Upholding integrity: Ismail (centre) chairing the EAIC coordination meeting with heads of enforcement agencies. — Bernama
Problematic government officers found to be involved in malpractices or wrongdoings must have their services terminated early to put an end to integrity issues involving civil servants and management, proposed the Enforcement Agency Integrity Commission (EAIC).
Its chairman Tan Sri Ismail Bakar said the Malaysian civil service was once revered among the Commonwealth nations but noted that it is now entangled with integrity issues.
Ismail said giving marching orders to civil servants who are problematic is the way to go to prevent integrity issues from festering at the new department these officers are transferred to.
We are working on eradicating problematic officers in (government) agencies by way of early termination of their service. If the government agrees on this, it will be easier for us to perform our duties,” he said.
Ismail provided examples of court cases involving civil servants who have engaged in malpractice or misconduct.
“But we lost (the case). With the relevant laws, we can see how to terminate their service without having their case concluded in court trials,
Ismail said there has been precedent where problematic officials were terminated, citing existing regulations such as the Public Officers (Conduct and Discipline) 1993 that provide for this.
He described the practice of transferring problematic officials to a different department as “a vicious cycle”, which might not be a deterrent.
“What is also worrying is that some civil servants and enforcement officers would get a third party, such as an influential individual or a company, to protect their wrongdoings.
“What is more saddening is that there are higher-ups who are complicit in their subordinates’ wrongdoings.
“In fact, some have even led such activities. Such deeds have tarnished the civil service’s image,” Ismail said.
He said if enforcement agencies’ disciplinary bodies do not adopt EAIC’s recommendations, it sends a signal that they are not serious about eradicating wrongdoing.
Ismail, who is a former chief secretary to the government, also said that low wages should not be an excuse to be corrupt.
“You already knew your wages (before joining the service), so why did you still take up the job?
“Never use low wages to legitimise corruption,” he said in his opening remarks at the EAIC coordination meeting with enforcement agencies’ department heads yesterday.
“If you love the civil service, carry out the duties you are assigned responsibly,” he said.
Ismail said the EAIC had received 229 reports on integrity cases between June 1, 2023, and May 31, this year, with the highest number of cases related to the Immigration Department.
During this period, the commission initiated 17 investigation papers regarding alleged malpractices by civil servants.
Almost 90% of the probes have been completed and decisions have already been reached regarding two individuals who are being investigated.
The EAIC had, among other things, recommended terminating the public officers’ service, halting their promotion and issuing warnings.
EAIC is a federal statutory body responsible for monitoring and investigating public complaints about the alleged misconduct of enforcement officers or agencies as listed in Act 700.
Currently, it has 21 enforcement agencies under its supervision.
This includes the Immigration Department, Customs Department, Malaysian Maritime Enforcement Agency, National Registration Department and Road Transport Department, among others.Ismail also said that the commission is looking for more agencies to fall under its jurisdiction.
Leading the pack: Tan beats Cook, Musk and Zuckerberg in the analysis by the WSJ. — Photo from Broadcom Inc
Tan tops list of highest paid executives in the US last year
PETALING JAYA: The highest-paid chief executive officer in the United States is neither Apple’s Tim Cook nor Tesla’s Elon Musk, but Malaysian-born businessman Tan Hock Eng.
Tan, 71, also surpassed Meta Platforms’ Mark Zuckerberg by earning US$162mil (about RM760mil) in compensation last year, according to South China Morning Post, which quoted an analysis by the Wall Street Journal (WSJ) this week.
“Tan, who is a US citizen, is the CEO of semiconductor company Broadcom Inc and has been topping the pay charts since 2006, receiving US$103mil in 2017,” said WSJ.
However, the pay package comes with several conditions, including the company’s stock hitting a certain level by next year. Tan must also remain as CEO for an additional five years, and he will not receive any more equity or cash bonuses during that period.
The semiconductor company’s shares rose 106% over the past 12 months, bringing its total market capitalisation to US$655bil (RM3 trillion).
Tan is also a board member of Meta Platforms, the US-based company that owns Facebook, Instagram and WhatsApp among others.
Tan, who hails from Penang, completed his undergraduate studies in mechanical engineering at the Massachusetts Institute of Technology.
He also has a bachelor’s degree in electrical engineering from the National University of Singapore. He then earned a Master of Business Administration from Harvard University. After returning to Malaysia, he was involved with Hume Industries between 1983 and 1988.
He then moved to Singapore as managing director of venture capital firm Pacven Investment.
He reportedly relocated back to the United States in 1992 and assumed the role of vice-president of finance for PC maker Commodore International.
EMPLOYEES today are more aware of their options and are in a better position to decide on roles that align with their interests, values, and priorities.
Our 2022/23 Malaysia Salary & Employment Outlook notes that younger employees tend to prioritise career progression opportunities and a healthy work-life balance compared to employees from other age groups.
Therefore, in the post-pandemic world of work, it is important for employers to engage with employees to address challenges and shape solutions together. It is a process that needs to be carried out effectively and continuously.
With the integration of Artificial Intelligence (AI), among other technological developments, new opportunities and challenges have arisen. One primary example is the high demand across key economic sectors for talents skilled in digital fields.
With the prevalence of all things digital, accelerated further during the movement control order, contactless payments such as e-wallets and mobile banking have seen a spike in consumer adoption. In tandem with this demand, the Malaysian government has introduced multiple initiatives to drive the fintech boom and encourage more Malaysians to hop onto the growing digital economy.
As the industry continues to transform, the roles and requisite skills will evolve in tandem. Taking this into consideration, employers must look beyond hiring simply to fill roles. Instead, they must invest in upskilling programmes to ensure talents are available to take on the evolving responsibilities at every level of the organisation. Individuals with cross-functional skillsets across finance and tech will be in especially high demand.
Specialised roles, such as product development, product management life cycle, and data analysts, are some of the hot jobs to look out for. In the post-pandemic business world, many organisations have since undertaken their own digital transformation, leading to rising demand for skilled IT talents.
On the flip side, this creates a highly competitive job market as organisations are expected to adopt a more aggressive approach in hiring the best talents. This means employers who have an existing IT talent pool would also need to step up their retention strategies to avoid losing their talents.
Fierce competition within the industry also serves as a reminder for the workforce to regularly reskill and upskill themselves to stay relevant. In 2020, with the onset of the pandemic, e-commerce experienced a boom when Malaysians, young and old, became regular online shoppers due to the movement restriction orders.
Today, prospects remain strong for careers in the supply chain field as online shopping habits have become part of the new normal.
As the economy strengthens, businesses will need to re-evaluate their strategy and remain on top of supply chain trends to fulfil customer satisfaction while staying profitable. Therefore, there is a growing demand for both white and blue collar workers who have the skills to meet the physical and technological demands of today’s supply chain and logistics careers.
In the post-pandemic world of work, industries have transformed, roles have evolved, and expectations have changed. With this, organisations that engage employees in shaping solutions and addressing challenges will continue to thrive.
The employment market has shown a strong rebound since the country began its transition into the endemic phase of Covid-19. As our economy recovers against new global challenges, ensuring the resilience of the workforce is the way to go if businesses are to thrive.
To win in the marketplace, employers must first ensure they win in the workplace.
BRIAN SIM Country head and managing director PERSOLKELLY Malaysia
FILE
PHOTO: A view of the London skyline shows the City of London financial
district, seen from St Paul's Cathedral in London, Britain February 25,
2017. REUTERS/Neil Hall/File Photo/File PhotoReuters
UK Audit Shake-Up Targets Big Firms After Spate of Corporate Failures
LONDON (Reuters) - Britain set out sweeping reforms of big company audits on Tuesday after high-profile collapses at builder Carillion and retailer BHS in recent years hit thousands of jobs and raised questions about accounting quality.
The business ministry detailed changes to auditing and corporate governance that will be put into law, though the measures are unlikely to come into force until 2024 or later and smaller firms will be shielded from the new rules.
The reforms are in response to 150 recommendations from three government-sponsored reviews on improving auditing in a market dominated by KPMG, EY, PwC and Deloitte, known as the Big Four.
The new law would create a more powerful regulator, the Audit, Reporting and Governance Authority (ARGA), to push through changes set out by government.
In the meantime, the current watchdog, the Financial Reporting Council (FRC), will have powers to vet audit companies and ban failing auditors, the ministry said.
Britain will also review a European Union definition of "micro entities", which benefit from simplified accounts. They typically have a balance sheet of no more than 350,000 euros ($377,230) and employ no more than 10 people.
Loosening the definition would mean more firms saving money by filing simplified accounts, though it could raise investor protection concerns. Other reporting requirements will also be reviewed to help attract growth companies to Britain.
The FRC currently focuses on big listed companies, but ARGA's remit would expand to include about 600 private firms with more than 750 staff and an annual turnover of over 750 million pounds ($949 million), a higher threshold than initially flagged. BHS was unlisted.
NO UK SARBANES-OXLEY
To curtail the dominance of the Big Four, the top 350 listed companies would have to appoint a non-Big Four accountant, or allocate a certain portion of their audit to a smaller accountant such as Mazars, BDO or Grant Thornton.
The business ministry could introduce market share caps on the Big Four if there is no improvement in competition.
Directors of premium listed companies would also have to state why they think their internal controls are effective.
This would be done under Britain's "comply or explain" corporate governance code, which the FRC can change without legislation.
UK companies pushed back against enshrining in law a version of mandatory U.S. Sarbanes-Oxley rules, which force U.S. directors to personally attest to the adequacy of internal controls, and face prison for breaches.
"Lessons from Carillion and other recent company failures have been ignored, with little emphasis now on tightening internal controls and modernising corporate governance," said Michael Izza, chief executive of ICAEW, a professional accounting body.
FRC chief Jon Thompson said: "The Government’s decision not to pursue the introduction of a version of the Sarbanes-Oxley reporting regime is, the FRC believes, a missed opportunity to improve internal controls in a proportionate, UK-specific manner."
Big firms would also have to state what external checks, if any, were made on the reliability of their non-financial information in annual reports, such as risks from climate change.
Larger companies would have to confirm the legality of their dividends, a lesson from Carillion.
For its part, EY is under particular pressure due to its auditing of collapsed German payments firm Wirecard AG – although it’s not clear that a break-up would rid it of any liabilities arising from that failure. Perhaps EY is preempting tougher regulation.Or perhaps it just sees an opportunity to monetise some of it assets.
A possible split of EY into separate audit and consulting firms must confront the problem faced by all break-ups: How do you create attractive businesses out of both when one is likely to be seen as inferior?
Here, that would be the newly established standalone auditor. EY – or any Big Four accounting firm that attempts such a separation – has its work cut out to make pure-play audit a success.
The revelation by Michael West Media that EY is considering the move heralds a potentially seismic shift for the industry.
A succession of accounting scandals has long prompted attacks on the Big Four for earning fees from audit clients by selling consulting services such as strategy or restructuring advice.
There’s an inherent conflict of interest in offering these to the same executives whose homework you’re meant to be marking.
While regulatory scrutiny is forcing firms to tread carefully, creating distinct companies is the most reliable remedy.
The United Kingdom’s competition watchdog called for an “operational separation” of audit and consulting within the existing firms in 2019, stopping short of demanding full break-ups because of cost and complexity.
For its part, EY is under particular pressure due to its auditing of collapsed German payments firm Wirecard AG – although it’s not clear that a break-up would rid it of any liabilities arising from that failure.
Perhaps EY is preempting tougher regulation.
Or perhaps it just sees an opportunity to monetise some of it assets.
One option under consideration is the sale of a stake in the consulting business to a private buyer or to the stock market, creating a windfall for EY’s current partners, according to the Financial Times. Demand would likely be strong.
Just look at the private-equity money piling in lately. PwC sold a tax advisory practice to Clayton, Dubilier & Rice for a reported US$2.2bil (RM9.6bil) last year, while KPMG offloaded its UK restructuring arm to HIG Capital LLC.
But what about the rump that remains?
While the underlying economics of the Big Four are opaque, there’s a widespread suspicion that consulting subsidises audit.
At the very least, the ability to share costs means audit fees are lower than they would be for a distinct firm, regulators have found.
Retaining talent
The biggest challenge is how a standalone auditor would attract and retain talent without offering an in-house career in consulting as an option.
Short-sellers and forensic investigators aside, checking company accounts is for many a laborious gateway to other roles.
Audit partners accused of getting it wrong have regulatory probes hanging over them for years (an investigation into Rolls-Royce Holdings Plc’s 2010 accounts only just closed).
No wonder juniors tend to jump ship to better paid and less risky careers in consulting or investment banking not long after they’re qualified.
So auditing will have to be made more attractive, both financially and culturally.
One place to start is expanding the function beyond checking financial statements to offering sophisticated checks on companies’ claims on non-financial performance such as climate and social impact.
When the United States Securities and Exchange Commission is clamping down on greenwashing by investment funds, it’s clear the future of environmental, social and governance investing rests on companies proving they’re not cooking the books on these issues too.
These public-interest assessments are going to be increasingly scrutinised by investors in future.
They are already offered under the umbrella of so-called assurance services, but ought to become a more developed part of corporate reporting.
That would involve transferring some skills over from the consultancy side. The trick will be to add in parts of the current consulting business that are relevant to a more modern vision of audit, without just recreating a new auditor-cum-consultancy.
Of course, separation won’t eliminate all the conflicts in audit.
The chief culprit is the way managers often effectively appoint the audit partners who are meant to be their policemen.
But the prize for stock-market investors is improved audit quality, and a break-up could support that.
The goal should be to create a virtuous circle.
Make audit more enticing as a long-term career, attract people who do the work better – and hopefully cut the number of blow-ups. — Bloomberg
Chris Hughes is a Bloomberg Opinion columnist covering deals. The views expressed here are the writer’s own.
Pandemics have been pivotal points in history with vast contrasting effects on the affected populations. Covid-19 has triggered a global economic turmoil that threatens the world order.
Third World countries should create stronger ties with one another in view of the trade challenges ahead, Asli’s Centre for Public Policy Studies Chairman Tan Sri Ramon Navaratnam said.
“Covid-19 has allowed the world to see that the US and other western countries are not all that (competent),” he said yesterday.
“The pandemic ravaged them, while many commonly oppressed countries in South America and Asia handled the situation much better. Third World countries should band together with China to create increased shared prosperity.”
Ramon said the situation would turn dismal if states and economic blocs turn to self-preservation.
“Beggar-thy-neighbour policies that call for protective barriers and sanctions, would provide opportunities for declarations of war and the suppression of the Third World.”
Emir Research President Datuk Dr Rais Hussin said the pandemic has shaken the global economy faster and more severely than the 2008 global financial crisis or the Great Depression of the 1930s.
“In the US, the S&P 500 fell 30% in 22 days, the fastest drop in its history,” he said yesterday.
The S&P 500 is a measurement of the performance of 500 large companies listed on stock exchanges in the US, and is used as a benchmark of its overall market.
“Similar situations can be seen with other countries such as China, India, and the European Union, which are Malaysia’s trading partners.”
He said global powers could force their ways on resource-rich countries as resources wane. “China has already started flexing its muscles with its recent incursions into the South China Sea.”
Meanwhile, Malaysian Trades Union Congress secretary-general J. Solomon said there could be a large exodus of foreign workers from Malaysia.
“With the economic crisis, the Malaysian government should put pressure on companies to prioritise local workers,” he said. “This could lead to an exodus of foreign workers.
“If the government fails to take care of locals, we may instead see a big departure of Malaysians seeking better pay in other countries.”
Solomon also said businesses may head towards automation, instead of employing a human workforce.
“Minister of International Trade and Industry Ministry Datuk Seri Mohamed Azmin Ali has called on the business community to reduce their dependence on physical labour and focus more on automation and the use of technology,” he said.
“We see his statement as irresponsible as it creates fear in workers, and we hope that the government will ensure that any such transition will be executed in a balanced manner.”
In 2007, Mr Liew Mun Leong – then CEO of CapitaLand – received a staggering $20.52 million bonus for helping the property developer achieve a record profit of $2.76 billion that year.
He is a wealthy man, but wealth, he says, means nothing to him.
Now the chairman of CAG, he says he is contented with his home (a landed property in Chancery Lane) and his BMW 7 series. “But I don’t want to work on my money. I want to work on my grey matter and if possible, grow it,” he says with a chuckle.
It explains why he still holds not one, but several jobs. Besides CAG, he is chairman of Surbana Jurong.
He sits on several boards. In many ways, he says his career has been a case of opportunity and chance. “How many engineers get the opportunity to build airports? After more than two decades in the public sector, he took up the offer to steer engg and construction firm L&M Investments.... Continue Reading
Interview with Changi Airport Group's Liew Mun Leong: You've got mail - from the chairman
Mr
Liew, who used to be the CEO of CapitaLand, started penning his "Sunday
e-mails" back in 1998, initially for staff at the real estate giant and
now at the two firms he chairs. A collection of these e-mails has been
published over four volumes, with the most recent - Building People:
Sunday Emails From A Chairman - now out.PHOTO: LIANHE ZAOBAO
Staff of Changi Airport Group and Surbana
Jurong have much to glean from e-mails that their head honcho sends on
Sundays to share his reflections
Getting a note from the boss every few weeks, extolling the virtue of
pragmatism or sharing his observations on a Mount Fuji climb, is pretty
rare for most employees but it has been a regular occurrence for two
firms in Singapore.
Former CapitaLand chief executive Liew Mun Leong started penning his
"Sunday e-mails" back in 1998, initially for staff at the real estate
giant and now at the firms he chairs - Changi Airport Group and Surbana
Jurong.
A collection of these e-mails has been published over four volumes,
with the most recent - Building People: Sunday Emails From A Chairman -
now out.
Mr Liew, 70, told The Sunday Times: "I had embarked on a new hobby of
writing e-mails as a means of reaching out to my colleagues and
staff...
"It is a tool to influence their thinking, to curate their corporate
values, their sense of responsibility to the company and to society."
The communication goes both ways and staff are welcome to offer feedback.
Mr Liew, who left CapitaLand in 2012, believes successful leaders must be good communicators, which is why he continues to send Sunday e-mails to staff at Changi Airport Group and Surbana Jurong.
These notes are written in his characteristically candid and casual style, containing anecdotes, personal reflection and a good handful of quotable quotes.
In an e-mail titled Pragmatism In Business, Mr Liew urged the management not to be emotionally attached to the buildings they have acquired or built. "ROE is returns on equity, not returns on emotion."
He also shared the key ingredients of his career success - the 5Ps, which stand for paranoia, perseverance, perfectionism, passion and pragmatism.
"Being paranoid forces me to plan ahead to deal with even the most remotely possible adversity... the consequence of not doing so may be regretful and unforgiving," Mr Liew, a trained engineer, wrote in another note.
He spends four to five hours on a Sunday afternoon crafting the e-mails, drawing inspiration from his travels, business dealings and observations.
MANAGEMENT STYLE
Whether in his previous role as a chief executive or as a chairman now, Mr Liew takes a hands-on approach in overseeing the companies, be it in the hiring of senior staff or assessing an acquisition target.
"I am involved very much in interviewing senior people, for example, a vice-president or senior vice-president. I have the vetting right... I do turn down candidates who are recommended by management."
The topic of talent development and having the right core values takes up an entire chapter in his new book.
Mr Liew emphasises the importance of "eyeballing" candidates and asking them questions about their personal and education background to determine their aptitudes, attitudes and interests. For senior appointments, he would even personally run reference checks on a candidate's past performance by speaking to former employers.
Having the right troops is a key consideration in driving corporate growth but, beyond talent, being committed is also critical.
"They may have talent, but they can stay with you for two years and leave... I am a firm believer of building a lasting organisation. And an organisation can last only when people last," he said.
SURBANA JURONG
As chairman of urban-planning consultancy Surbana Jurong, Mr Liew aims to build the firm into Asia's consultancy powerhouse on the back of the region's growing needs in infrastructure.
The firm announced last month that it had acquired Australian-based SMEC Holdings for $400 million, a move that takes the consultancy's workforce to 10,000 staff members in 40 countries.
Surbana has also been appointed to draw up a masterplan to develop Chongqing into western China's logistics hub. This is part of the third bilateral project - Chongqing Connectivity Initiative - between Singapore and China.
Apart from China, the company is involved in more than 40 projects in fast-emerging Myanmar, including masterplanning, project management and engineering design.
Mr Liew is bullish about urbanisation and infrastructure prospects in China, Africa and South-east Asia, and he is not overly concerned about whether the firm has the bandwidth to handle the increasing workload.
"I have one business philosophy and that is 'I am not worried about not enough people, I am worried about not enough business'.
"You get me the business, I will find the people to do it," he said.
There is potential for more mergers and acquisitions ahead as Surbana Jurong seeks to grow its capabilities in underground development and environmental engineering. Mr Liew noted that these are areas in which European companies have an edge.
CHANGI AIRPORT GROUP
It is apt to say that Mr Liew's work at Changi Airport Group has come full circle. He was appointed to the board in June 2009 but his involvement with the world-class air hub had begun much earlier.
More than 40 years ago, he had requested a transfer to the Public Works Department to learn to be an airport engineer - a move that had him involved in the construction of Changi Airport in 1975.
Today, it is one of the world's busiest international airports, handling more than 55.4 million passenger movements last year and serving 100 airlines flying to more than 320 cities.
"Aviation is always competitive, that is the order of the game... But I think we have performed well... we have won over 500 awards," Mr Liew noted.
With increasing competition from Middle Eastern airlines and airports for the European market, he said Changi Airport can focus its strategies on capturing a larger share of the pie in Asia.
"We are positive that the Asian aviation business is going to be very big. Look at China, for instance... Its outbound this year is already 140 million people. It was looking at 100 million outbound in the year 2020. But now in 2016, it has already outgrown that number."
Mr Liew's enthusiasm about growing Surbana Jurong and Changi Airport Group is unlikely to wane with age. When asked if he would retire at some point, he quipped: "I don't retire, I die!"
He added: "Society has invested so much in you in terms of the experience that you have and to say just because you reach a certain age, you fall off the cliff into nothingness - I think that is a silly thing."
Related:
Jack Ma career advice: You don’t have to be smart to be successful
Jack Ma: I always try to find people smarter than I am
Stupid people get together easily but smart people can't, so my job is to manage and ensure them working together I made money in real estate in my 20s. Not rich, but my retirement is
more or less secured. I own a small business and the property that i
operate out of. Preparing to move to a small town and live off of rental
income, and probably open another small business there. I didn’t do
anything fancy or amazing in my life, but i am very happy with how
things turned out for me
Upholding integrity: Ismail (centre) chairing the EAIC coordination meeting with heads of enforcement agencies. — Bernama
