Panellists:

• DBS: Soh Kian Tiong, chief risk officer

• UOB: Chan Kok Seong, group chief risk officer

• SIA Engineering Co: Ng Chin Hwee, chief executive officer

• SBS Transit: Cheng Siak Kian, chief executive officer

• Vicom: Sim Wing Yew, chief executive officer

• Far East Orchard: Alan Tang, group chief executive officer

• Global Investments: Boon Swan Foo, chairman

Moderator: Yong Jun Yuan, The Business Times

Q: As the macroeconomic climate weakens, what are some strategies that the company has employed to remain resilient? 

Soh (DBS): We have been relentless in identifying and grooming talent in various risk areas so that we can continue to grow and improve. We have also enhanced our internal risk management tools to improve the quality of our risk management capabilities. These include implementing early alert models, leveraging digital technologies to provide quicker portfolio reviews as well as in conducting more robust stress testing.

Chan (UOB): Ensuring balance sheet strength through economic cycles is the key – strong capital, healthy liquidity position and a well-diversified loans portfolio; while also shifting to less capital intensive revenue drivers to support growth. In managing our credit risks, it is critical that we stay disciplined in terms of underwriting, monitor our asset quality closely and constantly engage our clients to understand their credit and liquidity positions, such that we can step in at the first instance to alleviate any potential issues.

Tang (FEOR): We are focused and vigilant in our strategy to strengthen the group’s lodging platform, positioning ourselves for sustainable growth in the long term. Some strategies undertaken by our hospitality business include innovating new brand experiences, expanding into new markets and rebranding legacy properties. Far East Orchard’s (FEOR) student accommodation and investment segments are resilient and will continue contributing to stable recurring income.

GET BT IN YOUR INBOX DAILY

Start and end each day with the latest news stories and analyses delivered straight to your inbox.

Sign UpVIEW ALL

Boon (Global Investments): With the weakening macroeconomic climate, we have scaled back our investment activities and increased our cash position since last year. We had also been conducting share buybacks as our share price is at a discount to the net asset value. In addition, we have been placing more focus on assets which generates a steady stream of income. This reflects the prudent, conservative and cautious nature of our investment approach.

Sim (Vicom): As CEO, I made sure we continued to function well as a business while navigating the pandemic and its ensuing challenges. This included embarking on a company-wide digitalisation exercise which involved us going through all our systems and processes to see how we could leverage on technology to improve how we operated and delivered our services to our customers.

Cheng (SBS Transit): As part of our risk management, we have a robust process to identify key emerging risks that will and could potentially impact our businesses. Through constant monitoring and periodic review, we are able to mitigate risks for early intervention which has enabled us to remain resilient to keep Singapore moving every day.

Ng (SIAEC): We have been focusing on the second phase of our transformation programme with lean, digitalisation and automation, and an innovation culture as core thrusts. Transformation has enabled improvements in productivity, optimisation of operational efficiency and added capacity for us to capture more work with the current increase in flights operated and demand for aircraft maintenance, repair and overhaul (MRO) services.

Q: The effects of climate change are becoming more apparent and companies are also increasingly expected to mitigate climate risks. How has the company adapted its operations to overcome such challenges?

Soh (DBS): We have committed to align our lending portfolios with net-zero emissions by 2050. DBS is also the only Singapore bank, and 1 of only 2 in South-east Asia, to join the UN-convened industry-led Net Zero Banking Alliance. At the same time, we leverage our sustainable and transition finance framework to achieve meaningful decarbonisation in carbon-intensive sectors, as well as nudge more companies to embed sustainability into their business models.

Boon (Global Investments): Our manager adheres to MAS guidelines on environmental risk management. We have in place appropriate processes and systems to monitor, assess and manage the potential and actual impact of environmental risk on our portfolios on an ongoing basis. Staff are also trained to assess and manage environmental risk in a timely and efficient manner as well as build capabilities to deal with emerging issues relating to environmental risk.

Sim (Vicom): In terms of sustainability, we have increased our commitment to it and have set up a sustainability committee at the board level. We have identified areas where we can play a part such as the progressive electrification of our fleet going forward, and the possibility of installing solar panels on all the rooftops of our buildings.

Ng (SIAEC): Several initiatives have been rolled out to lower our carbon emissions and more are being planned. We have successfully trialled the use of sustainable aviation fuel at our engine test cell facility, opening the path for customers to use sustainable fuel for any engine tests.

Cheng (SBS Transit): We have installed solar panels with some of our operations running on solar energy at the depots. We also employ technology such as using telematics to improve the driving performance of our bus captains which also enhances fuel efficiency for our buses. Concurrently, we work closely with the LTA to introduce greener buses to our fleet.

Q: The post-pandemic world has been one marked by accelerating digitalisation. How has the company digitalised its operations, while taking into account the cybersecurity risks that come with the adoption of more digital workflows?

Chan (UOB): Digitalisation poses risks and opportunities from a cybersecurity perspective. Though risk increases with volume of data processed, digitalisation also boosts protection for the bank and customers via automation and controls that are fully embedded in the digital processes. Digital records are better protected against data loss, while digital workflows and processes allow for prompt detection of errors or potentially malicious behaviour.

Ng (SIAEC): Our investments in digital infrastructure have provided the foundation to implement digital technologies across end-to-end operational processes to better support the workforce in improving productivity and operational efficiency, and enabling employees to perform higher value work. Independent reviews are also conducted to ensure that the IT security infrastructure and networks keep up with evolving threats.

Cheng (SBS Transit): Digitalisation has transformed the way we work and communicate with our people and we are ever mindful of the importance of information security. Hence, we comply strictly with international standards and the cybersecurity code of practice. This includes staff awareness and training, good cyber hygiene, contingency planning and review, and regular audits.

Tang (FEOR): FEOR has transitioned to a paperless approval system since 2018. Our hospitality operations have introduced a ‘zero-touch’ initiative through virtual precinct tours, and we are rolling out a contactless web-based technology from pre-registration to check-out. Besides having a robust internal framework to address IT risks, FEOR focuses on educating our workforce about the types of cybersecurity risks via annual mandatory onboarding and refresher training.

Boon (Global Investments): Apart from ensuring that the company has the necessary expertise to create a secure digital environment, we cultivated a strong risk culture and established a sound and robust technology risk management framework. For instance, we implemented a firewall with secure configuration settings. It also monitors incoming traffic and blocks malicious websites, domains, Internet protocol addresses, and malware. Firewall reports for threat analysis are reviewed daily by the IT team.