Page 4 - Building a Treasury Centre for Sustainable Growth

Holistic Approach towards
Setting Up a Treasury Centre

The treasury function’s role has evolved from payment processing to encompass comprehensive responsibilities
such as financial risk management, cash efficiency management as well as 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 roles in the process.

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

Key steps to building a treasury centre:

1. Understand business objectives and expansion plan

2. Determine TC operating model

3. Suitability study

4. Self-assessment 3
2
5. Execution
1
Location, being the imperative of
the treasury centre, is not the sole Organisation Structure
factor. To drive operational efficiency,
cost reduction and minimisation of ▪▪ Objectives
financial risks, corporates should ▪▪ Governance
adopt a 3-tier Decision Matrix to
facilitate self-assessment and seek
advice accordingly.

Tax, Financial, Legal Factors

▪▪ Tax Savings
▪▪ Banking Capabilities
▪▪ Regulatory Climate

Overall Competitiveness

▪▪ Talent
▪▪ Connectivity
▪▪ Technology

3 Building a Treasury Centre for Sustainable Growth