Traditionally, treasury has been a middle-office function with limited resources, supporting businesses on financial aspects. However, according to a survey by DBS of 570 senior executives from 15 markets, 94% of respondents say that treasury and finance functions are now pivotal to strategic decision-making and shaping corporate strategy.
The evolving role of treasurers is largely attributed to the accelerated pace of multinationals adapting to Asia’s new environment, characterized by unprecedented supply-chain shifts and geopolitical tension. As companies expand into new geographies, treasurers are at the forefront of managing financial risks and securing the necessary financing.
For instance, a company that once enjoyed 30-day credit terms and suppliers who readily accepted US dollars may now face suppliers in different geographies who insist on payment in a different currency and have reduced credit terms to 15 days.
Such an abrupt change can strains a company’s cash flow and amplify its exposure to currency fluctuations.
“Treasuries have to be involved right from the beginning when the supply chain is moving,” says Soon Chong Lim, DBS’s group head of global transaction services.
