the business

Q4/2015

ADVOCATE

"The Premier Advocate for the Business Community"

KDN NO. PP 5124/06/2012 (029800) / VOL.22

Business

Ethics

National Corporate
Ethics Award

2015

Corporate Governance
Of Corporate Ethics

Role Of Whistleblowers
In Upholding
Business Ethics

Instilling Business
Ethics In Work Culture

CEO Profile
- Wan Saiful Wan Jan
- Jagdeep Kairon

Malaysian International Chamber of Commerce and Industry ( 16841-V )

President's Message

President's Message

ROLE OF BUSINESS VIRTUES IN

SHAPING CORPORATE CHARACTER

Welcoming ethics into a fairly business-minded
environment defines the personality and character
of corporate entities. To a great degree, a companys
moral compass has a great impact on how its
perceived in the public eye. Making the right call in
ethical instances can favourably retain loyal customers
and valuable human resources for the long term.

MICCI has always stressed the

promotion and adoption of virtues
in all types and sizes of corporations
in order to conform to the highest
ethical standards, while also ensuring
fair and honest interactions with
external parties. By not cutting ethical
corners, companies can preserve a
clean conscious that spells prolonged
benefits for its business ventures.
Even though companies are not
always legally indebted in all areas
of ethics, they have an unspoken

responsibility to exercise ethics in

a way that makes the virtues of
their brand loud and clear. Looking
to the future, the morality and
integrity of a company can certainly
determine whether the business
perseveres through thick and thin.
In this issue, the application of
ethics in business strategies and
the benefits of adopting such
practices will be examined from
all angles that are prevalent in
a modern business setting.

Datuk Wira Jalilah Baba

President, MICCI

Contents

PRESIDENT'S Message
Datuk Wira Jalilah Baba

SPECIAL Feature

MICCI Annual Dinner & National Corporate

Ethics Award Presentation Ceremony

03

03

0811
0811

CEO Profile

In Conversation With The

Chief Executive Of IDEAS
MICCI Chats With The Managing
Director Of Ethical Alliance

TOP10 Facts

10 Pivotal Practices That Cultivate

An Ethical Business Environment

MICCI News

COVER Story

3137
3134
3637

38
38

41-45

1213

Corporate Governance Of Business Ethic

MICCI Features

Generational Differences In Work Ethics

1213

1529

1517

Role of Whistleblowers In
Upholding Business Ethics

1820

Good Ethics is Good Business:

Simplicity & Transparency Pay Off

2021

CARROTS OR STICKS? 

2223

Ethical Production & Purchasing Of

Goods & Services

2526

Instilling Business Ethics In Work Culture

2829

Members News
MICCI Welcomes All New Members

Regional Focus

4647
4647

4850

Integrating Ethics With Master Planning4850

CONTACT
Malaysian International
Chamber of Commerce
and Industry (MICCI)

C-8-8, Block C, Plaza Mont Kiara

2 Jalan Kiara, Mont Kiara
50480 Kuala Lumpur

T: +603 6201 7708

F: +603 6201 7705

.PUBLISHER Sandeep Juneja Holdings Sdn Bhd,

Suite C-07-09, Plaza Mont Kiara, No.2 Jln Kiara,
Mont Kiara, 50480 Kuala Lumpur, Malaysia.
T: +603 6201 9766 F: +603 6201 9767
W: www.sandeepjuneja.com .CREATIVE Sandeep Juneja Agency
.EDITORIAL stewart j forbes, sandeep juneja, jude liew, rishab kumar
.PRINTER Thumbprints Utd. Sdn. Bhd. (Malaysia) Lot 24, Jalan RP3,
Rawang Perdana Industrial Estate, 48000 Rawang, Selangor D.E. Malaysia.
T: +603 6092 9809 F: +603 6092 6976 W: www.thumbprints.com.my

Advertorial

Q&A With The Chairman

Of Thumbprints Utd
Sdn Bhd
Tam Wah Fiong

nder and chairman of

Mr. Tam Wah Fiong , fou
d., a leading printing
Th umbpr ints Utd Sdn. Bh
ltiple award winning
company in Malaysia. Mu
of CSR, ETHIC S,
company in the disciplines
RIG HTS and others .
EN VIRONMENT, HUM AN

and are worthy of being mentioned were covered

in the media widely, but a number of bribery cases
involving smaller amounts went almost unnoticed
and were not reported or even detected. Various
types of businesses are entangled in this web of
corruption one way or other, whether big or small. Petty
corruptions in businesses are a daily norm especially
in the case of micro, small and medium enterprises.
In a 2013 KPMG Malaysia Fraud, Bribery & Corruption
survey, it was found that 90% of respondents concurred
that corruption is a major problem. And in the same
survey, 71% of respondents admitted that bribery is
an inevitable cost of doing business in Malaysia.

1) Is the current buzz about corruption real?

The word corruption is now the buzzword, having
frequently been mentioned by all strata of our society.
This has definitely become more apparent due to
cases that were exposed to different perceptions, even
undergoing prosecutions. There is a saying If there
is no wind, then there will be no storm. The current
storm is huge, which resulted from a strong wind of
corruptive practices that aggravated the situation.

4) Will corruption affect my company? In what way?

Since more than 71% of respondents in the KPMG
survey admitted that bribery is the way to get around
in business, dont you think your company will be
affected as well? I leave that answer to you.

Former Selangor Chief Minister, Dr. Mohamed Khir

Toyo was sentenced to a one-year jail term on
Tuesday 29th September, whereby the plots of lands
encumbered in this case were also forfeited.

Bribery comes in all forms, from cash payments and

entertainment kickbacks, to gifts and many other
unethical benefits handed out in order to facilitate
and expedite business deals. These costs are
ultimately embedded in the price quoted and your
company pays for it in the end. In fact, it is estimated
that bribery adds another 25% to the cost of doing
business in a developing country like Malaysia.

As can be seen from the above instances, corruption

perceptions in Malaysia is very real!

5) Is there a way to minimise the possibility of losses

caused by corruption in private company?

2) How would you describe the level of corruption

in the current business condition in Malaysia?
Transparency Internationals annual Corruption
Perception Index 2014 report gave Malaysia a score
of 52/100. This borderline result is evidence of
perceived corruption in the public sector, and leaves
much to be desired. One can perceive from this score
that the level of corruption is high in all areas of
Malaysian life, most notably in the business sector.
3) Was there any link between business and politics
or other sectors with regards to bribery?
Corruption by and large was linked to business
deals and private business transactions. We hear
so much about political corruption, and yet there
is equally as much or even more corruption in the
private business sector. Those cases that surfaced

Firstly, it is necessary to ensure that the company

deals with vendors and suppliers that have a corporate
integrity system or a similar system in place. This would
assure that your vendors or suppliers will NOT offer
or accept bribes or succumbing to requests by the
staff of your company to indulge in such practices.
Secondly, the private company itself must have a
corporate integrity system or anti-bribery system
that is being actively enforced. To integrate such
practices into businesses, there are companies that
provide services in implementing these systems.
Trident Integrity is one such company that provide
consultation for implementation of corporate integrity
system and ISO 37001. If a company should want to take
the needful step towards establishing a more ethical
business environment, Mr. Mark of Trident Integrity
can be reached at mark.lovatt@trident-integrity.com.

Business Advocate

MICCI Annual Dinner &

National Corporate Ethics Award
Presentation Ceremony
standards in business. As one
of the first corporate members
of Transparency International
(Malaysia), MICCI has developed
and promoted a Code of Conduct
(VIGOUR) for adoption by MICCI
Members who do not already
have an established code. As a
member of the National Chamber
of Commerce and Industry
Malaysia (NCCIM), MICCI
has also signed the Malaysian
Corporate Integrity Pledge (CIP).

It was a big night for

Panasonic Industrial
Devices Malaysia Sdn Bhd
& Kelana Stabil (M) Sdn
Bhd as they walked away
with the National Corporate
Ethics Award (NCEA)
Challenge Trophy for Large
Enterprise & SME categories
respectively, in addition
to receiving awards for
Exceptional Achievement.
The Exceptional Awards were
presented by Datuk Wira Jalilah
Baba, President, MICCI and
witnessed by YB Dato Sri
Ong Ka Chuan, Minister II,
International Trade & Industry
and Datuk Mustafar Ali, Deputy
Commissioner (Prevention),
Malaysian Anti-Corruption
Commission (MACC) during
the MICCI Annual Dinner &
National Corporate Ethics Award
Presentation Ceremony held
on 29 September 2015 at One
World Hotel, Kuala Lumpur.
MICCI has for long been a
staunch supporter of ethical

However, the Chamber has

sought ways and means of moving
from a passive supporter of
anti-corruption towards a more
proactive engagement in corporate
ethics development and corporate
compliance. To this end, the Chief
Commissioner of the Malaysian
Anti-Corruption Commission
(MACC), Tan Sri Abu Kassim
Mohamed, launched the MICCI
inaugural National Corporate
Ethics Award on 28 January 2015.
When launching the NCEA
in early 2015, MICCI had
three objectives in mind:
- To create an opportunity for
an independent evaluation
of Malaysian corporates
commitment to business
ethics and compliance.

- To stimulate a proactive role

in anti-bribery and corruption
within the private sector.
- To recognise exemplary
corporates who could serve as
beacons for others to follow.
The approach taken by the
NCEA Steering Committee
for the Award included:
- Assessment of an organisations
overall commitment towards
fighting corruption and ensuring
anti corruption compliance.
- Comparing an organisations
performance against
key award criteria.
- Distinguishing between
the performance of large
enterprises and SMEs
against common criteria.
With the award open to all
business sectors and company
sizes from SMEs to MNCs, the
Steering Committee was delighted
that the inaugural cycle had
allured a total of twenty-two (22)
organisations prepared to place
their anti-corruption policies
on the line for examination.
To assess the Award participants,
a total of 10 criteria were
examined by the NCEA
Technical Team consisting of:

Special Feature

- Loh Chee Hoong - Head of Compliance, AIA Bhd

- Chin Cheen Fong - Head of Internal Audit, AIA Bhd
- Zahara Bee - Process & Controls Manager, ExxonMobil
- Mohd Khairil Ezane - Partner, Tay & Partners
While 10 criteria were assessed, five key criteria had to be present
for a participant to be eligible for award consideration, namely:
AVAILABLE CODE OF BUSINESS ETHICS
TONE FROM THE TOP (MANAGEMENT SUPPORT)

For the future, the success of

the initial participants in the
National Corporate Ethics Award
demonstrates that Malaysian
companies can deliver the very best
standards of anti corruption and
ethical business. The challenge
now is for more companies to
follow the lead of these winners
and demonstrate their ability to be
ethical role models and participate
in NCEA 2016, 2017 and onwards.

TRAINING AND AWARENESS OF EMPLOYEES

THIRD PARTY DUE DILIGENCE AND AWARENESS
ZERO TOLERANCE FOR GIFTS AND FACILITATION PAYMENTS
Those who achieved a high level in their assessments
and submissions were grouped into three levels,
namely Notable, Excellent and Exceptional.
Following the Technical Teams evaluation, a distinguished
Verification Panel whose task was to examine and critique
the Award process further scrutinized the assessment.
Members of the Verification Panel included:
- Tan Sri Dr. Ramon Navaratnam, Director, Asian
Strategy and Leadership Institute (ASLI)
- Ravindran Devagunam, Director, NKRA Corruption, PEMANDU
- Wan Saiful Wan Jan, CEO, Institute of Democracy
and Economic Affairs (IDEAS)
The outcome of these efforts was a list of companies, all of
whom had endeavoured to achieve a quality anti corruption and
ethical business model within their respective organisations.
Despite a very comprehensive set of criteria and rigorous
assessment, MICCI was pleased to announce twentyone (21) of the NCEA participants had achieved not
less than a Notable result while three (3) had achieved
an Exceptional result in their assessment.

Ke y to success in corporate eth

ics
starts with leaders Walking the
Talk.
Leaders need to set the right ton
e,
demonstrat e strong discipline
in
adhering to the highest level of
honesty
and integrity. All companies sho
uld
care about how results are obt
ained
and not just the results the ms
elves.
NCEA Steering Commit tee

Business Advocate

NCEA 2015
Award Winners

E XC E P T I O N A L AWA R D

Kelana Stabil (M) Sdn Bhd

Linde Malaysia Sdn Bhd

Category: SME
Business Sector: Services

Category: Large Enterprise

Business Sector: Manufacturing

Panasonic Industrial Devices

Malaysia Sdn Bhd
Category: Large Enterprise
Business Sector: Manufacturing

E XC E L L E N T AWA R D
Ada Shared
Services Sdn Bhd
Category: SME
Business Sector:
Services

Brady Technology
Sdn Bhd
Category: Large
Enterprise
Business Sector:
Manufacturing

Bromma Malaysia
Sdn Bhd
Category: Large
Enterprise
Business Sector:
Manufacturing

Intel Malaysia
Category: Large
Enterprise
Business Sector:
Manufacturing

Monsanto (M) Sdn Bhd

Category: Large
Enterprise
Business Sector:
Manufacturing

MEMC Ipoh Sdn Bhd

Category: Large
Enterprise
Business Sector:
Manufacturing

Pastry Pro Sdn Bhd

Category: SME
Business Sector:
Manufacturing

Pfizer (Malaysia)
Sdn Bhd
Category: Large
Enterprise
Business Sector:
Manufacturing

Siemens Malaysia
Sdn Bhd
Category: Large
Enterprise
Business Sector:
Manufacturing

Thumbprints
UTD Sdn Bhd
Category: SME
Business Sector:
Manufacturing

N O TA B L E AWA R D
Citibank Berhad
Category: Large Enterprise
Business Sector: Services

Ferrucci Sdn Bhd

Category: SME
Business Sector:
Manufacturing

Infinity Logistics &

Transport Sdn Bhd
Category: Large Enterprise
Business Sector: Services

KASK Holdings Sdn bhd

Category: SME
Business Sector: Services

Kewpump (M) Sdn Bhd

Category: SME
Business Sector:
Manufacturing

KPJ Healthcare Berhad

Category: Large Enterprise
Business Sector: Services

Nestle (Malaysia) Berhad

Category: Large Enterprise
Business Sector:
Manufacturing

Texchem Resources Bhd

Category: Large Enterprise
Business Sector: Services

Best SME & Best Large Enterprise

10

Special Feature

AWARD ORGANISER

AWARD PARTNER

AWARD SPONSORS: SME

KNOWLEDGE PARTNER

AWARD SPONSORS: LARGE ENTERPRISE

SPONSORS

SUPPORTING PARTNERS

MEDIA PARTNERS

11

Business Advocate

Corporate Governance
Of Business Ethics
The far-reaching applications and advantages of business ethics in the realm
of corporate governance is a valuable tool in attracting foreign direct investment
into the country. A favourable and moral business environment goes a long
way in attracting the most lucrative investments through a sense of security and
confidence among the consumers and investors.

As Malaysia strives to become a

high-income nation, the fourth
challenge of Vision 2020 is
to establish a fully moral and
ethical society whose citizens are
strong in values and imbued with
the highest ethical standards.
A considerable fraction of
accomplishing such a status will
be inclined towards benchmarking
ethical business standards.
Ethical malpractice is a major
problem that can leave a bad

12

impression and detract from

private investments in businesses.
By working to encourage the
highest ethical standards, there
will be greater participation in the
national economy along with the
enhancement of integrity among
the talent pool in Malaysia.
Key issues of business ethics
that need to be addressed to
create a favourable and attractive
business environment include
anti-corruption, honesty and

transparency in business dealings,

fair treatment of staff, optimum
self-regulation within corporations
and sensitivity to social, cultural
and environmental issues in
respective lines of businesses.
On elaborating further, according
to KPMG Malaysias Fraud,
Bribery and Corruption Survey
2013, 90% of respondents
saw bribery and corruption
as a major problem for
businesses in Malaysia.

Cover Story

To address such concerns of a

majority in relation to business
ethics and to fuel Malaysias drive
to become a developed, highincome nation, the Government
Transformation Programme
(GTP) has identified the fight
against corruption as a National
Key Result Area (NKRA). The
anti-corruption NKRA will work
to improve the socio-economic
growth of the country and its
people by snuffing out unethical
corporate behaviour that will
slow down economic progress.
In the fight against corporate
corruption, two separate initiatives
were undertaken. Firstly, there is
the Ministry of Finances Integrity
Pact introduced in 2011, which
commits Government vendors
and suppliers to adhere to ethical
practices. Since its introduction,
more than 132,000 vendors and
suppliers have signed the pact.
Secondly, there is the Corporate
Integrity Pledge (CIP) created
under the Corporate Integrity
System (CISM) framework
initiated by the Malaysian
Institute of Integrity (IIM). By
signing the pledge, the companies
commit to a unilateral decision
not to commit corrupt acts and to
work towards creating a business
environment that upholds the
anti-corruption principles for
corporations in Malaysia.
The Malaysian Anti-Corruption
Commission (MACC) has also
monitored such signatories to
the CIP, along with verifying
the applications to the CISM
framework. Many companies
that signed the CIP include
some of the largest capitalised
companies in the country
along with many others that
are involved in projects under
the Economic Transformation
Programme (ETP). In this
way, any progress in terms
of ethics for these businesses
would further the objectives of
both the GTP and the ETP.

The CIP falls under the CISM

framework, which is modelled
to support the corporate
integrity initiatives under the
GTP as well as Target 3 of the
National Integrity Plan (NIP)
that is set to enhance corporate
governance and business ethics.
The NIP was initiated by IIM as
a national initiative to support the
governments efforts to enhance
business ethics and corporate
governance. Its objectives under
target 3 are to increase compliance
of the conditions set by Bursa
Malaysia, reduce the cases of
corporate fraud, increase the
number of open tenders undertaken
in a transparent manner, enhance
adherence to business code of
ethics, reduce violations of the
consumer protection act, and
increase adherence to other
benchmarks used by national
and international agencies.
While an overarching government
role in business ethics is rendered
necessary, it is of equal importance
to place emphasis on self-regulation
of ethics within companies and
among traders in the interest
of consumer protection. The
Malaysian Code of Ethics was
therefore formulated by the
National Consumer Protection
Consultative and the Ministry of
Domestic Trade, Co-Operatives
and Consumerism, for the selfregulation of honesty in business
dealings, responsibility towards
customers, society and environment,
geniality towards fellow humans,
moderation in business dealings, fair
treatment of customers and passion
in making the business a success.
To further build on the existing
discourse in business ethics, the
Securities Commission (SC)
Malaysia has also delivered the
Malaysian Code on Corporate
Governance (MCCG) 2012. It is
the updated version of the MCCG
2007, which stemmed from the
Corporate Governance Blueprint
that SC released in 2011.

MCCG 2012 sets out principles

and recommendations on the
structures and processes that
companies should adopt to make
good corporate governance an
integral part of their business
culture. These go beyond the
minimum regulations and though
the observance of these principles
is voluntary, listed companies
are required to report on their
compliance in their annual reports.

Bursa Malaysia
Berhads findings
from its review
on corporate
governance found
that listed issuers
have embraced the
principles of the
MCCG 2012, and in
most cases, have
even adopted its
recommendations.

Malaysia has made notable progress

in corporate governance and ethics,
as can be seen from its top ranking
(tied with India) for corporate
governance requirements. It was
ranked among 15 developing
countries in the study titled
Balancing Rules and Regulations
by KPMG International and
the Association of Chartered
Certified Accountants (ACCA).
While Malaysia has made great
advance in comparison to other
developing countries, there is
still considerable progress to be
made when put on a broader scale
with more developed markets.
By benchmarking corporate
ethical standards and making
them globally applicable, the
nation can steadily invest towards
prolonged growth in professional
and economic development.

13

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Features

Generational
Differences In Work Ethics
Work ethics comprise of a set of moral principles that each
individual embraces to strengthen character and proper conduct in
the workplace. These personal ethics are what defines workplace
culture, and may differ from person to person. It is important
to acknowledge said ethics as a way to find the common ground
between varying views and work towards unified business goals.

The current workforce

spans 3 generations worth
of active, working adults,
comprimising Baby Boomers,
Generation X and Generation
Y. Generation Z, though
not yet of working age, will
soon enter the working world
and is equally important to
acknowledge for the future.

The youngest of the workforce is

likely to be interns, with the oldest
working adults closer to retirement
age. With an age gap of approximately
6 to 7 decades between the two, there
are bound to be many disparities
in their personal views. Though
there is no rigid age range for the
generations, the following approximate
age ranges can be determined:

BABY BOOMERS

1946 to 1964

GENERATION X

1965 to 1980

GENERATION Y
(MILLENNIALS)

1981 to 2000

GENERATION Z

2001 to current

15

Business Advocate

There are various everyday

professional situations that
unfold in the workplace, and it is
insightful to read into how each
generation would handle the
issue. In a way, each generation
would have their own code of
ethics that they embrace and
apply at work. For this, the
perspectives of Baby Boomers,
Gen X and the Millennials have
been explored in relation to
the following ethical topics:
BUSINESS CONDUCT
In relation to any observed
misconduct in the workplace, the
National Business Ethics Survey
(NBES) data revealed that today,
younger employees are most likely
to observe misconduct. In the
Ethics Resource Center (ETC)
surveys conducted in 2003,
2005, 2007 and 2009, rates of
observed misconduct decreased

16

as employee age increased.

Simply put, younger employees
are more likely to observe
misconduct than older employees.
In almost every case of observed
misconduct, reporting rates were
lower for younger workers than
their older counterparts. This is
due to younger generations having
less work and life experience to
aid them in their ethical decisions.
Another important business
practice is the maintenance of
confidentiality in internal business
proceedings and information.
Though, as the Millennials
grew up in the digital age, they
are less firmly moulded by the
strictness of confidentiality,
with information flow being
virtually instantaneous and
always being shared on digital
platforms. Following this
thought process, Millennials

voiced willingness towards

keeping copies of confidential
documents, while Gen X and
Baby Boomers were less likely
to engage in this behaviour.
RESPECT FOR AUTHORITY
Younger generations such as
Millennials would be more
questioning of authority and
have voiced that there is a lack of
respect towards their generation
in the workplace. Even Gen X
is naturally inclined to question
authority if needed and are not
intimidated by them. These
younger generations do not
generally believe they should
follow managers in a do it
because they said so manner.
Contrary to this, Baby Boomers
are of the opinion that there is
a lack of respect from younger
generations towards authoritative

Features

figures. Owing to this, Baby

Boomers are likely to conform
to rules and embrace a topdown management approach.
They are less likely to question
authority and just go about their
jobs as they are instructed as
long as the work gets done.
COMPANY LOYALTY
While Baby Boomers have been
labelled as having a higher level of
loyalty to their employers, Gen X
is believed to be to the contrary.
In the case of reduced loyalty,
there is more likeliness of minor
misconduct in the workplace, as
those who hold this view do not
fear long-term repercussions.
Long-term loyalty to the
employer was seen to decrease the
younger the generation became.
According to research conducted
on Generational Differences in
the Workplace in 2008 by the
University of Minnesota, about
70% of traditionalists reported
they would like to stay with their
current organisation for the rest
of their working life, compared
to 65% of Baby Boomers, 40% of
Gen X and 20% of Millennials.
WORK-LIFE BALANCE
One key characteristic attributed
to Gen X is the desire for a balance
between work and life. The
youngest members of Gen X and
the whole of Gen Y reported they
would do their best work, but not
to the extent of it interfering too
much in their life outside work.
In the case of younger generations
who prefer not to allow work to
disrupt their personal lives, they
are also more likely to conduct
personal business during working
hours. Although this has gradually
become the case from Gen X to
the Millennials, such behaviour
does not affect the quality and
timeliness of their work.

As working life has evolved over

the years, so have the views on
flexible working hours. While not
all companies embrace flexibility
in working hours, some younger
generations have strongly voiced
their preference for such leeway
especially upon insisting their
quality of work will not waver.
USE OF COMPANY RESOURCES
In a modern day working
environment, depending on
their job scope, employees have
access to a tremendous variety of
company resources, including a
range of digital and social media.
From an ethical perspective,
this would involve exploring
how this media is utilised in the
workplace and for what purposes.
Older generations may keep
work-related news (other than
promotions) off their social
media profiles, while younger
generations are more inclined
to post about work. Roughly
12% of Millennials in fact
believe it is acceptable to post
negative comments about their
employer and company on blogs
or twitter, according to a 2010
research conducted by ETC.
Similar behaviour was found
less acceptable by older, more
traditionally minded generations
perhaps considering that they
might be less familiar with
the latest online technologies.
Younger generations are also
seen to engage more of the
companys resources for personal
use, while Baby Boomers are less
inclined towards this behaviour.
WELCOMING THE FUTURE
WORKING GENERATION
While Baby Boomers, Gen X
and the Millennials have been
in the working field for some
time now, Gen Z will only be
starting off in the coming years.
During this time, technology

will constantly advance and even

alter the way business is done.
By the time Gen Z enters the
working world, new job scopes
may be invented and may well
change the dynamics of current
workplace ethics. Although this
generation has not yet come of
professional age, it is important
for recruiters and employers
to know what to expect when
welcoming this generation
to the future job market.
This generation, having been born
right into the digital age would
have access to various digital
avenues and platforms, which is
bound to enhance multi-tasking
and bring about more daring and
cutting-edge ideas. Though Gen
Z may have some similar work
ethics brought forward from the
generation preceding it, the juniors
will likely offer fresh and newfound
views on morality that may be
both disruptive and valuable.
CONVERGENCE OF
MULTIGENERATIONAL ETHICS
Despite such notable differences
in the perceptions of workplace
ethics among these 4 distinct
generations, there are many similar
underlying qualities that can be
united to form an ethical business
brand. Many psychologists have in
fact studied ways to help multiple
generations share their values and
work together, which contributes
significantly when drawing up
any successful business strategy.
Any company that is committed
to implementing and sustaining
the highest ethical standards
needs to acknowledge these
disparities while also working
to identify the common values
their multigenerational workforce
holds. This way, companies that
readily welcome such diversity into
their businesses can highlight the
positives of embracing people from
all walks of life under one roof.

17

Business Advocate

Role of Whistleblowers In
Upholding Business Ethics
Businesses that wish to sustain the utmost integrity and highest ethical
standards will see good reason in embracing the role of whistleblowers in the
fight against corruption. Any company is susceptible to unethical practices such
as fraud and bribery, which question the ethical stance of the company in the
public eye. To ensure that the corrupt actions of some do not affect the entire
corporation, whistleblowers can contribute a world of good.
To fully grasp the effect that whistleblowers have on fighting corruption
in businesses, it is first important to understand the definition of
whistleblower. A whistleblower is deemed to be a person who exposes
any kind of information or activity that is deemed illegal, dishonest
or not ethically right within a public or private organisation.

When exposing the inner unethical practices of a

business, the whistleblowers can either be internal or
external. The first type of whistleblower is an employee
or a member of a business organisation that brings
allegations of corruption in the workplace to the attention
of their superiors within the organisation. While the
latter type of whistleblower reveals corrupt practices
at the workplace to external parties such as the media,
government and law enforcement agencies.

Whistleblowers play an essential

role in exposing corruption,
fraud, mismanagement and
other wrongdoings that
threaten the safety, financial
integrity, human rights,
environmental rights and
principles of the business. By
disclosing information about
such misdeeds, whistleblowers
help avoid mistreatment of
people on the sideline and the
misusing of company funds.
The high profile media
attention that whistleblowing
has attracted in various parts
of the world has emphasised its
relevance to all organisations.
It is equally important in
these circumstances to hold
preliminary investigations
into the allegations brought
forward by the whistleblower,
18

rather than immediately

making the whistleblower the
target of the investigation.
Whistleblowers in the private sector
can face legal action, civic charges,
social stigma, and termination
from any position within their
company, while whistleblowing
in the public sector organisation
is likely to result in federal
felony charges and jail time.
Such repercussions from
whistleblowing can be damaging
to the individual, which
necessitates the need for mandatory
requirements to protect these
individuals that act on behalf of
upholding business ethics. Though
there are many pros, the cons of
whistleblowing include actions
such as extortion. Therefore,
implementing whistleblowing

policies within the organisations

can assist in bringing out the
pros and quashing the cons.
Employees can then speak up
without fear of retaliation if they
feel protected by the companys
whistleblowing policies.
Corporations have long known
the advantages of encouraging
employees to report misconduct,
as it is critical to the companys
ethics and compliance initiatives,
as well as the companys
overall image and wellbeing.
In addition to individual
company policies, public policies
on whistleblowing also enhance
the tools and channels available
for whistleblowers on a private
sector and public sector level.
By providing protection on both
levels, whistleblowers will be
less apprehensive about coming
out with revelations that could
potentially put a stop to business
scandals in its early stages.
In the case of a country like
Malaysia, whistleblowers are
only given protection under
the Whistleblowing Protection
Act (WPA) 2010 (Act 711) if
they take action and reveal
information through the
appropriate channels. In this
instance, only disclosures
made by the whistleblower to
the appropriate authorities
or enforcement agencies
shall be conferred protection
under the WPA 2010.

Features

Such a stipulation on limited

preliminary exposure of business
misconduct is reiterated in Section
8 of the WPA as well, which states
that the whistleblower would
be criminalised if he/she were
to divulge the wrongdoings to
another party after invoking the
protection that the Act confers
by using the right channels.
Whistleblower protection is one of
the Malaysian Governments efforts
towards tackling corruption and
promoting good governance under
the Government Transformation
Programme. With efforts made
towards a national scale, the

whistleblowing act in place has

certain conditions to be followed
in order for protection under
the law to be applicable.
Firstly, according to the proviso
in Section 6 (1) of the WPA, the
whistleblowers disclosure will
not fall under its protection if it
is prohibited by any written law.
Such is the case for information
and documents classified as
official secret by relevant
authorities, which cannot be
questioned in court even though
it may very well not be a secret
or security risk, and its exposure

is in the publics interest.

Secondly, Section 11 (1) (d)
of the WPA 2010 states that
the whistleblower protection
conferred can be revoked if the
disclosure of improper conduct
principally involves questioning
the merits of government policy,
including policy of a public
body. This places various
limits on exposing any serious
or systematic wrongdoings
of public bodies, which
inevitably involves questioning
the merits of government
and public body policies.

19

Business Advocate

Along with Malaysia, over 30

countries have now adopted some
form of specific whistleblower
protection policies. While
Malaysia offers some protection
through general laws, other
Asia-Pacific countries such as
Japan, South Korea and China
are seen to have more desirable
protection policies in place.
It becomes important to look
at other global policies and
replicate benchmark standards
of whistleblowing protection
within less impactful legislations.
For instance, the UK leads
the way for whistleblowing
protection in Europe, which is

why several other countries have

adopted its legislative scheme.
In other countries with little to no
whistleblowing protection such
as Hong Kong, India, Indonesia,
Singapore and Bahrain to name
a few, recent whistleblowers
have suffered psychological and
financial damage, which has
discouraged other prospective
whistleblowers from coming
forward about wrongdoings in
the workplace. This necessitates
the need for countries and
their businesses to adopt
whistleblowing policies for the
integrity, morality and fruitfulness
of their own economies.

By both national legislations and

private business policies embracing
the use of whistleblowing as a tool
to tackle corruption, well-wishers
will be more confident to come
forward with information that may
very well save the integrity of the
business. To make this a reality,
whistleblowing regulations should
be on par with global standards
benchmarked by countries with
more protective legislations.
By adopting the highest anticorruption standards, there can
be more focus on decriminalising
whistleblowers, as well as
implementing stricter penalties
for violators of business ethics.

Good Ethics is Good Business:

Simplicity & Transparency Pay Off
Anusha Thavarajah, Chief Executive Officer of AIA Bhd.

The life insurance penetration rate in Malaysia is
low, with only over half of the population having some
form of insurance protection. In an environment of
financial uncertainty and rising medical costs, insurance
products are more relevant than ever as they provide
Malaysians with protection against the unexpected. The
gap can not only be attributed to a lack of awareness,
but also to a general scepticism towards the industry.

The fact is the insurance industry

has a reputation for overcomplication. A Simplicity Index by
Siegel & Gale placed the insurance
sector at the bottom of the table,
behind media, telecommunications
and banking. Historically, the sale
of complex insurance products has
cast a shadow over the industry,
with many consumers sensing a
lack of transparency in the sector.
Many multinational insurance
companies have long implemented
strong ethics and compliance
programmes that govern the way
they do business. Today, however,
it is not enough for an insurer to
have checks and balances to ensure

Anusha Thavarajah is Chief Executive Officer of AIA Bhd., a

leading life insurer in Malaysia with total assets worth RM47 billion.
Appointed to the role on 11 June 2015, Anusha is passionate about
changing the role of insurance in society so that more Malaysians are
aware of the types of insurance they need and are adequately protected.

20

Features

that the business does not run

afoul of regulatory requirements.
A 2011 study by advertising agency
network TBWA/Worldwide and
TakePart showed that the new
generation of consumers are
not only less tolerant of ethical
violations, an overwhelming
majority of millennials believe
that corporations should create
economic value for society by
addressing its needs. As millennials
have started becoming active
purchasers of insurance products,
it is even more imperative for
businesses to create a culture of
ethics and social responsibility.
Theres been a strong push in
recent years towards this end and
insurers are going to great lengths
to improve the industrys standing
in the minds of consumers. AIA, for
one, has launched a comprehensive

programme across its 17 markets

in the region to simplify our
processes and the language we
use to speak to our customers as
well as introduce new ways for our
customers to do business with us.
We believe that these initiatives
will go a long way towards helping
our customers better understand
the features of the products they
are purchasing, while offering
greater choice and flexibility so
they can decide how and when
they want to connect with us.
In Malaysia, insurance salespeople
are often the face of the industry
given that the bulk of insurance
(especially life insurance) is
purchased via a servicing agent. As
such, the industry is also working
to professionalise the roles of
insurance salespeople so that they
are qualified and well-trained.

This breed of agents will be better

equipped to understand the needs
of customers at their different life
stages and subsequently recommend
products that are tailored to a
customers needs and affordability.
Changing the general perception
of the insurance industry cannot
happen overnight. However,
many insurers are journeying in
the right direction by simplifying
their processes, being more
transparent and giving back to
society through corporate social
responsibility initiatives.
Companies that stay the course
will naturally outpace competition
because customers will view
them as a trusted partner, not
only because of what they have
to offer, but also because of how
they deliver on their promise.

21

Business Advocate

CARROTS OR STICKS?
Stewart Forbes, Executive Director of MICCI

We are all familiar with the carrot and stick

approach, an idiom referring to a policy of offering
a combination of rewards and punishment to
generate a desired behaviour.
The cart driver dangles a carrot
in front of a mule so the mule
would move towards the carrot
because it wants the reward (food).
At the same time a stick is held
behind the mule which the animal
moves away from, since it does
not want the punishment (pain),
and so the objective is achieved
and the cart moves forward.
Today, this idea is also used in
a related idiom, the carrot or
the stick, which refers to the
process of deciding whether a
behaviour would be better obtained

22

via the provision of benefits or

the threat of punishments.
In the area of anti corruption and
ethical business, the Malaysian
approach has been quite typical
and so far emphasises the stick.
Government has established
laws and regulations drawing on
similar legislation globally such
as the American FCPA and the
British UKBA. These identify
no go areas for anti corruption
purposes and provide penalties and
sanctions as enforcement tools.
While Malaysias anti corruption

laws have been established for

some time, there are moves
afoot to move to the next level
of enforcement by introducing
corporate liability provisions into
the MACC legislation in the near
future. This will in effect make
companies liable for the corrupt
actions of their staff, and as a
result it is hoped that companies
will make greater efforts to ensure
their anti corruption compliance
practices are properly implemented
and, equally important, their
staff are fully aware of these
policies and adhere to them.

Features

Will such action on the part of

the authorities bring about the
necessary improvements in the
ethical business environment? Will
it be necessary to further wield
the stick and extend corporate
liability to company directors, as is
the case in certain jurisdictions?
The private sector, naturally, views
extensive legislation and regulation
with concern. While acknowledging
the need for an orderly, rulesbased business environment, the
bureaucracy and constraints that
accompany a regulation dominated
system can only limit companies
ability to do business effectively and
efficiently. Thus many companies
would prefer a system of selfregulation to one imposed from
outside. The question of course
that this poses is Can business be
trusted to perform ethically without
the use of penalties and sanctions?
Here, regrettably, human nature
comes into play. Even the largest
company is managed by people, who
exhibit a wide range of approaches
to ethical decision making and who
are also subject to many different
business pressures in carrying out
their duties and responsibilities
to their organisations.
In his book The Honest Truth
About Dishonesty: How We Lie to
Everyone Especially Ourselves,
author and professor of psychology

and behavioural economics at Duke

University, Dan Ariely recalls an
anecdote of a locksmith who is
called to an apartment to open a
locked door and when questioned
about the ease with which he was
able to overcome the simple lock
and gain entrance stated that

one percent of
people will always
be honest and never
steal, another one
percent will always
be dishonest and
try to pick your lock
and steal your TV,
and the rest will be
honest as long as
the conditions are
right and there is a
lock on the door.

The message here is not that 98

percent of people will act unethically
anytime the opportunity presents
itself, but that it is more likely that
most of us need little reminders to
keep ourselves on the right path.
The result of some experiments
have shown that when we are simply
reminded of ethical standards,

we behave more honourably.

So it is probably fair to say that a
business environment in which
companies are exclusively self
regulating may not prove to be
as ethically effective as one in
which ethical reminders and some
penalties keep the anti corruption
message firmly in the minds
of the business community.
Finally, what about carrots?
There are many successful
companies that promote a precise
and complete anti corruption and
ethical programme within their
organisation. They demonstrate
that good ethics is not at odds
with successful business. These
companies should be identified as
role models for others to emulate.
By clearly articulating their
commitment to ethical business,
through publicly endorsing a
Corporate Integrity Pledge (CIP),
or participating in a Corporate
Ethics Award scheme, such
companies can achieve a stronger
image for their organisation
and products. Good brand
identification has major business
value and being recognised
as an ethical organisation can
bring with it a boost in image
and positive perception both
locally and globally. This is
a carrot worth chasing.

Stewart Forbes is the Executive Director of the Malaysian

International Chamber of Commerce & Industry (MICCI). A
shipbroker by profession, Forbes has had some 48 years business
experience in Asia of which more than 34 years experience has
been in Malaysia. A graduate of the London Institute of Transport,
Forbes has been actively involved in the MICCI for over 25
years and has been its Executive Director since the year 2000.
23

Business Advocate

24

Features

Ethical Production & Purchasing

Of Goods and Services
The relationship between a brand and their consumers can be a mutually
beneficial relationship. Companies constantly keep an ear out for what
consumers are demanding in the market, which are frequently evolving as
times change. With increasing consumer demand for more business ethics to be
introduced into the production and manufacturing of goods and services, there
are an increasing number of companies feeling morally obligated to change their
approach to ethics.
Two types of ethics can be
embraced by businesses in order
to keep their consumers loyal,
satisfied and content. The first
type of business ethics involves the
ones owed to consumers in terms
of consumer rights. The second is
more voluntary, and encompasses
various ethical stances that
promote humanity, environmental
preservation, cultural diversity
and modern ethical standpoints.
While consumer rights have more
obligations, ethical production
and manufacturing of products
and services depend on adopted
company values. Taking the cue
from these consumer demands,
manufacturers and suppliers can
choose to infuse ethics into their
manufacturing and supply chain
processes, to fill the need in this
specific market. Though, this
does not prove an easy task as the
whole supply chain would need
to be scrutinised, including third
parties hired by the company.
CONSUMER RIGHTS
Consumer rights constitute an
important statute in the businessconsumer relationship that ensures
all consumers are protected and
never mistreated by any business
they may have engaged. By
knowing what rights they have
under their wing, consumers can
confidently make purchases and
use services knowing that they

can seek a level of compensation

if they are mistreated.
Consumers can be affected by
pricing policies, misleading
marketing, inferior quality
and other unethical practices
by businesses, thus making it
important to know how they can
be protected and ethically treated.
The Malaysias Consumer
Protection Act 1999 (CPA), which
came into effect on 1st October
1999, is a piece of legislation where
the main objective is to provide
greater protection for consumers.

Consumers cannot be misled by

deceptive or inaccurate advertising,
which may give them inaccurate
information about the product or
service. The goods and services are
to comply with safety requirement
and have fair contract terms, with
various other rights of which many
consumers may be unaware.
Under this act, any consumer may
refer any dispute or claim of less
than RM10,000 to the established
Consumer Redress Tribunal. Any
consumer has the right to claim
for damages from unfair practices
from a supplier or manager.

25

Business Advocate

If consumers in Malaysia face any

problems with their purchased
good or services, they can
address their complaints at the
National Consumer Complaints
Centre Malaysia. Additionally,
if consumers are not satisfied
with the price or quality of
their goods or services, one
may refer to the Ministry of
Domestic Trade, Cooperatives
and Consumerism (MDTCC).
MDTCC has defined that
consumers are entitled to basic
rights, which they can very well
demand. Consumers have the right
to basic needs, which includes
food, clothing, shelter, healthcare,
education, public utilities, water
and sanitation. They also have
the right to be safe and protected
against products and services that
are harmful to their health or life.
Consumers are given the right to
access information of products
and services in order to make
an informed choice. Misleading
advertising or labelling is unethical
in this instance and violates this
right of providing consumers
with inaccurate information.
ETHICAL CONSUMERISM
While consumer rights are more
mandatory, ethical consumerism is
more voluntary on both the part of
the consumer and the businesses.
Infusing ethical standpoints and
standing up for personal ethics
determines the moral stance of
a company and what types of
consumers it wishes to attract.
The most long held key factors that
affect a consumers purchasing
decisions are that of price
and quality. Though initially
consumers gave importance to
these two key economic factors,
psychological and ethical
factors have gradually made
a widespread appearance in
many purchasing decisions.

26

Ethical consumers these days

make purchase decisions that
support personally held ethical
values that encompass human
and labour rights, environmental
preservation, animal rights, social
equality and others. Consumers
can also choose to boycott
products and services they feel do
not follow their ethical beliefs.
Ethical consumerism can
encompass four types of buying,
which are positive buying,
negative purchasing, companybased purchasing, and the fullyscreened approach. Positive buying
is the purchasing of ethically
favourable products, while negative
purchasing is avoiding products
that consumers feel are ethically
against what they support.
On the other hand, companybased purchasing means targeting
an entire company, and choosing
to either boycott or support them
entirely given their ethical stance.
While lastly, theres a fullyscreened approach to consumerism
that entails looking at both
the company and its products,
and choosing to buy specific
products that are the most ethical
within their product range.
Ethical issues are prevalent
across many countries, each of
which has its regionally focused
cultural, environmental and ethical
concerns that are acknowledged.
In Malaysia, both local and
internationally relevant ethical
issues can be seen as part of the

production process. In relation

to food products, palm oil has
come under fire in recent times
for promoting habitat destruction
and forest clearing. As consumers
become more aware of the
repercussions of supporting these
companies and their products, they
become more reluctant to purchase
them despite the lower pricing.
As like with many other countries
across the globe, Malaysias
clothing industries and even
cosmetics industries have come
under scrutiny. As the country also
sells both local and international
brands, consumers have become
more aware of which companies
may violate certain laws or conduct
unnecessary animal testing. Now
with more expatriates entering
the country and a good mix
of viewpoints, consumers who
are sensitive to these kinds of
ethics are likely to boycott these
companies and their products.
Many consumers in Malaysia
may also choose to support
international brands and
companies that fulfil their ethical
standpoints, if they are given no
other options that meet their need
in the market. This is the case
when global brands that sell in
Malaysia have more progressive
views of emerging consumer
ethics. It is therefore important
that Malaysian companies
also recognise the benefits in
adopting these widespread ethics
into their philosophies as many
consumers have shifted their
buying behaviours to accommodate
emerging moral viewpoints.

Positive
Buying

Negative
Purchasing
ETHICAL
CONSUMERISM

Company-based
Purchasing

Fully-screened
Approach

Paramit Malaysia Sdn. Bhd. (167912-P)

Phase II, Bayan Lepas Free Industrial Zone, 11900 Penang, Malaysia
Tel : 604 619 1000 Website : http://www.paramit.com
Fax : 604 619 1111 Email : business@paramit.com.my

The Paramit
Outsourcing Solution
Paramit provides a complete
manufacturing and supply chain
solution for OEMs looking for a single
source manufacturing partner.
Each customer engagement
is long term and strategic and
comes with strong management
commitment and mindshare.
We engage a high performance
engineering & operations team
to provide cost effective support
for the entire product life cycle.
Paramit is a results driven company
delivering unmatched peace of mind.
Integrated Product
Development & Manufacturing
Paramit engages early in the
product development cycle to
ensure factors affecting cost,
reliability, and scalability are well
considered prior to freezing design.

vPoke Mechanical Assembly

Whole Product Ownership

Paramit has developed a patentpending computer- directed

assembly technology called vPoke
based on poka yoke principles that
provides a dramatically higher
level of control and validation for
mechanical assemblies. vPoke
virtually eliminates manufacturing
defects from the assembly process
and automatically creates a device
history record in real time as
each sequence is completed.

At Paramit, we take pride and

responsibility for the products we
build. We view all manufacturing
functions as interdependent
operations and we house all functions
under one roof, allowing the various
functional teams to interact and
create the synergy critical to
optimize product outcomes.
Paramit is constructing a 162,600
SQFT State of the Art manufacturing

facility in the Penang Science Park.

The theme of our building is Factory
in the Forest. Two years of very
careful planning has been invested
in the planning for this eco friendly
building and will be built at a total cost
of MYR60.0 million. The estimated
completion date is June 2016. We are
committed to creating a green energy
efficient building through cutting edge
design and technology that maximizes
contact with nature while reducing our
carbon footprint in both our building
design and manufacturing processes.

Business Advocate

Instilling Business
Ethics In Work Culture
Inculcating ethical practices into the workplace
may be relatively newfound and has its fair share
of challenges, given the many variables of ethics
present in a modern business environment. From
personal work ethics of employees to business ethics
that have legal intricacies, it is important for every
company to have a stable set of ethics to guide their
actions and reactions in a professional setting.
Work ethics is defined as a
businesspersons personally held
beliefs of what is morally right
and wrong in the workplace,
while business ethics comprises
of the moral principles and
standards that guide a business.
Within any given company, work
ethics specifically may differ
from individual to individual
based on cultural backgrounds,
generational divides, education and
other such determining factors.
Business ethics on the other hand
represents the ethical view of the
entire company, which goes above
and beyond personal work ethics.
With such a vast set of personal
ethics guiding working adults on a
daily basis, it would better serve the
organisation to formulate a business
code of ethics that represent the
views of the company as a unified
front. Ethical slip-ups can expose
the company to undesirable
scrutiny from the public and media,
emphasising further the need for
a governing set of principles.
Ethical regulations build corporate
integrity and invites boundless
benefits such as increased
productivity, high employee
retention, a sense of personal
responsibility, reinforced teamwork
and a boost in staff morale that
deters any wrongdoings. If an

28

employee feels their welfare is not

of priority at the company, they
have more reason to act out and
lose trustworthiness in the publics
eye, among shareholders, business
partners and even other employees.
Business ethics need to
acknowledge various relationships
that the company has with
its employees, the public,
the stakeholders, and other
business partners. By enhancing
transparency of business
dealings, practicing honest and
open communication, ensuring
ethical compliance, updating
and reviewing of company
records and files periodically,
and following through on any
violations to ethical regulations, a
positive and trustworthy company
image can be maintained.

A company code of ethics

can be of two types, the first
of which is mandatory ethics
and the second of which is
voluntary ethics. Mandatory
ethics are rights extended
to employees that ensure
they are treated justly in
the workplace, and usually
have legal implications.

This would include ethical

clauses on labour rights, overtime
claims, maternity leave and other
rights that employees are deemed
entitled to in this day and age.
On the other hand, voluntary
ethics are policies on ethics that
are not deemed compulsory,
but rather create added value to
the brand image and even help
to recruit like-minded people
into the organisation. Many
a times, if any given company
has a strong set of particular
ethical values, working adults
may choose to join companies
as they share the same values.
For instance, there are many
companies that maintain
ethical stances as part of their
branding image, such as anti
animal testing, pro fair trade,
human rights, environmental
consciousness and many others.
Those working individuals who
embrace strong values like these
would lean towards companies
that hold the same views.
While it is important to have
a set of ethical regulations or
code of ethics for the company,
directors and managers should
still be open and perceptive to
insights from the employees
as well. This would create a
healthy and open communication
channel and strengthen the
employer-employee relationship,
to even improve the companys
ethical standpoint. Employees
would have previous knowledge
on business ethics that could
have been gained through
various methods prior to
entering the working world.
Reinforcing ethical practices
in working individuals can
be carried out through
preliminary education and
further supplemented by inhouse training upon joining
an organisation. While
preliminary education would

Features

give a foundational knowledge of

ethics, workplace training would
give a more specific knowledge
of ethics that is adopted by
the particular company.
Building knowledge and
awareness of business ethics
from schools right until
professional institutions,
strengthens continuing
professional development
(CPD) and helps to create a
morally stable working adult.
As the world becomes more
ethically conscious and is
realising the importance of
ethics in business, it becomes
more important to have this
work skill under ones belt.
Foundational knowledge
from primary and secondary
education on business ethics can

then be supplemented by university

courses that are offered covering
sustainability, corporate social
responsibility, stakeholder ethics,
corporate governance, regulations,
managerial ethics and marketing
ethics, among multiple others.

and bring a much-needed level

of conscientiousness to their
workplace. In a business-minded
economy where this added sense
of ethics is sorely lacking in
many organisations, it can be a
valuable asset to introduce.

Using this foundational knowledge

on ethics, the soon-to-be working
adults and entrepreneurs of
tomorrow can instil these values
into the brands they later choose
to represent. Such adults are
likely to become morally and
professionally more trustworthy

When your employees welfare

is protected, they uphold the
ethical values of the company
and the entire industry by
enhancing professionalism,
trustworthiness and corporate
integrity for the economy on a
local, regional and national scale.

In the words of the American author and philosopher Henry David Thoreau,
It is truly enough said that a corporation has no conscience; but a corporation
of conscientious men is a corporation with a conscience. To reiterate this quote,
it signifies that a company is only as good as its people and their values.

29

30

CEO Profile

In Conversation With
The Chief Executive
Of IDEAS
Wan Saiful Wan Jan

The Institute for

Democracy and Economic
Affairs (IDEAS) was
ranked as the 2012 best new
think tank in Asia and the
5th best new think tank in the
world. From your point of view,
how well has IDEAS succeeded
in serving the purpose for
which it was intended?
IDEAS was established in 2010 to
promote market based solutions
to public policy challenges and
change negative public perception
on the market in Malaysia. Our
work is based on the four principles
of rule of law, limited government,
individual responsibility and free
market. We share the vision of
Malaysias first Prime Minister,
Tunku Abdul Rahman Putra, that
this nation should be guided by
the ideals of liberty and justice.
We are not aiming at pushing
for an immediate change in
policy, even though that would
be very nice. Our aim is to create
a more sustainable and longer

term change in public attitude

and public perception. So to us
it is not a problem if our ideas
are not taken up immediately.
However we very quickly found
that there is a dire need for
independent and rationallyconsidered inputs into the
immediate policy debates. There
is gap that needs to be filled
because the vast majority of
conversations in Malaysia today
is heavily influenced by ethnoreligious sentiments. So when we
came into the picture, we found
that the environment is very
receptive. I am very pleased that
a tiny organisation like ours can
achieve so much in just five years.
Our events are well attended. Our
policy papers are well-received.
Our opinion receives a lot of
media attention. And our work on
integrity has been acknowledged
when I was recently invited to
join the governments committee
on political funding. I hope we
can continue making an impact.

Wan Saiful Wan Jan is Chief Executive of the Institute for Democracy and Economic
Affairs (www.ideas.org.my). He is also Director of the Southeast Asia Network for
Development (www.seanetwork.asia) and Chairman of the Istanbul Network for Liberty
(www.istanbulnetwork.org). In August 2015, he was appointed as a member of the
National Consultative Committee on Political Financing, following the Prime Minister's
announcement to set up the group.
He lived in the United Kingdom between August 1993 and October 2009 and served
several organisations, including the think tank Commonwealth Policy Studies Unit, the
British Conservative Partys Research Department, and Social Enterprise London.
31

Business Advocate

As a regular
contributor to columns
and opinion pieces
across a range of local media,
you have exhibited an open
and pragmatic perspective
on current affairs. How can
you strike a fair balance
between accurate, ethical
reporting and the inevitable
political pressures that
frankness may attract?
IDEAS positions itself to be a
cross partisan think-tank and
that notion guides what I do
and say. It is not easy to be
consistent with this position
in a partisan environment of
Malaysia. If we criticise the
government, some people think
we are with the opposition. But
if we raise any criticism against
the opposition or provide a
positive view on government
policies, some people think that
we are government supporters.

32

In IDEAS we believe in fair and

honest critique, our statements
and our writings are drafted
based on facts. We constantly
challenge ourselves to present
arguments and proposals with
sound evidence and we stand
behind those views even when
we are in the minority.
It is also very helpful that we
have clear principles guiding
our work. That ensures
consistency in our messaging
and it provides a framework
when analysing any issue.

Do you feel that

ethics is an absolute
across time or do
changing social perceptions
and norms allow for
changing ethical values?
If we are talking about the
importance of honesty, integrity,
and fair play, I think they are

absolute across time. There are

things that are right. And there
are things that are wrong. Of
course there are many grey areas
too. But to me we should avoid
the grey areas as much as we can.
Morality is an important
factor in every aspect of life,
personal and professional.
Unfortunately this is missing
in most policy debates today.
When we talk about education,
no one asks if it is ethical for the
government to have absolute
control over schools, negating
the rights of parents over
their children. When we talk
about trade policies, nobody
talks about the unethicality
of limiting consumer choice
through trade barriers.
When we talk about
redistributing wealth, it is very
rare to hear people asking if it is
morally right for the government

CEO Profile

to coerce people into paying

for things simply because the
government says they should
be paid for. When we talk
preferential treatment for the
Malays, very rarely people ask
if positive discrimination is
morally sound. People always ask
what should the government do.
Very rarely about what are the
rightful duties of a government.
And many more, but, in short,
it is very rare that we think of
morality and ethics when putting
together policy proposals. This
is very sad. It is as if we have
lost our sense of morality when
formulating public policy.
We need to bring back ethics
and morality into our daily
deliberation and ethics should
be the guiding value for us.

Codes of ethics
and anti-corruption
guidelines have been
published by various
national governing
bodies, including the
Malaysian Anti-Corruption
Commission and the
Companies Commission
of Malaysia. Has this been
sufficient in establishing
good ethical practices
for business in Malaysia?
If not, why not?
The current codes of ethics
and anti-corruption guidelines
published by governing bodies
are benchmarked against
international standards. The
Malaysian Code of Corporate
Governance 2012 which
is issued by the Securities
Commission for example is
benchmarked against the
OECD principles of Corporate
Governance. The Corporate
Integrity Pledge developed
jointly by the MACC and the
Integrity Institute of Malaysia is

inspired by the Integrity Pledge

of Transparency International
that has been implemented in
various countries in the world.
So in terms of localising global
best practices, we are not bad.
However, it is one thing to
have good quality governing
principles, but it is quite another
to have them enforced effectively.
Malaysia is notorious for having
a glitzy launch event for a
brilliant policy only to find its
implementation wanting. If that
remains the case, it does not
matter what we put on paper
because then it is not even worth
the paper it is written on.
Nevertheless, perfectly
implemented codes, guidelines
and rules is actually not my
ideal scenario. For me the
ideal scenario is for everyone
to behave because they want
to behave. Deep inside me I
still believe that it is possible to
remind people that every single
one of us has a vested interest
to be good and to do good. I
know that sounds idealistic. But
I really do think that each and
every one of us should just be
good even if the organisations
we work for does not have an
official code of conduct. Dont
we feel insulted when we need to
be reminded by a piece of paper
what good behaviour is? That is
why, even though I appreciate
the need for a written code these
days, I think that it should not
be our first line of defence.

Where does the

adoption of ethical
business practices fit in
the economic prosperity of
a nation? How can business
be convinced that ethical
business is actually good
business and not merely
another set of rules that
must be complied with?

Well, you hit the nail on the

head there. Dont you think it is
sad that today we have reached
a stage where some people
actually do feel that behaving
ethically is an additional
burden? Unfortunately that
is how some people see it.
But I am going to address
your question in a rather
unconventional way. I know
that the mantra says consumers
are always right. However I am
going to say that in this case,
consumers partly share the
blame. You and I are consumers
too, and how many times have we
actually actively proven that we
care about ethics when we buy
goods or services? Have we ever
asked if the supplier practices
good ethics when we make our
purchasing decisions? If you run
a company, do you check first
before approving a vendor?
The answer to your question lies
in our attitude. We dont care and
therefore some businesses do not
see the need to behave ethically.
I dont need a major survey to
prove that is the attitude of the
majority of consumers including
you and I. And as long as we
dont care, bad practices could
still mean good business. If we
want to change that, we have
to change our attitude first.

In your opinion,
what are the
greatest challenges
ethical businesses face in
Malaysia and globally?
Let me focus my answer on
businesses in Malaysia, including
the multinational companies. I
think the greatest challenge is
in speaking up. When was the
last time you heard businesses
operating in Malaysia campaign
publicly for ethical business

33

Business Advocate

practices? Or speak up on basic

things like the need for good
governance in Malaysia?
The reality is, businesses
in Malaysia have muted
themselves for too long. They
dont even support the works
of organisations that bring
positive change for businesses
in the country. The only entities
we hear talking about ethical
practices are the government
and the odd NGOs. It is not
an issue that is widely talked
about. As a result, even though
it is very important, ethics in
business is not seen as something
that is widely adopted yet.

You have previously

stated that Malaysia is
an economy dominated
by government-linked
investment companies
(GLICs) and GLCs with
many instances where their
operations raise questions
about good governance. How
do you foresee Malaysias
economic environment
in the long run given
the governments strong
presence in the economy?
Well, I guess the best case study
would be 1MDB. There has been
so many unanswered allegations
regarding the company, and at
the centre of things is the issue
of how the company is governed.
The Board has legal and fiduciary
responsibilities but the chairman
of the advisory board is the most
powerful person in the country.
How in the world did we get
corporate governance so wrong?
Well, we got it because it is a
state-owned enterprise set up
by the most powerful person
in the country. If 1MDB was
not a state owned enterprise,
or if it was set up by somebody
else, I dare say that we would
not be in the situation that we

34

are in today. I see some very

glaring conflict of interest.
If we look at the wider
business environment, even
the government knows that the
presence of so many GLICs
and GLCs is not good for the
economy. That is why they
announced that they want to
rationalise the number of
GLCs. The main problem cited by
the government is that the GLCs
crowd out true entreprenuers.
But I think the problem is
more than that, and the
problems are mainly centred
around good governance
rather than economics. Let
me give some examples.
If one GLC is sick and needed
to sell its asset to pay its debt,
who do you think will bail it
out? The easiest target would
be another GLC, by instructing
a healthier GLC to buy from
the sick GLC. This is a case
of the right hand paying the
left hand and pretending
that the body is healthy.

If the government needs money

and they dont want the people
to know that they are facing a
serious fiscal deficit, who do you
think they will go to? The easiest
target would a GLC with money
who can be instructed to give
dividends to the government.
A case of government weakness
covered by GLC funds.
If the government needs to
borrow money but they dont
want it to appear on their balance
sheet because it would mean
greater scrutiny by parliament,
who do you think they will go to?
The easiest target again would
be a GLC that be told to borrow
money, because that loan will be
an off balance sheet liability and
nobody needs to know about it.
So as you can see, the presence
of GLCs is not just about
governance in the GLC
itself, but the governance of
the country as a whole. The
case against GLC is not just
economic but political too.

British Boarding School in Penang

Day pupils, weekly boarding and full boarding.
International Secondary School.
+604 868 9999 admissions@powiis.edu.my
www.powiis.edu.my

MTT Learning Academy Sdn Bhd (733077-D) 1 Jalan Sungai Air Putih 6, Bandar Baru Air Putih, 11000 Balik Pulau, Penang, Malaysia

35

Business Advocate

MICCI Chats With The

Managing Director Of
The Ethical Alliance
Jagdeep Kairon

Without a doubt it is training

and awareness. Training and
awareness in business ethics
policies and anti-corruption/
bribery regulations is at the
corner stone of implementing an
ethical and compliant corporate
eco-system. Companies need to
educate their employees on both
the Malaysian anti-corruption
regulations as well as international
regulations such as the FCPA and
the UKBA. Employers need to
identify points of exposure or the
employees who are at the front
line of business deal making and
lobbying. These employees need
to understand what constitutes a
good business practice and what
is breaking the law as well as the
huge liabilities that are associated
with the same both in terms of
economic fines and loss of brand.

Well the Code of Business Ethics

and Conduct (COBE) could form
a part of the overall policy or be a
standalone policy in itself. However,
the COBE should clearly show
a commitment of zero tolerance
towards all forms of corruption.
The company must demonstrate
a clearly stated policy on the
companys website/annual reports/
code of conduct to convey its
commitment to anti-corruption.
The policy should clearly state
about receiving or offering bribes,
kickbacks, or similar payment or
consideration of any kind, whether
in Malaysia or overseas, to any
person or entity in order to gain an
unfair business advantage. Also the
policy must apply to All Employees
(to include senior, middle, junior
and non-executive employees).

What do you think

is the single most
important aspect
towards promoting corporate
ethics and compliance?

What advise do you

have for companies
who want to build or
develop their ethics policies?
Should this be a separate policy
from the code of conduct?

Jagdeep Kairon is the Managing Director of The Ethical Alliance, a global

community of companies and individuals dedicated to anti-corruption compliance,
corporate transparency and good governance.With close to 30 years international
experience, he is responsible for the companys operations in key emerging
economies across Asia and is well versed in international compliance regulations
such as the FCPA and the UKBA and other regional and local regulations.

36
36

CEO Profile

unambiguous terms, adhered to

them scrupulously, and disseminated
them throughout the organization.
There needs to be a mention of a
pro-active reporting of all violations
without the fear of consequences.
But more than simply talk-the-talk
the company leadership must walkthe-walk and lead by example.

In your experience
where are the
gaps most glaring in
Malaysian companies?
I feel that the Malaysian companies
neglect the aspect of third
party compliance. All suppliers,
manufacturers, distributors, vendors
in fact the entire supply chain
should be subject to your code of
business ethics. Most companies
just have an vendor agreement with
a list of basic dos and donts. It is
imperative that the same standards
as mentioned in the code of business
ethics and conduct be expected
from the intermediaries and
agents. Periodic dissemination and
attestation of the code of conduct
should be carried out with agents
and intermediaries. Unscrupulous
agents and intermediaries should
be barred from doing business
with, irrespective of their value in
the chain. All third parties must
be subjected to comprehensive
due diligence before they
are engaged for business

Whistleblowing is
becoming a common
practice these days and
is somewhat controversial
if we may say. What are
your views on the same?
Well, there is nothing controversial
about the same and whistleblowing
is not sneaking or telling on
people. All companies should have a

clear policy on the same and have a

reporting channel in place. Company
Personnel who are or become aware
of or suspect a violation of the ethics
Policy and/or the Anti-corruption
Laws are under an obligation to
report the same to the Company.
An organisation should have a clear
policy of non-retaliation against
such persons, irrespective of the
persons stature and channel of
reporting to come up and take a
stand. Systems have to be in place for
people to be completely out of fear
of retaliation by the organisation/
individuals against whom the
complaint is being registered. In fact,
inclusion of this aspect is already
mandated by the FCPA and the
UKBA. I dont see any problem.
It would only keep us on our toes
and ensure we do the right thing.

How important is
the role of the top
management?

There needs to be a firm

commitment from Senior
Management towards sponsoring
a clearly articulated policy against
corruption. The employees must
take a cue from senior management.
The board of directors and senior
executives need to set a proper
tone from the top and a culture
of compliance. This culture of
compliance is reflected when
senior management has clearly
articulated company standards
and has communicated them in

Would aspects
such as work place
harassment also fall
into the ethics sphere?
Yes of course. How can you have
an ethical organisation, which
violates the basic rights of its
employees? The company must
prohibit any form of harassment at
the company workplace across all
locations. All employees need to
live and work in an environment
of mutual respect and working
relationships free of harassment.
The company should specifically
prohibit harassment by or toward
employees, contractors, suppliers,
or customers. The company must
clearly define harassment. It must
consider the following while doing so:
- Actions or words leading to
an intimidating, hostile, or
offensive work environment;
- Actions or words which hamper an
individuals work performance;
- Actions or words which
adversely affect someones
employment opportunity.

Do you think
the Malaysian
anti-corruption
laws are adequate?
Q7 I think its work in progress.
There is tremendous support and
pressure from the Government
towards good governance and
ethics. I think the Malaysian
regulations need to seriously consider
aspects such as directors liability
and stringent penal sanctions for
defaulting companies as is done
in other countries on the world.

37

Business Advocate

10

Any business would benefit

the most from having an
established code of ethics.
More than just formulating
them, it is important to
actually enforce them.

Ensuring confidentiality
of company proceedings is
necessary to a certain point,
but not at the cost of letting
unethical and corruptive
practices go unnoticed.

To ensure a thoroughly
ethical business environment,
ethical practices should
not only be practiced by
company employees but
also by all engaged parties
that are involved in the
supply chain process.

Establishing a human resources

department to deal with ethical
dilemmas and their proper
handling can be essential
to extending a healthy and
open line of communication
to those who feel they may
have been wronged.

Update any ethical

regulations to address the
changing scope of technology
and innovation, which is
liable to alter the dynamics
of business ethics.

Ensure that any violations

on code of ethics is
reprimanded and dealt with
in order to show that there
are actual consequences to
any wrongdoings so as to
deter them in the future.

An anonymous ethics hotline

is known to be a successful
form of fraud detection,
and offers more protection
to whistleblowers that
want to expose unethical
business conduct.

10

Many businesses can have

an adverse impact on the
environment, and it is ethically
responsible for them to reduce
any negative environmental
effects and their carbon
footprint, for the benefit of
current and future generations.

Advertising and marketing can

sometimes be used as a tool
to mislead the public without
being blatantly dishonest. This
is a grey area, where companies
should choose to market their
business ethically and gain
the trust of their audience.

Pivotal
Practices

That Cultivate An
Ethical Business
Environment

38

The most important note on

ethics is to realise the longterm rewards of instilling
ethics, rather than to look
at the short-term benefits of
unethical immediate gains.

CEO Profile

39

40

MICCI News

MICCI Out & About

JOHOR Raclette Party & Whisky

Tasting at La Belle Vie in July 2015.

JOHOR Ramadan Iftar at the Thistle Johor

hosted by Cape EMS Manufacturing (M) Sdn Bhd.
Present were representatives from the Johor State
Government, Consulate General of the Republic
of Singapore, Consulate General of the Republic
of Indonesia and Members of the Chamber.

PERAK Branch Committees visit to

the Spritzer plant in Taiping, Perak and
soft launch of the Spritzer Eco Park.

41

Business Advocate

Police To Ensure
Businesses
Invulnerable
From IS Threat
The Chambers Joint Action
Security and Crime Council
(JASCO) led by its Chairman,
Rajan Mittal met with the Deputy
Inspector General of Police, Dato
Sri Noor Rashid bin Ibrahim in June
2015. The meeting was to bring the
deputy IGP up to speed on some
of the forthcoming initiatives by
MICCI and to attain feedback from
the police on the vulnerabilities
surrounding the threat from the
Islamic State (IS) militant group.
Dato Sri Noor Rashid stated that
the police had so far been able to

contain all forms of threat that

could threaten harmony among
the people. "Proactive action and
the existing standard operating
procedures have been successful
in maintaining security in the
country," he said. The police will
continue to monitor elements
of the IS to ensure public order
and security is maintained in the
country.
He added that compared to Jemaah
Islamiyah (JI) extremist, IS group
operates through a loose structure,
making it very difficult to identify

and detect them. Moreover, IS

recruiters tend to target younger
individuals or those from
impoverished backgrounds who
are most likely to be influenced or
radicalised by its extremist brand.
The deputy IGP urged businesses
and their top management to be
alert on any suspicious activities
among their staff and colleagues.
He further informed that the
police was receptive to conduct
private talks on IS related subjects
for businesses at their request.
Kuala Lumpur

3rd National Conference On

Goods And Services Tax (GST)
Implementation
In light of the overwhelming
success of the 1st and 2nd
National Conference on Goods
and Services Tax (GST),
MICCI and the Malaysian
Export Academy organised
the 3rd National Conference
on GST Implementation in
June 2015 at the MATRADE
Convention Centre. The
conference themed Practical
Issues And Challenges In The
GST Implementation brought
together close to 70 participants
from various industries.

42

MICCI News

The event was officiated by Dato Subromaniam Tholasy, Director,

GST Division of the Royal Malaysian Customs and featured five
speakers covering various topics concerning the tax system, namely:
Tuan Mohammad Sabri bin Saad
Senior Assistant Director of Customs I, Royal Malaysian Custom
Identifying And Solving Practical Issues On Implementation Of GST
Wong Chow Yang
Director, Taxand (M) Sdn Bhd
Post GST Implementation Issues
Guna Selan Marian
Senior Assistant Principal Director, Anti Profiteering Unit, Enforcement
Division, Ministry of Domestic Trade, Co-operatives and Consumerism
Issues On Price Control And Anti Profiteering Act
Stanley Wong
Director of S.W Project Consulting Sdn Bhd
Challenges And Solution Of GST System Changes
Anand Raj
Partner, Shearn Delamore & Co
GST On Legal And Contractual Matter

In his keynote address, Dato

Subromaniam stated that of the
75,000 companies eligible to be
taxed, 12,000 have yet to report their
assessment statements. After the
extended deadline, the GST system
will issue an automatic notice of
assessment including the amount in
tax that needs to be paid. Moving
forward, he said that any delay in
sending the assessment statement will
incur a compound of RM50,000 or
a jail term of three years or both in
accordance to the GST Act 2014.
The conference concluded with
an active panel discussion with
Thenesh Kannaa, Managing Partner,
Thenesh, Renga & Associates
along with speakers Anand Raj
and Wong Chow Yang, and
moderated by SM Thannermalai,
Senior Executive Director of PWC
Taxation Services Sdn Bhd.
Kuala Lumpur

Iskandar Malaysias Potential

As An Investment Destination
Authority (MIDA) and
Ascendas Pte Ltd. Also
in attendance were the
Consulate General of the
Republic of Singapore, HE
Ian Mak and the Consulate
General of the Republic of
Indonesia, Iwa Mulyana.

MICCI Johor in collaboration

with the Singapore Manufacturing
Federation (SMF) organised a
seminar titled Iskandar Malaysias
Potential As An Investment
Destination in June 2015. A total
of 100 participants attended the
seminar, which featured speakers
from Iskandar Regional Development
Authority (IRDA), Singapore
Manufacturing Federation (SMF),
Malaysian Investment Development

In her welcome address,

MICCI Johor Chairman,
Christina Tee highlighted
the States changing skyline
due to rapid developments by
IRDA indicating the regions
significant potential as an
investment destination. Chief
Executive Officer of IRDA,
Professor Datuk Ismail Ibrahim
further commented that while
famous cities around the globe are
associated with iconic structures,
Johor on the other hand is
identified by its lifestyle.

The seminar continued with Mohd

Erfian Johari, Second Secretary
(Investment) of MIDA Singapore
briefing the floor on the various
government facilitations for
investments in the manufacturing
and services sectors in Malaysia.
This was followed by a presentation
from Alec Soong of SMF who
shared on how the SMF renders
assistance to Singaporean
companies seeking to invest and set
up plants overseas. Lastly, Brian
Ng of Ascendas highlighted on
the diverse chapters that Ascendas
occupies around the world and its
involvement in Johor.
The seminar concluded with
Rozano Yahaya, Director of MIDA
Johor handing out lucky draw
prizes to a number of fortunate
participants.
Johor
43

Business Advocate

Round-Table Meeting With

the Minister of MITI

MICCI Perak including close

to 50 captains of industries
participated in a round-table
meeting between with the MITI
Minister, YB Dato' Sri Mustapa
Mohamed in June 2015. The
meeting was co-chaired by Perak
State Exco for Industry and
Investment, YB Dato' Mohamad
Zahir B. Abdul Khalid while
MICCI was represented by its
branch Chairman, Dato' Lim Si
Boon, branch committee member,
Leong Hua Kooi and branch
executive, Subasini Uthra.
Dato Sri Mustapa took the liberty
of highlighting the priorities
under the 11th Malaysian Plan
affirming that the manufacturing
and services sectors were the
main drivers of the economy and
that private sector involvement is
crucial in realising vision 2020.
On investments, the Minister
stated that both local and foreign
businesses were equally important
and with the full implementation

of the ASEAN Economic

Community (AEC) by the end of
2015, ASEAN will be transformed
into a region with free movement of
goods, services, investment, skilled
labour, and freer flow of capital.
The Chamber raised several
matters affecting its members in
the State particularly on increased
cost of doing business, status on
the proposed employers insurance
scheme (temporary financial
assistance re-skilling and upskilling for those retrenched by
their employers), bureaucracy
on foreign labour recruitment,
dumping of steel from China
into Malaysia and the current
standing on the Trans-Pacific
Partnership Agreement (TPPA).
To this end, the minster responded
that no decision has been achieved
on the employers insurance scheme
while local steel companies facing
issues on dumping could file the
relevant petitions with MITI.

On the TPPA, the minister urged

all Malaysians to keep an open
mind as feedback from all parties
has helped guide and influence
Malaysias negotiating stance on
various issues under discussion.
Ultimately the decision on whether
to sign or reject the TPPA will be
a collective Malaysian decision.
Among other issues brought to light
were for the Northern Corridor
Economic Region to extend its
boundaries to include Kinta Valley,
the need for more electronics and
electrical companies to set up
operations in Perak, the demand
for natural gas supply for industries
in the Kinta Valley and the delay
in GST refunds causing cash
flow concerns for businesses.
Concluding the meeting, Dato
Sri Mustapa assured the business
fraternity that efforts will be made
to facilitate more investments
as well as further improve the
business conditions in Perak.
Perak

44

MICCI News

Understanding & Coaching

Across Generations
MICCI Perak organised a twoday workshop on "Understanding
& Coaching Across Generations"
on 16 & 17 June 2015 at the
Impiana Hotel. Conducted
by Alfred Netto, one of the
youngest coaches in Malaysia
to be Associate Certified Coach
credentialed by the International
Coach Federation (ICF), the
workshop provided participants
with valuable insights on bridging
the gap and leveraging the
difference between generations.
The main focus of the workshop
was to enable the participants

to engaged in a combination
of Metaphoric and LearningBy-Doing approach. This
included creating a learning
environment best suited for
each generation, applying
coaching to change behaviours
without creating resentment,
resolving generational conflicts
and to adopt a coaching role
at the work place. Participants
were actively engaged in group
discussions and real corporate
case studies while the trainer
guided and supervised coaching
skills among one another.

The workshop proved to be a

beneficial experience as it allowed
those who attended to acquire
key coaching and relationship
building skills, and to further grasp
generational issues among employees.
Perak

Dialogue With The Chief

Police Officer Of Perak
that industrial and residential areas
be better equipped with security
systems to complement the police
efforts. Dato Lim further suggested
that a security forum be organised
for the Japanese community which
represent one of the larger groups
of expatriates in Ipoh, Perak.

An MICCI delegation led by

the Chambers Perak branch
chairman, Dato' Lim Si Boon met
with the Chief Police Officer of
Perak, YDH CP Dato' Hj. Osman
B. Hj. Salleh and a few of his
senior officers in August 2015.
Among the issues deliberated in
the meeting included the need to
obtain assistance from the police in
conducting background checks on
potential employees, the necessity
for frequent police patrols in areas
highly populated by expatriates
and the number of factory break-

The meeting also allowed for the

police to present the latest statistics
ins in areas such as Jelapang,
on property and violent crimes
Manjung, Chemor and Bemban.
for 2014 and 2015. SAC Tuan
Goh Kok Liang, Head of Crime
To these issues, Dato Hj. Osman
Investigation, reported that the
responded that the vetting
first half of 2015 reflected a general
procedures for potential employees be decrease in both types of crime
carried out for critical positions only while more cases were successfully
due to the departments manpower
solved in 2015 compared to
constraints. MICCI Member,
the same period in 2014.
Finisar Malaysia Sdn Bhd further
Concluding the meeting, Dato
commended the police on promptly
Hj Osman welcomed continuous
attending to their vetting request
dialogue with MICCI as a means
for some of their employees. On the
to facilitate better exchange of
matter of police patrols and factory
information and to foster stronger
rapport between both parties.
break-ins, the police chief advised
Perak
45

Business Advocate

MICCI Welcomes All New Members...

Company:
Name:
Designation:
Address:


Tel/Fax:
Business Sector:

ANALISA RESOURCES (M) SDN BHD

Thang Lee Tean
Managing Director
Blk B, Unit 1010, Kelana Square
17 Jalan SS 7/26, Kelana Jaya
47301 Petaling Jaya, Selangor
03-7880 6217 / 03-7880 7217
Machinery/Equipment

Company:
BANYAN TREE LANG CO
Name:
Abid Butt
Designation:
Chief Executive Officer
Address:
211 Upper Bukit Timah Road

Singapore 588182
Tel/Fax:
02-6849 5970 / 02-6462 9800
Business Sector: Hotel/Tourism

Company:
BOUSTEAD ATLAS HALL SDN BHD
Name:
Dr Rais B Saniman
Designation:
Managing Director
Address:
Suite 19.04-05, Level 19, Wisma Goldhill

No. 67 Jalan Raja Chulan

50200 Kuala Lumpur
Tel/Fax:
03-7490 8861 / 03-7490 8862
Business Sector: Oil/Gas/Petrochemicals

Company:
CRT INSIGHTS TECHNOLOGIES SDN BHD
Name:
Florence Goh
Designation:
Managing Director
Address:
42 Jalan Molek 2/1

Taman Molek

81100 Johor Bahru, Johor
Tel/Fax:
07-358 2627 / 07-357 2627
Business Sector: ICT/Communications

Company:
DXN INDUSTRIES (M) SDN BHD
Name:
Dato' Dr Lim Siow Jin
Designation:
Chief Executive Officer
Address:
Wisma DXN

213 Lebuhraya Sultan Abdul Halim

05400 Alor Setar, Kedah
Tel/Fax:
04-772 3388 / 04-772 1188
Business Sector: Food/Beverages

46

Under
Construction

Members News

Company:
KAIFA TECHNOLOGY MALAYSIA

SDN BHD
Name:
Soon Kar Hin
Designation: Director
Address:
No. 6 Jalan Istimewa 2

Taman Perindustrian Cemerlang

81800 Ulu Tiram, Johor
Tel/Fax:
07-862 2222 / 07-862 2202
Business Sector: Electrical/Electronics

Company:
LINTAN ENTERPRISE SDN BHD
Name:
Datuk Tan Cheng Kiat
Designation: Director
Address:
Unit No. C2-5, 2nd Floor, Block C

Plaza Tanjung Aru, Jalan Mat Salleh

Tanjung Aru, 88200 Kota Kinabalu, Sabah
Tel/Fax:
088-246 404 / 088-246 011
Business Sector: Trading(Import/Export)

Company:
MSME PUBLISHING SDN BHD
Name:
Lim Beng Chai
Designation:
Chief Executive Officer
Address:
E33A-3A, Dararan 32

No. 2 Jalan 19/1

46300 Petaling Jaya, Selangor
Tel/Fax:
03-7960 2133 / 03-7960 1932
Business Sector: Media/Advertising

Company:
Name:
Designation:
Address:


Tel/Fax:
Business Sector:

SENAI AIRPORT CITY SDN BHD

Gan Seng Keong
General Manager , MMC Group Property
LC05 -LC07, Senai Cargo Building
Senai International Airport
81250 Johor
07-595 1114 /07-590 9985
Property/Real Estate

Company:
Name:
Designation:
Address:


Tel/Fax:
Business Sector:

TENTU TEGUH SDN BHD

Datuk Charlie Chia Lui Meng
Group Chief Executive Officer
UMLAND Berhad, Suasana Bukit Ceylon
No. 2 Persiaran Raja Chulan
50200 Kuala Lumpur
03-2036 8188 / 03-2036 8000
Property/Real Estate

Company:
THE RICE MILLER HOTEL

(PENANG) SDN BHD
Name:
Patrick Moukarzel
Designation:
General Manager
Address:
AGB @ Georgetown Chambers

No. 2 China Street Ghaut

10300 Penang
Tel/Fax:
04-262 3818 / 04-262 6818
Business Sector: Hotels/Tourism

47

REGIONAL
FOCUS
JOHOR

48

Regional Focus

Integrating Ethics With

Master Planning
Freddie Lee, Executive Director of Seri Alam Properties Sdn Bhd

Bandar Seri Alam located at the Eastern Gate Development Region of

Iskandar Regional Development Corridor spans over 3762 acres of verdant
land previous cultivated with oil palm and rubber.

I have often been asked how

we allocate our land use in our
Master Planning so as to create
a harmonious balance between
economics advancement and
preservation of nature.
From an ethical stand point, our
cardinal rule is to ensure that
we create a healthy living city
where residents can have all the
trappings of a comfortable living
environment, well connected
traffic dispersion system and yet
preserve vast areas of green lungs,
recreational open space and parks
for the peaceful enjoyment of the

residents. We do not just build

houses but we are here to build a
life time bond with our buyers.
Under the local council planning
guidelines, developers must put
aside at least 10% of land areas
to be designated as open areas.
In Bandar Seri Alam, we created
water parks out of water detention
ponds, we have the longest bicycle
lanes in any township and we
have reintroduced thousands of
jungle trees back to the township
to create a city forest. For every
tree we fell, we ensured we
replanted at least 3 new saplings.
49

Business Advocate

Instead of maximising land use

building concrete jungles, we
choose to build low density terrace
homes. We identified the township
as an education hub and consciously
set aside vast tracts of land for
schools, colleges and universities.
The township is now known as
the City of Knowledge and is
home to 5 tertiary institutions,
4 international schools and
numerous national schools.
We pay special attention to
architectural and functionality in
the homes we created. Homes must
not only be tastefully designed but
must also generate minimal carbon
footprint. We adopt many of the
green initiatives and incorporated
many energy saving devices as
well as cutting down on wastages
by incorporating built in fixtures
so that buyers do not need to do
major costly renovations which

50

may at the same time generate

huge amounts of building debris.
Whilst we work on the land to
create economic benefits, we take
cognizance that we are sharing the
land with other earthy creatures
like birds and bees of the sky and
other animals on the ground. We
take pride that we have planted
thousands of flowering shrubs
where butterflies can flutter around.
We created a bird sanctuary for the
migratory birds to land and rest
during their annual trans polar
migration to escape the winter cold.
We have released thousands of fish
flies into the lake parks to provide
food to these migratory birds
and to enhance the eco system.
Engineering wise, we pay special
attention to separate our foul sewer
lines from our surface water run
off so that our rivers are clean.

We build gabions to trap garbage

from flowing freely into the river
system. We need to be conscious
of land, sea or air pollution and do
everything economically possible
to help protect our development.
For all that we have done at Bandar
Seri Alam; this Township City
of Knowledge has been awarded
numerous awards including the
Johor State Green Award 2013 by
UPEN- State Economic Planning
Unit, Smart Healthy City &
Community 2014 by Iskandar
Regional Development Authority
(IRDA) as well as 5 other awards
by Asia Pacific Property Awards for
our homes and office developments.
These awards are testaments
that we are doing what is
ethically right and we will
continue to follow this vision in
our development programs.

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52