Rising women power will not shield Singapore companies from fierce headwinds
However, businesses can gain from higher participation and productivity of females in the labour market
WOMEN are busy smashing glass ceilings abroad and at home. Vicepresident Kamala Harris could be the first woman to lead the United States if she wins in November’s presidential election.
Currently, two of Europe’s strongest leaders are president of the European Commission Ursula von der Leyen and Prime Minister of Italy Giorgia Meloni. France may have its first female president if Marine Le Pen prevails in 2027.
At home, DBS – Singapore’s largest company by market capitalisation – announced that Tan Su Shan will become its new chief executive officer next March. She will be the bank’s first female chief executive. When Tan assumes the helm, females will lead two of the listed local banking trio that dominate the local bourse, with the other being Helen Wong, group CEO of OCBC. UOB will then be the exception with a male chief executive.
Other female leaders of companies in the benchmark Straits Times Index include Teo Swee Lian, who chairs the board of Capitaland Integrated Commercial Trust’s manager, as well as Anthea Lee, Lily Ler, Jean Kam and Sharon Lim, who are the CEOS of the managers of Frasers Logistics & Commercial Trust, Mapletree Industrial Trust, Mapletree Logistics Trust and Mapletree Pan Asia Commercial Trust, respectively.
At Temasek’s privately owned Mapletree Investments, possible internal candidates to succeed long-serving group CEO Hiew Yoon Khong, who is in his 60s, may include top female executives such as Wendy Koh, Amy Ng and Ng Kiat. At listed Keppel, where Temasek is a major shareholder, senior female leaders Christina Tan and Cindy Lim could possibly succeed CEO Loh Chin Hua, who is in his 60s.
While the rise of women corporate leaders in Singapore can be cause for cheer, bottom-line-focused investors may be wise not to be overly excited by this development.
Strong headwinds
Going forward, the picture looks daunting for equity investors because businesses face fierce headwinds.
Inflation could remain sticky while interest rates may stay fairly elevated. Rising geopolitical tensions and protectionism might hinder trade and investment flows. Transitioning to a greener economy could entail substantial upfront costs.
Over the later part of the last century and earlier part of this century, China’s rapid growth was a major tailwind for many businesses. However, the world’s secondlargest economy is stalling and faces major structural challenges.
Meanwhile, labour markets in many places are tight due to ageing populations. Amid rising spending on healthcare and defence, there will be more pressure put on public finances and possibly higher taxes.
While the rise in artificial intelligence could herald widespread productivity gains, companies will need to grapple with possible job losses and disruptions that can unsettle labour relations.
Also, consumer tastes can change rapidly and consumer loyalty may be weakening. Meanwhile, social media can exacerbate the challenges of brand building and difficulties companies face in crisis management.
Perhaps, some strengths often associated with women – such as the ability to multitask, deal with ambiguity and build bridges among people – can make female leaders uniquely qualified to tackle the multi-faceted challenges facing businesses today.
Sure, leadership quality will be among factors that drive relative performance of any business versus its industry peers. However, maybe no premium or discount should apply to a company based on whether it is led by a female or has strong female representation in its top team.
Instead, investors should closely track the actions and words of individual corporate leaders to decide whether they think specific leadership teams can grow a business, thereby delivering higher shareholder returns.
Still, while businesses navigate tricky terrain, investors could increasingly attach a premium to Singapore businesses primarily because of the city-state’s political stability and strong social cohesion, as well as the relatively positive economic growth prospects of South-east Asia. Also, local businesses can leverage the Republic’s deepening relationships with many countries to better access various overseas markets.
Female labour force participation
Possibly, where the rise of female corporate leaders here will make a tangible difference is to put some extra “oomph” into Singapore’s economic growth by raising the productivity and participation of female workers.
In 2023, the labour force participation rate of Singapore residents aged 15 years and over as a percentage of that age group was 74.9 per cent for males and 62.6 per cent for females.
The labour force participation rates of resident males aged 40-44 and 45-49 were 97.1 per cent and 96.7 per cent respectively in 2023, versus 84.6 per cent and 82.3 per cent for female residents. As for those 65 and over, it was 41 per cent and 23.2 per cent for males and females, respectively.
In 2023, the median monthly income of full-time employed residents aged 15 years and over, including employer CPF contributions, was S$5,070 for females, or 7.1 per cent less than the S$5,460 for males, excluding full-time national servicemen.
Among degree holders, the median monthly income from employment of full-time employed residents, including employer CPF contributions, was S$9,295 for males and S$7,320 for females.
Could an army of top female corporate leaders improve female participation in the labour force and wages of females – by showing how workplaces can better help women balance work with family responsibilities and draw women who have left the workforce to rejoin it?
Success with the above can help overcome obstacles to growth posed by an ageing workforce and a tight labour market.
From growing up in a household with male siblings, I am now the sole male in a four-member household, excluding the female domestic helper. I work in a newsroom headed by a female editor and led by numerous female supervisors.
Let women show their mettle in corporate leadership here. Competition and cooperation among the genders in running our corporate titans may put them in the best shape to thrive in increasingly tough conditions.