Asset management for a company is much like tidying up your work desk, it’s about organizing your documents, laptops, and other essentials in the right places without taking up unnecessary space.
Efficient asset management is crucial, especially for companies that handle large volumes of assets for customers or clients. With rising inflation, technological advancements, and increasing ESG compliance expectations, Singaporean businesses are under pressure to adapt quickly.
Adopting smarter asset management strategies can help tackle these challenges, and with HashMicro’s asset management system, the process becomes more streamlined and effective.
As the asset management system market is projected to exceed $27 billion by 2025, managing your resources effectively can help reduce waste, lower costs, and improve operational efficiency. By reading our 5 proven tips, businesses in Singapore can optimize their processes and maximize their investments. Let’s dive in!
What is Asset Management?
Before we dive into the tips, take a peek into the very definition of asset. To put it simply, asset is an economic resource that a person, business, or nation owns or controls with the hope of reaping future benefits. Meanwhile, asset or portofolio management is the process of managing purchases, sales, and investments to maximize value and efficiency.
It includes the efficient handling of physical ownerships like buildings and machinery, as well as intangible assets such as intellectual property and brand reputation. Asset managers usually develop personalized investment strategies for clients to help grow wealth over time while managing risks.
What are the Types of Asset Management?
Asset management covers various areas, each focusing on specific types of assets within an organization. Understanding these different types can help businesses in Singapore optimize their resources effectively and maximize value across multiple domains.
- Financial Asset Management: Ensures strategic growth of investments like stocks and bonds while managing risks effectively.
- Physical Asset Management: Optimizes the lifecycle of buildings and machinery, cutting repair costs and maximizing productivity.
- IT Asset Management (ITAM): Keeps tech investments secure and efficient, ensuring hardware and software deliver peak performance.
- Software Asset Management (SAM): Reduces licensing costs, ensures compliance, and maximizes the value of digital tools.
- Hardware Asset Management (HAM): Minimizes downtime by extending the lifespan of essential equipment like computers and servers.
- Cloud Asset Management (CAM): Helps manage cloud resources efficiently, improving scalability while cutting unnecessary costs.
- Infrastructure Asset Management: Ensures public utilities and infrastructure are well-maintained, benefiting businesses relying on these systems.
- Enterprise Asset Management (EAM): Focuses on optimizing equipment and vehicle performance while keeping costs in check.
- Real Estate Portofolio Management: Enhances returns from property investments through strategic buying, selling, or leasing.
- Digital Portofolio Management: Organizes digital resources like files and social media for better accessibility and security.
- Public Asset Management: Ensures government-controlled resources are maintained efficiently, benefiting businesses and society.
- Wealth Portofolio Management: Offers tailored strategies for high-net-worth clients, prioritizing growth and tax efficiency.
Each of these types plays a key role in optimizing resource utilization, performance, and value. By understanding and leveraging these strategies, businesses in Singapore can ensure that their assets are well-managed, minimizing costs and risks while maximizing long-term success.
How Does Asset Management Work?
Asset management systematically oversees the entire lifecycle of assets, ensuring they contribute maximum value to an organization’s goals. Businesses in Singapore, whether managing investments or physical assets, rely on a structured approach to streamline processes, reduce risks, and boost performance. Here’s how it works step by step:
- Planning: It starts with evaluating the organization’s needs and existing assets. Managers analyze costs and benefits, identify potential risks, and set clear performance targets to guide decisions.
- Acquisition: After careful planning, asset managers research vendors, negotiate terms, and finalize purchases. Once acquired, resources are seamlessly integrated into daily operations.
- Operation: Resources are then put to work, with staff trained to maximize their use. Performance is regularly monitored to ensure the assets meet expected standards and add value.
- Maintenance: Scheduled maintenance and upgrades keep assets in top condition, preventing breakdowns and prolonging their lifespan.
- Disposal: When assets are no longer viable or cost-effective, asset managers oversee their disposal, transitioning the organization to newer, more efficient solutions.
At every stage, businesses often use advanced tools to track and manage assets, enabling smarter decisions and minimizing costs. This systematic approach not only optimizes performance but also aligns assets with long-term organizational goals.
Example of Asset Management
DBS Bank, one of Singapore’s largest banks, offers a comprehensive wealth management platform for both high-net-worth individuals and institutional investors. The DBS Wealth Management platform connects clients with a dedicated Relationship Manager and investment specialists.
These experts guide clients through a broad range of investment options, such as equities, bonds, mutual funds, and structured products. Clients enjoy customized portfolio management services, along with regular market insights and investment research, helping them make informed investment decisions aligned with their financial goals.
For high-net-worth individuals with investable assets of SGD 1.5 million and above, DBS offers the Treasures Private Client service. This service provides personalized wealth planning, succession strategies, and access to alternative investments and private equity opportunities. Clients are also invited to exclusive networking events and investment seminars.
DBS Bank embraces digital transformation to make asset management more accessible. Through the DBS digibank app, clients can manage investments, track portfolio performance, and execute trades on the go. The DBS iWealth platform also provides real-time market data, research, and portfolio management tools, helping clients stay on top of their investments.
DBS Wealth Management’s fee structure is tiered based on assets under management (AUM). The annual management fee starts at 0.8% for AUM below SGD 5 million and decreases to 0.4% for AUM exceeding SGD 25 million. Transaction fees vary by investment product and transaction size.
Clients with AUM above SGD 5 million may also qualify for fee waivers on certain banking services and preferential foreign exchange rates. With its local expertise and global reach, DBS Bank offers tailored wealth management solutions to meet the unique needs of clients in Singapore and across the Asian market.
What is the Difference Between Asset Management and Wealth Management?
Asset management and wealth management both help clients grow and protect their wealth, but they differ in scope and focus. Asset management focuses on managing investment portfolios, including stocks, bonds, and alternative investments.
Its main goal is to maximize returns and manage risks. Asset managers typically serve institutional clients, such as corporations and pension funds, along with high-net-worth individuals, charging fees based on assets under management (AUM).
Wealth management, on the other hand, takes a more comprehensive approach. It includes portofolio management but also covers tax planning, estate planning, retirement strategies, and more. Wealth managers aim to improve a client’s entire financial situation, offering personalized guidance.
This service generally targets high-net-worth individuals and families, with a flat fee for broader services.
Tips for Effective Asset Management
Now you know the comprehensive guide on portofolio management, from the definition to the difference between asset management and wealth management. Effectively managing your assets ensures smooth operations and helps your business avoid unnecessary costs. However, it’s important to remember that it is not a one-time task but an ongoing process that requires careful attention. By following these tips below, you can streamline your asset management practices and maximize the value of your business assets.
Tip #1: Determine a Reliable Person or Team to Be Responsible for Your Assets
You may have a lot of things in your business to think about. You can’t control every single element of your business, particularly in the management of your assets. Therefore, you should determine a person that you can trust and rely on to be responsible for the company’s assets.
If your business is rather small, then one or two persons are enough to be responsible for managing your business assets. However, if you have a large company, then you should have a team that is focused on managing and maintaining your company’s assets reservation system.
Even so, the use of an integrated asset management software is still required to help you manage your assets easily. With all of the options available, you can start choosing by downloading the pricing scheme calculations for HashMicro’s asset management system first.
Also read: Avoid These 4 Problems with Asset Tracking System
Tip #2: Understand Your Asset Life Cycles
You need to know the life cycle of each of your assets, from the purchase to the disposal. Forecast how long you can use each of your assets. This will make it easier for you to determine the best time to perform asset maintenance.
By estimating the life cycle of your assets, you can also make purchases more wisely in the long run. For example, you can opt for computers that are more durable or have a longer usage period than the ones you currently have in your office.
Tip #3: Track Your Assets Routinely
Without regular asset tracking, your company can suffer financial losses. You may incur fees for paying unnecessary taxes, insurance, purchases, and asset maintenance. In addition, you can pay taxes on assets that have depreciated (or that you no longer own).
You can also be overwhelmed when your assets are insufficient to meet the demands of your customers or clients. Therefore, it is very important to keep track of the number of assets you actually own as well as the number of assets recorded on your books.
Also Read: 5 Tips Solving Troubles in Business Asset Management
Tip #4: Understand Your Asset Depreciation
You need to know the depreciation of your company’s assets. Find out which assets are no longer suitable for use, then find out why. You may not know that your employees are still using some obsolete items, which is certainly slowing down their work.
Therefore, regular tracking of depreciation is necessary. This activity can identify which items should no longer be used and know the best time to make a purchase.
Also read: What is an Asset Management System? Its Benefits & Features
Tip #5: Deploy Automated Asset Management Solutions
Managing a company’s resource manually takes a lot of time, effort, and money without getting equivalent results. To optimize your portofolio management, consider using an automated solution. This software automates your asset creation processes, such as asset value tracking and depreciation, asset maintenance, contract management, cost analysis, and in-depth report generation.
Conclusion
Effective asset management is crucial for businesses in Singapore aiming to stay competitive, cut costs, and optimize operations. By understanding asset types and their life cycles, and implementing regular tracking and depreciation checks, companies can better manage resources and avoid costly errors.
Adopting these strategies leads to smoother workflows and long-term success. Automation simplifies portofolio management, helping businesses stay organized while gaining valuable insights into asset usage. The ability to track, maintain, and optimize assets more efficiently gives companies a significant edge in a highly competitive market.
To help you take control of your asset management with ease, please consider trying HashMicro’s Asset Management System. With features like proactive maintenance scheduling, comprehensive lifecycle management, asset tracking through barcodes or RFID, and data-driven reporting, you can ensure optimal use of your resources while minimizing risks.
Still curious? Why don’t you start with a free demo today and experience firsthand how our system can streamline your operations and boost your business’s efficiency. See you on top!
