Amid trade tensions, businesses should look at new growth paths, says DBS CEO

Firms could also take advantage of the volatility in the short run, such as by hedging interest rates or currencies, Ms Tan added in a wide-ranging interview with CNA.
She said businesses should diversify their supply chains and have alternative payment platforms, as well as a diverse currency mix, to mitigate risk.
Investing in generative artificial intelligence (GenAI) helps with productivity, efficiency and staying relevant in a rapidly digitising world, she added.
CHINA HAS BECOME MORE RESILIENT
While China has been the hardest hit by Washington with 145 per cent tariffs imposed on Chinese goods entering the US, Ms Tan said Beijing looks well placed to weather the storm.
'While this is a bit of a blow for consumer confidence, the country rallied behind this need to be resilient,' she said, adding China has learnt to 'insulate itself' since US President Donald Trump's first term in office.
There has been a concerted effort to make China self-sufficient in energy, semiconductor chips, technology and food, she noted.
Ms Tan added she expects China to continue investing in future-forward technology, including robots, drones, biotech and GenAI.
'(In the) longer term, the China growth prospects are still going to be there. You can see the focus on growing and I think its self-sufficiency is going to get stronger.' she said.
She noted the world's second largest economy is already investing heavily in industries surrounding renewable energy such as electric vehicles and batteries.
China will continue to invest in the Southeast Asian economies, she pointed out while highlighting strong green energy investment needs for both sides.
DBS Q1 EARNINGS
Ms Tan also spoke about the bank's first-quarter results, which were released a few hours before the interview.
DBS' net profit in the first quarter of 2025 fell 2 per cent on-year to S$2.9 billion (US$2.24 billion), mainly due to higher tax expenses. It was the bank's first earnings drop in more than three years, but beat estimates.
It was also the first earnings report for Ms Tan as the bank's head after she succeeded Piyush Gupta last month.
Net interest income and fee income rose, driven mainly by strong growth in its wealth management business.
'We delivered a solid first quarter,' Ms Tan said, adding the bank saw record fees in wealth management, loans and treasury sales that amounted to a record net profit before tax of S$3.44 billion.
She said that as uncertainty persists, the bank will stay nimble and prudently manage risks.
She further noted that group net interest income will likely drop this year, based on lower interest rates, to levels slightly above those in 2024.
She said the second quarter appears relatively stable, 'barring any major tariff-induced accidents'.
'There will be some short-term volatility, and we have to remain resilient and stay prepared for the different risks or stress scenarios that might come upon us in the next two or three quarters,' she added.
AI USAGE IN DBS
Ms Tan also discussed the bank's adoption of AI and technology to improve efficiency and boost productivity.
She said bank employees have been harnessing DBS-GPT, an internal GenAI tool that automates routine tasks.
Such tools can help employees read, synthesise and summarise relevant information for customers, allowing staff to focus on more complex and strategic work.
'There's always a human in the loop there, so you kind of reduce the risk,' Ms Tan emphasised.
'Generative AI is very helpful in helping with lower-level transactions. A lot of the mundane work, the employee toil, will disappear. That (means) our employees have more capacity to do better (and) higher level jobs.'
Responding to a question on job protection amid the bank's plans to cut 4,000 positions over the next three years as AI increasingly takes on more roles, Ms Tan said most of redundancy will come from natural attrition.
She added that the bank, which has a total staff strength of about 49,000, has some 9,000 temporary staff and contractors, and sees a turnover rate of about 10 per cent among its permanent staff.

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