Nexia's Henry Tan dissects Singapore's new normal

Newly appointed chief innovation officer remains cautiously optimistic as the economy gradually reopens.

Henry Tan is no stranger to Singapore Business Review’s Awards as part of the main list of judges who assess the winners that go on stage to receive trophies on behalf of local, listed and international firms in the Lion City, albeit more casual and less digital.

Recently introduced as CIO of Nexia TS, on top of his role as Group CEO, he assists companies with their IPO, mergers and acquisition, business plans and fundraising. He is on the board of several listed companies, including holdings and industrial firms as well as property and REITs.

With China embroiled in a trade war and tussling issues over the coronavirus pandemic, Henry notes the uncertainty ahead spells trouble on both the economy and foreign investments in the mainland. Foreign companies are moving out and making inroads into other parts of Asia like India, Vietnam. For him, Singapore has a lot to offer to foreign investors, particularly the flat but effective corporate tax rate of 17%. Distinct groups would favour the East over the West, and vice versa, he said.

In an interview, Singapore Business Review caught up with Henry to discuss more about his current duties with Nexia TS, what homegrown businesses can learn from the crisis, as well as recent developments for e-commerce where the launch of a new standard is set to help improve transparency in online processes and policies.

Which particular markets or sectors are your main focus? Can you share with us your work experience or any backstory that has contributed to your professional career?

As Group CEO of the Nexia TS group of companies today, I have assisted many entrepreneurs to grow their business in Asia through IPO, M&A, accounting and other advisory since the inception of the firm. Other areas that I focused on are taxation advisory to companies entering into Singapore and Chinese market in respect of structuring of business. Restructuring advisory to a number of Chinese companies for doing business and fundraising outside China. In the later part of my accounting career, I serve as advisors to clients in Singapore and the region, and I sit on the board of a number of listed companies.

What can SMEs and other homegrown businesses learn from the crisis? For those who have been badly hit, what do owners need to consider on the road to recovery?

Don’t just do nothing. Do something. Transformation is the key as we continue to operate on what we have and what we can. COVID-19 changes the way businesses are done as it changes a lot of mindset. People are willing to collaborate more as compared to pre-COVID times. The pandemic has taught us to come together as one, to collaborate, and make businesses work given that we are all in the same boat (in this current situation)—think positively and don’t stop looking out for any opportunities ahead.

What’s your take on international companies moving their operations out of the Mainland? Where are the opportunities and how does Singapore fare in all these?

With China embroiled in a long-drawn trade war and tussling issues over the coronavirus pandemic, the uncertainty ahead spells trouble on both the economy and foreign investments in the country. Foreign companies are making ways beyond China and into other parts of Asia like India, Vietnam, etc, as opportunities lurk amidst the political unrest. There will be a distinct group of investors that favour going East whilst another group favouring West. Singapore, however, has a lot to offer to foreign investors into the city-state. Taxes are on top of the agenda for setting up a business, and Singapore’s unique advantage is its low effective corporate tax rate at a flat 17% at present. From ease of doing business, geopolitical haven and its impressive 22 bilateral and regional free trade agreements, are few of the many key offerings on top of being a financial and innovation hub for regional operations Singapore can offer.

Whilst we thought that investments were redirecting to other hubs, MTI reported that investments have already exceeded the full-year target in the first four months. What’s your take on this?

It is heartening to learn that Singapore has exceeded by 62% in merely four months over the whole year target. This shows that investors have full confidence in the city-state despite battling the Covid-19 crisis. Largely of these investments came from sectors such as electronics and info-communications even as the country sees a dip in other demands, which led to the rise in unemployment. On a brighter side, e-commerce is here to stay as online shopping continues after curbs ease. With the recent launch of the new standard—Technical Reference 76—to improve e-retailers build transparency in online processes and policies, it shows that companies trust Singapore for its policy making and technological advancements. However, not to be complacent with where we are today but to be better tomorrow, we need to be cautiously optimistic as the reaction of other countries as they close up may affect us.