The ‘golden era of globalisation’ now feels like a distant memory, says the bank’s deputy CEO
[SINGAPORE] While the world is facing a landscape marked by geopolitical tensions, trade barriers and technological bifurcation, there are several clear pathways to growth and prosperity, with Asia being central to that journey.
Making this point on Thursday (Oct 9) was OCBC’s deputy chief executive officer Tan Teck Long, as he painted a picture of how the economic environment and financial markets have been impacted by US President Donald Trump’s sweeping “Liberation Day” tariff measures that were announced in April.
“Fast forward to today, the fog hasn’t quite lifted. Tariff negotiations remain unresolved, and the ripple effects of a shifting global trade order are still unfolding,” he said on the second and final day of the Asia Future Summit at the Ritz-Carlton, Millenia Singapore hotel.
This conference is jointly presented by SPH Media’s flagship titles The Straits Times, Lianhe Zaobao and The Business Times. OCBC Bank is the presenting sponsor.
Addressing an audience that included Coordinating Minister for National Security and Minister for Home Affairs K Shanmugam, Tan said that the “golden era of globalisation” can feel like a distant memory at times.
Even so, Tan offered some reasons for governments and businesses to be optimistic in the months ahead.
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“If the earlier era was an economic Spring, are we now heading into a gloomy Winter? Or could it be a bright Summer instead?” he said.
“I believe there’s reason to be optimistic. Yes, Summer can be uncomfortable – scorching hot at times, just like the flaring of geopolitical tensions – or stormy, like the market turbulence in reaction to Liberation Day. But Summer also brings long daylight, growth and gatherings of friends.”
In his remarks, Tan – the head of global wholesale banking who will become OCBC’s new CEO on the first day of 2026 – listed a number of pathways to prosperity.
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One is through strengthening supply chain resilience, and these remain important business considerations today.
He noted that the US is “very unlikely” to be able to bring all types of manufacturing back stateside, simply because of its high-cost structure, and neither would it make economic sense for it to do so.
In South-east Asia, the manufacturing sector will likely experience stricter rules of origin, especially for exports to the US, said Tan.
“Historically, some investments into Asean are simple manufacturing operations, such as the assembly of components. But with stricter rules, we could potentially see more deeper-rooted investments and more sophisticated manufacturing. It could be a win for Asean as (its member states) climb the value chain,” he said.
Tan said that regional trade agreements will be key to sustaining the momentum that Asean – the world’s third-largest trading bloc – continues to enjoy when it comes to rising trade and strong foreign direct investment flows.
And while he pointed out that building a common Asean market will not be easy given the disparity in economic development among its member states, he said he remained optimistic on this front.
He cited the Johor-Singapore Special Economic Zone as an example. On its part, OCBC has been actively facilitating investments related to the new zone, having already committed more than RM11 billion (S$3.38 billion) since 2024, with another RM3 billion expected by the end of this year.
Tan also spoke about the opportunities in the energy transition. He said that clean, affordable and reliable energy was more than just about climate change. Rather, it is also about economic growth, energy security and diversification.
“Countries that can tap renewable energy would be able to diversify their energy sources, reduce energy imports, as well as export any surplus energy to other countries. For this to happen, it will require significant upgrades to Asean’s power infrastructure. A common Asean power grid will be transformative,” he said.
Another pathway to growth would be via artificial intelligence and digitalisation, which Tan said will help open doors to new business models and opportunities.
“Interestingly, we are seeing digital and green converge. When OCBC finances data centres, we note that tech companies are increasingly demanding clean energy to meet sustainability goals,” he said.
“Data centres are very power hungry, and those supporting AI are even more so. Thus, tech companies can help to spur the development of green energy.”
