Editorial

Physical realities in a digital world

Digitalisation is a megatrend that cannot be ignored; we all live in a data-driven world where our lives are increasingly digital. The reality, however, is the digital carries physical consequences. Our data is in the cloud, but it isn’t stored in some ethereal receptacle in the sky. Instead, massive data centres are having an impact on the environment. This issue looks at how data centres are trying to cut their emissions in the face of exponential growth in the sector.

The shift to a digital economy is also having an impact on physical national boundaries. In the past trade was in physical goods across clear borders. Now, however, nation states are finding it much harder to manage those boundaries – all of which has implications for taxation and economic protectionism, as well as cybersecurity.

The increase in data is also presenting opportunities for treasurers, who can do more with transaction data – and even monetise it. The reality, however, is that many corporate treasuries still need to focus on the basics and ensure that they have operational efficiencies in place first.

With the rise in data, there is also the opportunity to leverage artificial intelligence for analysis and forecasting. However, with this comes certain risks as there is always the possibility of a ‘black swan’ event on the horizon. In the Corporate View profile, Wee Teck Lim, a senior treasury manager, discusses how he keeps his mind open to the ‘unknown unknowns’ and how his approach to risk management has developed over his career.

Also in this issue, Michelle Ang, Group Treasurer at Mitsubishi Fuso Truck and Bus Corporation, shares how she built an international treasury career and gives some stellar career advice.

This issue also has regional pieces, including a feature on treasury in the Middle East and how cash management remains high on the agenda amid budgetary constraints and geopolitical tensions. And in Asia there is hope on the horizon for corporate indebtedness, which has been at concerning levels in recent months.