ID :
31089
Wed, 11/19/2008 - 16:04
Auther :
Shortlink :
https://oananews.org//node/31089
The shortlink copeid
BE SELECTIVE IN COST-TRIMMING EXERCISE, SAYS M'SIAN DPM
KUALA LUMPUR, Nov 19 (Bernama) -- Do not cut resources which are vital for the long-term competitiveness of organisations in this time of crisis, Deputy Prime Minister Najib Razak said Wednesday.
Najib, who is also the Finance Minister, said the typical reaction among
companies "is more often that not" to cut costs, especially manpower
costs.
"To some extent this is inevitable. In any organisation there is always
some fat, which needs to be trimmed," he said.
However, Najib said experience had shown that it was difficult to rebuild
skilled resources when the economy rebounded.
"Thus in implementing any cost-trimming exercise, it is important to be
very diligent and selective so as to be ready when the economy turns around," he
said in his opening address at the Chief Financial Officers (CFOs) Conference
2008 here.
The text of his speech was read by Second Finance Minister Nor Mohamed
Yakcop.
The two-day conference which ends Thursday is jointly organised by the
Federation of Public Listed Companies Bhd and Malaysian Institute of Corporate
Governance.
Themed "The Evolving Role and Challenges for the Modern CFO in Implementing
an Effective Finance Function during Uncertain Times", the conference was
attended by about 100 CFOs.
Najib, who is in Peru leading Malaysian delegation for Asia-Pacific
Economic Cooperation (APEC) meeting, said times of crisis also presented
opportunities for organisations.
"In this respect, companies should take advantage of depressed asset prices
either in the financial or real sectors," he said.
Najib said companies must have a long-term view and continue to invest to
ensure thir sustainable competitiveness.
Thus, he urged companies to continue looking at viable investment and
business opportunities, especially in the growth corridors.
Najib said the global financial crisis and ensuing economic slowdown has
created a pool of unemployed resources, consisting of highly skilled and
knowledge workers.
"Companies must proactively look at employing such workers and continue
building up their human capital capabilities," he said.
"It is imperative for companies to continuously develop their human capital
as it provides the competitive edge in today's increasingly challenging business
landscape," he added.
Najib, who is also the Finance Minister, said the typical reaction among
companies "is more often that not" to cut costs, especially manpower
costs.
"To some extent this is inevitable. In any organisation there is always
some fat, which needs to be trimmed," he said.
However, Najib said experience had shown that it was difficult to rebuild
skilled resources when the economy rebounded.
"Thus in implementing any cost-trimming exercise, it is important to be
very diligent and selective so as to be ready when the economy turns around," he
said in his opening address at the Chief Financial Officers (CFOs) Conference
2008 here.
The text of his speech was read by Second Finance Minister Nor Mohamed
Yakcop.
The two-day conference which ends Thursday is jointly organised by the
Federation of Public Listed Companies Bhd and Malaysian Institute of Corporate
Governance.
Themed "The Evolving Role and Challenges for the Modern CFO in Implementing
an Effective Finance Function during Uncertain Times", the conference was
attended by about 100 CFOs.
Najib, who is in Peru leading Malaysian delegation for Asia-Pacific
Economic Cooperation (APEC) meeting, said times of crisis also presented
opportunities for organisations.
"In this respect, companies should take advantage of depressed asset prices
either in the financial or real sectors," he said.
Najib said companies must have a long-term view and continue to invest to
ensure thir sustainable competitiveness.
Thus, he urged companies to continue looking at viable investment and
business opportunities, especially in the growth corridors.
Najib said the global financial crisis and ensuing economic slowdown has
created a pool of unemployed resources, consisting of highly skilled and
knowledge workers.
"Companies must proactively look at employing such workers and continue
building up their human capital capabilities," he said.
"It is imperative for companies to continuously develop their human capital
as it provides the competitive edge in today's increasingly challenging business
landscape," he added.
