EY and DBS Hong Kong launch joint study, outlining six strategic priorities for companies’ overseas growth and supply-chain resilience

Ernst & Young Transactions Limited (“EY”) and DBS Bank (Hong Kong) Limited (“DBS Hong Kong”) today jointly released Navigate the New Supply Chain Normal: How Technology and Advanced Manufacturing Companies are Rebuilding Global Resilience in a Fragmented World, a study examining how technology and advanced manufacturing companies can strengthen their overseas growth strategies amid changing trade rules and regional market requirements.

Drawing on 50 enterprise questionnaires and 20 management interviews, the study identifies six strategic priorities that have implications for overseas expansion. It highlights the need for holistic planning across supply-chain resilience, regional operations and cross-border liquidity, helping business leaders assess the implications of expansion decisions for product delivery, cash flow and adaptability.

The collaboration combines DBS Hong Kong’s transaction banking expertise with insights from EY on international expansion, supply chains, tax and business transformation. Together, these perspectives help companies holistically assess overseas growth opportunities and their implications for funding, cash flow and governance.

Jolynn Wong, Managing Director and Head of Global Transaction Services, DBS Hong Kong, says: “The question is no longer whether companies have alternatives, but whether they can activate them quickly when conditions change. Optionality matters, only if it can be activated effectively. The real advantage lies in the ability to switch production, redirect supply chains and mobilize liquidity with minimal disruption, while keeping goods, information and capital moving. At DBS, we help clients build the visibility, connectivity and financial infrastructure needed to act decisively when opportunities emerge or conditions evolves.”

Benny Cheung, EY Hong Kong and Macau Managing Partner, says: “The next phase of globalization is a contest of operational resilience, not just footprint. Leaders need to assess what each expansion decision means for delivery, transaction requirements, cash flow and oversight. This research brings those implications together to help companies make better-informed decisions about how they grow internationally.”

Six strategic priorities shaping overseas growth

1. Globalization strategy: from efficiency-led to preserving optionality 

The survey findings point to a clear shift in globalization strategy as companies respond to a more complex and uncertain operating environment. While efficiency remains important, 88% of respondents identified geopolitics, industrial policy, tariffs, export controls or investment screening among the external changes with the greatest impact on overseas operations. Meanwhile, 84% of respondents identified multiple overseas target areas as important today or likely to gain importance over the next one to three years, indicating that companies are diversifying their geographic options rather than relying on a single market. These findings highlight the value of preserving operational optionality as trade rules, supply routes and customer requirements evolve, making adaptability an important consideration alongside efficiency.

2. Operating model: from exports to regional operating networks 

74% of respondents selected multiple overseas expansion routes, combining exports with local sales, service, production, acquisitions and partnerships to build operational resilience. The paper describes different operating considerations across Europe, North America and ASEAN, from customer proximity and certification to trade-policy complexity and production requirements. Navigating these evolving requirements calls for closer coordination across markets to build a resilient operating model.

3. Building resilience: from adding backup resources to aligning business and financial decisions

The study highlights the need for factories, suppliers and financial arrangements to adapt together to sustain product delivery. Additional production sites and inventory alone may not protect a business when market access or payment flows are disrupted. Companies therefore need to develop and assess operational contingency plans alongside the funding and payment arrangements required to put them into action.

4. Treasury priority: from funding access to liquidity mobility

Foreign exchange controls and capital restrictions rank as the top treasury challenge, cited by 52% of respondents, compared with only 10% who cited funding access or financing costs. The findings underscore the importance of deploying liquidity efficiently across markets. Overseas expansion planning must therefore consider both where liquidity is held and whether it can be deployed to the operations that need it when required.

5. Banking needs: from transactional provider to full journey partner

84% of respondents selected at least two banking-support options to support overseas expansion. 50% of all respondents prioritized financing or credit support alongside transaction or information services. The results highlight the need for coordinated banking support as companies enter new markets, establish local operations and expand regionally. 

6. Hong Kong role: from inbound/outbound gateway to regional coordination platform

78% of respondents currently use or plan to use Hong Kong in their operating structure. The paper highlights the city’s potential to expand its gateway role to help companies coordinate investment, funding and cash across markets. This opportunity aligns with the city’s policy direction in the 2026 Policy Address, which includes measures to attract corporate treasury centres and headquarters for supply-chain and sourcing businesses.

For more details: https://www.dbs.com.hk/corporate/dbs-ey-research-report.page

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DBS

DBS is a leading financial services group in Asia with a presence in 19 markets. Headquartered and listed in Singapore, DBS is in the three key Asian axes of growth: Greater China, Southeast Asia and South Asia. The bank's “AA-” and “Aa1” credit ratings are among the highest in the world.  

Recognised for its global leadership, DBS has been named “World’s Best Bank” by Global Finance, “World’s Best Bank” by Euromoney and “Global Bank of the Year” by The Banker. The bank is at the forefront of leveraging digital technology to shape the future of banking, having been named “World’s Best AI Bank” by Global Finance, “World’s Best Digital Bank” by Euromoney and the winner of multiple digital assets awards. In addition, DBS has been accorded the “Safest Bank in Asia” award by Global Finance for 18 consecutive years from 2009 to 2026. 

DBS provides a full range of services in consumer, wealth, SME and corporate banking. As a bank born and bred in Asia, DBS understands the intricacies of doing business in the region’s most dynamic markets.  

DBS is committed to building lasting relationships with customers, as it banks the Asian way. Through the DBS Foundation, the bank creates impact beyond banking by uplifting lives and livelihoods of those in need. It provides essential needs to the underprivileged, and fosters inclusion by equipping the underserved with financial and digital literacy skills. It also nurtures innovative social enterprises that create positive impact. 

With its extensive network of operations in Asia and emphasis on engaging and empowering its staff, DBS presents exciting career opportunities. For more information, please visit www.dbs.com.