Over nine in 10 multinationals are empowering their treasury and finance departments to actively drive business transformation and growth: DBS global survey

Pivotal: How treasury and finance enable a new era of globalisation[1]Success will be driven by growth within Asian markets

James Li, CEO at LinkLogis International, a China-based fintech that supports supply chain financing, said: “We see international opportunities as our clients move into Asian countries, and we follow them. In the last few years, we have set up offices in Hong Kong and Singapore to cover the region from north to south, and this year, we are going further by hiring people in Vietnam and Indonesia. You need to establish yourself in these markets to understand the local frameworks and business environment.”

In line with the need to drive strategic priorities and enable diversification plans, companies cited the increasing importance of securing multiple streams of financing.

Some 76% of businesses said that diversifying sources of financing – such as tapping lenders in different markets – is necessary for expansion across Asia. Another 74% said selecting a suitable location for a regional treasury centre (RTC) is critical. Key considerations on selecting a location included access to global markets (74%), a stable political environment (71%), a conducive business environment through business-friendly policies (70%) and availability of a diverse talent pool (70%). Having a financial services partner with deep sector knowledge (40%), strong market presence (38%) and technology capabilities (37%) was another important factor to enable success.

Lim Soon Chong, Group Head of Global Transaction Services, DBS, said: "Asia continues to be the epicentre of growth, with businesses seeking new consumer markets and manufacturing capacities in the region’s emerging economies. To capitalise on these opportunities, companies are increasingly operating across borders, embracing e-commerce and delivering on-demand services to keep up with changing consumer preferences.”

“These shifts require corporates to work with a wider ecosystem of partners, including banks, to tap a broad suite of solutions and services – ranging from optimisation of cost structures, data analytics and AI, treasury risk management, as well as innovative digital payments and working capital management. As an Asia-centric bank with an extensive regional footprint, DBS has been leveraging our network to partner clients as they navigate the challenges and opportunities that come with growth.”

Conclusion

The findings give a deeper understanding into the evolving role of treasury and finance teams amid a new era of globalisation. Companies that embrace this change by upskilling, embracing new technology and embedding the right culture to enable teams, as well as working with a network of trusted partners to adapt to these new responsibilities stand to unlock new opportunities in a dynamic global marketplace.

Read the full report here: https://go.dbs.com/pivotalglobalreport2024^[1] Over 85% of respondents were from companies with an annual revenue of over USD 1 billion. The study was conducted by FTLongitude, the specialist thought leadership division of the Financial Times Group.[END]About DBSWorld’s Best BankWorld’s Best BankGlobal Bank of the YearWorld’s Best Digital BankMost Innovative in Digital BankingSafest Bank in Asiawww.dbs.com