Reflection on 2022. Re-imagination in 2023.

Reflections on 2022.

1) Russian-Ukrainian War and the FOMC

2022 began brightly with many exciting plans. Likewise, I started as the Head of Group Finance role at AET in January 2022 . Global events quickly unfolded around the end of February with the Russian-Ukrainian war sending shockwaves and exacerbating the recovering supply chain post-covid-19. One can never fully understand what went through the minds of those who decided to pull the triggers.

In March 2022, the FOMC started its first of many rate hikes. Ultimately, Chairman Powell raised the benchmark FFR from 0% in January to 4.5% in December 2022. The series of hikes, in both pace and magnitude, took many by surprise and shook the financial markets. While I expected the ZIRP to end and rates to climb in 2023, I was surprised that many had thought otherwise.

This time is different.

2) Living with Covid-19

Covid-19 travel restrictions gradually lifted globally with authorities and people embracing the concept of living with Covid. A handful rejected this notion and continued with strict pandemic measures that affected both public economies and private lives.

I contracted Covid twice in March and November 2022. And when I took on a new Group CEO role at BBX Holdings, I made my first business trip in July and made subsequent ones in the following months. Thank God, and likely the Covid Vaccinations, I'm still alive and kicking.

Living with Covid or any other future pandemic is what differentiates the human race from others.

We will survive with Science and with His Grace.

3) Blockchain and Cryptocurrencies

The cryptocurrency industry crashed and burnt in 2023 with many sagas and controversies from Luna Terra to SBF & FTX. It is mind-boggling to see many top traditional investors and finance folks getting burnt in such a compliance disastrous fashion. On the other hand, it is heart-wrenching to know that many ordinary folks lost their savings and some lost their family's and friends' monies in crypto-investments. Like them, I lost some money too but I didn't lose my shirt. Perhaps my trading and finance background made me more prudent than others.

However, there are some who relish witch-hunts and stoning burning effigies. To each his one, only time will tell. Blockchain technology will change our lives, along with many other technological and digital advancements.

The Singapore Fintech Festival 2022 was huge. I was amazed by the sheer size and numbers. Most significantly was the strong show of belief via action by the Trad-Fi world. MAS led with several key announcements in digital assets initiatives (Project Guardian) and further developments in CBDC & DLT projects (Project Ubin+).

MAS is not the only one. There is a litany of central banks, financial institutions, banks, and corporations that have studied, POC-ed, and launched blockchain-based initiatives that leverage on and benefit from DLT cutting intermediaries and reducing inefficiencies.

Blockchain is not Cryptos. That is a fact.

Re-imagination in 2023.

1) Future of Work

What is work? I do not want to be philosophical, but over the past few covid years, one has definitely thought more about life. I believe I am not the only one.

First, digital connectivity and cloud-based applications have made remote working a reality of life. Organisations worldwide have adapted and adopted digital and online working arrangements across their spectrum of roles and responsibilities over different localities. There will be some that require full-time and on-site presence, and there will be some that allow full flexibility and online presence. Like the smart folks at McKinsey opine, I am of the view that the world of work has evolved.

Second, work is no longer about getting that pay cheque or climbing the corporate ladder. The Great Resignation, coined and popularized in 2021, ruffled and bamboozled much of the senior management and older generation of workforce. In China, in response to the hectic but common 996 work culture, 躺平 (lying flat) became a subculture amongst the younger generation.

Third, call it the vicissitudes of life or the VUCA-BANI world, the life aspirations of people have evolved. It is hard to visualise young GenZ talents staying in one job in their career. Young talents look beyond the dangling of monetary carrots and flashing of fancy titles during job interviews and during their stay. Many have studied this "phenomenon" and most findings reveal that GenZs have a range of expectations from tangibles to intangibles that need to be checked and fulfilled. Life is more than just work.

Time has since changed.

2) Web3, Blockchain and Digitalisation

Web3 is the future. That is my belief. While I do occasionally indulge in reminiscences about the 16-bit Super Mario games and recall getting excited about receiving letters in my mailboxes, I am happily benefiting and enjoying the digital connectivity at lightspeeds. The above artwork revealed the different technology/practice that has since been replaced by digital technology. For me, it is intriguing.

What is Web3? I recall that conversation with a senior banker which I gave an honest answer - "Everyone thinks they know, but actually nobody knows. We are all still searching and creating one." I think my answer did not go down well with the gentleman, he probably thought that I was fluffing my way through.

Web 1 is like an one-way street. You read what folks post on their websites (think personal blog with comments off).

Web 2 is an interactive session. You can read, and you can post. (think Facebook or Instagram).

Web 3? In general, it will be a highly interactive virtual world with decentralised ownership. (think VR games, Decentraland, digital wallets)

Decentralised Autonomous Organisations (DAOs), Digital Identification (DIDs), Digital Assets, and Artificial Intelligence (AI) are some of the interesting developments that will further take shape in 2023 and the years to come. I am proud to be a Trad-Fi professional, but I am no obstinate fool who refuses to accept the inevitable.

Digitalisation is here and has permeated into all facets of our work and personal lives. These branches of digital technologies with advantages like removing intermediaries, reducing inefficiencies, improving data security, and information transparency will be the way of life once deployment costs drop further with development and further validation drives greater adoption. History has shown how technology adoption evolves over time, it usually starts as a radical idea, gets a shot as a POC, and when all stars are aligned - it spreads like wildfire.

Digital Data is the new Gold. And we are at the start of the Digital Gold Rush.

3) Environmental Consciousness, Electric Vehicles and Social Development

When I was lobbying for an ESG event in 2019, quite a number of senior finance folks laughed and waved off my pitch that ESG and Green Finance would be the next biggest thing to come. "ST, ESG is for CSR people, not CFOs, Treasurers, nor Bankers!"

I do not blame them, as they (probably like the majority) are following the trends and treading the usual path. Life of a trailblazer or off-road trekker is not everybody's choice of career path. I could have been wrong, but I just could not unsee the Green wave that was coming.

Fast forward to now, Green Finance became one of the top topics amongst the C-Suites as decarbonisation, net zero, and green funding became more pronounced at the Governmental level in many major jurisdictions.

Not being altruistic, but I truly believe in protecting our Earth. It is the only habitable planet that we know, and the only one that we will be leaving for our future generations. Perhaps being a father to two accentuated my environmental consciousness. The "E" in ESG is for all, not just some CSR hocus pocus.

Internal Combustible Engines (ICEs) in passenger cars are a huge carbon contributor along with other pollutants. Studies have shown that Electric Vehicles (EVs) have significantly lower carbon footprint (about 60%). There are many studies on other modes of transportation like air planes, sea transportation, trains, buses, and commercial vehicles along with the supporting infrastructure from grids, charging stations, to batteries.

We are at the cusp of this huge EV tsunami that has started with Tesla and renewable energy developments. Uber and other sharing economy businesses have debunked the need for private ownership of vehicles and opened the doors for many exciting combinations of a sharing economy app with a fundamental business driven by digital technologies.

We are already getting around efficiently in EVs of various sizes, paying for our rides via digital means, authenticated to drive off rental EVs via DID, and navigating around with AI. What is stopping us from adopting this en masse and for countries who need it most to develop their growing economies and society based on such an efficient setup?

I am proud to be a Singaporean, and I make no apologies. However, I am empathetic to many around the world whom Lady Fortuna did not smile upon. In my next role, I hope to bring real change to people.

Not just monetary riches and fancy titles but work that operates in a future work environment, and harnesses digital technologies to create an impact environmentally and socially.

Thank God. I think I might have found one. I hope Lady Fortuna take another glance at us to make this permanent.

May 2023 be a better year for you.

And may peace be with you.