Companies across Asia have identified cash preservation as the top priority for 2009 as trade volumes plummet and liquidity vanishes. A recent survey of 300 Asia-Pacific companies by HSBC in Hong Kong revealed that 85% placed cash management above sales growth and manufacturing efficiency as priorities for 2009.
“The long term success of any business depends on efficient management of working capital,” says John Laurens, head of global payments and cash management at HSBC in Hong Kong.
Fear of payment default was a top priority for 43% of respondents, while 35% said exchange rate volatility was a major concern. The survey also revealed that technology spending would be severely cut as a result of the economic downturn.
The spotlight is shining on corporate treasurers like never before as companies struggle to refinance debt and trade volumes continue to fall. Almost 70% of those surveyed by HSBC said current conditions were elevating the role of the treasury function in their company.
