DBS CEO Tan Su Shan stepped into the leadership position right before an economic downturn hit. The long-serving executive at the Singapore-based financial institution, the biggest in Southeast Asia, began his tenure in March, mere days before U.S. President Donald Trump imposed substantial tariffs on a significant portion of the global economy. This presented a hurdle for DBS, which caters to customers throughout China, Southeast Asia, and India.
TL;DR
- DBS CEO Tan Su Shan navigates economic downturn with diversification strategy.
- US tariffs may foster new connections between China and India, creating supply chain opportunities.
- Tan, DBS's first female CEO, emphasizes team effort and "chief energy officer" role.
- DBS transformed from "worst bank" to a leader, inspired by Singapore Airlines' service.
Her strategy for an unpredictable economy? Diversification. “If you only sell to the U.S., you have to diversify,” Tan stated at the Coins2Day Most Powerful Women Summit on Tuesday.
Last week, Trump declared he would implement 100% tariffs on Chinese products by November 1st, as a response to Beijing's increased export restrictions on rare earth minerals. The U.S. President has also levied 50% tariffs on Brazil and India, two other significant non-Western economies.
Tan proposed on Tuesday that Trump's widespread tariffs might be creating fresh connections among these varied economies. “China and India, historically, are not that close,” Tan stated. “This might actually create more opportunities for Chinese and Indian companies to do more together, certainly on the supply chain.”
Earlier this year, China and India agreed to resume resumed direct flights, which had been halted since the COVID pandemic. Relations between the two nations had been strained since deadly border confrontations in 2020.
“It will take time to build trust [between India and China],” Tan said Tuesday. “But the opportunities are there.”
CEO: ‘Chief energy officer’
Tan holds the distinction of being DBS's inaugural female CEO. She also secured the top spot on the Coins2Day Most Powerful Women Asia ranking list and ranked sixth globally on its MPW index.
On Tuesday, Tan minimized that recognition. “I don’t know how I feel about the word ‘powerful,’” she stated. “It really is the team that gets stuff done.”
“It’s my job as a CEO to be the chief energy officer, to give energy to the team and make sure that everyone is headed in the right direction,” she said.
Learning from an airline
Tan also reminisced about her initial time at DBS while on stage. Although the company is presently Southeast Asia's most valuable and has received numerous accolades for its excellent digital offerings and customer care, the bank's reputation was quite different when Tan began her tenure there in 2010.
“We were the worst bank,” Tan recalled. “Worst bank for customer service, worst bank for the longest queues, worst bank for product.”
Under the leadership of then-CEO Piyush Gupta, the bank drew inspiration from Singapore's primary airline, Singapore Airlines. (Temasek, Singapore's state investment firm, is a significant shareholder in both entities.)
“We were all marshaled to Singapore Airlines’ headquarters by the airport and taught how to offer good ‘service quality,’” Tan explained. “Our first learning was: How do you give good service, and how are you respectful, easy to deal with, and dependable?”
DBS has now grown from a staid government-linked bank to a leader in the country’s banking sector. When Tan joined in 2010, DBS generated 7.1 billion Singapore dollars ($5.5 billion in current exchange rates) in total income. That figure had grown to 22.3 billion Singapore dollars ($17.2 billion) last year.
DBS shares are up by almost 35% over the past 12 months; Singapore’s other “Big Three” banks, OCBC and UOB, are up by 11% and 7%, respectively.