Expectations for the AEC have helped foster the growth of the Southeast Asian market, according to CPA Australia and PwC's Finance Futurescape 2030 Survey. The region has a combined nominal GDP of US$2.3 trillion and is home to more than 600 million consumers.
"Along with greater opportunities, the AEC will also present new challenges for CFOs and finance officers," said Vilaiporn Taweelappontong, a partner at PwC Consulting (Thailand).
"Against this backdrop, CFOs must start looking for ways to reshape their finance functions and skills."
CFOs must play a key role in driving business performance and optimising returns. They need to know what technology to buy, how to source the right talent and whether it's more profitable to use in-house or outsourced finance functions, among others.
The report, comprising a quantitative survey and a focus group of 70 Singapore-based CFOs in more than ten industry sectors, reveals four key trends that are likely to reshape the role of financial leaders and their functions:
* Increases in the scope and content of business partnering
* Intensified talent war
* Emergence of new technology
* Managing profitability
"For ASEAN businesses, technological advances and staff skills will become the top challenges once the AEC comes into effect," Vilaiporn said.
An intensified talent war
After the implementation of the AEC, companies will have greater access to a larger talent pool and client base, and they'll deal with fewer trade restrictions. However, 57% of the CFOs surveyed believe there will be a war for talent across all levels of the organisation by 2030.
Moreover, some 78% of the CFOs said their organisation hasn't initiated proper long-term finance workforce planning.
The survey, conducted between May and June, also shows that there may be a significant reduction of finance staff due to increased automation and shared-service outsourcing models.
"To win in this competitive environment, it's crucial for ASEAN companies to have the right approaches for attracting and retaining talent as staff skills will be a key element driving business success," Vilaiporn said.
Larger companies will continue to get the first pick of top talent. For the CFO role itself, requirements are likely to change and traditional profiles may not suffice, she said.
"Businesses will be increasingly looking to hire CFOs with cross-function and cross-industry experience on top of soft skills," she said.
"Those with broader expertise and attributes will be highly valued," she said. "It's crucial that CFOs can think strategically and still keep everything else in check, whether it be helping to grow the company's top line, managing costs or increasing productivity."
As the complexity of operating in ASEAN increases, CFOs will be required to become more like business partners. This means they need to be more proactive in supporting the management of business performance and outcomes across a wider operating footprint.
CFOs will also need more help. Some 54% of the respondents say they would want to appoint a deputy CFO to support them in 2030, compared with 19% now.
Technology brings change
Technological advances will change finance functions the most by 2030, according to the study.
Currently 57% of the CFOs use multiple technology platforms to capture data and report financial performance. By 2030, the number of platforms needed will have increased because of new technologies that allow many more choices.
In the next 15 years, businesses will be challenged to integrate these new technologies with current platforms to make sure that their information remains timely, relevant, accurate and mobile.
The survey suggests that, in 2030, CFOs will play a key role in ensuring that technology strategies align with business requirements.
"Technology is playing a greater role in the finance function as well as having a profound effect on the business units around it," Vilaiporn said. "CFOs have to extend their reach deeply into the business and understand how technology evolves while using it to their advantage."