SINGAPORE: Having good financial practices is crucial to helping small- and medium-sized enterprises (SMEs) grow and allow them to boost their margins, especially in a challenging business environment.
Deputy chairman of the board of SPRING Singapore, Mr Piyush Gupta, said this at the Financial Management Growth seminar on Tuesday (Jun 30), jointly organised by SPRING Singapore and Singapore Exchange.
"In difficult times when economies are slow, it is possible for companies to squeeze just a little extra from the cash cycle to provide the liquidity they need to go through turbulence. At the same time, a good architecture is extremely important (so) you have the longevity to succeed,” said Mr Gupta, who is also the CEO of DBS.
“Therefore, spending some effort and time thinking about your financial management system is extremely helpful, particularly in these more difficult times,” he added.
The seminar was aimed at encouraging SMEs to work on key financial management areas, such as corporate restructuring and an internal control framework.
SPRING Singapore said building competencies in financial management will also help position SMEs for easier access to capital markets.
One SME told Channel NewsAsia it has already begun to take such initiatives.
Mr Vick Aggarwala, president and CEO of Supreme Components International, said his company has already implemented financial risk management relating to the foreign exchange risk.
“We have put the guidelines in place and (we believe) it has helped us in impacting our bottom line … We have just implemented it, but it is going to make a change in the very near future in terms of getting and saving some few dollars for the company,” he said.