SPECIAL FOCUS 026 Hurc les to Success

Hurdles to Success The need to retain talent and ensure structural reforms may prove to be a major stumbling block to the country's developed nation goal. ByAlJean Hardy

Singapore Exchange, employs 2,300

people across Asia and has helped its

Chief Executive become Ernst & Young

World Entrepreneur 2011 - the first

woman ever to receive this accolade.

And Lum is in good

company. Many of

Malaysia's top

tycoons

started out on the wrong side of the

tracks and, through a combination of

skill, acumen, tenacity, belief and vision,

clawed their way to the top.

101 Corporation Executive Chairman

Tan Sri Lee Shin Cheng left school at

the age of 11 to sell ice cream (although

he returned four years later to complete

his secondary education). Reclusive

corporate figure Tan Sri Syed Mokhtar

al-Bukhary planted and sold vegetables

starting from when he was in primary

school. Other notables, according to a Forbes

article earlier this year, are Nagacorp's

Chen Lip Keong (net worth of US$375

million as of March 2011), QL Resources'

Chia Song Kun (US$400 million), and

brothers Lee Oi Hian and Lee Hau Hian

(combined net worth of US$900 million)

of Batu Kawan.

Banking: 4 Lee Shin Cbeng

'USSS billion

sue

. Estimated network as of March 2011 Source: Forbes.com

IlIIIIliMIstor Decomber 2011

man

at

ough

plete e

e of

ision,

Forbes said the combined total of

Malaysia's Top 40 richest tycoons, at

that time, stood at US$62.1 billion, a

US$11.1 billion rise from 2010 numbers.

The Talent Conundrum Given the rise in earnings of the

country's wealthiest tycoons - and its

obvious insipration to others to target similar successes - it is no wonder that

the government is very keen in pushing

for the creation of more and more

successful entrepreneurs and business

people.

In a speech - delivered via a video

clip - at the inaugural Silicon Valley

Comes to Malaysia symposium, Prime

Minister Datuk Seri Najib Razak urged

027

"We have to produce graduates who can contribute to the country's success in facing challenges and competition, as well as to meet the requirements of

becoming a developed country."

reports, was amongst many initiatives by

the Ministry to produce graduates with

the mindset, skill sets and character to

become successful entrepreneurs.

"We have to produce graduates who

can contribute to the country's success

in facing challenges and competition,

as well as to meet the requirements of

Education Minister Datuk Seri MohamEld

Khaled Nordin called upon the newly

launched Malaysian Polytechnic

Entrepreneurship Centre (MPEC) to help

produce entrepreneurs and a workforce

that could contribute to Malaysia's

competitiveness.

The MPEC, according to various

ltar

ibles ,ry

'orbes

p's

175 urces'

ld

-lian

Ilion)

young local entrepreneurs to take

advantage of all the opportunities

available to them whilst also learning

from the spirit of the US' Silicon Valley success story. •

"Set your mind open, that you

can do it. That is the kind of spirit that

Silicon Valley's entrepreneurs have. It

is the kind of spirit that will lead you to

becoming successful entrepreneurs in

the future."

At another event, Higher

The government is very keen on growing a new generation of young entrepreneurs who can help it achieve its developed nation status.

• Ranking: 8

Syed Mokhtar al-Bukhary ·US$2.5 billion

t~ ~ .'~' ~

,f"":.:.) I

Ranking: 6 Ranking: 7 Ranking: 9 Teb Hong Plow Yeoh nong Lay VmcenlTan

·US$4.7 billion ·US$2.7 billion ·USSI.25 billion

Ranking: 10 Tiong Hew Xing

•USS1.2 bi Ilion

December 2011 sllllrIi1vestor

SPECIAL FOCUS 028 Hurdles to Success

"Pailure to groom a cadre of leaders who can thrive in different cultures

may crimp any aspiring global MNC's growth strategy."

More than a million Malaysians now live overseas. a third 01 which comprises talent the country needs to retain.

becoming a developed country with an

innovation-based economy."

Such calls and initiatives are

applauded, but they also come at a time

when the country is facing a serious

brain drain - many of its brightest have

chosen not to return from overseas or

have packed their bags and left these

shores for good.

Speaking at a fundraiser in late

August, Penang Chief Minister Lim Guan

Eng highlighted the problems his state

was having in trying to hold on to people

who would help it push on to the next

level.

"It is still difficult to attract people

to stay back home. There has been

aggressive headhunting by our

neighbours, especially Singapore. We

are losing to them even though we

did not actually do anything wrong.

We are losing out to our neighbouring

countries."

According to the World Sank

Economic Monitor, one-third of the one

million Malaysians abroad is made up of

this valuable asset class and Singapore

has absorbed close to 60% of this highly

educated workforce.

In comparison, only 23% of

Malaysia's current workforce is

considered "highly skilled" and the Prime

Minister himself has stated - in various

media reports - that this number has

to rise to 37% by 2015 if Malaysia is to

become a developed nation by 2020.

And, while not strictly the best

indicator of the need to retain such

talent, it is interesting to note that the

Forbes Top 40 local tycoon list indicated

that only two are in their 40s - Sapura's

Shahriman Shamsuddin and CIMS's

Datuk Seri Nazir Razak (and both are not

in the Top 10) - whilst the richest is also

the second oldest, Tan Sri Robert Kuok

(who is 87).

In comparison, Hyflux's Lum - who is

now a Singaporean citizen - is the island

republic's 27th richest tycoon with a net

worth of US$460 million (as at end-July,

2011). Not bad for a Malaysian-born

orphan with nothing to her name.

Growing Success To encourage more success stories,

Malaysia does not just need government

initiatives. According to the various

experts out there - people who have

made successes of themselves - the

country needs to undergo a structural sea

change.

YouTube co-founder Jawed Karim, who

was in Malaysia recently, told the SSC

that the Silicon Valley success story would

be difficult to replicate here.

"What makes Silicon Valley the

innovation centre it is are the types of creative minds who set up there. Without

that pool of talent, it's hard to attract

more. Even the US has been unable

to replicate a Silicon Valley outside of

California."

Ultimately, as Starbucks' former Chief

Learning Officer Stephen Krempl (now a

Singaporean and Chief Executive Officer

of Krempl Communications) puts it,

successes need to be nurtured.

"Failure to groom a cadre of leaders

who can thrive in different cultures may

crimp any aspiring global MNC's growth

strategy.

"The long-term solution for global

corporations is to grow their own talent

from within. This ensures that the

'kampung culture' the corporate culture,

character and values remains intact and

can be 'exported' to overseas operations.

Managing this delicate balance will

increase Asian MNCs' chances of

overseas expansion." fm

In the

localI: entrel local

domil

asGE

Tong,

Van L Loh E

Th

gradl

UnivE

Man~

echel

assoc In spite 01 its recent economic successes, Tal the state 01 Penang is also having problems retaining talent. and E

matiNestor December 2011