Page 5 - Building a Treasury Centre for Sustainable Growth
P. 5

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

                        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 Autumn’s 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
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