We have gone the way of protecting a national identity or race preference whenever businesses ventures by our government are implemented. Instead of selecting the best for the job, pride of ownership by mere percentage of control based on creed is just a show of superficial results and performances.
Tony Fernandes, our CEO of Air Asia, sums it up on why our corporations, especially the GLC’s, need to relook at their policies in order to be more competitive with this ever changing demand from abroad and globally. Not to mention our NEP which on countless times being critique by politicians and masses alike.
Meritocracy and Free Competition: The only way for Malaysia
By Tony Fernandes, CEO Air Asia
Tony Fernandes, our CEO of Air Asia, sums it up on why our corporations, especially the GLC’s, need to relook at their policies in order to be more competitive with this ever changing demand from abroad and globally. Not to mention our NEP which on countless times being critique by politicians and masses alike.
Meritocracy and Free Competition: The only way for Malaysia
By Tony Fernandes, CEO Air Asia
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I applaud Datuk Nazir Razak and this resonates with a call – let's have more brave leaders. No more hiding behind the government, monopolies and protectionism.
Shortly after I posted my views on innovation I was thrilled to read CIMB Group CEO, Datuk Nazir Razak's bold comments on how the government should show economic leadership in these trying times. Among his suggestions that really stuck with me were the review of the New Economic Policy (NEP), how the government should venture out to acquire companies and brand names abroad and how Malaysia can attract the best talent.
Datuk Nazir Razak
When I think about it, I see Nazir's comments reflect the ideals and philosophy behind Singapore's Temasek Holdings. Although government-owned, they do mean business when it comes to the way they operate. The sort of returns on investment they generate each year bear testament to that (yes, yes, I am aware of the big hit they’ve taken in the current downturn but you know what I mean). But it was the recent decision to appoint Chip Goodyear, an American and former BHP Billiton boss, as the new CEO that demonstrates how serious they are about running Temasek like a real business.
Like all Fortune 500 companies, Temasek casts its net wide and makes sure it lures the best and the brightest. I take my AirAsia cap off to the Singaporeans for this. They may have a reputation for being ultra-straight-laced and total conformists but this is one radical trail-blazing move for all Sovereign Wealth Funds and State-backed companies everywhere to try and emulate.
Chip Goodyear
Now wouldn't it be great if our GLCs took the same tack when hiring for the top posts? We needn't even have to look beyond our borders: Malaysia has a large and deep enough talent pool to supply a multitude of leadership candidates who can help our GLC’s compete on the world stage. I really cannot agree more with Nazir's call for the review and restructuring of the NEP. It is probably the single most important factor that is preventing Malaysia moving from good to great. I realize the important role it has played in narrowing the economic divide between races. But there is empirical evidence to show that there has been little incremental benefit over the past two decades. It's a 39-year-old machine that is broken, running on empty and which desperately needs to be fixed.
And here’s no better time to do it than now. The global economic turmoil presents a golden opportunity to embrace change (apologies to Obama). Think of it this way: The economic pie is already shrinking at home and if we don't fix our fundamental problems of improving our education system, nurturing talent, and rewarding the best minds the pie will shrink even more. We must have the courage to seize this opportunity to truly reform.
These are all the values that we aim to promote in AirAsia. We try our best to make our staff aware that opportunities are always there for them to switch careers or take on more responsibility or become leaders, as long as they have the desire and the passion to work towards their goals. Some of our cabin crew have moved into the marketing divisions and some who've had enough of pencil-pushing in accounts have taken up the challenge to fulfill their life-long dream to be a pilot!
Someday when I am too old and have to step down from my position as CEO, we will have to hunt for a new chief for AirAsia too. If the new boss was Malaysian, that would be a bonus but regardless of his or her race, class, religion or nationality, I have no doubt that we'll be cherry-picking only from amongst best.
The answer is meritocracy. That's what Datuk Nazir is talking about, and what Temasek is practicing when it chose Chip Goodyear. It’s what globally-minded private corporations practice as well in hiring their most senior managers (think Sony, Pepsi, Toyota, Coca-Cola, and Nissan). It’s what the World Bank did when it appointed Justin Yifu Lin from China as its chief economist – one of the most influential positions in the global economic hierarchy.
Let’s make a start down this road in Malaysia. We don’t even need to go outside our borders. We have so many talented and creative Malaysians right here at home. Let’s use them all. We must ensure that these talent remain here and is not lost to those poaching the best. This is a call for Malaysian companies to be more efficient or risk losing out in the bigger picture. This also must be said, that I feel that the government should not hold back free enterprises just to protect the interests of government linked companies (GLCs). The spirit of privitisation in industries and embrace of innovation should be embraced and not frowned upon. This is an age that calls and demands brave leadership or we will find ourselves deteriorating into an economy lagging behind in ASEAN.
When I write about my Labu journey, you will see how this post is so relevant to what we are all facing in Malaysia. When young innovative bright companies are held back back by slow moving inefficient monopolies, what happens is we simply lose great ideas and talent to our competitors the world. Are we content to only play second fiddle and fall behind all the time?
I applaud Datuk Nazir Razak and this resonates with a call – let's have more brave leaders. No more hiding behind the government, monopolies and protectionism.
Shortly after I posted my views on innovation I was thrilled to read CIMB Group CEO, Datuk Nazir Razak's bold comments on how the government should show economic leadership in these trying times. Among his suggestions that really stuck with me were the review of the New Economic Policy (NEP), how the government should venture out to acquire companies and brand names abroad and how Malaysia can attract the best talent.
Datuk Nazir Razak
When I think about it, I see Nazir's comments reflect the ideals and philosophy behind Singapore's Temasek Holdings. Although government-owned, they do mean business when it comes to the way they operate. The sort of returns on investment they generate each year bear testament to that (yes, yes, I am aware of the big hit they’ve taken in the current downturn but you know what I mean). But it was the recent decision to appoint Chip Goodyear, an American and former BHP Billiton boss, as the new CEO that demonstrates how serious they are about running Temasek like a real business.
Like all Fortune 500 companies, Temasek casts its net wide and makes sure it lures the best and the brightest. I take my AirAsia cap off to the Singaporeans for this. They may have a reputation for being ultra-straight-laced and total conformists but this is one radical trail-blazing move for all Sovereign Wealth Funds and State-backed companies everywhere to try and emulate.
Chip Goodyear
Now wouldn't it be great if our GLCs took the same tack when hiring for the top posts? We needn't even have to look beyond our borders: Malaysia has a large and deep enough talent pool to supply a multitude of leadership candidates who can help our GLC’s compete on the world stage. I really cannot agree more with Nazir's call for the review and restructuring of the NEP. It is probably the single most important factor that is preventing Malaysia moving from good to great. I realize the important role it has played in narrowing the economic divide between races. But there is empirical evidence to show that there has been little incremental benefit over the past two decades. It's a 39-year-old machine that is broken, running on empty and which desperately needs to be fixed.
And here’s no better time to do it than now. The global economic turmoil presents a golden opportunity to embrace change (apologies to Obama). Think of it this way: The economic pie is already shrinking at home and if we don't fix our fundamental problems of improving our education system, nurturing talent, and rewarding the best minds the pie will shrink even more. We must have the courage to seize this opportunity to truly reform.
These are all the values that we aim to promote in AirAsia. We try our best to make our staff aware that opportunities are always there for them to switch careers or take on more responsibility or become leaders, as long as they have the desire and the passion to work towards their goals. Some of our cabin crew have moved into the marketing divisions and some who've had enough of pencil-pushing in accounts have taken up the challenge to fulfill their life-long dream to be a pilot!
Someday when I am too old and have to step down from my position as CEO, we will have to hunt for a new chief for AirAsia too. If the new boss was Malaysian, that would be a bonus but regardless of his or her race, class, religion or nationality, I have no doubt that we'll be cherry-picking only from amongst best.
The answer is meritocracy. That's what Datuk Nazir is talking about, and what Temasek is practicing when it chose Chip Goodyear. It’s what globally-minded private corporations practice as well in hiring their most senior managers (think Sony, Pepsi, Toyota, Coca-Cola, and Nissan). It’s what the World Bank did when it appointed Justin Yifu Lin from China as its chief economist – one of the most influential positions in the global economic hierarchy.
Let’s make a start down this road in Malaysia. We don’t even need to go outside our borders. We have so many talented and creative Malaysians right here at home. Let’s use them all. We must ensure that these talent remain here and is not lost to those poaching the best. This is a call for Malaysian companies to be more efficient or risk losing out in the bigger picture. This also must be said, that I feel that the government should not hold back free enterprises just to protect the interests of government linked companies (GLCs). The spirit of privitisation in industries and embrace of innovation should be embraced and not frowned upon. This is an age that calls and demands brave leadership or we will find ourselves deteriorating into an economy lagging behind in ASEAN.
When I write about my Labu journey, you will see how this post is so relevant to what we are all facing in Malaysia. When young innovative bright companies are held back back by slow moving inefficient monopolies, what happens is we simply lose great ideas and talent to our competitors the world. Are we content to only play second fiddle and fall behind all the time?
I like what Tony said about the NEP. A 39-year old machine that is broken, running on empty and which desperately needs to be fixed.
ReplyDeleteHmmmm, a light bulb is going off in my head about my next posting.
not only it is broken, we are only good and competitive in our country. hence the title.
ReplyDeleteyes, romerz, write on. got another light bulb put up later.