Unrelenting global volatility is ushering in a new era of influence for corporate treasurers as companies turn to them in search of new avenues for growth, according to the new EY 2025 DNA of the Treasurer report.
The global survey of more than 1,200 corporate treasurers and senior finance leaders, including over 40 from Singapore, reveals that treasury professionals around the world are bracing for large-scale changes to their roles. Driven by the accelerating pace of business transformation, their organisations’ appetite for growth, and advances in technology, the treasury function is set to become a more strategic and value-creating partner within the organisation.
The majority of Singapore respondents (89%) anticipate significant evolution in their responsibilities by 2030, compared to 83% globally. Their views are shared by CFOs – every CFO surveyed in Singapore (100%) and the vast majority globally (84%) agree that treasurers will increasingly focus on creating business value, whether through unlocking additional cash, delivering strategic insights, collaborating across the organisation, or nurturing finance talent.
Lee Wei Hock, Singapore Head of Assurance at Ernst & Young LLP, notes that treasurers in Singapore are already operating with broader mandates compared to many of their global peers. “As Singapore is an international hub for many global organisations, corporate treasurers here tend to already have far greater remit in terms of geographical scope.” The findings further reinforce the need for treasurers to “continuously reinvent their roles to keep up with the fast-changing business landscape and increased global volatility”, he adds.
While CFOs’ expectations are high – with all Singapore CFOs and 84% globally expecting treasurers to identify new value-creation opportunities – many treasurers say they are not yet fully equipped to deliver. Just over half of treasurers (Singapore 58%; global 52%) currently see themselves as value creators. Key barriers cited include managing complex relationships with banks and investors (Singapore 40%; global 33%), handling heavy operational responsibilities (Singapore 40%; global 33%), and a lack of time to develop the requisite skills (Singapore 21%; global 32%).
The data also points to a gap between treasurers’ current capabilities and their potential to create value. Fewer than half of treasurers (Singapore 42%; global 27%) feel highly confident that their financial risk management strategies are improving company decision-making, and only a small fraction (Singapore 9%; global 29%) have full responsibility for working capital and cash flow management.
Despite these challenges, treasurers are emerging as early adopters of digital tools that can enhance their strategic impact. Eight in 10 treasurers in Singapore (82%; global 70%) already use artificial intelligence (AI) in their daily operations, alongside data analytics and visualisation tools. Nearly a third (Singapore 28%; global 30%) cite data and technology as their main enablers of value creation, while many others (Singapore 42%; global 25%) highlight the importance of fostering a culture of innovation.
The survey also underscores the growing emphasis on skills and talent development. Almost two-thirds of treasurers (Singapore 63%; global 57%) believe they already possess the skills to become key contributors to business value, and about one in four (Singapore 23%; global 26%) view talent development as a critical driver of value for the treasury function.
However, there remains a disconnect in perception about the work they need to do, to prepare for the inevitable shift. Only 8% of Singapore CFOs (global 28%) think treasurers need to strengthen their leadership capabilities, compared with 16% of Singapore treasurers (global 18%) who see this as a priority.
“Singapore CFOs will do well by positioning treasurers as an indispensable resource and a lead member in the overall finance function to support strategic decision-making,” says Mr Lee. “CFOs can do more to empower treasurers to bring innovation to the finance function and broader organisation, leveraging their knowledge and experience to unlock greater value for their organisations.”
© 2024 Institute of Singapore Chartered Accountants
