the same to be done. You grant Manulife Singapore a perpetual, irrevocable, royalty free licence to use, reproduce, modify, adapt, publish, translate, incorporate in other works, distribute and display any information posted, emailed or otherwise submitted by you, in whole or in part.

 

Computer Equipment, Browser Access and Internet Services

You are responsible for obtaining, installing, maintaining and operating all software, hardware or other equipment (collectively, “System”) necessary for you to access and use and access this website. This responsibility includes, without limitation, your utilising up to date web-browsers and the best commercially available encryption, antivirus, anti-spyware, and internet security software. You are additionally responsible for obtaining Internet services via the Internet service provider of your choice, for any and all fees imposed by such Internet service provider and any associated communications service provider charges. You acknowledge that there are certain security, corruption, transmission error, and access availability risks associated with using open networks such as the Internet and you hereby expressly assume such risks, including, but not limited to those we may disclose in our materials. You acknowledge that you are responsible for the data security of the Systems used to access this website, and for the transmission and receipt of information using such Systems. You acknowledge that you have requested access to the website for your convenience, have made your own independent assessment of the adequacy of the Internet and Systems and that you are satisfied with that assessment. Manulife Singapore is not responsible for any errors or problems that arise from the malfunction or failure of the Internet or your Systems nor are we responsible for notifying you of any upgrades, fixes, or enhancements to, or for providing technical or other support for your Systems. Although we may provide a link to a third party site where you may download software, we make no endorsement of any specific software, hardware or Internet Service Provider and your use of any such software, hardware or service may also be subject to the license or other agreements of that provider, in addition to these Terms of Use.

 

Hyperlinks

We do not recommend or endorse and accept no responsibility for the content of any website not operated by Manulife Singapore which you may visit by following a link from this website. You acknowledge and agree that Manulife Singapore is not responsible for the availability of such third-party sites or resources, and do not endorse, approve, investigate or verify, and are not responsible or liable for any content, advertising, products, or other materials on or available from such sites or resources. You further agree that Manulife Singapore shall not be responsible or liable, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with use of or reliance on any such content, products or services available on such external sites or resources. These links are provided as a convenience and solely for informational purposes. Manulife Singapore is not making any recommendation to invest in, purchase, or sell any securities or other products or services issued by the companies with the linked sites, nor has Manulife Singapore sought to verify or confirm the information contained in the linked sites. Accordingly, Manulife Singapore disclaims any responsibility for the linked sites.


No other website, without the prior written permission of Manulife Singapore, is authorized to link to any part of this website.

 

Investments

The contents on this website are for information only and without consideration given to the specific investment objective, financial situation and particular needs of any particular person and Manulife does not make any representation that the securities, investment products or services referred to, discussed on, or accessible through, this website are suitable for any particular investor. You should consider whether the security, investment product or service in question is suitable for you and may wish to seek professional advice before making a commitment to invest in any such security, investment product or to engage such service.
 

The contents on this website is not and should not be construed as being an offer to sell or a solicitation of an offer to buy any security or investment product that may be referred to, discussed on, or accessible through this website. Nor does this website constitute an offering or recommendation by Manulife of any security, investment product, investment management service, or advisory service. Manulife does not provide and should not be construed as providing investment advice, tax advice, or legal advice through this website, and you agree that this website will not be used by you for such purposes. You acknowledge that any requests that may be made by you for information on any security, investment product or service are unsolicited, and the provision of any information through this website shall not constitute or be considered investment advice, or an offer to sell, or a solicitation of an offer to buy any security, investment product or service.


Any forecasts or opinions set out on this website are Manulife's own as at the date of the relevant document and may change without notice and should not be regarded as a guarantee or indication of future or likely performance of the subject matter in question. Whilst Manulife believes that the information provided on this website is correct at the date of production, no warranty or representation is given to this effect and Manulife expressly disclaims liability for errors or omissions in such information. No reliance may be placed for any purpose on the information and opinions provided on this website or the accuracy or completeness thereof and no responsibility can be accepted by Manulife to anyone for any action taken on the basis of such information or opinions.


An offer of units in any fund referenced in this website may only be made in or accompanied by a prospectus and/or relevant offering document(s) in respect of such offer. The information and materials set out in this website is not to be taken as a substitute for the prospectus and/or offering document(s) of the relevant fund, as applicable, and you are advised to read the relevant documents (which are available and may be obtained from Manulife Singapore or any of its authorised distributors]) before applying for units in any fund.


Investments in any fund are not deposits in, guaranteed or insured by Manulife. The value of units in any fund and the income accruing to the units, if any, may fall or rise. Past performance is not necessarily indicative of future performance. You should be aware that investment in any fund involves financial risk and you may not get back the principal amount invested. Depending on your currency of reference, factors including but not limited to currency fluctuations may adversely affect the value of your investments and the income accruing there from.
 

On this website:

  1. The short name and full name of the following funds are as follows: Asia Pacific Investment Grade Bond Fund = Manulife Asia Pacific Investment Grade Bond Fund; Global Asset Allocation – Growth Fund = Manulife Global Asset Allocation – Growth Fund; SGD Income Fund = Manulife SGD Income Fund; Singapore Bond Fund = Manulife Singapore Bond Fund; Singapore Equity Fund = Manulife Singapore Equity Fund.
  2. The following are sub-funds of Manulife Global Fund:
    Asia Dynamic Income Fund, Asia Pacific REIT Fund, Asia Total Return Fund, Asian High Yield Fund, Asian Short Duration Bond Fund, Asian Small Cap Equity Fund, China Total Return Bond Fund, China Value Fund, Dragon Growth Fund, Global Climate Action Fund, Global Equity Fund, Global Multi-Asset Diversified Income Fund, Global REIT Fund, Healthcare Fund, India Equity Fund, Preferred Securities Income Fund, Sustainable Asia Bond Fund, Sustainable Asia Equity Fund, U.S. Bond Fund, U.S. Equity Fund, U.S. Special Opportunities Fund.
  3. The following are sub-funds of Manulife Funds:
    Asia Pacific Investment Grade Bond Fund, Global Asset Allocation – Growth Fund, SGD Income Fund, Singapore Bond Fund, Singapore Equity Fund.

 

Use of Email

The security of electronic mail sent through the Internet is not guaranteed. Do not send sensitive or confidential information to us via electronic mail. Delivery, and timely delivery, of electronic mail is also not guaranteed. Manulife therefore recommends that you do not send time-sensitive or action-oriented messages to us via electronic mail. Manulife may not, and is not obliged to, process your requests, orders, or instructions until Manulife can confirm your instructions or obtain appropriate written documentation where it deems necessary.


Manulife shall not be under any obligation whatsoever, express or implied, to reply to unsolicited correspondence, communications or email or to acknowledge receipt of the same.

 

Privacy and Data Protection

Your privacy is very important to Manulife. To the extent any information you provide or which we obtain from this website constitutes personal data, we have set procedures for the use of that information.


You agree that all information and/or particulars sent or submitted by you through the website is non-confidential and non-proprietary unless otherwise expressly indicated by you. You acknowledge that Manulife, its directors, officers, employees, contractors and agents shall not be subject to any confidentiality obligations in respect of any such information and/or particulars and you agree that Manulife, its directors, officers, employees, contractors and agents may, and you hereby authorise each of them to, use and to disclose such information to any person (including without limitation any third party service provider) in connection with Manulife's internal business purposes.


Without prejudice to the generality of the foregoing, you consent to the processing by Manulife of the personal data submitted by you through the website and/or created in the course of the business relationship with Manulife, and to the transmission of such personal data to other companies within the Manulife (by the internet or otherwise) for purposes connected with marketing and customer administration. If you do not wish your information to be used in this way, you should advise Manulife in writing.


If you have any questions on our data protection policies and practices, please write to us at our corporate address:

The Data Protection Officer
Manulife Investment Management (Singapore) Pte. Ltd.
8 Cross Street
#16-01 Manulife Tower
Singapore 048424

 

Disclaimers

Manulife does not warrant this website for any particular purpose. It is provided "as is" and on an "as available" basis. Manulife disclaims, to the fullest extent of the law, any warranty of any kind, whether statutory, express or implied, as to any information, materials, content or matter provided at or through this website or otherwise relating to this website, including without limitation the implied warranties of merchantability, fitness for a particular purpose, non-infringement of third party rights, or freedom from computer virus or other malicious destruction or corrupting code, agent, program or macros. Use of this website is at your own risk.


Manulife and its directors, officers, or employees will not be liable or have any responsibility of any kind for any loss or damage that you incur arising from or in connection with:

  1. any delay, termination, failure, defect, or interruption in the transmission of this website; 
  2. any inaccuracy, error, unavailability, or incompleteness in the transmission of this website; 
  3. any termination or interruption of your access to this website; 
  4. your reliance on or use of this website; 
  5. any e-mail requests, orders, or instructions you send, or the interception by third parties of any requests, orders, or instructions you send via e-mail; 
  6. any act or omission of Manulife in making this website available to you; or 
  7. any other cause relating to your access to or use of this website, whether or not the circumstances giving rise to such cause may have been within the control of Manulife or within the control of any other party providing software or services support for this website.


Manulife does not warrant that this website, or the functions contained in this website, will be uninterrupted or error-free, that defects will be corrected, or that this website, or the servers that make it available, are free from viruses or other harmful components. You assume the entire cost of any necessary servicing, repairing, or correcting of your property or operations as a result of using this website. You accept at your own risk that the Internet or other online communications medium may not perform as intended as a result of human, mechanical, or other error, despite the efforts of Manulife, you, or any third party. 

In no event will Manulife or its directors, officers, or employees be liable to you for any direct, indirect, special, consequential, or incidental damages related in any way to your use of this website, even if: (a) such damages are reasonably foreseeable; or (b) Manulife or any other party has been advised of the possibility of such damages.

 

Records

You acknowledge and agree that Manulife Singapore's records and any records of communications, transactions, instructions or operations relating to the operation of the website and any record of any communications, transactions, instructions or operations maintained by Manulife Singapore or by any relevant person authorised by Manulife Singapore relating to or connected with the website shall be binding on you for all purposes whatsoever and shall be conclusive evidence of such communications, transactions, instructions or operations. You agree that such records are admissible in evidence and that you shall not challenge or dispute the admissibility, reliability, accuracy or the authenticity of the contents of such records merely on the basis that such records were in electronic form or were produced by or are the output of a computer system, and hereby waive any of your rights (if any) to so object.

 

Governing Law

These Terms shall be subject to, governed by, and construed in accordance with the laws of Singapore, and you hereby submit to the non-exclusive jurisdiction of the Singapore Courts.

 

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