The role of a Chief Financial Officer (CFO) has undergone profound transformation in recent years. In addition to tracking and managing a company’s financial strategy and actions, they must also have the leadership and communication skills to counsel, be a voice of reason, stay flexible, and spot opportunities in unprecedented macroeconomic conditions.

CDL Group CFO Ms Yiong Yim Ming was recently named Best CFO for large-cap companies with market capitalisation of above S$1 billion at the Singapore Corporate Awards 2023. She shares with The Business Times (7 September 2023) how CFOs navigate crunch times.

As CDL’s CFO, what are some of your greatest challenges and how did you overcome them?

High interest rates, high borrowings, high inflation, currency fluctuations, geopolitical tensions, and the risk of a recession are changing how companies and investors look at numbers and financial stewardship.

Our roles have evolved beyond the traditional financial custodian to one that encompasses ESG (environmental, social and governance) factors, identifying growth while reinforcing compliance and risk management. We must be sharper in our forecasting and keep a hawk-eye on liquidity and cash flow while also proactively leveraging sufficient capital to grow the company.

To do this effectively, digitalisation and real-time data are key process game changers.
We are deft jugglers of competing priorities. As a pivotal partner providing cross-functional insights, CFOs must have a clear understanding of the company’s strategic priorities to guide business growth, balance prudence and stewardship, and help the company navigate challenges while seizing opportunities.

In the face of adversity, has there been any opportunities and silver linings?

Investment opportunities have emerged even as markets are under pressure. However, we need to be cautious. Risk and rewards often go hand in hand, so it is important to assess the risks alongside the opportunities and make balanced decision making. 

CDL’s record profit performance last year, driven by significant divestments, provided us with the significant cash to make several recent strategic acquisitions that would add value to our portfolio. 

Since the start of 2023, we have acquired iconic trophy assets such as St Katharine Docks in Central London, two strong-performing hotels in Brisbane and Seoul, and expanded our PRS portfolio with two assets in Osaka. These acquisitions are aligned with our goals to advance our global presence in tandem with our land replenishment strategy in Singapore. We also remain focused on extracting value from our current assets while pursuing our fund management ambitions.

What would you say are key responsibilities of a CFO in challenging economic conditions?

A rising interest rate environment has amplified the criticality for businesses to prioritise working-capital efficiency and maintain strong and robust fundamentals. It alters the equity market landscape as investors focus on companies’ efforts to improve/enhance their working capital and strategically handle increasing financing costs.

This is an opportunity for us as CFOs to demonstrate our strength in managing the working-capital efficiency and capital management on the treasury front. 

So rather than saying this is a bane or boon, I think it’s a responsibility for CFOs to assure stakeholders the plan to navigate through this environment and to be always ahead of the curve, to swiftly change its course as and when needed. 

What are your current priorities as GCFO?

It has always been my priority to be a business partner to all teams within the CDL Group to further our Growth, Enhancement and Transformation (GET) strategy. CDL will maintain its focus to execute on this three-pronged strategy:

• Growth: Growing and expanding our presence, both locally and overseas
• Enhancement: Enhance our asset portfolio to derive more value and operational efficiency through asset enhancement initiatives
• Transformation: Transform our business via diversified platforms such as Fund management, portfolio review and investing in PropTech innovations.

We remain optimistic about overseas investments as we believe it is an opportune time to make opportunistic acquisitions and strengthen our market position. The private rented sector (PRS) has the greatest potential in our view, given its defensive characteristics and as rising house prices put pressure on affordability. In Singapore, we will continue to focus on executing well on our development projects and replenishing our land. 

Any thoughts and words of encouragement on winning the Best Chief Financial Officer Award this year?

I’m deeply honoured and incredibly grateful to receive this award for the success at CDL. On a personal note, it’s the biggest encouragement any CFO could ask for in our little red dot and this is made possible only with the team I work with. I give thanks to the CDL Board of Directors for their exceptional guidance, the strong support from our Executive team and most importantly, the ‘unsung’ heroes in my team.

I believe that sound corporate governance and stewardship sets the foundation for business success. We will remain steadfast in safeguarding effective controls to drive sustainable shareholder returns.

The world of a CFO goes beyond finance and is always evolving.  Navigating the intricate seas of finance requires unwavering resilience and a forward-looking mindset. In the face of balancing challenges and opportunities, our expertise holds the power to steer organisations towards stability and growth. Do not be afraid if our views differ, the art lies in the delivery of the diverse view a CFO may present.

It is also important to embrace change as a catalyst for innovation rather than an obstacle. Each market fluctuation, regulatory shift, or technological advancement presents a chance to recalibrate strategies and enhance financial stewardship.