AFTF 2023: tech & the changing world

The world has changed, and only those that have kept pace with that change can succeed in difficult environments.

That’s the view Simon Ireland, ANZ MD International, shared with the sixth-annual ANZ Finance & Treasury Forum in Singapore.

“Those who have performed best over the last 12 months are those people, and agencies, that have adapted,” he told the event.

Speaking to a crowd of 250 industry leaders in Singapore, Ireland said risks such as high inflation, elevated rates, the changing climate, and geopolitical tension would hang around.

In an environment like that, “success is largely driven by solid decision-making processes, and working together with like-minded partners at pace”, he said. 

For Richard Yetsenga, ANZ Chief Economist, the inflation challenge and rise of technology are becoming interlinked – posing an adaption challenge for business.

“[Tech] is an important influence on inflation, and therefore interest rates,” he told the event.

“Any given technological change can’t be permanently deflationary."

The development of technology is becoming less disruptive, it is reaching saturation, and the sector is drawing in many more physical and human resources, Yetsenga said.

Semiconductor import prices in the United States have risen in recent years for the first time since 1993.

“I don’t think this is an anomaly,” Yetsenga said. “This is the beginning of a structural change. That long-term trend of semiconductor deflation… is over."

This adds to the numerous fronts in the battle against inflation for policymakers around the world, he said.

“I think central banks will have to work hard,” Yetsenga said. “Not just to get inflation back to target, but to keep it there.”