PETALING JAYA: There has been an increasing trend of medical graduates leaving for Singapore for housemanship, leading to losses of millions of ringgit in educational investment annually, say experts.
Universiti Kebangsaan Malaysia Faculty of Medicine dean Prof Datin Dr Marina Mat Baki said from only two graduates who moved to the republic in 2020, the number grew to 15 more graduates in 2021, 25 in 2022 and 30 in 2023.
“This is a significant loss for Malaysia as the tuition fees for medical courses are heavily subsidised by the government,” she said.
She urged the government to expedite allocation of hospital postings for graduates after completing their final examinations to retain them in the country.
“As long as they pass their final examinations, they should be allowed to apply for and get their placement as soon as possible,” she said.
According to the Singapore Medical Council, only medical students who graduated from Universiti Kebangsaan Malaysia (UKM) and Universiti Malaya are accepted to undergo training in the republic.
Dr Marina noted that it is harder for graduates who did their housemanship in Singapore to return and practise in Malaysia as they need to prove that they have fulfilled the Malaysian Medical Council’s (MMC) requirements.
“If the training was not completed as per MMC’s requirements, they will need to fulfil the postings that haven’t been done in Malaysia before they can be certified and continue as a medical officer here,” she said.
She added that it is easier to come back as a specialist, but the certification must be from qualified bodies approved by MMC.
This would typically take up to 10 years.
She also highlighted the possibility of less opportunities for Malaysian graduates to pursue specialist programmes in Singapore.
Prof Dr Sharifa Ezat Wan Puteh, a health economics and public health specialist at UKM, said the government would have spent an estimated RM500,000 to RM1mil per student for a five-year course.
She said the cost included the study placement comprising capital and assets in training hospitals.
“The government is also paying all lecturers to teach our medical students. This figure is only from one university,” she said, referring to UKM.
“The return on all the investments is lost because once the doctors work abroad, there is no benefit received by the local population.”
Apart from the financial loss, she said, Malaysia is also left with fewer doctors, which could disrupt the ratio of provider-to-population and affect access to medical care.
Hartal Doktor Kontrak spokesperson Dr Muhammad Yassin said the talent outflow would place further strain on Malaysian healthcare workers.
“This will lead to more burnout and overwork, which may in turn lead to more exodus out of the Health Ministry, either to the private sector or overseas.
“The overall effect will be a healthcare system with suboptimal care for the patients as more and more are depending on the public healthcare system due to the increase in insurance price and medical inflation,” he said when contacted.
He said this matter should be addressed by improving the working environment and providing better remuneration for medical officers and specialist doctors.
“Start with increasing on-call allowances. There is also a need to find ways to reduce the workload of healthcare workers in general, not just doctors but also support staff,” he added.
He proposed a private-public partnership or a national insurance scheme that helps offload patients in the government facilities to the private sector without compromising care.
LIKE many Malaysians, I often have to remind my colleagues, neighbours and friends that chat groups are not the best place to discuss politics, especially topics on race relations and religion.
Some of us often forget that participants in chat groups may not necessarily share the same sentiments and enthusiasm. Chat groups are created for specific agendas and purposes, but we do go off-track sometimes.
The workplace is no different. Divergent opinions can lead to creativity and better ways of doing things once a consensus is reached. However, it can also result in strong disagreements and even conflict, potentially breaking a team.
As managers, we are familiar with such situations. Managers must always think about how best to manage divergent opinions in professional settings.
As we come to the end of 2024 and brace for an uncertain 2025, in times of political upheaval, such as the new US president and increased geopolitical tensions affecting every region in the world, it is also a good time to focus on managing our backyard.
With 2025 on the horizon, it is a good time to focus on managing our backyard
The bigger challenge requiring managers’ attention in 2025 is the march of AI
AI will impact every department and section, with no exceptions
Being respectful and professional is always key, according to the Chartered Management Institute’s (CMI) tips for managers – be brave enough to shut down conversations if they make some colleagues feel uncomfortable.
It is important to remind teams that the workplace is not always the best place for heated political discussions, especially if they prove unproductive and inconsequential to work.
The bigger challenge requiring managers’ attention in 2025 is the march of artificial intelligence (AI) in the workplace. Forget about scheming and untrustworthy politicians.
AI is the number one priority – the better it is managed, the more likely organisations are to adopt it successfully and avoid potential pitfalls. The good news is that the Malaysian Employers Federation (MEF) believes that a significant portion of companies in Malaysia are proactive in this regard.
MEF president Datuk Syed Hussain Syed Husman cites the Cisco AI Readiness Index survey conducted in November last year, which revealed that 46% of Malaysian organisations are prepared to adopt AI technology in line with the Fourth Industrial Revolution (IR 4.0). The study indicated that 13% of these entities are fully ready, with an additional 33% classified as partially ready.
For AI to take off, the positive impact of management and leadership on organisational performance is well-documented, including by Haskel et al (2007) in the United Kingdom and Bloom et al (2010), which found better management led to productivity increases of 13% to 17%.
Data from the UK’S Office of National Statistics shows that companies with high management practices are significantly more likely to drive tech and AI adoption. The research found that companies with top-tier management scores are significantly more likely to adopt AI (37% in the top decile compared to just 3% in the bottom) and to recognise its relevance.
While only 32% of top-performing companies see AI as inapplicable, this figure rises sharply to 74% among those with lower management scores.
However, CMI research reveals that anxiety around AI technologies remains widespread, with over two in five (44%) UK managers reporting concerns raised by colleagues and direct reports about new and emerging AI tools within their organisations.
Alarmingly, fewer than one in 10 managers (9%) believe their organisation is adequately equipped to work with AI, with most receiving little to no training on how to manage or integrate these technologies effectively.
Researchers have found that managers will increasingly play a critical role in interpreting Ai-generated insights, ensuring these align with organisational goals, and making judgment calls that require human intuition and ethical consideration.
AI will impact every department and section, with no exceptions. For the human resources manager, they will need to determine whether AI is writing recruits’ curriculum-vitae and cover letters.
If so, should this be a cause for concern? Are graduates making themselves more attractive to employers by demonstrating a willingness to use AI? Or does this come across as lazy or lacking in creativity?
What does it tell potential employers? Is it deceitful or clever? And should employers be using Ai-detection software?
For news editors in TV studios and newsrooms, shouldn’t they be leading the charge to use AI to eliminate tedious work, allowing staff to focus on creativity and more purposeful tasks?
As we end the year, some companies are still struggling with hybrid working.
It is safe to say that most Malaysian employers have insisted their staff return to the office physically.
This will also be the last year when public listed companies are allowed to conduct annual general meetings for shareholders solely online.
Beginning next year, public listed companies must have physical annual general meetings, with online participation as an additional option.
As we approach the fifth anniversary of the pandemic, the challenge for 2025 will be for managers to ensure they get it right.
For Malaysian managers still holding on to the hybrid workplace, they would know by now if it is still effective. - WONG CHUN WAI Award-winning veteran journalist and Bernama chairman
Upholding integrity: Ismail (centre) chairing the EAIC coordination meeting with heads of enforcement agencies. — Bernama
Problematic government officers found to be involved in malpractices or wrongdoings must have their services terminated early to put an end to integrity issues involving civil servants and management, proposed the Enforcement Agency Integrity Commission (EAIC).
Its chairman Tan Sri Ismail Bakar said the Malaysian civil service was once revered among the Commonwealth nations but noted that it is now entangled with integrity issues.
Ismail said giving marching orders to civil servants who are problematic is the way to go to prevent integrity issues from festering at the new department these officers are transferred to.
We are working on eradicating problematic officers in (government) agencies by way of early termination of their service. If the government agrees on this, it will be easier for us to perform our duties,” he said.
Ismail provided examples of court cases involving civil servants who have engaged in malpractice or misconduct.
“But we lost (the case). With the relevant laws, we can see how to terminate their service without having their case concluded in court trials,
Ismail said there has been precedent where problematic officials were terminated, citing existing regulations such as the Public Officers (Conduct and Discipline) 1993 that provide for this.
He described the practice of transferring problematic officials to a different department as “a vicious cycle”, which might not be a deterrent.
“What is also worrying is that some civil servants and enforcement officers would get a third party, such as an influential individual or a company, to protect their wrongdoings.
“What is more saddening is that there are higher-ups who are complicit in their subordinates’ wrongdoings.
“In fact, some have even led such activities. Such deeds have tarnished the civil service’s image,” Ismail said.
He said if enforcement agencies’ disciplinary bodies do not adopt EAIC’s recommendations, it sends a signal that they are not serious about eradicating wrongdoing.
Ismail, who is a former chief secretary to the government, also said that low wages should not be an excuse to be corrupt.
“You already knew your wages (before joining the service), so why did you still take up the job?
“Never use low wages to legitimise corruption,” he said in his opening remarks at the EAIC coordination meeting with enforcement agencies’ department heads yesterday.
“If you love the civil service, carry out the duties you are assigned responsibly,” he said.
Ismail said the EAIC had received 229 reports on integrity cases between June 1, 2023, and May 31, this year, with the highest number of cases related to the Immigration Department.
During this period, the commission initiated 17 investigation papers regarding alleged malpractices by civil servants.
Almost 90% of the probes have been completed and decisions have already been reached regarding two individuals who are being investigated.
The EAIC had, among other things, recommended terminating the public officers’ service, halting their promotion and issuing warnings.
EAIC is a federal statutory body responsible for monitoring and investigating public complaints about the alleged misconduct of enforcement officers or agencies as listed in Act 700.
Currently, it has 21 enforcement agencies under its supervision.
This includes the Immigration Department, Customs Department, Malaysian Maritime Enforcement Agency, National Registration Department and Road Transport Department, among others.Ismail also said that the commission is looking for more agencies to fall under its jurisdiction.
Leading the pack: Tan beats Cook, Musk and Zuckerberg in the analysis by the WSJ. — Photo from Broadcom Inc
Tan tops list of highest paid executives in the US last year
PETALING JAYA: The highest-paid chief executive officer in the United States is neither Apple’s Tim Cook nor Tesla’s Elon Musk, but Malaysian-born businessman Tan Hock Eng.
Tan, 71, also surpassed Meta Platforms’ Mark Zuckerberg by earning US$162mil (about RM760mil) in compensation last year, according to South China Morning Post, which quoted an analysis by the Wall Street Journal (WSJ) this week.
“Tan, who is a US citizen, is the CEO of semiconductor company Broadcom Inc and has been topping the pay charts since 2006, receiving US$103mil in 2017,” said WSJ.
However, the pay package comes with several conditions, including the company’s stock hitting a certain level by next year. Tan must also remain as CEO for an additional five years, and he will not receive any more equity or cash bonuses during that period.
The semiconductor company’s shares rose 106% over the past 12 months, bringing its total market capitalisation to US$655bil (RM3 trillion).
Tan is also a board member of Meta Platforms, the US-based company that owns Facebook, Instagram and WhatsApp among others.
Tan, who hails from Penang, completed his undergraduate studies in mechanical engineering at the Massachusetts Institute of Technology.
He also has a bachelor’s degree in electrical engineering from the National University of Singapore. He then earned a Master of Business Administration from Harvard University. After returning to Malaysia, he was involved with Hume Industries between 1983 and 1988.
He then moved to Singapore as managing director of venture capital firm Pacven Investment.
He reportedly relocated back to the United States in 1992 and assumed the role of vice-president of finance for PC maker Commodore International.
EMPLOYEES today are more aware of their options and are in a better position to decide on roles that align with their interests, values, and priorities.
Our 2022/23 Malaysia Salary & Employment Outlook notes that younger employees tend to prioritise career progression opportunities and a healthy work-life balance compared to employees from other age groups.
Therefore, in the post-pandemic world of work, it is important for employers to engage with employees to address challenges and shape solutions together. It is a process that needs to be carried out effectively and continuously.
With the integration of Artificial Intelligence (AI), among other technological developments, new opportunities and challenges have arisen. One primary example is the high demand across key economic sectors for talents skilled in digital fields.
With the prevalence of all things digital, accelerated further during the movement control order, contactless payments such as e-wallets and mobile banking have seen a spike in consumer adoption. In tandem with this demand, the Malaysian government has introduced multiple initiatives to drive the fintech boom and encourage more Malaysians to hop onto the growing digital economy.
As the industry continues to transform, the roles and requisite skills will evolve in tandem. Taking this into consideration, employers must look beyond hiring simply to fill roles. Instead, they must invest in upskilling programmes to ensure talents are available to take on the evolving responsibilities at every level of the organisation. Individuals with cross-functional skillsets across finance and tech will be in especially high demand.
Specialised roles, such as product development, product management life cycle, and data analysts, are some of the hot jobs to look out for. In the post-pandemic business world, many organisations have since undertaken their own digital transformation, leading to rising demand for skilled IT talents.
On the flip side, this creates a highly competitive job market as organisations are expected to adopt a more aggressive approach in hiring the best talents. This means employers who have an existing IT talent pool would also need to step up their retention strategies to avoid losing their talents.
Fierce competition within the industry also serves as a reminder for the workforce to regularly reskill and upskill themselves to stay relevant. In 2020, with the onset of the pandemic, e-commerce experienced a boom when Malaysians, young and old, became regular online shoppers due to the movement restriction orders.
Today, prospects remain strong for careers in the supply chain field as online shopping habits have become part of the new normal.
As the economy strengthens, businesses will need to re-evaluate their strategy and remain on top of supply chain trends to fulfil customer satisfaction while staying profitable. Therefore, there is a growing demand for both white and blue collar workers who have the skills to meet the physical and technological demands of today’s supply chain and logistics careers.
In the post-pandemic world of work, industries have transformed, roles have evolved, and expectations have changed. With this, organisations that engage employees in shaping solutions and addressing challenges will continue to thrive.
The employment market has shown a strong rebound since the country began its transition into the endemic phase of Covid-19. As our economy recovers against new global challenges, ensuring the resilience of the workforce is the way to go if businesses are to thrive.
To win in the marketplace, employers must first ensure they win in the workplace.
BRIAN SIM Country head and managing director PERSOLKELLY Malaysia
FILE
PHOTO: A view of the London skyline shows the City of London financial
district, seen from St Paul's Cathedral in London, Britain February 25,
2017. REUTERS/Neil Hall/File Photo/File PhotoReuters
UK Audit Shake-Up Targets Big Firms After Spate of Corporate Failures
LONDON (Reuters) - Britain set out sweeping reforms of big company audits on Tuesday after high-profile collapses at builder Carillion and retailer BHS in recent years hit thousands of jobs and raised questions about accounting quality.
The business ministry detailed changes to auditing and corporate governance that will be put into law, though the measures are unlikely to come into force until 2024 or later and smaller firms will be shielded from the new rules.
The reforms are in response to 150 recommendations from three government-sponsored reviews on improving auditing in a market dominated by KPMG, EY, PwC and Deloitte, known as the Big Four.
The new law would create a more powerful regulator, the Audit, Reporting and Governance Authority (ARGA), to push through changes set out by government.
In the meantime, the current watchdog, the Financial Reporting Council (FRC), will have powers to vet audit companies and ban failing auditors, the ministry said.
Britain will also review a European Union definition of "micro entities", which benefit from simplified accounts. They typically have a balance sheet of no more than 350,000 euros ($377,230) and employ no more than 10 people.
Loosening the definition would mean more firms saving money by filing simplified accounts, though it could raise investor protection concerns. Other reporting requirements will also be reviewed to help attract growth companies to Britain.
The FRC currently focuses on big listed companies, but ARGA's remit would expand to include about 600 private firms with more than 750 staff and an annual turnover of over 750 million pounds ($949 million), a higher threshold than initially flagged. BHS was unlisted.
NO UK SARBANES-OXLEY
To curtail the dominance of the Big Four, the top 350 listed companies would have to appoint a non-Big Four accountant, or allocate a certain portion of their audit to a smaller accountant such as Mazars, BDO or Grant Thornton.
The business ministry could introduce market share caps on the Big Four if there is no improvement in competition.
Directors of premium listed companies would also have to state why they think their internal controls are effective.
This would be done under Britain's "comply or explain" corporate governance code, which the FRC can change without legislation.
UK companies pushed back against enshrining in law a version of mandatory U.S. Sarbanes-Oxley rules, which force U.S. directors to personally attest to the adequacy of internal controls, and face prison for breaches.
"Lessons from Carillion and other recent company failures have been ignored, with little emphasis now on tightening internal controls and modernising corporate governance," said Michael Izza, chief executive of ICAEW, a professional accounting body.
FRC chief Jon Thompson said: "The Government’s decision not to pursue the introduction of a version of the Sarbanes-Oxley reporting regime is, the FRC believes, a missed opportunity to improve internal controls in a proportionate, UK-specific manner."
Big firms would also have to state what external checks, if any, were made on the reliability of their non-financial information in annual reports, such as risks from climate change.
Larger companies would have to confirm the legality of their dividends, a lesson from Carillion.
For its part, EY is under particular pressure due to its auditing of collapsed German payments firm Wirecard AG – although it’s not clear that a break-up would rid it of any liabilities arising from that failure. Perhaps EY is preempting tougher regulation.Or perhaps it just sees an opportunity to monetise some of it assets.
A possible split of EY into separate audit and consulting firms must confront the problem faced by all break-ups: How do you create attractive businesses out of both when one is likely to be seen as inferior?
Here, that would be the newly established standalone auditor. EY – or any Big Four accounting firm that attempts such a separation – has its work cut out to make pure-play audit a success.
The revelation by Michael West Media that EY is considering the move heralds a potentially seismic shift for the industry.
A succession of accounting scandals has long prompted attacks on the Big Four for earning fees from audit clients by selling consulting services such as strategy or restructuring advice.
There’s an inherent conflict of interest in offering these to the same executives whose homework you’re meant to be marking.
While regulatory scrutiny is forcing firms to tread carefully, creating distinct companies is the most reliable remedy.
The United Kingdom’s competition watchdog called for an “operational separation” of audit and consulting within the existing firms in 2019, stopping short of demanding full break-ups because of cost and complexity.
For its part, EY is under particular pressure due to its auditing of collapsed German payments firm Wirecard AG – although it’s not clear that a break-up would rid it of any liabilities arising from that failure.
Perhaps EY is preempting tougher regulation.
Or perhaps it just sees an opportunity to monetise some of it assets.
One option under consideration is the sale of a stake in the consulting business to a private buyer or to the stock market, creating a windfall for EY’s current partners, according to the Financial Times. Demand would likely be strong.
Just look at the private-equity money piling in lately. PwC sold a tax advisory practice to Clayton, Dubilier & Rice for a reported US$2.2bil (RM9.6bil) last year, while KPMG offloaded its UK restructuring arm to HIG Capital LLC.
But what about the rump that remains?
While the underlying economics of the Big Four are opaque, there’s a widespread suspicion that consulting subsidises audit.
At the very least, the ability to share costs means audit fees are lower than they would be for a distinct firm, regulators have found.
Retaining talent
The biggest challenge is how a standalone auditor would attract and retain talent without offering an in-house career in consulting as an option.
Short-sellers and forensic investigators aside, checking company accounts is for many a laborious gateway to other roles.
Audit partners accused of getting it wrong have regulatory probes hanging over them for years (an investigation into Rolls-Royce Holdings Plc’s 2010 accounts only just closed).
No wonder juniors tend to jump ship to better paid and less risky careers in consulting or investment banking not long after they’re qualified.
So auditing will have to be made more attractive, both financially and culturally.
One place to start is expanding the function beyond checking financial statements to offering sophisticated checks on companies’ claims on non-financial performance such as climate and social impact.
When the United States Securities and Exchange Commission is clamping down on greenwashing by investment funds, it’s clear the future of environmental, social and governance investing rests on companies proving they’re not cooking the books on these issues too.
These public-interest assessments are going to be increasingly scrutinised by investors in future.
They are already offered under the umbrella of so-called assurance services, but ought to become a more developed part of corporate reporting.
That would involve transferring some skills over from the consultancy side. The trick will be to add in parts of the current consulting business that are relevant to a more modern vision of audit, without just recreating a new auditor-cum-consultancy.
Of course, separation won’t eliminate all the conflicts in audit.
The chief culprit is the way managers often effectively appoint the audit partners who are meant to be their policemen.
But the prize for stock-market investors is improved audit quality, and a break-up could support that.
The goal should be to create a virtuous circle.
Make audit more enticing as a long-term career, attract people who do the work better – and hopefully cut the number of blow-ups. — Bloomberg
Chris Hughes is a Bloomberg Opinion columnist covering deals. The views expressed here are the writer’s own.
