Yeo Boon Chye talks about how the technological age can benefit Singapore's employment space

Foo Kon Tan’s senior partner joins the panel of judges at SBR Management Excellence Awards.

Foo Kon Tan’s senior partner and the head of assurance, Yeo Boon Chye uses his wealth of experience and extensive network of contacts to provide insightful advice and practical assistance for clients doing business in Asia.

Trained in assurance and investigations, he has more than 35 years of experience servicing business owners, some of which have grown from small enterprises into listed companies with offices spanning across the globe. Boon Chye spends a significant amount of time providing assurance and advising clients keen on establishing operations in Australia, Japan, the PRC and other Asian countries.

A major part of his role is in the capital markets for Initial Public Offerings (IPO), where he helps Singapore and PRC companies seek listing with the Singapore Stock Exchange as well as other regional Exchanges, an area where the firm takes a leadership position in the mid-tier capital market listings in Singapore. He is also often called upon to conduct training on topics relating to accounting standards, both for the firm’s professional staff and clients.

In an interview, Singapore Business Review talked to Boon Chye as he shared insights on the Greater Bay Area “Wealth Management Connect” scheme, and what enterprises can learn from the pandemic.

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?

Throughout my practising career close to twenty years, I am highly driven to serve in the Capital Market working with professionals including bankers, lawyers, bankers and sponsors. The market then was in the People’s Republic of China and today I continue to serve this overseas active market other than the domestic market. The industries that I handled are diversified; amongst others, technology in the area of solar panel, manufacturing sectors in the area of fabrics, high-automated production of beverages, high technological manufactured automobiles, and not limiting to environmental sectors in air purification and water treatment plants. In the local market, I spent significant time in construction and manufacturing, non-profit organisations as well as fund management businesses.

How are leaders responding to the pandemic affecting their operations? For those whose companies and industries that have been badly hit, what do owners need to consider on the road to recovery?

The COVID-19 is an uninvited “guest” to the business environment. No one expected that there would be closing of borders globally. The PRC strategy was an eye opener where not many countries would believe that social distancing requires air-traffic and all communication routes to be closed in January. On this front, logistic restrictions hold the highest barrier to the conduct of businesses internationally. The use of telecommunication though is prevalent, but it takes many countries with great surprises that it overtakes the traditional business model.

The 5G technology did not come in time for the world as there is this “trade war” going on. The current sentiments are indeed, very challenging and difficult for businesses to sustain, given that there is virtually a standstill for businesses like tourism and airlines. Even the financial sectors which include banks are not spared. Nonetheless, certain service industries like delivery and online platform businesses outperformed in the midst of pandemic.

In my client sector, manufacturing is quite affected by globalisation. Expected loss continues to be evident. For entities to report profit at this challenging time such as those in the technology sector, I would say that the lucky star is with them. As the saying “Cash is King”, fund management activities are rather quiet as investors continue to demonstrate the appetite that an investor can only take.

Cashflow becomes the biggest concern today in the financial markets whether borrower or lender. A business which is profitable needs a strong backing on credit. However, strong liquidity in the stock market continues to be felt.

Recovery may not be in the horizon as the year 2021 may not hold well as compared to the current situation as entrepreneurs are expected to show more resilience in the market. I do not expect to see any exciting event in the next twelve months. Relooking at the business opportunities or transformation of a new spectrum in the business model should be the driving mind of entrepreneurs. We are no longer in the growth path, instead we should be seeing the like of the great depression 1920 in our minds. We need new mapping like the coming of 5G and the connectivity in the new business world.

The Singapore economy should be able to benefit from this new technological age in the area of employment due to the infrastructure and literacy. Also, businesses like F&B and tourism should review how they can return to vibrancy. The research on new vaccines through collaborations may give early hope of normalcy.

How can the management support their employees and stakeholders during these tough times?

As a management to employees and a stakeholder, this is a period of great challenge. There is no guarantee of business being sustainable in the foreseeable light. Management has to be innovative. Though global outreach is now limited, our regional market proved to be alternative. We should explore areas not yet defined and look into how we can reshape and reposition the business where the employees can support. All stakeholders have to come with a common ground that profit is not the key driver but critically, holding sufficient liquidity to manage the years ahead is the key. Downsizing, though may be the last resort, may not be an alternative. We should leverage on existing resources towards economic recovery.