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Showing posts with label Administration. Show all posts
Showing posts with label Administration. Show all posts

Monday, August 19, 2024

Civil servants must improve efficiency with new salary system following pay hike


Civil servants have been told to increase their productivity following the salary review of civil servants. In his speech during the 19th Majlis Amanat Perdana Perkhidmatan Awam in Putrajaya today, Prime Minister Datuk Seri Anwar Ibrahim said the increase in salary would not be useful or benefit the country if civil servants were stuck in old habits.

One for the album: Anwar posing with civil servants at the 19th Majlis Amanat Perdana Perkhidmatan Awam (Mappa) at the Putrajaya International Convention Centre. — Bernama
One for the album: Anwar posing with civil servants at the 19th Majlis Amanat Perdana Perkhidmatan Awam (Mappa) at the Putrajaya International Convention Centre. — Bernama


PM wants to see a new spirit in civil servants following pay hike, Have a spring in your step


PUTRAJAYA: Starting next Monday, Datuk Seri Anwar Ibrahim wants to see civil servants coming to work with a new spirit and work culture.

Following the increase in wages for government servants, the Prime Minister said he did not want to hear the public asking why they had to wait two hours to get a licence and up to two weeks for other matters.

Anwar also said department heads who failed to report misconduct by their subordinates would face disciplinary action.

“For example, there are headmistresses who wanted to protect the school’s image and didn’t even report cases of students being tortured.

“There are also department heads who did not report their subordinates with extraordinary wealth.

“Therefore, if it is proven, these department heads will not be promoted,” he said during the 19th Majlis Amanat Perdana Perkhidmatan Awam (Mappa) yesterday.

Anwar earlier announced a 15% pay raise for officers under the implementing, management and professional groups and a 7% hike for officers in top management and professional roles.

He also instructed department heads to constantly implement job rotations to prevent incidents of misconduct among public officials.

Anwar, who is also Finance Minister, said civil servants must ensure services to the public are aligned with their core responsibilities to avoid a waste of expertise.

“I want this issue to be reviewed by the relevant ministries to ensure that our resources are realigned to where they are needed,” he added.

He also warned businesses not to take advantage of the recent salary hike to raise the prices of goods.

“I also hope the private sector, especially companies that record high profits, will follow the government’s move to raise salaries to appreciate the services and sacrifices of their employees,” he added.

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Tuesday, July 6, 2021

Academics attribute China’s success to its highly-rated administrative system & strong governance as CPC celebrating the centenary

  Strong governance is the key

https://youtu.be/g3vnVURtoNI 

What are the keys to China’s economic miracle? 

 Absorbing topic: Ouyang (top centre) with local academics (clockwise from top left) Dr Chang, Prof Wong, Dr Chan and Dr Ngeow discussed the factors behind China’s success at the recent ‘Governance of China: Perspectives from Southeast Asia’ webinar.

 

CHINA’s success in building a strong economy, eradicating abject poverty, curbing the spread of the deadly Covid-19 virus and promoting the Belt and Road Initiative (BRI) to benefit the world can be attributed to its strong governance capability, according to a recent seminar.

From a backward country in 1978 to an economic juggernaut today, the Middle Kingdom’s rise over the past 40 years has been spectacular. What has its leaders done to create one miracle after another? This question has spurred academics at the Institute of China studies (ICs), Universiti Malaya, to explore factors behind Beijing’s achievements.

This former “sickman of Asia”, invaded and humiliated by the West in the 19th and first half of 20th century, is now the world’s second biggest economy. It is also the world’s manufacturing powerhouse and the largest trading nation. It has lifted about 800 million people out of poverty since Deng Xiaoping introduced reforms.

On the technological front, China is a pioneer and global pacesetter in 5G rollout, e-commerce, artificial intelligence, robotics, high-speed railway, satellite navigation and space exploration.

In the “Governance of China: Perspectives from southeast Asia” webinar, jointly organised by the ICs and the Chinese Embassy in Malaysia, Prof Datuk Dr Danny Wong highlighted China’s 1.4 billion people are enjoying a very high standard of living.

“China’s development plans and programmes are the envy of many nations. All these achievements speak volumes of the country’s ability to govern well – to be able to translate strategic plans into effective programmes that bring results.

“One of the things that struck me as important and relevant now is the manner China has been able to handle the Covid-19 pandemic very well. This is a clear display of China’s strong governance capabilities – both on the home front as well as in the international arena,” said Prof Wong, who is the dean of UM’s Faculty of Arts and social sciences.

Prof Wong, also former director of ICs, shared his ground experience in witnessing China’s ability to plan and implement longterm education strategies.

Earlier this year, China announced economic goals for 2025 and 2035, and a carbon-free goal by 2060.

Analysing Beijing’s multi-decade efforts in poverty eradication, ICs director Dr Ngeow Chow Bing attributed the success to Beijing’s strong determination in eliminating poverty, market-oriented economy and government’s strong involvement.

China’s governance system is unique, Dr Ngeow explained. Within the system is a political structure with a very strong cadre/ official mobilisation capability, target-based governance and pairing assistance between rich and poor areas.

The specialist in China affairs said: “Under President Xi Jinping, the ‘last mile’ (the last 99 million very poor people) of poverty eradication was targeted with precision. Party officials were stationed at remote areas and their problems solved with tailored solutions.

“While China’s institutional structure is vastly different from other countries and not replicable, its strategies in wiping out poverty can be learnt.”

Giving the official view, Chinese Ambassador to Malaysia Ouyang Yujing said: “The secret of China’s effective governance is not enigmatic. It lies in the political system – the socialist system with Chinese characteristics adopted by the Communist Party of China (CPC).”

He said the “people-oriented” philosophy of the CPC in governance has won over the hearts and confidence of its people. This could be proven by surveys. And due to this, citizens are prepared to endure hardship and sacrifice to help the government achieve its goals.

A stark example is seen in the lockdown of Wuhan in combating Covid-19 last year, when residents showed a high degree of obedience towards the directive to stay home and sacrifice personal freedom for weeks.

Dr Peter T.C. Chang, deputy director of ICs, pointed out that China’s unique one-party state has enabled the country to choose its leaders in an effective manner. And the government has built up a trusting relationship with the people.

But he opines China should not be seen as a threat, despite the fact that it has become a global power with footprints around the world through BRI.

“China’s rise is comparatively peaceful and benign. CPC ideology is for China only. From Asean’s perspective, China is not a threat in colonisation. We do not think China harbours that ambition, although there are territorial disputes in the south China sea,” said Chang.

Apart from the CPC, China’s state-owned enterprises (SE) have also played an important role in effective governance, according to Dr Li Ran.

Within each SE is a CPC party committee functioning as a governing body, similar to the board of directors in a company, she explained.

“This party committee ensures that the CPC’s policies and strategies are executed. And this structure has made SE become the visible hand to manage economic activities on behalf of the state,” said Dr Li, a Chinese national serving at the ICs.

Many SEs have been mobilised to implement BRI projects overseas. In Malaysia’s ECRL, China Communications Construction Company (CCCC) and Exim Bank of China are the SES expected to ensure this state-linked project will be a success.

But not all is rosy in SE governance as there are “zombie enterprises” that have incurred huge losses or production over-capacity. some have even been dragged down by corruption and scandals. All these incidents have tarnished the image of Chinese governance.

However, under the leadership of President Xi, a lot of emphasis has been placed on rooting out corruption and improving SE performance, Dr Li observes. Harsh actions were taken against government officials and CPC leaders involved in wrongdoings.

But still, China has under-performed in terms of institutional indicators and qualities in the region when compared with four leading Asean nations, according to Assoc Prof Dr Chan sok Gee.

Her studies, however, showed there is now more accountability in SES, improved government effectiveness and political stability under the leadership of President Xi.

As China celebrates the 100th anniversary of the founding of the CPC this month to remind its people of the role played by the CPC in making China great again, its unique system of governance has emerged to be a key part of many analytical writings on China’s success story today.

BY HO WAH FOON

 

 

 

 

Celebrating CPC centenary




 
Keepsake: A China Post staff holding a set of 20 commemorative stamps and a commemorative cover issued in celebration of the 100th anniversary of CPC. — Xinhua
 

 China celebrated the ruling party’s anniversary last week. But for the ordinary citizens, they have their own way to mark the event.

MANY couples rushed to tie the knot last week in China. They wanted to commemorate their special day just as China celebrated the 100th birthday of its ruling party, Communist Party of China.

A bride from Beijing said she chose July 1 to register her marriage for long lasting relationship.

“Hope our love would last 100 years, just like today’s celebrations,” Shasha Liu told the local media last Thursday.

It was the day to mark the 100-year formation of the CPC, the sole political party in power that had led the country to become a moderately prosperous society.

Marriage registration offices across China recorded a higher number of couples getting hitched last week.

A Civil Affairs Bureau worker in Jinan city of east China’s Shandong province revealed that they received more than 30 couples in the morning alone.

“I could see that many of them are party members as they were wearing a party emblem on their clothes,” she told the Global Times, but did not reveal the average daily number of couples who had visited the place.

At Baoshan district of Shanghai, a long line of people waited with excitement to start their new life.

“My girlfriend and I are both party members, so we thought this would be a unique way for us to mark this special day and also for the country,” a man, who only wished to be known as Bai, said.

At a hospital in Zhengzhou of central China’s Henan province, a couple in their 80s sang songs along with other patients and medical staff as they celebrated their 50th marriage anniversary.

The pair made the hospital ward their home after the man was admitted for Alzheimer’s several years ago.

“It has been 10 years since he has the disease.

“Even if he has forgotten about everything, I will continue to be by his side,” said the wife as she leaned on her husband.

Identified only as Li, she said their children were busy making ends meet and could not take care of them.

Stamp collectors across the nation got into a frenzy purchase of commemorative stamps and envelopes issued by China Post to commemorate the occasion.

The set of 20 stamps and envelopes reveal the 100-year journey of CPC.

The stamps use red and gold as the main tones while the envelopes contain patterns of the party emblem, Great Wall and a golden inscription of Chinese characters saying “Staying true to our original aspiration and founding mission”, Global Times reported.

A long queue of people formed outside a post office in Shanghai as early as 6.30am.

Among them was 66-year-old Yang Chaode, who travelled 4,000km from Xinjiang Uighur Autonomous Region.

He had waited for the launch since the day before.

“My friends in Xinjiang are waiting for me to send the letters to them, with the postmark in Shanghai, the birthplace of CPC,” Yang added.

In Wuhan, public bus driver Nie Sanhua cleaned up his vehicle in the early morning before decorated the interior with stickers, posters, party flag and other paraphernalia related to the celebration.

The CPC, founded on July 1, 1921, with just 50-odd members has grown with more than 95 million members.

The formation of the party was proclaimed in front of 12 people onboard a boat at a lake in Zhejiang province.

For decades, the CPC was in the dark on its founding date as there were hardly any records about its formation.

So, the party declared July 1 as its established date in 1941.

In the 1980s, more information was gathered with the findings of more documented records.

Today, a replica of the boat – known as the Red Boat – is parked at the Nanhu Lake, about 100km from Shanghai, to commemorate the event.

In Chinese, the top party leader is known as zong shuji which means clerk or secretary.

The term – the lowest among the official positions – was adopted to show the party’s determination to serve the people and stand alongside with them.

Nanhu Lake has become a popular tourist spot visited by nearly nine million travellers annually following a boost of “red tourism”in recent years.

Red tourism refers to sites with historical and cultural significant to the CPC.

 By Beh Yuen Hui

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Thursday, May 2, 2019

Pakatan Harapan government plunges in popularity

 
The Pakatan government has little choice nor time to check the slide on its popularity and goodwill from voters.

WHAT a difference a year makes. In a week, the Pakatan Harapan government will mark its first year in power but in stark contrast to the height of popularity it enjoyed then, support for the coalition has plunged.

A recent poll by the Merdeka Centre showed that the administration’s approval rating sank to 39% in March, a drastic drop from 79% recorded in May 31 last year.

Tun Dr Mahathir Mohamad’s performance approval rating as Prime Minister declined too – from 71% in August 2018 to 46% last month.

The survey firm polled 1,204 registered voters in March to gauge their opinions on the country’s economy, leadership and current issues.

Pakatan’s descent in popularity was attributed to the state of the economy as felt by consumers, the perceived strength of the government, anxieties over Malay rights and privileges and the treatment of other races in the country.

According to the findings, public satisfaction in Pakatan’s administration of the economy fell from 60% to 40% with voters largely unhappy with the rise in the cost of living.

The majority of respondents also disagreed with policies such as the move to abolish the death penalty while many were also against the scrapping of exams for Primary 1 to 3 and the plan to impose taxes on sugary drinks. Only 34% of voters polled were of the view that the country was headed in the right direction, with Malay respondents weighing in lower at 24%.

The survey showed that the main concern of Malaysians was the economy at 63%, followed by race-related issues and the flip-flop on decisions such as the government’s decision to withdraw from ratifying the International Conven­tion on the Elimination of All Forms of Racial Discrimination (Icerd).

On the plus side, worries over corruption declined to 23% from 33% while 67% of respondents agreed that the government should be given more time to fulfil its election promises.

Its support rating may have dropped but to be fair, the Pakatan government has not done too badly since taking over, considering the state of the economy and the massive debts that it inherited from the previous disgraced administration.

Of course, there is much more to do, like addressing the cost of living, fulfilling housing needs and providing sustainable healthcare but the government has already fulfilled nearly a third of its pledges, im­p­roved its overall financial position and has made significant moves to tackle corruption in the civil service.

Ironically, the freer media landscape today is contributing to the perception that the Pakatan government is performing poorly or unable to handle issues raised by the opposition, especially those related to race and religion.

Malaysia has risen 22 places to rank 123 out of 180 countries in the latest World Press Freedom Index compiled by Reporters Without Borders (RSF). It now tops countries in South-East Asia – above Indonesia (124), the Philippines (134), Thailand (136), Myanmar (138), Cambodia (143), Singapore (151), Brunei (152), Laos (171) and Vietnam (176).

Unlike in the past, opposition parties now get unfettered coverage in the media and the welcome change has led to the diffusion of a more diverse range of views.

However, the new government has been rather inept in conveying its message on a wide range of issues in the print, online and social media since taking over Putrajaya.

It is also guilty of being sluggish in countering negative reactions or stemming news designed to elicit racial or religious sentiments, as could be seen in the cases of ratification of the Icerd, the Rome Statute and the Seafield Sri Maha Mariamman temple riots.

Opposition politicians and their supporters have been quick to exploit this weakness to manipulate opinion in the freer media environment.

A recent example is lawyer Tan Sri Muhammad Shafee Abdullah’s briefings to the media in the ongoing trial of former prime minister Datuk Seri Najib Razak over funds worth RM42mil from SRC International Sdn Bhd. It is clear that he is using the media to advocate the defence’s contention that Najib’s bank account was misused by people who were unauthorised, including Jho Low, as well as some rogue bankers.

In statements designed to strike a chord with those who may find it tedious to follow the proceedings, he claimed that the former PM would most likely turn out as a “victim” in the end.

As for getting away with untrue claims in the media, one such example was a supposedly secret “side agreement” for the East Coast Rail Link (ECRL) to enable a trade-off of 4,500 acres of land to China Com­munications Construction Company Ltd (CCCC). It was based on a non-legally binding Memoran­dum of Understanding (MoU) under which the Malaysian Investment Develop­ment Authority (Mida) was supposed to assist local companies to cooperate with CCCC to create special purpose companies for development of the economic accelerator projects worth RM10bil over 10 years.

Instead of clarifying the matter immediately, the media handlers of the Transport Ministry and Mida left it to Dr Mahathir’s special envoy to China, Tun Daim Zainuddin, to respond instead.

Ineffective communication teams in the various ministries and the lack of media coordination among them are the main reasons why Pakatan appears to be losing control of its narratives on performance and service.

What Pakatan needs is expertise and a clear media strategy to re-establish political credibility and trust among the people, especially the now disillusioned voters who had pinned their hopes on a better “New Malaysia”. Instead of just leaving the ministries to handle their own issues, the approach should be on keeping to the same page, through synchronisation of information and making better use of social media to enable agencies to engage directly with citizens.

With Malaysians having higher expectations and lower levels of patience, the Pakatan government has little choice nor time to check the slide on its popularity and improve on its public relations.

Veera PandiyanAlong the Watchtower by M.Veera Pandiyan



Media consultant M. Veera Pandiyan likes this quote by George Bernard Shaw: The single biggest problem in communication is the illusion that it has taken place.


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Monday, April 23, 2018

New approaches to people oriented human resource management

People-centric logo: The Chinese character for ‘people’, rén, dominates the entrance to its office.


The growing usage of technology can help human resource achieve better performance


IT IS often said that managing people is a combination of art and science. But the increasing dominance of technology in workplaces opens up a new perspective and opportunities in how organisations most valuable resource – its human capital – is being employed.

One of the most obvious changes that can be observed among employers, says Accendo HR Solutions group chief executive officer Sharma KSK Lachu, is the realisation that maintaining the traditional functions of the human resource (HR) department – such as processing payroll and employees’ rosters – is not the way forward to excel in the digital age.

New approaches emphasising efficiencies and talent development are needed to excel in people management, he adds.

“The process of recruiting, retaining and developing talents within organisations has to be changed to meet the expectation of both employers and employees, which in turn could help translate into outstanding performance standards,” he says.

Sharma notes that rich data insights are the best tool to help organisations deliver more engaging content and meet growing customer expectations for highly relevant and targeted information in the workplace. He calls it the democratisation of data and information to help workplaces function more efficiently. This could also help employees lead a more satisfactory work life as functions and responsibilities can be streamlined with the help of data, enabling them to focus on higher-level work.

Bigger reach: Sharma says the company is also looking at expanding into other Asean countries. 
Bigger reach: Sharma says the company is also looking at expanding into other Asean countries.

Today’s workforce is different. There needs to be more incentive for employees to stay on in their jobs.

Citing the example of his own father, who stayed with a single company throughout his entire working life, Sharma says it would be a wonder for organisations today to have employees who would dedicate their entire working life to a single entity without asking much in return.

“He never complains about the lack of a pay raise, promotion or other perks from the management. But today’s working adults, especially the gen-Y and -Z, don’t share such values anymore,” he says.

Accendo relies heavily on technology, data and behavioural sciences in its approach to providing the right HR solutions for its clients to manage their manpower. The consultancy company is currently developing several tools, including artificial intelligence (AI) and HR management systems, for its corporate clients.

However, Accendo, which specialises in services such as talent acquisition, performance management, talent analytic and secession planning, puts the human element on the forefront of how organisations’ HR should function.

Technologies and people form the backbone of Accendo. A walk into its corporate office gives you the feel of a tech startup with open spaces and programmers in casual attire. But a reminder that people comes before technology is apparent in the form of a corporate logo, Rén – the Chinese character for ‘people’ – which dominates the entrance to its office.

Talent development: Accendo’s team consists of people with various skills to support client’s human resource needs. 
 Talent development: Accendo’s team consists of people with various skills to support client’s human resource needs. 

New HR challenges

There is a need for a sharper and faster decision-making process, and the HR department has to be equipped to handle this. The aim is to help them to understand and grow their employees. This includes helping people who are pursuing career development opportunities at every age and are working longer than ever before.

Individual business leaders as well as business units should be looking at HR to provide support and strategic advice on everything from upskilling, motivating employees and future workforce planning to managing multiple generations of employees under one roof.

Therefore, specific solutions that are tailor-made and offer personalised learning opportunities for employees of all types will become the norm.

“Many organisations today still view manpower as a tool to maximise profit. But our mission is to promote a culture where companies develop the talents of their employees to contribute towards the growth of the company.

“We have turned down projects worth millions of ringgit because of the different viewpoint on how to develop and maximise the potential of employees. For us, our clients have to share our values, which is about organisations allowing their employees to own their career. We developed processes that would enable organisations to understand their people, and help develop their skills,” says Sharma.

Casual space: Accendos corporate office gives you the feel of a tech startup with open spaces and programmers in casual attire. 
Casual space: Accendos corporate office gives you the feel of a tech startup with open spaces and programmers in casual attire.

Prior to his return from Sydney, Australia, where he had his start in the HR industry, Sharma was exposed to how technology and data science could help in efficient decision-making processes.

One of his motivations to move back home 10 years ago to start his own business here was partly to prove a point that developing technology-based HR solutions using data science can be done successfully in Malaysia.

Founded in 2009, Accendo is majority-owned by Sharma, while his two other co-founders have minority interests in the company. The company has morphed from being a HR solutions provider to an integrated HR consulting company with their own their technology solutions.

It has since recorded an impressive growth rate and is now considering strategic partnership with either a financial or strategic investor as it seeks to scale up its operations internationally and fund its technology research and development.

Sharma says it is also looking at expanding into other Asean countries, as this region could benefit from data science.

As the profile and success of Accendo increase, the company has been attracting potential investors and is receiving an average of about one investor approach per month. It has held talks with one potential strategic investor but has not reached any agreement as yet, he says.

Accendo, however, will only consider an investor who shares the company’s values, in which human capital is considered as an asset to be developed and not as a commodity to be used in achieving corporate financial goals, Sharma adds.

A help mate: Amid concerns over the rise of technological unemployment, machines can help people work better. – Bloomberg 
A help mate: Amid concerns over the rise of technological unemployment, machines can help people work better. – Bloomberg

It has not seriously engaged with any party currently, but will do so if the right strategic or financial investor comes along.

The timing of a potential listing will also depend on the company’s capital requirements. Sharma says the company has been preparing for a possible listing by 2020, including making sure its financial reporting standards and company’s organisation structures are in line with that of a public company.

The majority of the company’s tech talents are local, but the company will not shy away from hiring foreign talents if necessary. Accendo currently has around 35 full-time staff members, but this will grow to over 50 by year-end as the company plans to hire more AI and other tech-related personnel, says Sharma.

Accendo is expected to record more than RM20mil of revenue this year. It has recorded an annual growth rate of 40% to 45% since it restructured its business model four years ago.

Its corporate clients include some of the most recognisable brand names in the market such as Astro image: https://cdn.thestar.com.my/Themes/img/chart.png , Maybank, KPMG, Nestlé, Bursa Malaysia and other financial institutions and large multinational corporations in Malaysia.

In the longer term, Sharma says Accendo aims to be the platform for all things related to work technologies and solutions, from HR staffing technologies to meeting specific needs and reinventing performance in the workplace for optimum efficacy and maximum success. - by C. H.Goh, The Star


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Wednesday, November 23, 2016

Why we fail at corporate governance with corrupt officials?

 

Malaysia still suffers from corporate scandal after another, says Musa


PETALING JAYA: Malaysia is great at formulating legislation for corporate governance but lacks the ability to implement and enforce these, said former deputy prime minister Tun Musa Hitam (pic).

“As far as I can remember, Malaysia is the leading developing country that currently occupies the top half of the list in formulating legislation, rules and regulations for corporate governance.

“But when it comes to implementation and enforcement, we occupy the lower half of the list,” said Musa, who is also World Islamic Economic Forum chairman. Delivering his keynote address at the Women’s Institute of Management’s Conference on Integrity and Corporate Governance, Musa said that in the past, government and corporate leaders were required to attend a course on corporate governance.

“It is quite obvious that these efforts are to no avail and the programme seems to have been scrapped.

“After all our training, Malaysia still suffers one corporate scandal after another,” he said.

The country’s weakness in corporate governance lay in its inability to enforce the rules and was the major cause of its many scandals, he said.

Musa said that good governance extended to areas relating to corruption, abuse of power, accountability, application of corporate social responsibility (CSR), transparency and protecting shareholder interest.

“If you ensure transparency and accountability in decision making, apply CSR and care about shareholder interest, then you are practising good corporate governance,” he said.

Good corporate governance, Musa pointed out, could only happen if all the laws were implemented without fear or favour.

“This is most crucial for good corporate governance and it is up to the chairman and board of directors to administer this,” added Musa.

Another important ingredient was leadership with integrity, he said.

“Leadership by example produces good governance and in my experience, if this is practised, even the most influential person can be persuaded to act in the broader interest of the corporation and shareholders.” By Jo Timbuong The Star

Corporate governance – a shared responsibility


TUN Musa Hitam was spot on when he said at a conference on Monday that a company’s directors and managers were practising good corporate governance when they ensured transparency and accountability in decision making, applied corporate social responsibility, and cared about the shareholders’ interests.

These are indeed essential ingredients if we want our companies to be run well.

And Musa was right in pointing out that good corporate governance could only happen if the laws were implemented without fear or favour.

This matters because corporate governance thrives in an environment in which the rules are clear and robust, and the regulators are firm and consistent.

However, corporate governance is not just about complying with the letter of the law. It is also about directing and controlling a company through practices, structures and processes.

Many of these elements are voluntary; a thin line separates government oversight and the straightjacketing of business with an overkill of statutory prescriptions.

For example, most experts on corporate governance agree that the roles of chief executive officer and chairman of the board ought to be separated so as to avoid concentrating a lot of decision-making power in one person.

And yet, it is perfectly legal in Malaysia for an individual to wear these two hats at the same time. It is the same in some developed countries.

It remains a hot topic, but it is clear that most regulators continue to be reluctant to outlaw this practice of combining CEO and chairman duties.

The biggest challenge is to persuade company stewards to embrace the principles of corporate governance without being prodded by the authorities and their volumes of laws.

For this to happen, the directors and managers have to be convinced that good corporate governance adds significant value to their companies.

There are many studies that have concluded exactly that, but these findings mean little if there is still the perception that most people do not care about corporate governance.

Let us look at the listed companies, whose value is measured constantly in the stock exchange as investors buy and sell the companies’ shares.

On paper, a company with a poor track record in corporate governance would have trouble getting attention in the stock market.

And yet, we have frequently seen such companies at the centre of feeding frenzies sparked by speculation that the share prices will soar for whatever reason. This is not a great advertisement for corporate governance.

Nor is it encouraging that shareholder activism in Malaysia is limp. Many of those who own small amounts of shares in a company are often indifferent to how the company is performing, preferring instead to focus on the share price.

And when they do turn up at the shareholder meetings, it is seldom to engage with the board and management and to ask tough business questions.

The regulators and company stewards alone cannot push the corporate governance agenda.

Investors and other stakeholders too must show that they appreciate the fruits of good corporate governance, instead of complaining bitterly only after companies have collapsed and huge investments have gone down the drain. The Star Says

A-G: GLCs should adopt best practices

Praise and encouragement: Ambrin speaking during the WIM Conference on Integrity and Governance at the One World Hotel in Petaling Jaya.

“In theory, the country’s best practices could be easily adopted wholly or in part by most GLCs. But in reality this is not always the case as you can see from our audit findings with regard to the business performance and corporate governance of these GLCs.

“If guidelines are not being adhered to or given exemptions, it may severely compromise the governance and expose the companies to risk of fraud and corruption,” he said in a keynote address at the Women’s Institute of Management (WIM) conference on integrity and governance yesterday.

The 2015 Auditor-General Report (Series 2) was released two days ago, in which issues like poor management of the Cooking Oil Stabilisation Scheme and weaknesses in the management of medicinal supplies at health clinics nationwide were highlighted.

On the issue of GLCs that were not doing well, Ambrin said these companies were supposed to contribute to wealth creation for the government and act as a trustee to the public.

“Instead, they might become a burden, asking for bailouts and additional grants or to convert their loans to equity so they can continue to exist as a going concern, but to whose benefit really, one might ask,” he said.

The Auditor-General also observed that based on his audit experience, there were times where a GLC’s board of directors had been conveniently bypassed on major decisions.

He added that companies should have at least some, if not all, the best practices required to ensure integrity and good governance in their organisation.

“For example, I am very impressed with Khazanah, they have a high standard of governance and are very professional, so to me they are a model GLC.

“Of course we don’t expect smaller companies to have the full-scale best practices that they have, but at least have some elements like a standard operating procedure, internal audit committee, and a good board of directors,” he said.

Former Law Minister Datuk Zaid Ibrahim said merely having policies for integrity and good governance in place were not enough.

“Malaysians need to talk about it and live it in order to move a step ahead,” said Zaid who was a panellist at the conference.

He said putting integrity into action may be challenging because of restrictive laws like the Official Secrets Act but that shouldn’t stop people from doing so.

Zaid said if Malaysians were committed to the principles of integrity and good governance, they needed to be courageous in their cause.

“You cannot defend integrity without courage but be prepared to pay a price for it. You might not get promoted, or get the title, or the contract you want but integrity needs to be cultivated, no matter the price,” he said.

Zaid also said the courage to fight for integrity must come from within and individuals cannot expect the higher-ups to lead the way.

“You must own it and start with yourself,” he said, adding that the more people embrace the idea of integrity, the higher the chance of creating a society driven by morals and truth.
-  By LOSHANA K SHAGAR and JO TIMBUONG The Star

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Saturday, November 19, 2016

Bring corrupt culprits to court fast


MINISTER in the Prime Minister’s Department Datuk Paul Low recently told the Dewan Rakyat that the Malaysian Anti-Corruption Commission (MACC) detained 1,011 civil servants and 26 executives of government-linked companies (GLCs) for alleged corruption and money-laundering between 2014 and September this year.

Assets amounting to almost RM172mil were seized and frozen in relation to these cases.

The government officers nabbed outnumbered the GLC executives by nearly 40 to one, but that is no reason to focus less on the fight against corruption in the GLCs.

The GLCs are in many ways a special class of companies.

A GLC is like any other company in the sense that its primary objective is to make money from commercial activities.

At the same time, a GLC is controlled by the Government (usually through majority shareholding) and is thus an extension of the Government.

But that is not the only way that a GLC is like a government department or a statutory body.

Often, GLCs serve as instruments of public policy.

For example, they undertake huge projects that drive the country’s development. They are in industries that are strategic to national interests — aviation, finance, telecommunications, natural resources, automotive, ports and power.

They tailor certain aspects of their operations, such as human resources and procurement, to suit objectives set by the Government. And they champion causes that support what the authorities want to do.

As such, we have every reason to be dismayed if a GLC is not run with integrity and efficiency.

Do we derive comfort from the MACC’s detention of two GLC top men over the past week?

On Nov 10, the Commission picked up the general manager of a GLC at his house in Seremban to assist in a corruption probe.

And on Monday, a director of a GLC was detained for alleged abuse of power and corruption back when he was chief executive officer of another GLC.

We can view these developments as encouraging signs of the MACC stepping up its efforts to combat corruption in GLCs.

But the feel-good factor will not last if the investigations are not followed by swift and successful prosecution.

Hauling up people for questioning and freezing assets is only half the job.

The culprits must be brought to court and people need to see justice delivered without fear or favour.

If this does not happen, it only serves to bolster the longstanding argument that government has no business being in business.


 By The Star Says - The Star analyses the issues and developments of the day, and offers a viewpoint.

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