The role of treasurers in APAC business' global expansion

As APAC’s economy continues to grow, the ambitions of businesses in the region are rising too. Treasurers are now at the forefront of this advancement, evolving from financial managers to strategic partners who support the drive for growth. By optimising capital structures, managing liquidity and ensuring compliance with global regulations, they play a crucial role in regional and global expansion.

Manish Patel, Head of APAC Global Corporate Sales, J.P. Morgan Payments, says: "The remit of treasurers in Asia Pacific has broadened. While they are still responsible for the traditional scope of a treasurer in the areas of cash management, payables and receivables, and managing banking relationships, we see an increasing number of treasurers involved in raising finances, executing transactions, managing working capital, and driving the firm’s digitalisation agenda, all of which are critical components of business’ expansion. In short, we are witnessing the centralisation of core initiatives, driven by the treasurer.”

A technological upper hand

Technology is now a powerful enabler for treasury and finance teams, playing a crucial role in their company’s development. By adopting advanced financial technologies, treasurers can streamline operations, reduce manual processes and improve decision-making. Automation tools, data analytics and artificial intelligence are transforming how financial data is managed and analysed, allowing teams to focus on strategic initiatives rather than routine tasks.

The efficiencies brought about by technology are also reflected in payments solutions. The introduction of faster payment systems is changing how APAC corporations manage their cash flow. J.P. Morgan Payments is assisting high-volume clients by enhancing their competitiveness and reducing costs, while also expanding real-time payment options to more client segments. In addition to enabling quicker transactions, these systems provide treasurers with greater visibility and control over cash positions.

This strengthened cash flow management allows businesses to optimise working capital, reduce reliance on short-term borrowing and respond more swiftly to market opportunities. Treasurers who embrace faster payments can significantly improve their organisation's liquidity and financial agility, positioning them for success in a competitive global market.

The role of trade corridors

Understanding the role of trade corridors is also important in APAC's global expansion, as they facilitate seamless cross-border trade and economic integration. By connecting key markets and regions, these corridors provide APAC businesses with access to new opportunities and resources. Treasury and finance teams play a vital role in optimising the financial aspects of trade corridors, ensuring efficient capital flow and managing risks associated with cross-border transactions.

“By strategically leveraging trade corridors, Asia Pacific businesses can enhance their competitive advantage and drive sustainable growth. For instance, natural trade routes, such as those from Japan to Thailand, offer significant opportunities for expansion. Additionally, incentives for foreign direct investment can be a major draw for businesses seeking to expand globally,” Patel explains.

Global considerations

As global expansion becomes a key objective for many Asia Pacific companies, treasurers face other challenges such as managing foreign exchange volatility and navigating complex regulatory requirements. Developing robust strategies to mitigate currency risks is essential, involving the use of sophisticated hedging techniques, staying informed about geopolitical developments and building strong relationships with banking partners. By proactively addressing these issues, treasury and finance teams can protect their organisations from financial uncertainties and ensure operational resilience.

Patel adds: "Our goal is to equip treasurers with the necessary tools and solutions for global expansion such as those enabling efficient management of their liquidity and supporting cross-border payments or real-time transactions. We provide our clients with account visibility and access to a diverse  financial infrastructure, enabling them to confidently seize global opportunities."