A decade of dramatic treasury development

What a decade it has been -- 10 remarkable years of boom and bust for both corporations and banks across Asia. Rapid global growth marked the beginning of the decade, punctured by the bursting of the global tech bubble. The next five years delivered unprecedented growth for Asia's economy, property, trade and stockmarkets. The downturn triggered by the recent global financial crisis was countered by massive government stimulus packages that are still working through the global economy with different degrees of success. It is clear that the global economy needs new growth drivers beyond US consumption and Asia is stepping up in a significant way. The end result is nothing short of a steady shift in the geo-political and geo-economical epicentre of the world towards Asia, and in particular, China.

The dramatic changes in the economic environment and financial markets of the past few years are forcing many companies to reassess business priorities, not least in the area of treasury management. As a direct result of reduced liquidity, tighter credit and escalating financing costs, risk mitigation and working capital optimisation has become more relevant than ever. This is particularly acute in the Asia-Pacific region where growth needs to be funded to capitalise on the many new business opportunities presented. Never before has an Asia treasurer had such an important role in driving shareholder value. He/she is in essence becoming a true strategic business partner to the chief executive and the board in maximising business growth.

As we settle into the year of the tiger, many asset classes and markets have been re-priced forever with Asia representing an increasingly attractive slice of the global market. With de-risking set to continue and the availability of credit generally more restricted and certainly more expensive, there is a universal focus on optimising working capital to self-fund Asia growth where possible. This has the Asian treasurer focused on optimising treasury cash management structures to accelerate cash conversion cycles, to centralise and optimise liquidity, and to maximise efficiencies of scale in centres of excellence.