Transforming Challenges into Opportunities
by Voon Hoe Chen, Corporate Treasury Leader, PwC, Singapore
PwC’s Asia Corporate Treasury Survey examines corporate treasury functions in Asia and shares insights on, among other issues, the structure of these treasuries, their key challenges, their risk management approaches, their relationships with their bankers, and their approaches to cash and liquidity management. The survey is based on information gathered from 117 organisations across seven countries in Asia, covering a broad range of industries, including commodities, manufacturing and consumer products. This article contains highlights of the survey. A complete version of the survey report is available directly from pwc.com/corporatetreasury.
The global financial crisis and the subsequent economic recession have brought about several changes to corporate treasury functions in Asia in recent years. Dealing with the crisis, including the impact on funding, liquidity management, commodity price volatility and financial counterparty risk has provided the most rigorous test for treasury teams. Yet it has also brought the importance of treasury to the forefront of the boardroom agenda and created a once-in-a-career opportunity to raise the status and influence of the treasury function within the business. Businesses operating in Asia also face challenges unique to the region – there is no single regulator, there is no single currency, the banking landscape is very diverse, and there are many restrictions relating to the multiple emerging currencies. PwC’s inaugural Asia Corporate Treasury Survey aims to understand how treasury teams in the region cope with the challenges. Are they adding value to their businesses? What are the main concerns of treasurers? What is the future of treasury going to be like?