My first Publication ocbc_ar17_fullreport_english | Page 12

MESSAGE FROM CHAIRMAN AND CEO
OUTLOOK
Looking ahead, the strong momentum of growth in the
global and regional economies is expected to carry into 2018,
possibly at a more moderate pace. Rising business and consumer
confidence globally is expected to increase investment activity,
lift consumer spending and drive trade expansion. The ASEAN
economies are key beneficiaries of the expansion in global trade
and deeper Asian economic integration, while China’s Belt and
Road Initiative is expected to spur infrastructure development
in the region.
There are, however, possible developments that could potentially
derail the positive near-term growth prospects. The key risks that
could trigger a sharp reversal of the current optimism include
large and disorderly adjustments to financial markets arising
from a higher-than-expected rise in inflation and central banks
hastening the pace of monetary tightening. Some threats of
protectionism have been translated into action in early 2018,
and risks remain high that these could spread during the year.
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OCBC ANNUAL REPORT 2017
In Asia, overly aggressive geopolitical posturing poses the risk of
possible miscalculations and erosion of confidence.
Overall and on balance, the pickup in economic and financial
activities is favourable for financial services. While possible surprises
could undermine the current mood, OCBC is well-positioned to
participate in Asia’s growth story – which remains relevant and
sound in the medium to longer term. The steady execution of our
corporate strategy has made us a well-diversified and progressive
financial institution with an increasingly strong presence in key and
expanding economies and businesses. We will build on our solid
foundations and further strengthen our long-term fundamentals
by investing in our brand, network, people, systems and technology.
Needless to say, we will continue to enhance our risk management
processes and framework. We are confident that OCBC’s financial
strength, commitment to customer service and sound business
management practices will enable us to deliver sustainable and
increasing value to our stakeholders.