The GTR Trade and Treasury event in Singapore opened with a thunderous rain storm which soaked many of the delegates despite the excellent public transport system. Once safely inside the delegates had plenty to chew over -and not just the ever-excellent buffets!
The good news is that over the past 18 months global trade - in physical goods and services - has increased slightly faster than global GDP. The bad? The potential for trade wars between the US and China to disrupt this progress remains very real. In addition, a selective emerging markets crisis in countries like Argentina, Turkey, Venezuela and Indonesia, a feeling of unease over China’s ‘debt diplomacy’ and its regional military policy could upset the momentum.
There was much positive comment on the tech impact across the region but not just in banking, consumer finance and trade. One speaker suggested that, ‘Asia could see 500 years of social and business change in just the next decade.’
Advances in education, agri and bio business (especially helping sustainable initiatives to develop) and in medical access for a growing middle class are all helping regional trade to advance. A considerable number of trade and business cooperation agreements – even without the US – have been signed recently. Interestingly though – and a lesson for Brexit? – is that the US will still be in these markets given the scale and importance of its economy to everyone, not least China
Regional and local capital markets have also been developing as the demand for pension and insurance assets increases but there are still issues with aspects of corporate governance, credit metrics and the credibility of some stock exchanges.
Alt-finance in the trade space was also a big talking point with any number of banks, new entrants and investors seeing the real possibilities of trade as an asset class whether to diversify liquidity access or more importantly allowing funding access to SMEs via cheaper-to-use tech platforms. Data management, particularly cross-border, is an issue – and many think this is the place for blockchain tech to prove its worth!
The corporate treasury workshop which highlighted the ACT’s ‘Business of Treasury' research saw a number of key themes being discussed. Those at the top of the list? Cyber security / data management, talent management / skills deficits and moving treasury management into the heart of the business to support strategic growth. Music to my ears!
Hong Kong next stop and a chance to hear the perspective from North Asia at the ACT Asia Treasury Forum on 19 September - there’s still time to book! Find out more here.
