Turnaround & Restructuring Insights

Lost in Translation (Q1 2024) 

Accessing the rapidly growing markets of Southeast Asia (“SEA”) is increasingly important for businesses and investors globally.

Successful entrants stand to benefit from the massive potential manufacturing power and consumer demand generated by a young and emerging middle class of +400 million people. Conversely, unsuccessful entrants put capital and reputation at risk and can setback their future growth prospects.

In this edition of Deloitte Turnaround & Restructuring Insights, we examine the rapid acceleration of Foreign Direct Investment (“FDI”) into SEA, review a sample of foreign owned loss making subsidiaries operating in SEA, and explore some of the common challenges and strategic approaches to resolving underperformance.

Develeraging Asia (Q2 2023)

Banks rebounded from the pandemic with higher margins, lower than expected credit losses and improved capital ratios. However, more recently, increasing risk in the sector has led to multiple “interventions” to ensure systemic stability. The potential for increasing stress in global markets and threats to credit quality in an elevated interest rate environment require a proactive approach by lenders to balance sheet management. In this edition of T&R Insights, we examine the Non-Performing Loan (“NPL”) rates, trends, transactions, developments and outlook across 10 key markets in Asia.

Develeraging Asia (Q2 2023)

Banks rebounded from the pandemic with higher margins, lower than expected credit losses and improved capital ratios. However, more recently, increasing risk in the sector has led to multiple “interventions” to ensure systemic stability. The potential for increasing stress in global markets and threats to credit quality in an elevated interest rate environment require a proactive approach by lenders to balance sheet management. In this edition of T&R Insights, we examine the Non-Performing Loan (“NPL”) rates, trends, transactions, developments and outlook across 10 key markets in Asia.

The Big Squeeze (Q1 2023)

Emerging from the disruptions of the pandemic, economies in Southeast Asia and around the world are experiencing levels of inflation not seen since the period prior to the 2008 global financial crisis. Central banks have responded with a sharp tightening of monetary policy and further rate rises are projected in 2023. Debt and capital markets are tightening.

What do the inflationary and interest rate pressures mean for business? In this edition of Deloitte Turnaround & Restructuring Insights, we explore how “The Big Squeeze” is impacting the profitability and debt capacity of companies across Southeast Asia.

The Big Squeeze (Q1 2023)

Emerging from the disruptions of the pandemic, economies in Southeast Asia and around the world are experiencing levels of inflation not seen since the period prior to the 2008 global financial crisis. Central banks have responded with a sharp tightening of monetary policy and further rate rises are projected in 2023. Debt and capital markets are tightening.

What do the inflationary and interest rate pressures mean for business? In this edition of Deloitte Turnaround & Restructuring Insights, we explore how “The Big Squeeze” is impacting the profitability and debt capacity of companies across Southeast Asia.

Hot Commodities (Q3 2022)

The commodities “super-cycle” took flight in mid-2020 at time when supply was disrupted by the pandemic but when demand was accelerating driven in part by free flowing liquidity from defensive pandemic linked stimulus programs.

The major agriculture, energy and metal indices turned in mid-2022. Lead indicators for recession are emerging and governments are tightening monetary policy.

In this edition of Deloitte Turnaround & Restructuring Insights, we explore the  economic trends, recent market disruptions and war stories, risk mitigation for financiers as well as strategic and tactical moves for producers and traders.

"Checking Out" Retail (Q1 2022)

Retail businesses have faced an unprecedented period of disruption since the emergence of Covid-19. Whilst demand is recovering, the financial legacy of lockdowns linger and the pandemic has accelerated a paradigm shift in consumer spending behaviours towards digital. All the while, new disruptions are continuing to emerge. Listed company financial performance in Southeast Asia shows an uneven recovery and supply chain issues and inflationary pressures are expected to drive consumer product costs higher in the short to medium term. This is cause for retailers to revisit and redefine their operating models and go-to-market strategy. The decisions and actions that retailers take now might be the difference between a fight to survive and having the right to thrive.

Hot Commodities (Q3 2022)

The commodities “super-cycle” took flight in mid-2020 at time when supply was disrupted by the pandemic but when demand was accelerating driven in part by free flowing liquidity from defensive pandemic linked stimulus programs.

The major agriculture, energy and metal indices turned in mid-2022. Lead indicators for recession are emerging and governments are tightening monetary policy.

In this edition of Deloitte Turnaround & Restructuring Insights, we explore the  economic trends, recent market disruptions and war stories, risk mitigation for financiers as well as strategic and tactical moves for producers and traders.

"Checking Out" Retail (Q1 2022)

Retail businesses have faced an unprecedented period of disruption since the emergence of Covid-19. Whilst demand is recovering, the financial legacy of lockdowns linger and the pandemic has accelerated a paradigm shift in consumer spending behaviours towards digital. All the while, new disruptions are continuing to emerge. Listed company financial performance in Southeast Asia shows an uneven recovery and supply chain issues and inflationary pressures are expected to drive consumer product costs higher in the short to medium term. This is cause for retailers to revisit and redefine their operating models and go-to-market strategy. The decisions and actions that retailers take now might be the difference between a fight to survive and having the right to thrive.

The Liquidity Runway (Q3 2021)

Airlines in Southeast Asia are under pressure. The sector has been forced into unprecedented operational and financial restructuring in order to mitigate the disruption caused by the Covid-19 pandemic. 

A full re-opening of international travel borders and a return to normal flight travel by the end of 2021 is looking more challenging. So what does this mean for airlines in Southeast Asia?

In this edition of T&R Insights, we use data to examine the extent and impact of the disruption, review the evolving financial capacity of airlines and suggest potential levers to reduce cash burn in order to extend the “liquidity runway”. 

Deleveraging Asia (Q2 2021)

The year 2020 brought new, previously unforeseen challenges and uncertainty, testing societies in many ways. As economies were hit by the COVID-19 pandemic, NPL stocks in APAC economies have increased to USD 753 billion at the end of December 2020, from USD 679 billion at the same time in 2019. This edition of Deleveraging Asia will examine the region’s macroeconomic and banking sector landscapes, as well as providing an update on NPL market developments amid the pandemic.

Deleveraging Asia (Q2 2021)

The year 2020 brought new, previously unforeseen challenges and uncertainty, testing societies in many ways. As economies were hit by the COVID-19 pandemic, NPL stocks in APAC economies have increased to USD 753 billion at the end of December 2020, from USD 679 billion at the same time in 2019. This edition of Deleveraging Asia will examine the region’s macroeconomic and banking sector landscapes, as well as providing an update on NPL market developments amid the pandemic.

Electrifying Singapore - Power Generation Market (Q1 2021)

The Singapore power generation market has undergone an extensive transformation in recent years. The sector has been privatised and opened up to new entrants in the context of a pivot to LNG to improve national energy security. New disruptive technologies are also emerging. In this edition of Restructuring Services Insights we explore data driven perspectives on the Singapore power generation market as well as the performance levers that generation companies should explore to stay ahead of the competition.

Preparing for the End of Stimulus - Restructuring Services Insights (Q4 2020)

As the COVID-19 pandemic spread, governments around Southeast Asia initially focussed on emergency health measures. Financial support for economies, business and employment quickly followed. The financial hangover together with the winding-down of stimulus schemes presents clear challenges. In this edition of Deloitte Restructuring Services Insights we examine the economic impact of COVID-19, government fiscal and legislative responses and the risks to business associated with the end of stimulus.

Thailand in Focus - Restructuring Services Insights (Q3 2020)

In this edition of Restructuring Services Insights we take a closer look at the Thai economy and markets as well as the impact of COVID-19 on three key sectors; automotive, aviation and tourism.Notwithstanding a relatively low number of confirmed COVID-19 cases, the impact of COVID-19 on Thai businesses has been acute and has been magnified by Thailand’s economic dependence on tourism as well as globally integrated value chains.

Critical Moves – COVID-19 (2020)

COVID-19 took the world by surprise in the new year and as the virus spreads it is impacting businesses and markets globally. Businesses need to respond, refresh and accelerate contingency planning to ensure they survive the downturn and position for growth when the recovery comes. In this special report we look at the impacted markets, sectors and regions and the critical moves that management teams should be making to respond to the financial impact of COVID-19.

Southeast Asia Working Capital Report (2019)

In this Special Report we examine the working capital performance of over 2,000 public companies around Southeast Asia; giving you an opportunity to benchmark your business (or portfolio company). We also identify the practical levers to optimise working capital and unlock cash which can be used for growth, deleveraging and dividends.

Deleveraging Asia (2019)

Following the global financial crisis, non-performing loan (NPL) portfolio sales have been largely focused on the European markets. But investors are now looking to global markets, where the US$640bn NPL stock held by Asian banks – up 23% from the $520bn reported last year – presents a sizable opportunity. In this report, we examine the region’s macroeconomic and banking landscapes with a focus on the market opportunities in China, India, South East Asia, and Australasia.

Increasing Risk in the Southeast Asia Bond Market (2019)

Bonds have become an increasingly popular financing instrument in Southeast Asia as borrowers seek additional or replacement capital and investors seek out higher returns. With recent news media coverage in Singapore indicating a deterioration in bond quality and a potentially imminent wave of defaults; we take a closer look at the data. This Report analyses trends in the Southeast Asia Bond Market examining issuances, upcoming maturities, credit quality and historical default trends.