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Showing posts with label Talent management. Show all posts
Showing posts with label Talent management. Show all posts

Saturday, September 1, 2018

New Malaysia should push for meritocracy

The Meritocracy Paradox

Pakatan Harapan’s unexpected win in the recent 14th General Elections sent a signal that it is time for the country to move towards focusing on being more performance oriented and making decisions on the basis of meritocracy for the long-term good of its citizens.

Interview with Tan Sri G.Gnanalingam

Westports Holdings Bhd’s chairman Tan Sri G. Gnanalingam says this is the basis of how the company has been operating all this and notes that it is paying off today.

“Westports has always prided itself on being a performance-oriented organisation, being innovative and treating our employees as family members,” he says.

Gnanalingam, who has been the face of Westports for more than 20 years, says this idea can be extended to how the country can be governed as well.


He says that in the company, everyone is treated equally irrespective of race or gender and this has worked tremendously well.

He notes that this also comes with some form of a safety net for those who can’t perform as well as their counterparts.

“The system should be such that we reward success but provide some safety needs for the unfortunate few who didn’t make it, but the safety net is not so big that it promotes complacency.

“There will always be some members of the community who do not do as well as others. This is where we need to lend a hand to support them, regardless of race or gender,” Gnanalingam adds.

This is important because innovation is best built on meritocracy and is a needed ingredient for the country to excel in the new economy of the Internet.

“Innovation is needed as the world prog­resses forward; we cannot move backward. Today, we have a computer in our pocket called the smartphone, which does all kinds of things.

“Malaysia needs to forge ahead as the future is increasingly influenced by information technology, artificial intelligence and Industry 4.0,” Gnanalingam says.

“As for the new Malaysia, I believe that transparency, good governance and people first should be values that are celebrated,” he adds.

Gnanalingam, who is the founder of Westports, also tells of the company’s humble roots, noting that it has grown by leaps and bounds and is now listed on Bursa Malaysia.

“The year 1994 was when we started building Westports. In fact, we were the first private company to build a port after the British left in 1957.

“Prior to the birth of Westports, Port Klang was a port that had less than one million container volume. Malaysia transshipped everything from Penang, Kuantan, Johor and even East Malaysia to Singapore,” he says.

He also highlighted that while the company is primarily a family-owned firm and is now helmed by his son Datuk Ruben Emir Gnanalingam, who is Westports’ group managing director, the family still takes heed of the advice of professional managers.

“Leading Westports is a bit like managing a football team. In order to win, we must assemble the best players, train very hard, formulate specific strategies and out-do our opponents. And we must continuously improve our skills and knowledge of the game. There will always be room for innovation and a better way to do things,” Gnanalingam says.

Westports has grown steadily since its inception in the year 1994.

Today, the company is a RM12.8bil company in market capitalisation on the Bursa Malaysia Main Board.

Recalling the the company’s early days, Gnanalingam says Westports had to focus on what was important: its productivity.

“I always tell our people to focus on raising productivity, being innovative and being cost-effective. Westports is ranked among the top five in the world in terms of productivity.

“Westports has also risen from 27th place to 12th place in the world port traffic league rankings.

“Once Westports was born, we focused on producing the best service for our customers, the shipping lines. To do that, we improved our productivity.

“Our crane operators are well trained. Their performance is world class as they are able to do 35 or more containermoves per hour,” he says.

The company’s terminal tractor operators and stowage clerks have also been upskilled to create a fast turnaround time for the cargo from the container yard to the vessel and vice versa.

While the going seems smooth now, Gnanalingam notes that it was not always smooth sailing for Westports, as it had to go through several financial crises and political uncertainty on the global front, where it threatened or slowed down shipping demand.

However, hHe notes that it has grown its market share steadily and incrementally over the past 20 years.

Today, he notes that Westports captures 16% of the container volume moving through the Straits of Malacca and supports 38% of all container volume in Malaysia.

“And today, we are proud to be one of only three mega-transhipment hubs in the entire Asean region,” he says.

Costs to ship and out of Malaysia have also fallen tremendously and Gnanalingam notes that both exporters and importers pay some 90% lower in freight charges today.

“Before 2005, it cost about US$800 (RM3,280) to freight a container from Port Klang to Busan in Korea. Today, the cost is about US$35 (RM143) only.

“To cite another example, before 2005, it cost about US$500 (RM2,050) to freight a container from Port Klang to Kaoshiung in China. Today, the cost is about US$110 (RM450), which is almost 80% lower,” he says.

Credit to : Daniel Khoo The Star

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Saturday, November 26, 2016

Ma'sia's skilled labour shortage, engineers not take up challenges, graduates can't solve problems

More trained workers needed to attract new capital investments

Yap says manufacturers have to source for high-quality technology from places such as Taiwan and Europe to upgrade their production.

THE Malaysian economy can sure use a boost to grow sustainably in the long term because the indicators for long-term growth do not look very good.

That boost should come from a focus on human capital. To put it simply, a better proportion of skilled workers is needed for the economy to move up the value chain and be globally competitive.

This year the economy is expected to grow just over 4% year-on-year, after growing 5% last year and 6% in 2014. The economy is expected to grow by 4% to 5% next year although the headwinds buffeting the Malaysian economy will make it challenging to hit the upper band of the target.

Moving up the chain will mean producing goods and services that have a higher value, meaning that productivity will rise. The rise in productivity will mean that workers will get better wages. This is the basic argument of policymakers when they speak of how human capital can help the economy.

However, the reality is different. According to data from the Malaysian Productivity Corp, the average annual labour productivity growth between 2011 and 2015 was 1.8% while the 11MP has a target of 3.7% annual growth. The doubling in labour productivity growth is needed to hit the high-income target of the New Economic Model.

Malaysian Employers Federation executive director Datuk Shamsuddin Bardan notes that the economy saw a labour productivity growth of 3.3% last year but believes that it will be challenging for labour productivity to grow in the years to come because of the lack of skilled workers.
 
Shamsuddin: ‘I doubt very much whether our policy emphasising English will be successful, as statistics indicate that if we ask teachers themselves to take SPM English exam, possibly half of them will fail.’

The 11MP targets skilled workers, that is, those with diplomas and higher qualifications, to reach 35% or 5.35 million of total workforce by 2020. Currently 28% of the total workforce of 14.76 million are considered skilled workers.

Shamsuddin fears that without more skilled workers, the economy will find it more difficult to move up the value chain and will not be able to attract large capital investments.

He tells StarBizWeek that the 11MP target is well below the proportion for skilled workers compared to developed economies, where the proportion is at least half of the total workforce.

Shamsuddin says government plans to raise the skill levels of Malaysian workers have so far only shown mixed results, with a gap between the plans and the actual implementation.

Indeed, the Organisation for Economic Cooperation and Development, a grouping of rich economies, says in a 2013 report that the country needs to address long-standing economic weaknesses in the medium term in order to progress toward becoming an advanced economy within the next decade.

“Skill shortages and mismatches and the deficiencies in the education system that underlie them and the low participation of women in the workforce particularly need to be remedied,” it says.

It adds that the talent base of the workforce lags behind the standards of high-income nations. “The country suffers from a shortage of skilled workers, weak productivity growth stemming from a lack of creativity and innovation in the workforce, and an over-reliance on unskilled and low-wage migrant workers,” it adds.

Observers say cheap unskilled foreign labour is the bane of the Malaysian economy. According to the latest official estimates, there are 1.9 million documented foreign workers in the country with the Government having put a cap of the proportion of foreign workers to the total labour force at 15%.

Unofficial estimates of foreign workers, both legal and illegal, could be more than double that with the numbers having a negative effect on total wages.

Socio Economic Research Centre executive director Lee Heng Guie says in the long run, businesses will need to increase automation for the low-value processes in the manufacturing sector in order to reduce their reliance on foreign labour.

“We are not asking everything to be automated as some places you still need labour, but what you want is to gradually move up rather than continue to rely on cheap labour.

“It is not a solution for industries to compete,” he says. There is also a need to review policies in order to identify implementation flaws and weaknesses.

But the work cannot be all one-way. Lee points out that the private sector must come forward to work with the Government to create a sustainable ecosystem for innovation.

While businesses acknowledge the urgency of working efficiently and relying less on foreign workers, they point out that the supporting technology including for automation cannot be found in the country and must be sourced from abroad.

Asia Poly Industrial Sdn Bhd executive director Michael Yap says manufacturers have to source for high-quality technology from places such as Europe and Taiwan to upgrade their production processes. The company, a subsidiary of Bursa-listed Asia Poly Holdings Bhd, is a maker of cast acrylic sheets used to make corporate signages, lighting displays and sanitary ware, has a high proportion of foreign workers in its workforce.

Yap also finds it difficult to get skilled workers or even motivated ones compared to the 1980s and 1990s. He says engineers today are not willing to take up challenges and many graduates cannot solve problems.

His colleagues observe that Malaysians also do not want to work in the manufacturing sector, even if the workplace environment is conducive and they are given opportunities to give their inputs.

Given the increasing importance of the services sector to the economy, Englishlanguage skills are important but again, there is a gap between the plan and the implementation.

The Services Sector Blueprint launched last year targets the sector to make up 56.5% of gross domestic product by 2020.

Shamsuddin says it is critical for the education system to plan for the future requirements of the economy and the command of English is very important to the services sector.

“I doubt very much whether our policy emphasising English will be successful, as statistics indicate that if we ask teachers themselves to take SPM English exam, possibly half of them will fail,” he adds.

Lee feels that a more consistent policy towards English is important, referring to the abrupt change in the teaching of mathematics and science to Bahasa Malaysia after it was taught in English from 1996 to 2012, as a change that has failed Malaysian children.

By ZUNAIRA SAIEED Starbizweek

RelatedLiow: Malaysia needs more skilled workers


Reducing reliance on foreign workers


https://youtu.be/eBG7C3xitL4

More engagement needed with industry to avoid labour shortage in certain sectors

PETALING JAYA: The freeze on the hiring of foreign workers from February reveals how reliant Malaysia’s economy is on low-wage labour for growth.

A rough calculation by Malaysian Palm Oil Association chief executive Datuk Makhdzir Mardan showed that in 2013, when the plantation industry had a shortage of 23,500 workers, the opportunity cost came to RM1.6bil. He points out that in 2013, one foreign worker who works as a harvester equalled RM500,000 in productivity.

While the over-arching industrial policy is to produce higher value-added goods and services, the truth is that large segments of the economy is still very much dependent on low-wage labour, particularly of the low-skilled foreign migrant-worker kind.

Migrant workers Manik and Mohammad Delowar, both 27 years old from Bangladesh, are two such workers working on the multibillion ringgit Sungei Buloh-Kajang MRT line. Manik has lived in Malaysia for the last eight years and has worked on three property projects before being employed to work on the MRT project.

Both earn a salary of between RM1,500 and RM1,600 per month, 75% of which is remitted home to support their families. Manik told StarBiz that the freeze, which came about after a public outcry over an agreement between the governments of Bangladesh and Malaysia to supply low-skilled workers, would definitely affect the flow of workers that wanted to work in Malaysia.

“I do not wish to go back to my country as I’ll not be able to find a job there,” he said, adding that unemployment in Bangladesh was high and he had to support a family of six.

Manik paid RM8,000 to an agent and waited a year before securing a job in Malaysia. He sold land and borrowed money in order to pay for the fees. Mohammad, who has been working in Malaysia for eight months, paid RM12,000 in fees.

Their experience tell the often unheard human story of foreign workers in Malaysia. These millions of workers who come from the most part from Bangladesh, Indonesia, Myanmar, Nepal, the Philippines and Vietnam are familiar faces in various sectors of the economy. The construction and agriculture sectors cannot do without them while the services sector, especially the hospitality, food and beverage and security industries, have large numbers of foreign workers.

Although the low-cost model of growth has served Malaysia well in the 1980s and 1990s, it has also made local firms reluctant to adopt technology or more efficient ways of doing things. Malaysia’s membership of the Trans Pacific Partnership makes higher productivity and efficiency ever more urgent.

Economists argue that without a rise in productivity, measured in the production of higher value-added goods and services, wages will continue to be low. The large number of foreign workers with their lower skill sets and low wages makes things worse.

This is not to say that there are no higher value-added goods or services being produced, or that the Government is not encouraging it. The New Economic Model, together with the National Key Economic Areas, have identified various sectors and subsectors in which Malaysia can have a competitive advantage.

Leadership, clear-cut policy on foreign workers and investment in education as well as technology are just some of the issues that come into play as the country strives to reduce its reliance on low-wage workers and move up the value chain.

Master Builders Association Malaysia president Matthew Tee and Makhdzir agree that the adoption of technology and mechanisation will reduce dependence on foreign workers.

Tee said the Government should provide more incentives for construction firms to adopt more efficient processes such as the industrialised building system (IBS) that could reduce dependence on low-skilled migrant workers. He pointed out that reducing the import duties on construction machinery could also help.

Meanwhile, Makhdzir said more funds should be allocated to oil-palm research and development (R&D) to make the industry more competitive. “If we desperately need to make that progress, we need to put in more talent, and more money to make it competitive in terms of R&D,” he added.

Makhdzir said the policy needed to be more flexible where R&D was concerned as talent must be sourced from outside the country if necessary.

But in the meantime, the freeze on foreign workers is causing a lot of problems as news headlines in recent months show. The problem is particularly acute in the construction and agriculture sectors.

Tee said there was a shortage of 1.3 million workers in the construction sector and predicted a shortage of up to 2 million by 2020. “This will cause delay in projects which could result in liquidated damages by clients translating to thousands of ringgit per day,” he adds.

Tee observed that the government-initiated rehiring programme that in part would also legalise illegal foreign workers had only attracted 3% of the 1.7 million total number of illegal workers in the country. He said the requirements to legalise the workers were inflexible and because of that, many did not fit the requirements – one reason why the overwhelming majority had decided not to get properly documented.

He said firms wishing to hire workers under the rehiring programme found it more expensive than hiring fresh foreign workers. On the other hand, Makhzir said there needed to be leadership in tackling the issue while Tee said there needed to be more engagement with industry as the reaction from the authorities had been slow.


By ZUNAIRA SAIEED

Related posts:

 How can Malaysia stem the tide of talent migration?

Malaysia's Migrant Economy! 

 Labour pain and power shortage 

The scramble for skills 

Technology upgrade needed to stay competitive 

Caught in middle-income trap

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