SOUTH-EAST Asia is an important regional production hub that is benefitting from global supply-chain shifts, with UOB in a strong position to contribute to its economic development and sustainable growth.

Making this point was the bank’s deputy chairman and chief executive officer, Wee Ee Cheong, who delivered the opening keynote speech at the Asean Conference on Aug 31.

The day-long event at the Raffles City Convention Centre was organised by the Singapore Business Federation, together with founding partners UOB, Rajah & Tann and RSM. Minister for Trade and Industry Gan Kim Yong was the guest of honour.

In line with the conference’s theme of “Forging a digital and sustainable Asean – towards prosperity, resilience and sustainable growth”, Wee reaffirmed UOB’s commitment to the region, highlighting the bank’s extensive footprint, deep regional connectivity, and sector expertise across the bloc. 

He listed several ways in which UOB remains dedicated to the region, such as the bank’s foreign direct investment (FDI) advisory services that offer a one-stop solution for companies to overcome market-entry barriers. 

Having been in the market for decades, the bank also possesses insight into local regulatory landscapes, he noted.

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“In a region as diverse as Asean, there is a need for local adaptation due to cultural nuances,” he said. “We support companies to hit the ground running as quickly as they can when they enter new markets.”

Other efforts include helping Singapore’s small and medium-sized enterprises (SMEs) in expanding overseas; linking businesses up with suitable partners, particularly those that lack such connections; and channelling FDI to local enterprises to create more inclusive and sustainable investments. 

As global supply chains shift amid a post-pandemic landscape and geopolitical challenges, digitalisation has become an increasingly important tool for Asean economies to adapt and position themselves accordingly.

In the banking sector, digitalisation has often been seen as a spoke in the wheel of traditional banking models, but winds of change are on the horizon.

Many banks have moved on and welcome digitalisation, and they no longer view it as a disruption, said So Lay Hua, UOB’s managing director and head of group transaction banking.

She was speaking at one of the conference’s three plenary sessions; it was moderated by Kala Anandarajah, the head of competition and antitrust and trade at Rajah & Tann.

The other panellists at this session – titled “Positioning for the shift in Asean’s global supply chain​” – were Racer Technology CEO Willy Koh, Dyson’s chief of supply chain Michelle Shi, and Commodities Intelligence Centre CEO Gloria Wu.

Digitalisation is a plus for banks as it provides a single platform that allows for visibility of all the flows, said So.

“Just imagine if everything is connected through digitalisation… it helps banks to understand your portfolio, your selection process of your suppliers or buyers, which then translates into giving the bank the comfort that these flows will be connected and not broken,” she said.

“Banks welcome digitalisation and the beauty of it is we understand the data together with you, and power ahead in terms of financing.”

The pursuit of sustainability

When asked by the moderator for suggestions on how businesses should navigate the path to sustainability, So pointed out that, from a business lens, cash flow must first be sustained.

When it comes to environmental sustainability, companies need to have a grasp on the different requirements their partners have. 

Citing the West as an example, So pointed out that stakeholders there have certain demands and expectations surrounding sustainable practices and green certifications, a lack of which would throw a spanner in the works.

As for how UOB supports its own customers on their sustainability journeys, So noted two elements: green trade financing and green liabilities. 

“We overlay (green trade financing) into many of our conversations, and it’s about traceability, being able to recognise the source,” she said. She added that companies can also contribute through green liabilities to offset against green assets.

Sustainability can also be driven through human capital. Organisations should therefore focus on how to better leverage the older workforce, instead of viewing this demographic as less productive, said UOB’s managing director of group international management, Ian Wong. 

He said this at a plenary moderated by RSM partner and head of private client services Tay Woon Teck.

The other panellists were Adecco’s senior vice-president and head of Asean, Betul Genc; LinkedIn’s head of Asia for talent and learning solutions, Frank Koo; and YCH Group executive chairman Robert Yap. 

Said Wong: “Most organisations today invest (in) and develop talents, especially at the beginning of their careers. But how many of us actually invest in the tail-end – the last decades – of people’s careers?”

Employers should equip these “young seniors” to become effective mentors and coaches to junior colleagues, he added, so that the wisdom and knowledge they have accumulated can be passed down more effectively.

Beyond deepening employee engagement as work-from-home practices gain momentum, having a strong mentoring culture will also allow older workers to retire on a high, he said.

This will also allow succession planning to be carried out more seamlessly, he added.

“More importantly, we want to enable this culture so that we can (empower) our colleagues to internalise hope and thrive in an increasingly volatile, uncertain, complex, and ambiguous business environment,” said Wong.

“Only then will we be able to address the root of mental wellness.”

Creating meaningful jobs

Employees today are increasingly seeking purpose in their workplaces and jobs.  

Wong urged organisations to think about how they can help their employees pivot and cope with uncertainty in the face of post-pandemic trade tensions and geopolitical wars. 

“One thing our team did was to not look at ourselves as just bringing in investments into this region, but (to) think of ourselves as enablers of job creation – meaningful (jobs) that are sustainable in Asean,” he said.

Such a mental pivot, he said, has allowed the bank to be a lot more purposeful in thinking outside the box.

Beyond working with offline partners, UOB also considers how online partners can attract more companies to invest in Asean, which in turn creates jobs in the region, said Wong.

“By bringing in FDI into the region, we are also creating business opportunities for SMEs to be part of the value chain and hence, creating even more jobs,” said Wong. “The genesis of our establishment 88 years ago is really to help SMEs thrive and prosper.”