Saturday 21 March 2009

THE ROLE OF CORPORATE GOVERNANCE IN THE CURRENT GLOBAL ECONOMIC

The current global economic challenges have put MNC and TNC in the front and centre of attention. They are under the microscope, their past actions are being scrutinized and their behaviour and actions going forward are being closely watched. They are expected to rise to the challenge and steer their organizations and corporations out of troubled waters that the world economy is now in. The business world is witnessing massive upheaval and scandalous revelations. The crisis calls for a re-examination of the corporate culture and the way business has been done. In some of the scandalous revelations in the US, it has proven that business as usual is not an option any more. That model has been broken. A new way needs to be found. It calls for active, innovative, aggressive corporate governance and bold decisions. In view of this, effective corporate governance has never been more important.

Periods of economic stress test the ability and capability of MNC and TNC and demands that they rise to the challenges. Crisis tests an individual’s abilities more than the good times ever do. Undoubtedly, most leaders will be tested by a few minor and major crises during their tenure. How the individual steers through such troubled times will show the mettle he or she is made of. The MNC and TNC of today are being tested on several levels, both internally and externally. While they may have some control over their internal environment, they certainly do not know what awaits them externally in the current volatile business environment. Loyal and hardworking employees are the best asset of any organization, and yes, even in the high tech era and in the computerized age. It is important to retain talent and more so during difficult times. Strengthen and retain what you have.

Pull your talent together and take decisive decisions. Do not let good talent get away. It will be more difficult to find them when the recovery comes, which will come, just as the sun will rise again tomorrow. Today, the MNC and TNC is expected to be pro-active in contingency planning, to anticipate and prepare responses. Expediency in the appropriate response can negate losses. As the Chinese word for crisis, Wei ji, is composed of two characters signifying “Opportunity” and “Danger”, the current crisis with its many downsides also offers opportunities. It is necessary for business leaders and MNC and TNC to seek out the possibilities in these challenging times. You must do this to remain relevant, sustainable and competitive. Corporate governance is a demanding role even during times of relative calm. It calls for balancing of internal and inter-business relationships and more so during a crisis, when courage and desire to lead well and effectively are put to the test.

Businesses are downsizing, retrenching and reducing the number of work days. Many of the institutions that were household names around the world have disappeared and the workings of their internal corporate culture has been shaken to the core. The faith and confidence of their employees, shareholders and customers has been shattered and it will be an uphill task to regain their trust and rebuild the company’s reputation. In the fast paced world of business, MNC and TNC must not only multi-task and cater to the varied and different demands on their time from the multitude of constituents; but they must be ahead of the business cycle in ensuring the continued survival of their businesses. While the bottom line and the financial performance of a company is important, there is more to running a corporation than just bottom lines. The continued survival of the company and that of the MNC and TNC will depend on the corporate governance and skills demonstrated in enhancing competitiveness and efficiency of the corporation; retaining and building confidence of their employees, maintaining trust of shareholders and retaining loyalty of customers.

In the current difficult environment MNC and TNC are required to deliver far more than they have done so in the past. A lot rests on your shoulders as business leaders – shareholders, employees, customers and the community at large demand total commitment from business leaders to deliver on your promise to provide the best service and quality products with honesty and integrity. They will accept nothing less.

Wednesday 18 March 2009

NEW GOVERNANCE IN THE PUBLIC SERVICE

The concept of leadership is neither new nor unique to the public service. It has been discussed frequently be it at the public or business forums as well as literature. It seems however, that interest in public service leadership has had resurgence in recent years. An OECD Survey shows that many OECD governments, including Germany, Norway, the UK and the US, have given high priority to this issue during the last couple of years. The Survey also highlighted that there seems to be a missing link or gap between the underlying values of public service and the interests of the citizens served. It is acknowledged that the influence of public service leadership in terms of policy advices, policy implementation and decision making have profound and extensive impact on the life of the people. Nevertheless, the influence has a further line of sight in repercussions if not delivered efficiently. For instance, a flawed decision may have tremendous consequences to the society at large.

Leadership is indeed a critical component of good public governance. By governance, which the underlying values of a nation are articulated and institutionalised. It is these values that will guide the actions of public officials throughout the system and they must be embedded in culture. The question is how we actualize these values in the public service. The primary function of public service is to translate the national vision into tangible outcomes. The Malaysian Public Service has been successful in their efforts to drive national development and nation building as well as enhancing and upgrading capacity and capabilities. Within a short period of five decades, we have managed not only to build our nation, but set our foothold in the global arena. These developments congruent towards a maturing society and a maturing nation. The challenges of the 21st century however, is to steer the nation into a new dimension both locally and globally.

It is alarming to note that despite the numerous measures undertaken to improve the public service delivery, a recent survey by the Malaysian Integrity Institute, indicates that the public’s impression of public service delivery is even lower than its perception on corruption. In this context, there is a need for the profiling of the public service image. The public service must look at its role with a new pair of eyes and through a fresh lens to ensure it rises to the challenges put before Malaysia with unsullied solutions. Profiling the public service image can be translated through the inculcation of values which must be embedded among the public officials and transcends throughout the system. By culture for excellence, setting high standards of performance with tangible goals and realistic plans to achieve them. This would require a change from an input-oriented practice to outcome-based approaches.

The outcome-based approach provides transparency, as such, the progress of projects and programmes are more easily monitored towards the prescribed goals. The public also has the opportunity to see its value for money. The implementation of this approach is anticipated to improve performance and public accountability. Demanding a high standard of performance by itself however, is inadequate if there is no follow-through and follow-up action. We are often praised for having the best plans, unfortunately often lacking in the drive and commitment in its implementation and completion. The public service should no longer be satisfied with merely mediocre performance and therefore, leadership in the public service must demand a high standard of performance. We must always challenge and stretch ourselves and never be afraid of coming out with new ideas and approaches. Attaining seamless service delivery is still one of the major problems confronting the public service today. World class public service delivery can only be achieved through a high level of inter-agency collaboration.

Sunday 15 March 2009

SET UP URBAN GOVERNANCE INSTITUTE

PETALING JAYA: A government-funded Institute of Urban Governance has to be set up to better serve cities and towns. Social activist Tan Sri Lee Lam Thye, who made the call, said the development and management of urban centres was among the major challenges faced by the Government due to rapid urbanisation. He said the concentration of development and human activities in cities and towns had exposed the population there to an environment that was “physically, psychologically and socially taxing”, leading to a host of complex urban problems.“It is time for the Government to set up an institute for urban governance, which can function as a national resources and training centre for urban governance and development,” Lee said in a statement.

Lee said such an institute could help facilitate research by providing support to academicians and individuals to undertake research, and also provide consultancy on urban issues.He suggested that academic experts, research organisations and government agencies conduct academic programmes in urban planning for local government officials and others to better manage towns and cities. “Urbanisation should lead to community spirit-building. Where urban centres are built, pro-active efforts must be taken to build a sense of community and belonging among the multi-ethnic residents,” he added.
edited from The Star 17 February 2007

KUALA LUMPUR, Feb 8 (Bernama) -- The government should set up an Institute of Township Management to serve as a centre of excellence for local government administration, suggests social activist Tan Sri Lee Lam Thye.Lee said such an institute could also carry out research work and offer advice on issues involving township management, besides organising courses and training for local government officers."While Malaysia is undergoing rapid township or municipality development, the provision of various services to residents should be part of the national agenda," he said in a statement issued here Sunday.

As such, he said, many technical staff in areas such as planning, architecture, engineering and other professional fields would have to be recruited to increase the capacity of the local governments in administering their respective areas."The local governments must also be sensitive to public grouses and opinions in order to function effectively."In this respect, the public must be encouraged to voice out their views and to participate by being part of the consultative committees set up."Lee said 60 per cent of Malaysia's population now lived in the towns and cities, indicating rapid urban development due to rural-urgan migration.
edited from Bernama 8 February 2009

Thursday 12 March 2009

THE OPPORTUNITIES AND IMPLICATIONS PRIVATISATION IN MALAYSIA

Upon gaining independence, the Government, inevitably had to take the leading role in developing the country, in view of the limited capacity of the local private sector at that time in terms of entrepreneurial, managerial and financial resources. The kind of egalitarian principles which influenced many developed countries to nationalise or even to become communist also affected Malaysia with its many imbalances and disparities. From the provision of utilities such as roads, water, electricity, telephone, postal services, etc., the Malaysian Government moved swiftly into purely economic activities. Within a very short period hundreds of Government owned companies were formed to do, among other things, housing development, trade, run hotels, estates, mines, shipping, airlines, construction and manufacturing. By the 1980`s some 10 billion ringgit was directly invested in about 1,000 companies.

Guarantees total 25 billion ringgit. While some succeeded admirably, most failed. Even those which are monopolistic are not able to pay their way, much less make a profit. The pendulum had obviously swung too far. While we cannot say the policy is a total failure, for much experience had been gained from it, we cannot continue to pay this very high price.Given this scenario, the Government at the beginning of this decade, decided upon privatisation as a way out. At that time privatisation was not the world trend that it is now. But the many failures and the high cost of Government involvement left us with no choice but to try this unproven approach. Besides, the country now has the infrastructure in place and the private sector is better equipped with man, money and skills to make privatisation feasible. In Japan, while the private railways make profits, the Japan National Railways (JNR) when it was owned by the Government, lost money constantly.

Now the JNR has been privatised and in its first year of operation the companies have made profits. Apart from the new owners and probably some key executives the people manning the JNR are the same. Yet the performance is different. The assumption must be that the management input is different. Management is not one of Malaysia`s strong points. In the first instant we do not have enough managers. Of the ones that we have, a good number are unfortunately mediocre. Some we have seen are downright dishonest. If privatisation is going to remedy the ills of nationalisation then we must have good managers. The Government cannot afford to have too many failures in the privatised companies. We do not want to be forced to take them back. We do not want to involve ourselves in business again. While the Government will exercise every care to ensure that Government enterprises will not fall into the wrong hands, we hope that responsible institutions in the private sector such as merchant banks, business consultants and intending entrepreneurs will study very carefully the ability of the companies taking over Government services or enterprises.

There are many good examples in other countries. We must learn from them. If necessary, we should use their expertise, their direct involvement even. Let us admit that we do not know everything. There is so much we can learn from others with their experience. If the Government happens to award the enterprise to companies that are partly owned by foreigners, it is not because the Government is not patriotic or un-Malaysian. We want to save the nation from disasterous mistakes. But that does not mean that capable locals cannot on their own succeed in taking over the services we wish to privatise. The fear of price increases is greatly felt with privatisation of monopolies where prices may be determined by the need to earn super normal profits. It is the function of the Government therefore to prevent such a move by the private sector through the establishment and enforcement of an effective regulatory mechanism.

Such a mechanism will not only have to regulate prices of services but also its quality and geographical coverage. In the licence to Syarikat Telekom Malaysia for example, the company is bound to continue with the unprofitable services to the rural areas. But we would like to assure interested parties that the Government does not wish to regulate unless the situation compels it to do so.Fears of strategic industries falling into the hands of foreigners can be easily circumvented through specific provisions in the instruments enabling the industry to be privatised. Fears of the privatised entity undertaking actions which are injurious to national interests can also be overcome through this means. Hence, although it is admitted that there are dangers attached to the policy, safeguards can be built-in to circumvent such dangers. As we can see, privatisation does not mean that the Government will be absolved of its social responsibilities.

The Government will still maintain its role as the guardian of public welfare. This will be done through minimal regulatory measures rather than through direct participation in the production of goods and services. Where subsidies are unavoidable these will continue to be provided but on a more selective basis and to deserving cases. The Government will remain accountable to the public and must therefore be responsible for ensuring that privatisation will be beneficial to all concerned. The Government truly believes that privatisation will on the whole be beneficial to the nation and hence it is fully committed to it.

Monday 9 March 2009

STRATEGY FOR GROWTH: TOWARDS A MORE COMPETITIVE ECONOMY

Over the past year, many conferences, seminars, dialogues and panel discussions have been organised to extract ideas and views from across a wide cross-section of the population on what is needed to put the Malaysian economy back on track. In an increasingly unstable international trading environment, fresh ideas and new approaches have not been easy to come by. For a commodity- dependent country, like Malaysia, how should we respond when writers like Peter Drucker see no future for raw material producing countries because they have come "uncoupled" from the industrial economies? Likewise, since we are looking towards industrialisation to help solve our unemployment problem, the same message is repeated - namely, industrial production has also come "uncoupled" from employment, the argument being that the more competitive industries today are those that are technology and knowledge-driven, such as electronics, genetic engineering, pharmaceuticals and telecommunications.

And, of course, the impact of recent events in the world`s stock exchanges bear testimony to the sad observation that economic performance these days is becoming less dependent on underlying macro-economic fundamentals, and more on financial transactions based on rapid and massive capital movements, which are strongly linked to the vicissitudes of market sentiments. So far, the Government`s strategy for the private sector had been directed mainly at the provision of adequate incentives, including reducing the rates on corporate tax, electricity and communication charges, liberalising the guidelines governing equity participation in export-oriented industries, and deregulation to reduce cumbersome rules and procedures. If the economy is allowed simply to grow on its own momentum over the medium term, depending mainly on the fortunes of the international trading environment.

The present sitution calls for daring, innovative and imaginative entrepreneurs. The lessons of history tell us that the take-off to sustained growth in any society requires the existence, initiative and reasonable skill of some group which is prepared to take risks and venture into new enterprises. Indeed, the real remedies lie deep in human attitudes and behaviour. Granted, it cannot change overnight. But, as the current values and behaviour must have developed from a more primitive beginning, so can the process of value changes take of from the present ones. It remains for us to cultivate the right kind of changes. Our nation is blessed with abundant natural resources, which need either to be exploited raw or with varying degree of added value in order to yield handsome returns. Businessmen have been turning more and more to the financial markets with its promise of quick and substantial returns.

A financial market is only real and viable if it is backed by sound economic activity with growth of assets and dividends. Capital gains without real economic growth is like a growing skyscraper without foundation. Sooner or later it is going to crash down. As we are aware it has crashed on a worldwide unprecedented scale. Instead of waiting for the market to recover, businessmen should go back to doing business, to producing goods and services and marketing them at a profit. The stock market should be used to raise capital for these enterprises. If you must speculate, do so on a reasonable scale. There must be some relationship between prices and the performance of the enterprises. Computers should not totally displace humans in the buying and selling of shares. The old study and probe into the basic foundations of the companies must return as the basis for decisions to sell or buy. If there must be speculation, it should be sane and healthy.

Workers wages in this country are relatively higher than among our major competitors in the region. Since it is neither wise nor possible for wages to be reduced in order to bring down unit cost, the only thing that can be done is to increase productivity. While hard conscientious work by workers can definitely improve productivity, managers must also look into the system of working and the use of aids in order to improve productivity. Unnecessary and careless spending is another cause of high unit cost. In other words while workers play a role in determining the level of productivity, managers and other executives cannot be completely excused for poor productivity in any enterprise. It is imperative that Malaysian managers look critically at themselves as much as at their workers.

Friday 6 March 2009

GLOBAL KNOWLEDGE ENHANCE QUALITY OF LIFE

All of you are well aware of the impact that the information revolution is already making on our social and economic institutions, on public and private sector bureaucracies, and on the man in the streets.....changing the way we do everything. While it holds the promise of a better life for everyone, it also threatens to create a huge disparity between the information-haves and the information-have-nots, the knowledge-rich and the knowledge-poor. This growing digital divide was the single driving concern of the first Global Knowledge Conference where more than 2000 people representing governments, international agencies, non-profit organisations, private sector corporations and NGOs, met in Toronto, Canada in 1997. It became obvious that the countries which were either unaware of, or did not have the means to harness the new tools of the information age, would be powerless to improve the quality of life of their peoples.

The first Global Knowledge (GK) Conference recognised that knowledge and information are critical for sustainable, and equitable development. Out of the conference there evolved an informal but powerful partnership of organisations now known as the Global Knowledge Partnership. It currently has 55 members. They are all committed to sharing information, experiences and resources to help people acquire the knowledge and technology they need in order to shape their lives. GKll is part of this ongoing process of sharing and learning. Dialogues and discussion at national and regional levels on issues of access, empowerment and governance - the three themes of the GKII - have already begun and will continue after March 2000. Access to ideas and information from around the world are already empowering people to improve their lives.

There are some dramatic examples of how the power of information can not just improve lives but also help save them. We know of how the Pan American Health Organisation conducted a hemisphere-wide teleconference to present new methods of diagnosing and preventing the spread of AIDS. Yet in countries in Latin America, Africa and Asia where the spread of AIDS is threatening a whole generation of young people, these support networks are not yet in place. With GKll and the Global Knowledge Partnership, we have a tremendous opportunity to draft an agenda for action that will give developing countries a fair and equitable share in the new knowledge economy. The whole event is being specially designed to ensure that the four days of discussion, debate, sharing of information, experiences, best practices and even failures, will result in a strategic plan of action to help us build knowledge societies.

Represented here today are members of the diplomatic corps, the corporate sector, NGOs, government agencies, the media and the community. Each of you has a very important role to play in the success of GKII. Malaysia active involvement at national, regional and global levels is critical to the success of this conference. Let us jointly contribute our resources to leverage this strategic opportunity to shape our future. Malaysia has set her own agenda for transformation into a knowledge-based economy by the year 2020. GKII will help us identify and address issues critical to the realisation of this vision. We can share our own experiences and highlight some of our achievements with regard to the implementation of the National IT Agenda and the Multimedia Super Corridor initiative. Perhaps our greatest challenge is to open people's minds to the tremendous possibilities offered by shared information and knowledge.

Ideally, every Malaysian should know about GKII, the Global Knowledge Partnership and the power of the new communications tools. We are hoping for your support, particularly the media, in publicising the issues and challenges for knowledge development, and the objectives and activities of GKII and the Global Knowledge Partnership

Tuesday 3 March 2009

EFFICIENT GOVERNANCE: GEARING TOWARDS BEING WORLD CLASS

The effectiveness and efficiency of the public service as well as its facilitating role has helped the country's economic development. This we have accomplished through the introduction of numerous administrative measures which are designed to provide high quality services to the private sector and the society at large. To be world class, and at par with the best, we have to continue the quality revolution in the public service. In fact I would suggest we think of two Qs: Quality and Quickness. One of the important attributes of quality is to be responsive to customer needs and this means Quickness of Response. Members of the public want speedy approvals of their house plans, certificates of fitness for occupation of their newly-built houses, quick service at the immigration counters, at hospital dispensaries etc. The business community want quick approvals for company incorporation, trade licences, manufacturing licences, duty drawbacks, patent rights, approval of industrial premises, crucial market information on their products and services, etc.

If speed is the essence in doing business, then systems and procedures, particularly those that ensure accuracy, reliability, consistency and simplicity will have to be put in place. The public service will be implementing ISO 9000 very soon. Malaysia will be the first country that will adopt ISO 9000 in its entire public service. Gearing ourselves to world class means that we will gear ourselves to implementing ISO 9000. Training of public servants should emphasise the sharpening of core competencies covering the three broad areas of conceptual, technical and interpersonal skills. However, the emphasis will vary depending on whether the officer is in the upper, middle or lower levels of management. The conceptual skills are skills related to `higher order activity' more relevant to the upper level management where the need is to see issues, recognise problems, strategise, and think systems.

The middle level management needs a balance of both the conceptual and the technical skills as they act as the interface between the top level management and the lower level of management. However, across all levels of management is the requirement for interpersonal skills. No one works alone in any organization; people will have to network and build relationships at all levels of management vertically as well as horizontally. As such, training programs in public sector training institutions particularly INTAN will have to take into consideration these aspects of skills development focussing on core competency areas. World class also means the ability to command resources and operate beyond borders. In this regard, our public service should have the ability to support our private sector to effectively operate beyond our shores. There are many ways in which this can be done.

Firstly, in business, the question of integrity and image are very critical elements. In this connection, besides facilitating the business sector through enhancing the administrative processes, the public service must see itself as the custodian of Malaysia's good image overseas, and assist in the conduct of business with good ethics, to see that our businessmen conduct dealings with reputable partners overseas; secondly, the public service has to focus on establishing connections and networking; examine investment opportunities and facilitate the entry of Malaysian products and services to new markets. The country should never be allowed to suffer from a deep crisis of faith in the public service; the people must not criticise us as a faceless bureaucracy that is unable to accurately meet personalized services; the people must not be allowed to spend their precious time finding answers to their questions, after being bounced from department to department. The new information technology appears to be the key enabler of public service transformation.

Sunday 1 March 2009

LOCAL AUTHORITY AND WORLD BUSINESS COMPETITIVENESS

The current global economic challenges have put Local Authority in the front and centre of attention. They are under the microscope, their past actions are being scrutinized and their behaviour and actions going forward are being closely watched. They are expected to rise to the challenge and steer their organizations and corporations out of troubled waters that the world economy is now in. The business world is witnessing massive upheaval and scandalous revelations. The crisis calls for a re-examination of the corporate culture and the way business has been done. In some of the scandalous revelations in the US, it has proven that business as usual is not an option any more. That model has been broken. A new way needs to be found. It calls for active, innovative, aggressive leadership and bold decisions.

In view of this, effective leadership has never been more important. Periods of economic stress test the ability and capability of Local Authority and demands that they rise to the challenges. Crisis tests an individual’s abilities more than the good times ever do. Undoubtedly, most leaders will be tested by a few minor and major crises during their tenure. How the individual steers through such troubled times will show the mettle he or she is made of. The Local Authority of today are being tested on several levels, both internally and externally. While they may have some control over their internal environment, they certainly do not know what awaits them externally in the current volatile business environment.

Loyal and hardworking employees are the best asset of any organization, and yes, even in the high tech era and in the computerized age. It is important to retain talent and more so during difficult times. Strengthen and retain what them have. Pull Local Authority talent together and take decisive decisions. Do not let good talent get away. It will be more difficult to find them when the recovery comes, which will come, just as the sun will rise again tomorrow. Local Authority must train and equip staff with the appropriate knowledge and skills to enhance efficiency and improve competitiveness. R & D is important to develop new products, improve current product quality, improve production processes and technological capabilities. These cannot be ignored even during difficult times. And as businesses become more complex, decentralized and globally dispersed, the need for real time integrated information system is essential for improved communication, better analysis and for making quick and informed decisions for any corrective action that might be needed.

Today, the Local Authority is expected to be pro-active in contingency planning, to anticipate and prepare responses. Expediency in the appropriate response can negate losses. As the Chinese word for crisis, Wei ji, is composed of two characters signifying “Opportunity” and “Danger”, the current crisis with its many downsides also offers opportunities. It is necessary for business leaders and Local Authority to seek out the possibilities in these challenging times. Them must do this to remain relevant, sustainable and competitive. Leadership is a demanding role even during times of relative calm. It calls for balancing of internal and inter-business relationships and more so during a crisis, when courage and desire to lead well and effectively are put to the test.

PEOPLE AROUND ME..FAMILY AND FRIENDS.

PEOPLE AROUND ME..FAMILY AND FRIENDS.
To my Wife, Zulaini, my sons Zulazlan, Zulazman, Zulazmir, Zulazmin dan my daughter, Nuris Zulazlin...I love you all..thank you being with me

CIRCLE OF FRIENDS... KUALA LUMPUR PROJECT OFFICE

CIRCLE OF FRIENDS... KUALA LUMPUR PROJECT OFFICE
Thank you guys...for your support and encouragement

2007 / 2008 METHODOLOGY AND QUALITATIVE RESEARCH COURSE FOR PHD CANDIDATES

2007 / 2008 METHODOLOGY AND QUALITATIVE RESEARCH COURSE FOR PHD CANDIDATES
My new friends during my course in INTAN 9 Jan -2 Mac 2007

KUALA LUMPUR PROJECT OFFICE, JOURNEY TO MOUNT OF KINABALU SABAH 21-22 JANUARY 2006

KUALA LUMPUR PROJECT OFFICE, JOURNEY TO MOUNT OF KINABALU SABAH 21-22 JANUARY 2006
WE CAME, WE SAW, WE CONQUERED 4095.2 METER ABOVE SEA LEVEL

How are you, guys? Where you are now?

FOOD CLOCK