How to win in the workplace

 

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 

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UK audit shake-up after spate of corporate failures; The two sides of the EY break-up

 

UK audit shake-up targets big firms after spate of corporate ...

 

The Big Four

Britain to shake up audit market after Carillion crash

Britain to shake up audit market after Carillion crash - Reuters

 

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. 

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Insight - The two sides of the EY break-up

 

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.

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Financial scandals are pandemic too

Third World should team up with China for progress amid coronavirus pandemic, says Asian Strategy & Policy Institute Chairman

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.”

BY Tan Sri Ramon Navaratnam | ASLI

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It Changed My Life: I always hire people who are better than me

It Changed My Life: I always hire people who are better than me, says Changi Airport ...

I always hire people who are better than me, says Changi Airport Group chairman Liew Mun Leong .

In the background is a portrait of Singapore's prime minister Lee Kuan Yew, painted by French artist Jean-Pierre. ST Photo Kevin Lim

 Top stories from The Straits Times on Sunday, Feb 3, Singapore News ...

https://youtu.be/CNIU1CnCGck
https://youtu.be/e9uxFrrff58
https://youtu.be/ljy8Bpq17-Q

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

Wong Siew Ying

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."

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It Changed My Life: I always hire people who are better than me

It Changed My Life: I always hire people who are better than me, says Changi Airport ...

I always hire people who are better than me, says Changi Airport Group chairman Liew Mun Leong .

In the background is a portrait of Singapore's prime minister Lee Kuan Yew, painted by French artist Jean-Pierre. ST Photo Kevin Lim

 Top stories from The Straits Times on Sunday, Feb 3, Singapore News ...

https://youtu.be/CNIU1CnCGck
https://youtu.be/e9uxFrrff58
https://youtu.be/ljy8Bpq17-Q

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

Wong Siew Ying

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

https://youtu.be/MwixREUJOI0

Govt-linked companies (GLCs) shake-up as they sing a different tune

On the rise: A man walks past the Employees Provident Fund headquarters in Kuala Lumpur. Remuneration of GLC chiefs, senior management and directors have been on the uptrend following a transformation initiative to make them more competitive commercially. 

Overpaid CEOs and social duties of GLCs set for review

The new government has clearly said that there is a need to review the role of GLCs and the remuneration paid out to their top executives

A GLANCE at one of the annual reports of the country’s government-linked companies (GLCs) reveals that its chief human resource officer earned close to a million ringgit or about RM80,000 per month, last year.

Other senior personnel were also compensated with generous remuneration, with its chief executive taking home over one and the half million ringgit in financial year 2017.

More importantly, this was at a company that had courted much controversy in recent times over allegations of mismanagement and under-performance.

Such a scenario, however, is not uncommon at GLCs, where remuneration of key executives tend to run in the millions but performances sometimes leave much to be desired.

By definition, GLCs are companies where the government has a direct majority stake via their entities such as Khazanah Nasional, Employees Provident Fund, Permodalan Nasional Bhd (PNB), the Armed Forces Fund (Lembaga Tabung Angkatan Tentera) and the Pilgrims Fund (Lembaga Tabung Haji).

In recent years, remuneration of GLC chiefs, senior management and its directors have been on the uptrend following a transformation initiative to make them more competitive commercially.

The thinking behind this is that in order to attract talent – subjective as the definition of that may be – top dollar should be paid.

Some, however, argue that GLCs should in fact prioritise national service a little more.

Universiti Malaya’s Faculty of Economics and Administration professor of political economy Edmund Terence Gomez says GLCs have social obligations.

“What this essentially means is that GLCs cannot operate in a purely commercial manner as they also have to look at the social dimension,” he says. “The GLC professionals have many times articulated that they are doing national service. Going on that alone, one can argue that they shouldn’t be paid private sector salaries,” Terence adds.

And so it is now, there is a disquiet building up among GLCs following the change in government.

The new government has clearly said that there is a need to review the role of GLCs and the remuneration paid out to their top executives and senior management.

In this regard, the Pakatan Harapan government is understood to be mulling over making drastic changes in the appointment and remuneration of key directors at GLCs which include government agencies.

It was reported recently that the Council of Eminent Persons, headed by Tun Daim Zainuddin, who was Finance Minister in the 1980s, has requested details of the salaries of some of the top executives at GLCs as part of the review.

Already, there have been a couple of GLC chief executives who have left and more of this is expected to materialise over the coming weeks.

“It appears to be a purge of Tan Sri Nor Mohamed Yakcop’s boys,” quips an industry observer, referring to the veteran politician who was instrumental in the revamp and transformation of Khazanah which started in 2005 and subsequently, driving the GLC transformation initiative.

UM’s Terence says if the new government is to appoint new individuals, it must ensure that the process is transparent.

“If you are removing these people, who are you replacing them with? More importantly how are you selecting these people?

He adds there needs to be a transparent mechanism in the appointment of this new breed of professionals that will be brought in and what must also be looked into is the kind of check and balances being put in place to ensure governance.

“There should be a debate on these things,” he says.

Economist Yeah Kim Leng believes that a review is timely and appropriate as part of a deeper institutional and structural reform.

“The broad aims are firstly, to reduce excessive payoffs which don’t commensurate with performance and secondly, to address the widening wage and benefits gap between the top and bottom rungs of the organisation,” he says.

Such rationalisation will result in a more equitable salary structure as well as raise the generally depressed wages of middle management and support staff which form the largest number of most organisations, Yeah adds.

Unfair advantage

The role of a head honcho, be it at a GLC or non-GLC, is seldom a walk in the park.

CEOs make critical operational decisions that affect everything from future business directions to the health of a company’s balance sheet and employee morale.

The job generally entails long hours and tremendous pressure to meet expectations of shareholders and stakeholders.

But again, while local GLCs have been key drivers of the economy, one key feature is that they are ultimately owned by the government.

This, some argue, give GLCs unfair advantages such as access to cheap funding and political patronage over their private counterparts.

So, is running a GLC more of a stewardship role as opposed to an entrepreneurship role?

Therein lies the issue that in turn will have a bearing on the remuneration levels of GLC heads.

Minority Shareholders Watch Group (MSWG) chief executive office Devanesan Evanson puts it this way.

“Entrepreneurs have their skin in the game in that there are often the major or substantial shareholder in a company.

“It is in their direct interest to perform as this will be translated into share price appreciation which will impact the value of their shareholdings – this is motivation to grow the entrepreneurial spirit,” he says.

On the other hand, GLC heads do not have their skin in the game save for their limited shareholding through ESOS or share grant schemes.

“If a GLC loses money, the impact on them is limited. They may be prepared to take perverse risks as the eventual loser is the government-linked investment companies or GLICs (and the minority shareholders of the GLC), which eventually are the people who are the members or subscribers of the GLICs.

“In that way, we are not comparing apple to apple and yet, we need talent to run GLCs.

“So we can conclude that, we need to pay for talent at GLCs but it should not be as much compared to what one would pay the CEO of a firm which he started,” Devanesan says, noting that remuneration of some of the GLC heads have risen too fast in recent years.

Rising remuneration is a given, others say, as the government had recruited top talent from the private sector to helm these companies.

A case in point is  Axiata Group Bhd , which has done relatively well with the infusion of the “entrepreneurial spirit” under the helm of president and group CEO Tan Sri Jamaludin Ibrahim, who has helmed the Khazanah-owned telco since 2008, they point out.

Prior to that, Jamaludin was with rival Maxis Communications Bhd, a private company controlled by tycoon Ananda Krishnan.

Other GLCs which have performed consistently over recent years include banks like Malayan Banking Bhd and CIMB Group Holdings Bhd which have expanded their operations out of Malaysia, carving a brand name for themselves regionally.

Under a 10-year transformation programme for GLCs initiated in 2005, companies were given quantitative and qualitative targets to meet as measured by key performance indicators.

Now, the 20 biggest GLCs currently make up about 40% of the local stock market’s market capitalisation.

One of the principles under the programme was also the national development agenda, which emphasised the principle of equal growth and development of the bumiputra community with the non-bumiputras.

Asian Strategy and Leadership Institute (ASLI) Centre of Public Policy Studies chairperson Tan Sri Ramon Navaratnam says the purpose of establishing GLCs to encourage bumiputras to participate in business has largely been fulfilled.

“Now that the bumiputras are on a strong footing in the corporate sector with able leaders who have wide experience, it (GLCs) could be seen as an erosion to the welfare and progress of the smaller and medium-sized industries, particularly those where other bumiputras are involved,” Ramon says.

Having said that, he says although many GLCs are doing well, they have performed well “mainly because of protective policies and monopolistic practices”.

“The time has come in this new Malaysian era for more competition and less protection.”

Benchmarking

Still, if simplistic comparisons are to be made, the CEOs of the country’s two largest GLC banks, Maybank and CIMB for instance, took home less than the CEO of the country’s third largest bank, the non-GLC Public Bank Bhd last year.

In 2017, Public Bank’s managing director Tan Sri Tay Ah Lek took home some RM27.8mil in total remuneration while Maybank’s Datuk Abdul Farid Alias earned RM10.11mil and CIMB’s Tengku Zafrul Abdul Aziz made RM9.86mil.

Across the causeway, a survey of CEO remuneration of Singapore-listed companies by one financial portal shows that Singaporean GLC CEOs earned 31% more than their non-GLC counterparts in 2017.

Singapore’s Temasek Holdings-owned DBS Bank, which is Singapore’s largest bank, paid out S$10.3mil (RM30.36mil) to its head honcho, while in the telecommunication sector, SingTel’s remuneration to its top executive was some S$6.56mil (RM19.34mil) for the most recently concluded financial year.

By definition, Singapore GLCs are those which are 15% or more owned by the city-state’s investment arm Temasek Holdings.

UM’s Terence does not think Singapore should be a benchmark for Malaysian companies.

“Singapore is a much smaller country and the manner in which they operate in is also different ... their GLCs are deeply conditioned by their holding company, which is the Minister of Finance Incorporated,” he says.

MSWG’s Devanesan notes that determining remuneration is “not exactly science” as there are many parameters to be considered.

Some of the factors to note include whether the companies are in a monopolistic or near monopolistic position and the performance of the GLC heads over the years.

“Based on these parameters, we can instinctively know if a GLC head is over-remunerated,” he says. Over in China, state-owned Industrial and Commercial Bank of China (ICBC), the country’s largest lender by assets, paid out about 63.43 yuan or about RM39mil in total remuneration before tax for the year 2017 to its top executive.

Notably, the Beijing-based ICBC’s net profit’s was at a whopping US$45.6bil (RM182bil) in 2017.

Sources: Gurmeet Kaur and Yvonne Tan The Star

GLC singers sing a different tune

Some officials singing 'Hebat Negaraku'.

 Swan song for some after 'Hebat Negaraku' post-GE14 - CEO think video to showcase musical talents

 Several heads of government-linked companies (GLCs) have come together in a heartwarming music video titled "Hebat Negaraku" (my country is great). 

 GLC chiefs show off musical talent in 'Hebat Negaraku' music video ...

https://youtu.be/hfK_wfD17qk

The heads of government linked companies (GLC) who sang a song that later became the theme song for the Barisan Nasional’s election campaign have distanced themselves from the controversial music video.

Those who sang and played musical instruments in the music video titled “Hebat Negaraku” (my country is great) said they did not know the video or the song was going to be a political theme song.

There have been repercussions on the CEOs who appeared in the music video. They have come under scrutiny for making a song that was used as propaganda by Barisan in the last general election.

Three of the GLC bosses in the video have either retired or resigned since the new government took over.

Several more have been speculated to leave in the coming weeks or months but nothing is cast in stone. Sources said this is because most of the CEOs are not known to have campaigned openly for either Barisan or Pakatan Harapan.

“None of the CEOs had a clue it would become a political song. Do you really think the CEOs would have done it if they knew it would become political?” asked one of the CEOs who appeared in the video but declined to be named.

“We have said no to so many things, and we could have easily have said no to this if it was political.’’

Another CEO said he was approached and felt it was “more of a patriotic song and nothing more.”

“At that point in time, we did not think much (of the repercussions). Hebat Negaraku was announced as Barisan’s campaign theme long after the recording was made. We did not know that.’’

Another CEO added: “We thought it was a casual thing when we were approached as some of the CEOs have their own band.’’

It all started when several CEOs were called to be part of a music video and they thought it was to showcase the musical talents of 14 GLCs heads, plus staff members of the 20 key GLCs.

The song is about the greatness, advancement and inspiration of Malaysia. It was released on YouTube on March 22 but has since been taken down.

But fingers have been pointed at the GLCs bosses who made the music video because it became a political video.

Datuk Seri Shazalli Ramly has been said to be the main orchestrator for the group in terms of making the music video. He was also said to be the branding chief for Barisan’s elections campaign.

Barisan lost the elections held on May 9 to Pakatan, which has since formed a new government and is scrutinising all the performance, processes, remuneration and procurement of the government and GLCs.

Shazalli quit his job as group CEO of  Telekom Malaysia Bhd (TM) on June 6. Malaysian Resources Corp Bhd (MRCB) group managing director Tan Sri Mohamad Salim Fateh Din has retired as group MD last week and it was something he had planned to do.  Malaysia Airports Holdings Bhd Datuk Badlisham Ghazali did not get his contract renewed. All three were in the music video.

There is a GLC secretariat that now comes under the purview of TM, which was earlier parked under Khazanah Nasional Bhd. The secretariat organised the making of the music video, according to sources. The CEOs were called to attend a session and within a few hours it was all done with no prior rehearsals.

“When you are called, it could be difficult not to comply since it is the secretariat that called you. We have to oblige but we really did not know it was going to be a campaign slogan. This is really unfortunate that it has turned out like this.

“We were surprised when we found out it was a party slogan but it had already been done and what can we do, we are in the picture,’’ said another CEO.

Not all CEOs who were invited took part in the video. Prior engagements were the reason used for declining to appear. - By b.k. Sidhu The Star

Related:

Need to re-examine mandate given to GLCs

No room for shadow play in the clean-up of GLCs - Business News

Tackling GLCs – the good, bad and ugly - Global Trends

Perak fires 7 GLC executives for overspending - Nation 

Perak sacks 7 GLC execs for excessive spending