DBS’ Tan Su Shan flags second-order risks from Middle East conflict despite limited exposure
The bank sees limited direct exposure, but warns inflation, supply chains and small businesses could be hit if tensions persist
[SINGAPORE] DBS has “very limited” direct exposure to the Middle East, but a prolonged conflict that keeps oil prices at or above US$100 per barrel could trigger broader second-order risks, chief executive officer Tan Su Shan said on Tuesday (Mar 31).
“We’ve done a lot of stress tests with our business heads; in terms of first order impact – very little, because our core market is Asia, (and) our exposure to the Middle East is very, very limited,” said Tan.
“Having said that, the second order impact – which is around inflation, around consumer slowdown, around supply chains – that can cause problems,” she added.
Decoding Asia newsletter: your guide to navigating Asia in a new global order. Sign up here to get Decoding Asia newsletter. Delivered to your inbox. Free.
