Page 5 - Building a Treasury Centre for Sustainable Growth

Holistic Approach towards

Setting Up a Treasury Centre

The role of treasury function has evolved from payment processing to encompass comprehensive
responsibilities such as financial risk management, cash efficiency management, and strategic
planning.

Centralisation of the treasury function has been driven by globalisation, technology and the
changing regulatory environment. Cross-border transactions, coupled with enhanced banking
facilities, have played the most significant role in the process.

Corporations have the option to establish either a Global Treasury Centre or multiple Regional
Treasury Centres that consolidate treasury activities of business units in a single region such as the
Asia-Pacific region.

Key steps to build a treasury centre:

1. Understand business objectives and expansion plan
2. Determine treasury centre operating model

3. Suitability study
4. Self-assessment
5. Execution

Location, being the imperative of a treasury centre, is not the sole factor. To drive operational
efficiency, reduce cost, and minimize financial risks, corporations should adopt a 3-tier Decision
Matrix to facilitate self-assessment and seek advice accordingly.

1 ORGANISATION STRUCTURE
▪ Objectives ▪ Governance

2 TAX, FINANCIAL, LEGAL FACTORS
▪ Tax Savings ▪ Banking Capabilities ▪ Regulatory Climate

3 OVERALL COMPETITIVENESS
▪ Talent ▪ Connectivity ▪ Technology

Building a Treasury Centre for Sustainable Growth 3