What now, what's next? DBS CEO Tan Su Shan on four strategic areas businesses must rethink today

Navigating Current Business Uncertainty

• 💡 Many CEOs express uncertainty, indicating a significant shift in the global business environment.
• ⚠️ Businesses must buckle up for volatility and uncertainty in the short term, particularly concerning interest rates.
• 📈 It's crucial to lock in low interest rates now to mitigate future financial risks.

Rethinking Supply Chains and Logistics

• 🔗 The supply chain model is shifting from 'just in time' to 'just in case', leading to inventory buildup and slow payments.
• 💰 Trade financing and supply chain financing are vital tools to optimize working capital during these challenging times.
• ⚙️ The new supply chain link requires assessing sourcing feasibility, sustainability, tariff costs, and market proximity, leveraging Industry 4.0 (robotics, AI) for agile production.
• 🚢 The new logistics or sea link necessitates planning for stockpiling critical components, longer voyages, and potential route diversions, emphasizing robust inventory management.

Evolving Financial and Payment Systems

• 💸 Businesses must consider the potential end of US hegemony in financial systems and the rise of alternative currencies like CNH.
• 🌐 Exploring alternative payment pathways beyond SWIFT, such as China's International Payments System (SIPS), is becoming increasingly important.
• ₿ The long-term outlook includes the adoption of digital payments, digital currencies, and blockchain technology, requiring a deep understanding of the digital ecosystem.

Adapting Technology Infrastructure

• 💻 A potential bifurcation of East-West tech operating systems means businesses must consider interoperability when revisiting their technology stack.
• 🧠 Leveraging AI and generative AI can significantly fast-track the understanding and effective use of new technologies.
• ✅ Finding alternative pathways for technology is as crucial as for payments, ensuring resilience and adaptability in a complex world.