Most influential people in the remaking of Malaysia Inc
The Edge, 4 January 2002
Changing for the better
Malaysia Inc — that 20-year-old collaboration of government leadership and private entrepreneurship — is being reshaped. It is happening without the fanfare of the past, but real tangible changes are occurring, driven by the combination of both the new global realities and events on the home front.
In an exclusive interview with The Edge, economic adviser to the Prime Minister Tan Sri Nor Mohamed Yakcop articulates publicly for the first time the new thinking of the government on Malaysia Inc. In the process, he sheds some light on some of the policy initiatives the government has taken recently in the restructuring of Corporate Malaysia.
But to be successful, policies need people, capable and honest people — to implement them, to improve on them. It’s in line with this that The Edge decided to compile a list of people who we think will be the most influential in the remaking of Malaysia Inc.
The editors of The Edge used five criteria in drawing up the list: stature, that is, the individual’s standing or that of the organisation or corporation he or she represents; power, meaning resources available to them that will help them to play their role; wealth, both personal as well as that of the organisation or corporation they represent; spread and importance of the person or organisation/corporation’s influence; and economic impact. Thirty-five men and women made the cut. They are the high-profiled ones. But there is also a group of experienced professionals who have been handpicked to join the boards of corporations like Malaysia Airlines, MISC, Proton, Renong and UEM to help strengthen management. Their work away from the limelight should be recognised, not forgetting those in the civil service as well.
There is much work to be done, measures that need to be taken to ensure a stronger, more transparent and more resilient Corporate Malaysia, but the people whose names appear in the pages that follow raise hopes — and expectations — that the future will be better. Some are old hands in government and the private sector and a few are young professional managers, but all will play a major role in the remaking of Malaysia Inc.
--------------------------------------------------------------------------------
Datuk Seri Dr Mahathir Mohamad
Prime Minister of Malaysia
After 20 years at the helm, the architect of Malaysia Inc is still capable of surprises. He shocked the world in 1998 when through sheer conviction and determination he pushed through the move to impose selective exchange controls against the advice of many in his Cabinet. He has the ability to think out of the box at critical times, and his strong will enables him to pursue ideas and projects that others often question, to success. But he is also ready to change and reverse policies if convinced of the need. Some of his decisions these last few months, which have surprised many people, have provided proof of this.
While he often rails against the unfair impact of globalisation on developing nations, Mahathir also knows that Malaysia Inc must move quickly to raise its efficiency and competitiveness if we are not to slip down the global economic ladder.
Now, as he sets out to remake Malaysia Inc, Mahathir is showing that there can be no “sacred cows” that stand in the way of change for the better. He believes that if a country, particularly a multi-racial society like Malaysia, gets its economics right, it will make it easier for other problems to be fixed.
--------------------------------------------------------------------------------
Datuk Seri Abdullah Ahmad Badawi
Deputy Prime Minister of Malaysia
As the DPM, Abdullah plays a complementary and supportive role in helping the PM remake Malaysia Inc. While some may see his inexperience in financial and economic affairs as a handicap, it may well be a strength as he can provide a perspective different from that of financial experts.
He is also said to be a good listener. Although he holds no financial portfolio, the DPM is involved in all major policy-making decisions. And on those occasions where he has spoken on business matters, he has made it clear to businessmen that they have to shape up or ship out as the government cannot continue to come to their rescue every time they get into trouble.
Expect him to slowly but surely make his views on economic and financial matters heard by a wider audience.
--------------------------------------------------------------------------------
Tan Sri Ahmad Sarji Abdul Hamid
Chairman, Permodalan Nasional Bhd
As chief secretary to the government from 1990 to 1996, Ahmad Sarji was credited with turning the government machinery into a more efficient force to meet the demands of the private sector.
It was no surprise that when he retired from government service, he was handpicked to be chairman of bumiputera investment agency PNB, a post held by those who have earned the trust of the prime minister. PNB’s first chairman was the late Tun Ismail Mohd Ali, a former governor of Bank Negara.
As guardian of the interests of bumiputera investors and a major player on the local corporate scene, PNB is pivotal in Malaysia Inc. It is currently the biggest player in the equity market and its blue chip holdings include Maybank, Sime Darby, Golden Hope Plantations, Kumpulan Guthrie, UMW and Island & Peninsular.
Ahmad Sarji’s vast experience in the government service has helped PNB and its group of companies to do well financially. He is well-versed on Corporate Malaysia as he had previously sat on the boards of the Foreign Investment Committee, Capital Issues Committee, Export Promotion Council Malaysia, Committee on Invisible Trade and Panel on Takeovers and Mergers.
He was instrumental in charting the future direction of the country when he chaired the Second National Economic Consultative Council in 1999.
How he leads the PNB group of companies forward as Malaysia Inc remakes itself will be significant.
--------------------------------------------------------------------------------
Datuk Mohamed Azman Yahya
Chairman, Corporate Debt Restructuring Committee and Danaharta
At 30, Azman had the distinction of becoming the youngest CEO of a merchant bank. At 34 and relatively unknown and untested, he was given a key role in helping to nurse the bulk of the banking system’s bad debts after the 1997-98 financial crisis left a trail of ailing financial institutions and corporations in its wake. He was appointed managing director of Pengurusan Danaharta Nasional in 1998 — the national asset management company assigned the task of rehabilitating the banking system’s bad loans. In July this year, he was given another key role in what is now described as “The Big Clean-Up” of Corporate Malaysia — the government’s takeover of United Engineers (M) Bhd.
He is also now chairman of the Corporate Debt Restructuring Committee (CDRC). His influence is clear — as head of CDRC, he will help shape several major corporate restructuring plans — which will determine, to a large extent, the future corporate landscape. His recent assignments have left him “sometimes longing for the days when I can deal with healthy companies”, he says, half in jest. He believes that while corporate failures are part and parcel of a free market, they should not pose a systemic risk to the financial sector.
Voted Restructuring Agency Chief of the Year by Asiamoney last year, Azman is probably the leading young professional manager the government has tapped for Malaysia Inc — Part 2.
--------------------------------------------------------------------------------
Tan Sri Dr Zeti Akhtar Ungku Abdul Aziz
Governor, Bank Negara Malaysia
As governor of the nation’s central bank, Zeti regulates the banking industry, which is, as one foreign banker puts it, “the underpinning mover and provider for [Corporate Malaysia’s] business transactions”, and a key middleman in wealth creation. Indeed, the central bank sets the banking standards and monetary policies that make sure Malaysian banks are healthy enough to finance Malaysia Inc.
Has she got what it takes to help remake Malaysia Inc in her capacity as central bank governor? Bankers speak glowingly of Zeti’s credentials as a central banker — her knowledge, experience, and the valuable contacts she has cultivated in over 20 years of working with or for central banks. Observers say she has also brought more transparency to the way the central bank operates, which should suit the apparent new spirit of Malaysia Inc.
At the height of the 1998 crisis, Zeti as acting governor implemented Malaysia’s controversial selective exchange controls. She has since been an articulate defender of these policies. But critics note that she was also the central bank official who had worked very closely with the International Monetary Fund to implement the high-interest rate policy of that period.
Beyond crisis management, observers say Zeti has an eye on the need for the banking sector to prepare for the challenges ahead and to support the future economy of Malaysia, as shown by the release earlier this year of the Financial Sector Master Plan. “She is market-savvy and has made some bold moves by putting in place far-sighted policies such as the Financial Sector Master Plan,” says Michael Hague, chief executive officer of Standard Chartered Bank Malaysia Bhd.
--------------------------------------------------------------------------------
Datuk Ali Abdul Kadir
Chairman, Securities Commission
When he assumed the role of SC chairman in March 1999, Ali’s task was to restore investors’ confidence. The Asian crisis the year before had roiled both companies and markets. But so far, his role has been seen as mainly that of a “fire fighter” and defending the market, rather than instituting sweeping changes to develop it. Some say that there has been little evidence of market development activity to drive the capital market over the last few years.
Still, Ali is credited with several major successes. For one, the long-awaited Capital Market Master Plan, detailing the market’s direction for the next 10 years, was finally rolled out in February this year. “He put a vision down on paper,” says one observer.
The consolidation of the stockbroking industry is yet another significant event.
Although the pace of consolidation has been left to market forces, the process has at least begun, and the industry saw the creation of the Universal Broker.
Industry observers, however, are still perplexed by the different policies announced by the authorities, particularly the creation of the investment bank under Bank Negara’s Financial Sector Master Plan.
“The direction in which the industry is heading is still unclear and there is a great need for the authorities to start talking to each other,” comments an industry player.
This is all the more important as the SC, being the premier regulator of the country’s corporate and capital markets, has the power to facilitate an environment for wealth creation necessary in the remaking of Malaysia Inc.
--------------------------------------------------------------------------------
Datin Zarinah Anwar
Deputy chief executive, Securities Commission
Members of the stockbroking fraternity are cautiously hopeful that Zarinah, the newly appointed deputy chief executive of the SC, will help to bring more transparency and accountability and faster restructuring in Corporate Malaysia. Zarinah is a virtual unknown in the securities industry. A lawyer by training, she spent the last 22 years working for Shell, where she was one of the few women to rise to the top rungs of management. When her appointment to the SC was announced by the Ministry of Finance in October, Zarinah was the deputy chairman and director of human resources at Shell Malaysia.
But stockbrokers are encouraged by what they do know of her. She is said to be efficient, intelligent and professional.
That the government plucked Zarinah out of her advanced career at Shell suggests that they have big plans for her. But Corporate Malaysia and the securities industry will be watching to see what she does in her new role (she took office on Dec 1). And they want to know more about her.
“Her past background will instill confidence for the industry, [but] it would be good if it is made visible to all,” says Franklin Tan, head of research at OCBC Securities.
The optimists are hoping that her professional grounding in a multinational like Shell will bring a fresh perspective to a regulator like the SC.
--------------------------------------------------------------------------------
Datuk Amirsham A Aziz
Managing director, Malayan Banking Bhd
Since taking over at the helm in 1993, Amirsham has steered the bank on a steady course — despite the last recession, the worst in the country’s history.
Maybank, Malaysia’s largest banking group, has merged with Pacific Bank and PhileoAllied Bank. Going forward, it is envisaged that the bank will again be playing a key role in the industry’s second round of consolidation, an exercise banking analysts describe as inevitable given the impending liberalisation of the financial services sector and hence, greater competition. Maybank is seen as one of the few banks with the muscle to compete in a more open environment — and Amirsham, a performance-oriented, no-nonsense manager, will be counted upon to make sure the banking giant builds on its success. Also, as the country’s biggest bank, it is important for Maybank to take the lead to efficiently, effectively and prudently finance Corporate Malaysia. Its track record thus far has been a sound one.
--------------------------------------------------------------------------------
T Ananda Krishnan
Tycoon
As a businessman with interests ranging from telecommunications to gaming and power, Ananda Krishnan’s views carry a lot of weight. Aside from his business interests, his close ties to people at the top and his wealth — he’s one of eight wealthiest Indians in the world, coming in at No 490 in this year’s Forbes 500 Billionaire Club with a net worth of US$1 billion — mark him as a man of tremendous influence and power. Hopefully, some of his global exposure will rub off at home in terms of government policy-making and corporate management.
It was his idea to develop KL’s old racing track into what the Kuala Lumpur City Centre is today — home to the world’s tallest towers.
Tipsters are betting that Maxis Communications Bhd, the country’s largest cellular operator which is 70 per cent owned by him, will emerge a winner in the telco shake-out. And Measat, the satellite broadcaster, seems to be coming along well. If these two high-profile businesses of his become roaring and sustained financial successes, it would be a win not only for Ananda but Malaysia Inc as well.
--------------------------------------------------------------------------------
Datuk Lin Yun Ling
Managing director, Gamuda Bhd
Lin helms a diversified group of companies with interests spanning construction, expressway tolling and management, property development, water supply and manufacturing. Although he maintains a low profile, his increasing presence and influence is inevitable. Not only is he fast becoming Klang Valley’s unofficial “highway king”, in the construction fraternity, a major tender is said to be incomplete without the participation of Gamuda. On the utilities front, Gamuda stands out as being one of the early-bird construction companies to make waves in the water sector.
Said to be an astute, driven and no-nonsense businessman who frowns upon taking unnecessary risks, he is certainly taking Gamuda places, not just in Malaysia but overseas as well.
As a major beneficiary of the privatisation programme, it is important that Lin leads Gamuda to greater heights and delivers services to the public at the best price for both consumers and his company and shareholders. His success in doing that will help dispel criticism that privatisation has not been for the public good, but only for the private good.
--------------------------------------------------------------------------------
Tengku Tan Sri Mahaleel Tengku Ariff
Chief executive officer, Proton
As the man entrusted with the future of Malaysia’s multi-billion ringgit automobile industry, Mahaleel will have to take Proton into the globalised world, and ensure that it grows and flourishes. He has strong opinions on globalisation — “there is no such thing,” he once said in an interview. “There will always be protectionist barriers in some form.”
While Mahaleel tackles head on the issues of globalisation, he is also running the national car company as best he can. And under his stewardship, the company has zoomed ahead in more ways than one.
Among his first moves at Proton was engineering a change in direction, moving the company from being a mere car assembly and stamping plant to becoming a car manufacturer capable of creating and building its own car. Even as the deadline for the Asean Free Trade Area looms, Mahaleel is well aware that the seat he is occupying is the hottest. For Proton stands to lose the most, and along with it, him.
“I’m a patriot,” he once said. Now, against all odds and cynicism, he has got to make Proton viable in a more liberalised auto market. Then he will be more than a patriot — he will be a hero as well.
--------------------------------------------------------------------------------
Nazir Tun Razak
Chief executive officer & managing director, Commerce International Merchant Bankers Bhd
At 35, Nazir is already one of the best-known bankers in town, and CIMB is regarded as one of the premier banking groups in the country. In its stable is Bumiputera-Commerce Bank, Malaysia’s second largest commercial bank. Many credit Nazir and his dynamism for taking CIMB to the top of its field. Colleagues say he was instrumental in the creation of the equally dynamic and aggressive team at CIMB. He is also seen as being on the cutting edge of the new Corporate Malaysia — moving in the “right” circles and being part of the “new elite” who may be involved with key decision-making processes.
“If Nazir is not actually one of them, he certainly knows enough of these inner-circle people to be influential,” says a long-time associate.
For a while, it looked like Nazir and CIMB were going to corner the best corporate finance deals in the country. CIMB’s client list sported giants such as the Renong group, Malaysia Airlines and Maxis. It is only recently that the competition seems to have returned in the form of RHB Sakura Merchant Bankers. But even as the competition increases, those who know Nazir believe that he has what it takes to keep ahead of the pack. He has risen from behind the shadow of his powerful family to stand on his own. Just ask any merchant banker.
--------------------------------------------------------------------------------
Tan Sri Nor Mohamed Yakcop
economic adviser to the Prime Minister
Former central banker Nor Mohamed is probably the PM’s closest financial and economic adviser today. Called back from the corporate world to devise the plan to shield the country against currency speculators in 1998, only he and Dr Mahathir were convinced that capital controls could work without inflicting the economic damage that others had feared would happen. The two men were said to have often worked alone in those dark days to come out with the controls and then to convince the Cabinet to go ahead with the unorthodox measures.
Time has proven them right and Nor Mohamed is now the principal adviser to the PM in the remaking and reshaping of Malaysia Inc. He is said to be the person pushing strongly for separating ownership from management in Corporate Malaysia to promote greater professionalism and better corporate governance.
Industry players who work closely with Nor Mohamed say he is open-minded and always eager to get as much feedback as he can on any matter. He is also said to be very quick at making decisions and has zero tolerance for shady deal-making.
There seem to be very few, if any, major deals in the country’s economic and corporate scene today that escape his scrutiny. He appears to be the point man in both policy-making and financial trouble-shooting.
--------------------------------------------------------------------------------
Tan Sri Othman Yeop
Chairman, Multimedia Development Corp
As chairman of the Multimedia Development Corporation, the one-stop agency set up to help realise Malaysia’s vision of the Multimedia Super Corridor (MSC), former academician Othman is responsible for getting the seven flagship applications of the MSC up and running, and to spur the growth of a new industry — exporting information technology (IT). The seven applications are: smart schools, telehealth, e-government, borderless marketing, worldwide manufacturing hub, research and development cluster, and the Government Multipurpose Card, now renamed MyKad.
Othman is known as a tireless worker, but the public has not seen enough progress on the MSC to judge it a success. He preaches patience but in this Internet world, speed is everything. Success on his part is essential, as the MSC is the lynchpin in Malaysia’s efforts to transform itself from a production-based into a knowledge-based economy, and to move into the crucial next stage of development.
--------------------------------------------------------------------------------
Tan Sri Quek Leng Chan
executive chairman, Hong Leong Group
At the helm of Hong Leong Malaysia, Quek has set a track record of achieving strong growth in some of his companies. His principal successes have been in air-conditioner maker OYL Industries Bhd, and Hong Kong-based Dao Heng Bank which he sold to Singapore’s DBS Bank group in June this year.
His sale of Dao Heng Bank, via a cash and share swap with the cash portion amounting to about RM11 billion, made headlines. With his wealth and sturdy track record in building a global business (OYL) and technology-based business (chip-maker Malaysian Pacific Industries Bhd), Quek is in a position to make powerful moves.
He is basically successful as a banker and industrialist, rather than in hotels or property development, where he also has business interests, or plantations. Quek and his management run a tight ship in Hong Leong Bank and they were able to extend this expertise to Dao Heng. In industry, Quek started out with tiles, moved on to motorcycles, air-conditioners and then semiconductors.
It is still unclear whether Hong Leong will be allowed to continue to grow its banking business here when the industry consolidates further. There has been market talk of overtures to Public Bank regarding a merger. Eventually, Quek may decide to leave banking which faces competitors that keep growing larger through mergers.
As the Hong Leong group continues to grow and evolve, Quek may be able to find further successes in developing and growing companies with high technology or global attributes, which would also be constructive economic assets for the nation.
--------------------------------------------------------------------------------
Datuk Seri Rafidah Aziz
Minister of International Trade and Industry
Next to the Prime Minister, Rafidah is Malaysia’s top salesperson.
Foreign direct investment (FDI) has been crucial in the realisation of Malaysia’s industrial development programme and Rafidah, who has headed MITI since 1987, has played an instrumental role in attracting foreign investors with her tireless promotion of Malaysia as an investment destination. “She has put enormous energy into the task,” says Nicholas Zefferys, president of the American Malaysian Chamber of Commerce. Datuk David Chua, a former student of Rafidah’s and currently deputy secretary-general of the Associated Chinese Chambers of Commerce and Industry of Malaysia, describes her as a “pragmatic, action-oriented minister”.
With China and other economies in the region becoming strong competitors for FDI, Rafidah’s pragmatism and efforts in promoting Malaysia will become even more important. And in the current era of globalisation, the no-nonsense, rapid-fire minister who is admired for her grasp of issues ably represents Malaysia’s interests in the World Trade Organisation, the outcome of which will impact Malaysian corporations and determine the environment in which they operate.
--------------------------------------------------------------------------------
Tan Sri Francis Yeoh Sock Ping
Managing director, YTL Corporation Bhd
Yeoh heads an infrastructure development group that is also involved in power generation, hotel and property development and the cement industry. His ability to sniff out business opportunities and his hands-on approach has propelled the YTL group to the forefront of Corporate Malaysia. But he is quick to downplay his achievements, and to share the credit. “I only believe that I am truly blessed to be given an opportunity to lead such a team of fine people and I pray that under my watch, I will not drop the baton,” he says.
Few expect him to. Hopefully, Yeoh, who sits on the Malaysian Business Council which brings together government and the private sector — the embodiment of Malaysia Inc — will continue to provide ideas and input in the drive to remake Malaysia Inc. Not all his ideas have to do with business. He won the support of the Prime Minister for his efforts to create Bintang Walk, the pedestrian mall in downtown Kuala Lumpur that has proven to be a hit with locals and tourists alike. “We vigorously promote art and music as alternative forms of communication and along the way, we get to do Bintang Walk, which is fun. All these lead to a better quality of life for all of us,” he says.
Back