Mr Michael Lim, Chairman, Singapore Accountancy Commission,
Mr Uantchern Loh, Chief Executive, Singapore Accountancy Commission,
Distinguished guests,
Ladies and gentlemen:
1. Good morning. I am pleased to join you at this year’s CFO Connect Symposium.
Evolving role of the CFO
2. With the uncertainties in the global economy and a changing regulatory environment, much more is expected of a company’s senior management. Among them, the CFO’s roles, duties and expectations have grown exponentially as industries and markets grow more complex. This is something we are seeing all across the world.
3. For example, the consensus at the Bloomberg CFO Conference in New York in May was that CFOs have to play a more proactive role. As the stewards of their corporations’ finances, CFOs now cannot just look at what the numbers are. To quote Adena Friedman, the former CFO of the Carlyle Group, they now have to ask themselves ‘why are we doing this? How can we do it better?’.
4. In a time of increasing regulatory complexity and with a fast-changing business environment, CFOs need to become much more involved in company strategy. The CFO is uniquely placed to draw financial information from all parts of the organisation. Using this, he or she can provide unique insights and direction for the senior management team to make informed decisions. CFOs must help shape strategy, drive innovation, utilise technology, and most significantly, ensure the long-term sustainability of the business by creating value. These are all things that companies need to do to raise productivity and stay ahead of the competition.
CFOs have a key place in the economy
5. CFOs are not just key senior leaders in their organisations. They are also instrumental in the economy in a number of ways.
6. As the finance leader in the company, the CFO will also have a flow-down effect and influence on the finance staff they lead. There is an opportunity for our CFOs to ride on this trend, lead the transformation, and contribute to the development of Singapore into a leading global accountancy hub. The Asia-Pacific accountancy services market is the fastest-growing region for the international accountancy networks. It is forecast to reach $98.8 billion by 2017. As Singapore is at the heart of the region, this wave of growth presents a very significant opportunity for us, to anchor these high value-added activities here.
7. It is also clear that as an increasingly engaged member of senior management, the CFO can help raise the productivity of the company. Indeed, leadership and management is a key driver of productivity. Studies have repeatedly shown that well-managed companies are more productive. The World Management Survey conducted among Singapore manufacturing companies showed that Singapore ranked reasonably well internationally in management quality. We may have come in 6th among 22 countries, but there is still room for us to do better, especially among our SMEs. Management, especially senior management, have a crucial role to play.
8. I therefore urge CFOs to actively look at how they can transform their role, and better contribute to raising productivity in this time of economic restructuring.
CFOs must also continue to upgrade and upskill
9. To do this well, CFOs need to continue to upgrade their skills and competencies. They will need to develop more analytical skill-sets, and strong inter-personal and communications skills to engage employees and other members of senior management. There are a wide range of programmes run by the Workforce Development Agency (WDA) and the Institute of Banking and Finance (IBF), all with Government funding support.
10. Training is just one part of this. The sharing of best practices, thought leadership, and peer networking are also important avenues for CFOs to keep abreast of latest trends and developments. Today’s Symposium has brought together the top minds in the Finance and Accounting profession here to do just that.
11. I am glad to have the opportunity to meet up with all of you. Events like this help in the diffusion of best practices, advancing thought leadership and creating useful peer networking opportunities.
SCFOI is a key platform for the industry
12. This was made possible by the Singapore CFO Institute, set up by the Singapore Accountancy Commission. SCFOI was formed as the national institute for CFOs and aspiring CFOs to connect, learn and celebrate the CFO function in business and the community.
13. It is also a platform dedicated to advancing the roles of CFOs as strategic partners in business and the community by driving thought leadership, promoting best practices and enabling the professional development of CFOs. I encourage more CFOs to participate in the SCFOI’s initiatives, such as its regular Roundtable and Special Interest Group discussions.
Conclusion
14. The role of the CFO is changing. CFOs will need to step up and contribute more—both within their companies, but also to the wider economy. There is ample support out there for CFOs to equip themselves and better shoulder such responsibilities.
15. I wish you a fruitful session ahead. Thank you.