'Inclusiveness' Helping Shape Malaysia's Economic, Social Landscape

By Massita Ahmad SINGAPORE, April 28 (Bernama) -- It is proven that a government which adheres to "inclusiveness", plays an instrumental role in shaping the economic and social landscape of a country. It includes empowering women capabilities which can see an increase in the number of policy makers among them. According to Korn Ferry's Building Diversity in Asia Pacific Boardrooms latest study, Malaysia is the only country in it, to have implemented a target and provided active support for companies to reach the goal. The comprehensive Asia Pacific study is the fourth in the Korn Ferry Diversity Scorecard series. The study examined the 2014 annual reports of the largest 100 publicly listed companies in 10 Asia Pacific economies, namely Australia, China, Hong Kong, India, Indonesia, Japan, Malaysia, New Zealand, Singapore and South Korea. Most of the countries reviewed showed little or no improvement in gender diversity, with the exception of Malaysia, Australia, and India. These three countries saw regulatory action or governmental support for promoting board diversity. The government administrative policy helmed by Prime Minister Najib Razak has succeeded in increasing the number of policy makers among women, including at the decision making level. The prime minister had set a 30 per cent target for women's participation at this level in the public sector by 2009, while in the private sector, a similar goal was by 2016. According to the latest statistics by the Prime Minister's Department, as of March this year, women's participation in the public sector's top management positions was 37 per cent. "It is clear that governments and regulators play an instrumental role in shaping the board diversity landscape," Managing Director, Board and Chief Executive Officer, Services, Korn Ferry, Alicia Yi said. "Whether it is through targets, quota or disclosure requirements, these measures are needed to help enterprises make a deliberate choice in considering female candidates alongside men for senior positions. "The benefits to sustainability, talent retention, strategic growth and sustainable success are significant," she added. In the study, Malaysia saw the largest year-on-year increase in female representation, from 8.3 per cent to 12.5 per cent, reflecting the success of the governmental programmes to increase gender diversity. The number of all-male boards has also decreased significantly from 52 per cent to 29 per cent - the largest to date. Korn Ferry noted that Malaysia has seen specific improvements in government-linked companies (GLCs) - based on the Khazanah Nasional Bhd report - that form many of its top listed companies. These company boards are now 17 per cent female versus 11 per cent for other listed firms. Korn Ferry's study also showed the highest share of women on Malaysian boards in the utilities and energy sectors. Overall, based on the findings, firms with at least 10 per cent of female board members delivered a 14.9 per cent return on equity (ROE) in 2014 compared to just 12.6 per cent for those without. -- BERNAMA