Tea Wei Li from KPMG in Singapore highlights the four Ps of value creation for business success

She emphasised how agile governance, sustainability, innovation, and strong ethical practices empower businesses to thrive.

As Asia’s dynamic business landscape continues to grow with evolving consumer demands and technological advancements, companies are navigating complex challenges whilst also striving for innovation, resilience, and long-term growth.

Offering valuable insights is Tea Wei Li, Partner, Risk, Advisory at KPMG in Singapore, with over 23 years of extensive experience in governance and risk-related roles. She has worked across Singapore, Hong Kong, and China, delivering a wide range of assignments across various industries, with a focus on internal audit, enterprise risk management, and corporate governance.

Wei Li has assisted in the review of corporate government practices in publicly listed companies and pre-IPO entities, ensuring compliance with SGX listing rules, the Code of Corporate Governance guidelines, and pre-IPO listing requirements. In addition, she regularly conducts risk management workshops, helping organisations refine key risk indicators and develop effective risk indicators and risk treatment action plans.

As a judge at the Asian Management Excellence Awards, Wei Li discussed the importance of agile governance, purposeful sustainability strategies, innovation, and strong ethical practices as key drivers for long-term business success in Asia’s evolving market.

With your extensive experience, how would you describe the current state of the business industry in Asia, and what key trends do you think are shaping its evolution?

Digital solutions, such as AI diagnostics, personalised treatments, and automation are set to improve healthcare efficiency, meeting the needs of an ageing population and the increasing prevalence of chronic diseases.

This is especially relevant for Asia, where economic growth is poised to slow, from nearly 5% growth in 2023 to 4.5% in 2024 and 2025 and 4.2% in 2026. The region is experiencing demographic shifts, with many countries facing ageing populations and, in some cases, population decline. Whilst extreme demographic ageing and shrinking are an economic and societal challenge, it is also a technological opportunity for Asia to take a leading role in advancing technological innovation, leveraging solutions to address pressing needs and drive global progress.

The latest report from Google, Temasek, and Bain, titled e-Conomy SEA 2024, shows that despite inflationary pressures and an uncertain global economic outlook, the digital economy in Southeast Asia has continued to remain resilient, achieving double-digit growth across gross merchandise value, revenue, and profit. Nearly 50% of investments in the region are being directed towards emerging sectors such as software, services, and AI.

In KPMG’s report, Pulse of Fintech H1 2024, fintech companies in ASPAC received $3.8b with 438 deals, whilst SEA is attracting significant AI investment, with over $30b committed to AI infrastructure in the first half of 2024 alone. SEA is also positioned well to compete both in data centres and end-layer applications. Furthermore, investments in healthcare are increasing, driven by advancements in e-pharmacy, diagnostics, and health technology innovation.

Asia is leading the way in digital adoption within the fintech, AI, and healthcare sectors. Its economy shows strong growth potential, technological leadership, and a focus on sustainability. However, it must address disparities in financial inclusion, healthcare access, and infrastructure, especially in lower-income and rural areas, to continue its progress.

Additionally, Asia accounts for half of global greenhouse gas emissions, mainly due to fossil fuel use. However, the region is actively investing in renewable energy and circular economy practices to spearhead climate action. Renewable energy investments in the Asia Pacific are set to double to $1.3t by 2030, positioning the region as a key player in addressing both environmental and technological challenges.

As global business environments become more complex, how can organisations ensure their governance frameworks remain agile and adaptable to unforeseen disruptions?

To remain agile and adaptable to unforeseen disruptions, companies must act like startups—quick to pivot, innovate, and adapt. Business agility is essential for staying relevant and competitive in a rapidly changing world and must be integrated with governance.

Agile governance builds on a set of core agile values, behaviours, and practices. It emphasises both consistency and adaptability, enabling the organisation to respond proactively to changes and take risks whilst maintaining a strategic focus. It also supports operational stability and fosters growth in all aspects of the organisation.

However, there are barriers and resistance to agile governance. Traditional hierarchical organisations often resist agile governance practices and leadership frequently impedes progress by clinging to legacy systems and established hierarchies. For many leaders, this shift to agile governance feels like relinquishing control, which can be uncomfortable.

To adopt agile governance frameworks, boards and their management must first make deliberate decisions regarding their governance approach. These include leading by example and actively engaging in continuous learning about agile practices and evolving governance trends.

Boards and management must foster a culture of trust, collaboration, and motivation to empower teams and enhance organisational performance. This sometimes involves streamlining governance by removing overly complex rules and procedures that hinder agile and effective decision-making. In addition, empowering employees through comprehensive training is essential to enhance their awareness of emerging risks and trends across the organisation, enabling them to contribute more effectively to its success.

Leveraging technology to enhance agility—such as AI, machine learning, data analytics, collaboration tools, and automation—can drive efficiency and foster innovation. At the same time, strengthening organisational resilience by stress-testing governance frameworks against diverse disruption scenarios and implementing dynamic risk management practices ensures an effective balance between the need for speed and the importance of thorough due diligence.

In your view, how can companies balance achieving business success with making a positive impact on their employees, communities, and industries?

Businesses have long embraced social responsibility, though for some, it has been approached without clear focus or planning. Today’s heightened focus on sustainability, climate risk, poverty, and global uncertainty presents an opportunity for businesses to adopt a more deliberate and strategic approach, aligning their actions with meaningful social and environmental impact.

Achieving business success by making a positive impact on their employees, communities, and industries does not need to be complicated. Companies can start by defining a clear purpose that aligns profitability with societal benefits.

The “four Ps of value creation”—People, Planet, Prosperity, and Principles of Governance— provide a comprehensive framework for businesses to generate environmental value, create jobs, and promote community prosperity.

With People, companies can support local communities by enhancing education, healthcare, and infrastructure. Offering internships or vocational training helps close skill gaps and boost local economies. For example, Nescafé's Nescafé Plan 2030 is a programme that distributes climate-resistant coffee trees and provides training on sustainable farming practices.

For Planet, integrating sustainability goals, such as carbon neutrality, with business objectives can create shared value for the environment and stakeholders. For example, Microsoft pledged to become carbon-negative by 2030 by reducing emissions across operations and supply chains whilst investing in carbon removal technologies.

Prosperity encompasses the company’s overall impact on global, national, and local economies, with DBS Bank as an example. It’s at the forefront of sustainability in banking, incorporating responsible banking practices to address climate change and promote long-term environmental stewardship.

Principles of Governance focus on transparency, accountability, ethical leadership, and compliance with regulations. For instance, Singtel ensures transparency by providing regular disclosures and underscores the significance of board independence. This is achieved through a robust audit and risk management framework.

There is no definitive way to create a social responsibility strategy. However, adopting the “four Ps of value creation” is a great starting point. This framework addresses key priorities for stakeholders and the business whilst allowing flexibility for new challenges and opportunities in each area. By adopting this approach, businesses can achieve success whilst contributing positively to society and the planet.

As a returning judge for the Asian Management Excellence Awards, what criteria will you prioritise when evaluating nominees this year?

As a judge, I will be looking out for companies that exhibit innovation by implementing creative solutions, products, or services that set them apart from competitors and drive industry transformation. Solid financial metrics are equally important, including steady revenue growth, profitability, and efficient resource utilisation to achieve sustainable returns. I will also look for companies that prioritise transparency, ethical practices, board independence, and effective accountability mechanisms. Additionally, a focus on community engagement, employee welfare, and reducing environmental impact through sustainable practices will be key factors in my evaluation.