Attended the launch of the Malaysian Directors Academy - MINDA's Corporate Website & Brochure at a leading hotel in KL.
MINDA came about as one of the channels for the improvement and development of GLCs directors which was initiated by the GREEN Book on "Enhancing Board Effectiveness" launched in April 2006. In retrospect, the Green Book was given birth by the "Putrajaya Committee on GLC High Performance(PCG)".
In his speech, Dato' Ahmad Husni Hanadzlah - the Minister of Finance 2 made some interesting comments which caught my attention. Amongst them were:-
(1) Make profits NOT just from Restructuring of Assets & Cutting Operating Expenditure.
Comment: Restructuring & Cost Cutting measures seems to be the mantra of GLCs. Some Examples - MAS (WAU-Widespread Asset Unbundling) , Telekom Malaysia ( splitting of telco giant into TMB & Axiata)and Sime Darby (consolidation of a few companies to create a world giant).
(2) Bring back "Sexiness" & "Entrepreneurship" in GLCs.
Comment: this frank admission by the MoF2 reinforces the public's perception that GLCs are run by managers who might be afraid to "rock the boat" and prefers to "keep the ships and planes at the ports and airports" so as to speak....the ships and planes might be safe at the ports but then again,they were not built for that purposes. The powers that be must find a mechanism whereby creativity & ingenuity in risk-taking are rewarded rather than frowned upon or, looked down to. Additionally, the Government's infatuation with appointing consultants who haven't one iota of having started any business(es) on their own or, using their own capital should be reduced if not stopped.
Considering that the MoF2 and T.S.Azman Mokhtar were there for the launch and that there are around 250 GLC directors in 33 companies, I hasten to say that the turnout from the GLC directors is a tad...disappointing!
On a related albeit separate issue, the government should also consider setting-up a similar academy for SME's Directors as the challenges facing them are different from GLCs or MNCs.
LINKS to this Event:-
1) Business Times.
2) The Malaysian Insider.
On a personal level, I would like to thank MINDA's CEO OP Abdul Aziz for the kind greetings to a fellow alumni! TQ Dato'.
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e-mailed comments from an old banking friend
ReplyDelete(15 March 2010)
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Good comments like those strong punches from Filipino Pacman.
However,you are the minority who really understand proper profit?
Majority look at share prices;double-up within 12 months?
Who cares where the real profit comes from?(Capital gains prevail?)More rules need to be tweaked?Can this happen in Wonderful Malaysia?They are not like TUN;tend to run out of stamina?Recent instances like petrol scheme and GST.Delay is inevitable?Good at announcements?Learn a bit or take a leaf from uncle SAMMY?
Is it a disease or culture to look at short-term horizon,normally?Perhaps,the young ones have no patience these days.Some old ones too;excusable cos they are short of time?Still remember the maximisation theory?We all practise this in many different ways?How we wish we can improve to define the word "right" better?Time for PHD now?More researches in Indonesia again or elsewhere?USA OUT?
Keep on blogging with greater south-paws.Regards.
An e-mail from MINDA's staff.
ReplyDeleteAlways a pleasure when the pertinent institution reponds to any SME blog postings. TQ Sir.
(16 March 2010)
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Many thanks for coming to our launch and your very pertinent views and comments below; something that I will certainly raise as a concern going-forward.