Why capital management and technology are key drivers of new business possibilities
DBS executives Lim Soon Chong and Jolynn Wong discuss what CFOs and treasurers need to prioritise to drive resilience and growth
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How can companies build resilience and unlock growth in uncertain times?
Growing geopolitical uncertainties and sweeping trade policy changes have created an unpredictable global economic landscape. As new priorities evolve, how can companies navigate the world’s increasingly complex business environment?
A global study titled “New Realities, New Possibilities”, which was conducted by DBS, a leading financial services group in Asia, and involved more than 800 chief financial officers (CFOs) and treasurers, found that 74 per cent of participants have made data-driven financial intelligence a priority.
“Improving data-driven financial intelligence can help enhance a firm’s operational efficiency, which will allow it to make speedier decisions and help drive innovation,” Lim Soon Chong, group head of global transaction services at DBS, says.
Lim and another DBS senior executive, Jolynn Wong, head of global transaction services at DBS Hong Kong, shared insights from the survey into how businesses can continue to thrive in the South China Morning Post’s latest video-led InsiderTalk article.
These regular InsiderTalk discussions focus on international business leaders and executives as they present opinions, strategies and future visions regarding their home markets and industries.
Lim and Wong explain why it is important for finance teams to be able to evolve and adapt their priorities to respond to today’s complex, fast-changing business environment.
“CFOs are prioritising digital transformation, supply chain reconfiguration, working capital efficiency, and liquidity management to strengthen resilience and support long-term growth,” Lim says. “CFOs are no longer just financial stewards. They are now business architects, helping organisations navigate geopolitical shifts and uncover new opportunities.”
Capital management is a key concern for 72 per cent of the survey’s respondents, highlighting the growing demand among CFOs and treasurers for greater financial flexibility and stronger returns on working capital. In today’s business climate, effective capital management is vital for building resilience within the company and paving the way for future growth.
Wong says market volatility has also made business planning much harder. Some Chinese companies are turning away from a “just-in-time” supply chain system, where orders for raw materials are made to meet production demand, to a “just-in-case” system, with firms stocking up on extra inventory to reduce the chance of their products selling out.
“In North Asia, many firms are shifting from ‘just-in-time’ to ‘just-in-case’,” Wong says. “They’re spreading out suppliers and rethinking manufacturing locations.”
DBS reports that 82 per cent of global CFOs and treasurers are using innovative foreign exchange solutions, such as natural hedging, as a cost-effective way to reduce currency exposure – a growing trend in adopting smarter approaches to business operations.
Technologies such as artificial intelligence (AI) and blockchain are providing new opportunities for businesses to build resilience and growth, particularly in risk and capital management.
Wong says larger companies in mainland China and Hong Kong are now using generative artificial intelligence (Gen AI) – computer systems that can copy intelligent human behaviour and produce new content, especially text or images – to forecast cash flow. In Hong Kong, 91 per cent of the survey participants believe Gen AI can enhance working capital efficiency.
“Unpredictability is the new reality,” Wong says. “Agility is key. Finance leaders must harness artificial intelligence and digital tools to stay nimble, reduce risk and unlock new possibilities in Asia.”