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management

MALAYSIAN INSTITUTE OF MANAGEMENTVOICE OF LEADERSHIP ISSUE

www.mim.org.my PQPP/11505(938) W.MALAYSIARM10.00 E.MALAYSIARM12.00

FRANCHISING

THE WIN-WIN SYSTEM CHANGE

DATO’ SERI NAJIB TUN RAZAK

A CALL TO MARGINALISE

EXTREMISMGLOBAL MOVEMENT OF MODERATES

FOR A BALANCED LIFE

TAKE A LEAP OF FAITH

GIVING GLOBAL RETAIL A BOOST

DATO’ ALFRED CHANG

YOUTH:

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HAS THE KODAK MOMENT LOST

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10 The Virtues of ModerationPrime Minister Najib Tun Razak presents the need for a balanced, peaceful existence within the global community during his speech at the 65th Session of the United Nations General Assembly.

13 Moderation: The Bedrock of HumanityPrime Minister Najib Tun Razak shares his thoughts on how change will have a crucial bearing on the future of the world's shared civilisation.

20 Arresting The Growth of ExtremismCurbing the indulgent attitude that facilitates the rise of extremism through truth telling and moderation.

23 The Asean Middle ClassWhy having a sizable middle class population is vital to the development of Southeast Asia as an economic and political force of the future (based on moderation).

26 Clash of Civilisations II: The Right To Remain SilentThe West’s religious crusade to criminalise blasphemy laws is not sheer petulance towards their more conservative Muslim counterparts; rather, it is the natural progression in the course of their own history with religion and authority.

29 Youth: Problem or PromiseAll around the world, moderation is swiftly breaking down. Young people are resorting to violent demonstrations to express their cause. There is a need to challenge the narratives of those who are resorting to violence to pursue their motives.

32 Cry Havoc and Let Slip The Dogs of (Cyber) WarThe unrestrained nature of cyber warfare is posing serious challenges to the legal regimes of armed conflict.

35 China and The WorldWith such insecurities in the modern world, it is imperative for China to manage stable growth and create a balance between the economy, environment and society in realising ‘one world one dream.’

10The Virtues

of Moderation

29

35

Youth: Problem or Promise

China and The World

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69 Going Global With ParksonLearn how to take your business into the global arena with top tips from the retail icon.

78 Franchising – "Win-Win" System ChangeHow franchisees and franchisors should embrace change together.

82 Bringing Knowledge CloserMaking prestigious foreign university degrees accessible in Malaysia.

88 Top 10 Books For SuccessLearn from the experience of top industry leaders on what works and what doesn't.

REGULARS6 CEO's Foreword8 Editor’s Note92 Events94 Chairman's View

BRICS Countries: Can They Save The World Economy?Do these countries have enough clout to make changes.

Coping With Diversity or Building Citizenship?Insights on what makes the French National Institute of Oriental Languages and Civilisations (INALCO) tick.

Has The Kodak Moment Lost Its FocusThe film giant has lost its lustre in the business world.Can it turn around in good time to salvage itself?

Risk Management: The Key to Preparedness for EmergenciesDo Malaysian companies have a risk management plan worked out?

Success Stories of Malaysian Companies Going Global Several local companies have successfully entered unchartered waters and emerged victorious.

Rio 2016: Olympics Boon or Bane Will the coveted games rake in the moolah for 2016 hosts Rio?

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6948Has The Kodak Moment Lost Its Focus?

The Key To Preparedness For Emergencies

Going Global With Parkson

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Dr. Nazily Mohd NoorChief Executive Officer, Malaysian Institute of Management

A Happy 2013 to each and every one of you! I trust that the year has begun on a positive foot, and that it will bring you success in every endeavour. Malaysia is in the process of transforming its economy to meet with the demands of the receding global economy. More often than not, we are seeing a trend of career minded individuals who put work as their number one priority to achieve their personal goals. This has created a work-life imbalance, and we have seen a noticeable rise in health issues as a result of this phenomenon. The key to combating this? Moderation. According to the Oxford dictionary, it simply means “the avoidance of excess or extremes, especially in one’s behaviour or political opinions”. On a personal level, keeping a balance of your mental, emotional, physical and spiritual lifestyles increases your chances of good health. Embrace variety — having lots of things to do helps divide time in a way that avoids

excesses of anything. Keep yourself well-rounded and divide efforts evenly among the many facets of your life. The more you strive to achieve balance, the more you will begin to respect and honour all aspects of your life. Moderation can solve not only the problem of violent extremism but can guide us through this global economic crisis. How can we adopt a moderate viewpoint on an organisational perspective? A workplace which fosters tolerance and understanding is key. To use an analogy of war – fight not fire with fire, but counter fire with reason. With that, I would like to take this opportunity to congratulate the Global Movement of Moderates for celebrating their third anniversary. What was a germ of an idea has been brought to fruition by the vision of our Prime Minister, and I personally believe that its impact will not only be felt now, but also for many years to come.

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MALAYSIAN INSTITUTE OF MANAGEMENT

HONORARY FELLOWSRoyal Professor Ungku A. AzizYABhg Tun Dr Mahathir MohamadDYMM Sultan Azlan ShahYB Dato’ Seri Anwar IbrahimYABhg Tun Abdullah Ahmad BadawiYAB Dato’ Seri Mohd Najib Tun Abdul Razak

COURT OF EMERITUS FELLOWSPresidentYABhg Tun Mohd Hanif B Omar

Vice PresidentYBhg Tan Sri Osman S. Cassim

In accordance to date of admissionYBhg Datuk Dr Paddy BowieYM Tunku Tan Sri Dato’ Seri Ahmad Tunku YahyaYBhg Tan Sri Dato’ Azman HashimIr. George Lee Yau LungDr. Tarcisius Chin Nyet LeongMr. Robert Kuok Hock NienYAB Pehin Sri (Dr) Haji Abdul Taib bin MahmudProf. Liew Shou KongYBM Tan Sri Tengku Razaleigh bin Tengku M HamzahThe Honourable Chief Justice (Rtd) Yong Pung HowYBhg Prof. Tan Sri Dato’ Dr. Mohamed Rashdan bin Hj BabaYBhg Tan Sri Kamarul Ariffin Mohamed YassinYBhg Tan Sri Dato’ Paduka Sallehuddin MohamedYBhg Tan Sri Wan Azmi bin Wan HamzahYBhg Tan Sri Kishu TirathaiYBhg Tan Sri Dato’ Abdul Aziz Abdul RahmanYBhg Tan Sri Dato (Dr) R V NavaratnamMr. Niels John Madsen R, R1YBhg Datuk Haji Mohd Saufi bin Hj AbdullahYABhg Tun Dr Ahmad Sarji Abdul HamidYABhg Tun Musa HitamYBhg Tan Sri Dato’ Seri Dr Teh Hong PiowYBhg Tan Sri Dato’ Dr Lin See YanYBhg Jen (B) Tan Seri Datuk Seri Mohd Zahidi bin Hj ZainuddinYAM Tunku Tan Sri Imran Ibni Almarhum Tuanku Ja’afarYBhg Tan Sri Dato’ Dr Mohamed Munir Abdul MajidYBhg Tan Sri Dato’ Sri Hassan MaricanYBhg Dato’ Ng Tieh ChuanYBhg Tan Sri Dato’ Sri Tay Ah LekYBhg Datuk Seri Haji Mohamed Iqbal RawtherYBhg Tan Sri Datuk Yong Poh KonYBhg Prof Dato’ Wira Dr Hj Khairil Annas bin Jusoh YBhg Dato’ Sri Dr Ali bin Hamsa

GENERAL COUNCIL 2012/2013ChairmanYBhg Datuk Seri Haji Mohamed Iqbal Rawther

Vice ChairmanYBhg Dato’ Ng Tieh Chuan

Tan Sri RV NavaratnamMr. Niels John Madsen, R, R1

FellowsProf. Dr. Khaliq Ahmad bin Mohd Israil

Associate FellowsMr. Jamel Rajah bin Abdullah

Ordinary MembersDato’ Jackson Tan Han KookTn. Hj Zulkifly BaharomMs. Rita Krishnan

Associate MembersMr. David FooMr. Mah Kong Howe

Group MembersDato’ Dr. Basant Singh SidhuMr. Joseph Rocky Gomez

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mong the most important challenges confronting the international community today that needs to be addressed

collectively, is the challenge of ensuring a just, equitable and durable peace. Peace not just during our time, but, peace for all times. It is imperative that we have to achieve peace premised upon a covenant of

A the willing and not one enforced by way of hegemony through fear and coercion. Such peace can only be achieved if we are willing to constructively engage each other through dialogue. Such discussions would help in creating a deeper understanding as well as appreciation and respect of each other in our conviction to create a better future for all citizens of the world.

► F R O M T H E C O R N E R O F F I C E ◄

THE VIRTUES OF MODERATION

Prime Minister Najib Tun Razak presents the need for a balanced, peaceful existence within the global community during his speech at the 65th Session of the United Nations General Assembly.

Dato Sri Mohd Najib Bin Tun Haji Abdul Razak addresses the 65th General Assembly at the United Nations headquarters in New York,

September 27, 2010.

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As a trade organisation, WTO remains relevant to today’s economic climate and Malaysia believes that the Doha Round must return to its original objective of ensuring free, fair and equitable trade. Let us put our joint efforts and focus on moving the process forward and build upon the progress and achievement to date. It is urgent that we conclude this as soon as possible. COLLECTIVE ACTION REQUIRED Since the adoption of the MDGs a decade ago, which galvanised the world into collective action; there has been lack of efforts on joint endeavours towards the betterment of humanity. The missed opportunity at last year’s climate change meeting in Copenhagen is a wake-up call for all of us. We need to bridge the gaps towards resolving and addressing the issues of climate change which affects the lives and livelihoods of the peoples of the world and our future generations. On June 7, 2010, the Malaysian Parliament unanimously passed a Resolution condemning the brutal Israeli attack on the humanitarian convoy in international waters. This resolution was premised on humanitarian grounds and demanded that the Palestinians be given their basic rights. This was why the Members of the Malaysian Parliament, regardless of their political alignment, stood together in full support of this Resolution. In this regard, we reaffirm today our solidarity and sympathy with the people of Turkey and to the families for their tragic loss. Malaysia understood the necessity of letting the multilateral system work. We were happy to see establishment of the UN Investigation Panel and the International Fact Finding Mission of the Human Rights Council. We are pleased with the findings of the International Fact Finding Mission of the UN Human Rights Council. The report has found that the conduct of the Israeli military and other personnel towards the flotilla passengers was not only disproportionate but also demonstrated levels of totally unnecessary and incredible violence. This inhumane attack constituted grave violations of human rights

law and international humanitarian law. The Malaysian Parliament feels vindicated by these findings. We are now waiting for the UN Investigation Panel to complete its work. We want to see the perpetrators responsible for the attacks be brought to justice and adequate compensation for the innocent victims of the attacks. We want the UN to act justly and decisively, without fear or favour, in a manner that would ensure transgressions of blatant international laws are dealt with and that justice is done. PROMOTING PEACEOn the Middle East Peace Process, Malaysia is encouraged with the recent development especially the active role by the Obama Administration and the Quartet in seeking a comprehensive and lasting solution. A solution not only to the problem between Palestine and Israel, but also to the region. We welcome the recent initiative by the United States in hosting the direct peace talks between Palestine and Israel. We also call on all parties to support these initiatives and not be detracted from these efforts to achieve the aspiration of creating two sovereign States living side by side in peace with secure and recognised borders. For this to happen, the following prerequisites should be addressed:• First, Israel must heed the high expectations of the international community to end this long standing conflict. We call on the US and other members of the Quartet to persuade Israel to end the construction of new settlements in the West Bank and Jerusalem.• Second, reconciliation efforts must bear fruits. The achievement of political unity among the Palestinians is vital in moving the peace process forward and the reconstruction of the Gaza Strip.• Third, both parties must eschew violence and ensure the protection of civilians and respect for international humanitarian and human rights law.

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MODERATION: THE BEDROCK OF HUMANITYPrime Minister Najib Tun Razak shares his thoughts on how change will have a crucial bearing on the future of the world's shared civilisation.

► F R O M T H E C O R N E R O F F I C E ◄

ere in Malaysia, moderation has always been our chosen path. It is a testament to how we gained our independence from the British back

in 1957; how we restored our relations with Indonesia in 1965; and how we helped build ASEAN in 1967, recovered from the tragic events of May 1969, engaged with China in 1972, and forged the ground-breaking ASEAN security and economic communities in 1993 and 2009. Each was a significant moment for our country, and all were gained through reasoned discussion and debate. But over and above Malaysia’s own achievements, moderation is the fitrah, or essence, of humanity’s greatest heights; the solid bedrock on which all of the world’s civilisations have been built – for without it, we

Hwould long ago have succumbed to epicurean pleasures and delights! Yet moderation stands not just in the defence of willpower, discipline and restraint but of acceptance, freedom, tolerance, compassion, justice and peace. APPEASING MEDIOCRITY Being moderate is not about being weak, about appeasement or about institutionalising mediocrity. And it is not about doing half-heartedly those things that are worthy of our fullest measure of devotion. Far from being

THE COMMENDABLE RESULTS THAT WERE ACHIEVED FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2011 UNDERSCORE THE FUNDAMENTAL STRENGTHS

UNDERLYING POTENTIAL OF BANK RAKYAT.

GROWING TO A PLUMP PROFIT

For over a decade, Bank Rakyat has achieved a year-on-year record growth in terms of Profit Before Tax And Zakat (PBTZ) and financial year 2011 has proven to be no exception. During the year under review, not only did we breach the RM2.0 billion profit threshold for the first time, but this was achieved one year ahead of our target set forth under the Gemilang 2012. The overall quality of the Bank’s balance sheet continued to improve and this was reflected in the Key Financial Indicators, such as the Return On Asset (ROA), Return On Shareholders Fund (ROSF), Core Capital Ratio (CCR) And Risk Weighted Capital Ratio (RWCR). Operationally, the Bank continued to consolidate its nationwide foot-print with the opening of new branches during the year and expanding our electronic delivery channels. While we continue to invest in technology, we also intensified our efforts during the year to improve on the overall customer experience. Service excellence provides the extra edge in the competitive business we are in which live up to our vision of being ‘Your Choice Bank’. Notwithstanding the success we been enjoying over the past years, we have a lot more to offer in upholding our vision and mission. We continue to shape the Bank’s future with undiminished entrepreneurial foresight, creativity and energy to achieve our fullest potential. Bank Rakyat therefore will continue to be the model bank that is the pride of all Malaysians. Throughout 2012, the country’s banking system and capital market remained robust, underpinned by strong capitalisation, increasing globalisation and firm asset quality reinforced by prudent risk management practices. As at end-September 2012, Risk Weighted Capital Ratio (RWCR) remained high at 15.0% whilst Core Capital Ratio (CCR) stood at 14.8% respectively, which were well above the current regulatory minimum levels as well as the higher requirements under Basel III. In the changing face of the country’s financial environment, Bank Rakyat is able to enhance its competitiveness through sheer strength, flexibility, determination and endurance. With our vast experience and pragmatic approach in the banking industry, we have positioned ourselves as a dynamic Islamic Cooperative Bank

offering sophisticated financial facilities through our nationwide network of branches and service agents. We have shown yet again that we are resilient and well placed to weather global or domestic challenges because we always turn all obstacles into opportunities. Against this backdrop, Bank Rakyat was able to turn in a financial performance that surpassed the targets set forth in our business plan. For the year ended 31 December 2011, the Bank posted a Profit Before Tax and Zakat (PBTZ) of RM2.02 billion, a 17.2% increase from RM1.72 billion recorded the previous year. We were able to breach the RM2.0 billion target for the first time and accomplished this significant achievement a year ahead of our Gemilang 2012 target. It is always satisfying when our hard-work gets acknowledged. Our unparalleled achievement was recognised by the Asian Banker in its Global Islamic Bank 2011 Report. Bank Rakyat was ranked first in Malaysia based on highest profit and largest asset. To bolster the financial and banking sector in Malaysia, the Bank will continue to roll out elements such as healthy and ample liquidity, strong balance sheet, sound capitalisation and stable asset quality. Recently, Bank Rakyat launched its inaugural Sukuk issuance at a signing ceremony for the issuance of Islamic Medium Term Notes Program (IMTN) worth RM1 billion between Bank Rakyat, CIMB Investment Bank and Maybank Investment Bank. Bank Rakyat also posted profit before tax and zakat for the nine-month period ended 30 September 2012 of RM1.62 billion, up 8.1 per cent over the RM1.5 billion achieved for the same period last year. To gain market share and meet the changing needs of a more discerning clientele, we have also diversified the breadth and depth of our products and services. In its mainstream banking business, the Bank continued to make important strides to stamp its presence in the country’s financial landscape. Some six new branches were opened at strategic locations throughout the country, bringing our total network to 140 as at December 2012. The Bank has also expanded its electronic delivery channels nation-wide, more than 600 ATMs and CDMs nationwide. We are also reachable via Twitter and Facebook /myBankRakyat. m

21.6 X 28.1 CM

/myBANKRAKYAT

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ARRESTING THE GROWTH OF EXTREMISM Curbing the indulgent attitude that facilitates the rise of extremism through truth telling and moderation.By Phar Kim Beng (Head of Research, GMMF, Malaysia)

► G L O B A L M O V E M E N T O F M O D E R AT E S S P E C I A L ◄

Extremism is normally associated with cataclysmic events. Thus, they become seen after the fact. The terrorist attacks of September 11; the

Global Credit Crisis in 2007-2008; and the fiscal excesses of the private and public sector in the Euro Zone are some of the more well-known examples. However, within the scheme of human knowledge, which category does it fall into?Are they "known known" (things we know); "known unknown" (things we know we do not know) or "unknown unknown" (things we do not know at all), to paraphrase Donald Rumsfeld, the former US secretary of defence. Given the surprise, stealth and suddenness of the events above, they appear to fall into "unknown unknown" – things with which the world, including the intelligence and credit rating agencies, appear to be oblivious to. But, then, world famous psychoanalyst Slavoz Zizek warned that there is another category called "unknown known" (not admitting to the things we know).

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BUT LYING ABOUT EXTREMISM, OR, AT LEAST, NOT ADMITTING TO ITS ROOT CAUSES, IS JUST

AS DAMAGING, ESPECIALLY IN A WORLD OF GLOBALISATION.

And, Zizek pointed to the existence of detention camps like Guantanomo, which the likes of President George Bush II and President Barack Obama have conveniently ignored, even as human rights values are professed. UNKNOWN KNOWNExtremism, in any form, if left unchecked, could fall into the last category. In other words, countries and communities – under the pretext of avoiding direct confrontation with the extremist perpetrators – see extremism without admitting to their threat or potency.

It is this indulgent attitude that facilitates the rise of extremism ultimately. In a sense, unknown known is also a form of organised lying, without a clear sense of their possible negative consequences or ramifications. But do leaders, in an atmosphere of distrust among great powers especially, lie more often to each other, or, to the people they represent? John Mearsheimer, a professor of political science at University of Chicago, points to the latter. In Why Leaders Lie, Mearsheimer was amazed to discover how unusual interstate lying has been; given that outright deceit is difficult to pull off and thus rarely worth the effort. Moreover, it sometimes backfires when it does occur. Former leader of the Soviet Union, Nikita Khrushchev, lied about the size of the Soviet missile force, sparking an American build-up that led to the intensification of the Cold War. Eisenhower was caught lying about U-2 spy flights in 1960, which scuttled an upcoming summit with Khrushchev. Invariably, leaders are more likely to mislead their own publics than other states, sometimes with damaging consequences. Though the reasons may be noble – Franklin Roosevelt, for example, lied to the American people about German U-boats attacking the destroyer USS Greer in 1940, to build a case for war against Hitler – they can easily lead to disaster, as with the Bush administration's falsehoods about Iraq's weapons of mass destruction. But lying about extremism, or, at least, not admitting to its root causes, is just as damaging, especially in a world of globalisation. The attacks of September 11, the Global Credit Crisis, and the Euro Zone financial crisis, for example, all belied some form of extremism that the countries did not admit, or, did not know how to confront, even when the problems were evolving into a complex crisis. Invariably, the world careened into a global crisis. The roots of September 11, for instance, lay with the Soviet invasion of Afghanistan in 1979,

Franklin D. Roosevelt

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Why having a sizable middle class population is vital to the development of Southeast Asia as an economic and political force of the future (based on moderation). By Phar Kim Beng (Head of Research, GMMF, Malaysia)

THE ASEAN MIDDLE CLASS

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The concept of the 'middle class', although subjective and difficult to define, is nevertheless often looked upon with great trepidation

by the ruling authorities. This is due to the belief that the middle class's collective growth will force the pace of political and economic reforms that governments may not be ready to accept nor fully accommodate. Tensions would result from their persistent push for better representation, access and services. Leaders of different political persuasions in Southeast Asia may well want to re-examine their position, however. This is because there is no point being apprehensive about something that could otherwise be converted into the region's true strategic advantage; without which further neglect of this phenomenon would not wish the problem away anyway.

THE IMPORTANCE OFTHE MIDDLE CLASSTo begin with, the total population of Southeast Asia will grow to a massive 600 million people by 2027. If 30 per cent of this pool of people can have 'middle class' consumption habits, lifestyles and values, then close to 180 million citizens in ASEAN would be a magnet for further investment and trade within, and between, the countries. Besides, Southeast Asia is a region that is caught between China and India, two of the world's most populous countries, with their own policy to expand the size of their own middle class too. India, for one, wants the proportion of its middle class relative to the

entire population to reach 15 per cent within the next 10 years. In China this figure is on the verge of crossing the 25 per cent threshold over the next five years by some accounts; which invariably explains why up to 35 per cent of China's economic growth could be attributed to its own consumer affluence. The leaders in Southeast Asia cannot ignore the importance of these developments. If ASEAN does not have a sizable middle class, or for that matter a policy to foster one, then it risks the perennial marginalisation of the international business and financial community.

EXAGGERATED FEARSBesides, the fear of the amorphous middle class is overblown. While the middle class does want more access in the political and economic system, their electoral preferences are by no means radical, as research by Pippa Norris and Ronald Ingelhardt has shown. Their research shows that the middle class just want to speak up, if they had not been previously given the chance. Take China, for instance. The middle class in China, despite its growing size, has been found to be quite stable, according to research carried out by Professor Alaistair Iain Johnston of Harvard University. Time and again, in various surveys, they embrace what Johnston calls 'nascent internationalism'. What this amounts to is a Chinese middle class that is more prone to accepting the importance of free trade, a sound education policy, and even a foreign policy that can buttress China's position as an internationally oriented country, rather than a domineering one.

THE MIDDLE CLASS INFLUENCEPut differently, the middle class is not a crude monster that cannot be deftly handled by the respective governments. If anything, the middle class would want to preserve their upward mobility and trappings of success by being more moderate in their electoral and political preferences. Indeed, according to

THE CONCEPT OF THE 'MIDDLE CLASS', ALTHOUGH SUBJECTIVE AND DIFFICULT TO DEFINE, IS

NEVERTHELESS OFTEN LOOKED UPON WITH GREAT TREPIDATION BY

THE RULING AUTHORITIES.


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he youth represent the most creative, dynamic, versatile and talented pool of society. Yet, more often than not, they are left-out in decision-making

processes. This has consequently made them more susceptible to victimisation in the job market and in political decisions as well as

T

YOUTH: PROBLEMOR PROMISEAll around the world, moderation is swiftly breaking down. Young people are resorting to violent demonstrations to express their cause. There is a need to challenge the narratives of those who are resorting to violence to pursue their motives. By Mahmud Rajaie Othman & Muhammad Abu Kadir

making it difficult for them to properly define their role in society. It is a proven fact that a healthy youth population is the key to the sustainable advancement of society. We have seen the evidence of this all too well throughout history. Researchers and sociologists have

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THE YOUTH REPRESENT THE MOST CREATIVE, DYNAMIC,

VERSATILE AND TALENTED POOL OF SOCIETY.

also acknowledged the importance of healthy youth development. According to a study by Population Action International (PAI), 60 out of 67 countries with ‘youth bulges,’ experienced social unrest and violence. Youth need to be part and parcel of the political process. They need guidance in understanding the structure of government. This will help young adults develop skills necessary to the understanding of issues faced by the community, as well as providing them with a platform to offer their innovative contributions. Unfairly singled out, youth are often seen as problematic rather than promising. The establishment has a tendency to fear their irrepressible energy and enthusiasm, which very often leaves their opinions unheard. The decision-makers tend to view youth as lacking in experience and their naiveté as obstructive to development. Instead of looking at youth as a burden, the government should view them as an ‘un-tapped’ creative resource of the nation.

IGNORING THE YOUTH RESULTS IN DISCONNECTION It is important that youth be given acknowledgement so that they may represent their own interests in all spheres. They need to be the agent of their own will through active participation, instead of passive acceptance of decisions made in their absence. What happens when youth are not consulted in decision-making processes that concern them? There will be a ‘disconnect’ between policy adoption and actual application. This ‘disconnect’ hinders a country’s progress. As the generation gap widens, the youth will start seeing themselves

as an out-group in society and will take matters into their own hands, allowing room for manipulation of the youth by irresponsible parties and increasing the likelihood of social and moral degradation.

YOUTH AND EDUCATION Take education for example. The Malaysian government is currently reforming the education system by consulting teachers, parents, and experts in the field. However, we have yet to hear the opinions of the youth on education reform. Is the school curriculum relevant? How can we curb ‘gejala ponteng’ or absenteeism in schools? How can the education system effectively enhance good behaviour in school? What is the best way to curb gangsterism? These important questions can only be answered by students, the youth who are on the frontline. Only through consultation with them can the government permanently address these issues. This is not to imply that the government does not consult the youth on the topic of reforms, but is intended to illustrate how relevant it is to consult them in solving underlying problems of the nation, in this case, concerning education. It is the failure to consult and understand the problems of the youth that contributes towards extremism. In the example of education above, extremism refers to moral degradation that can manifest in social behaviour, that would normally be moderated by effective educational measures, such as gangsterism and absenteeism.

MALAYSIAN YOUTH,THE WAY FORWARDYouth in Malaysia is defined as people aged between 15 to 40 years old. In Malaysia alone, young people make up 42.2 per cent of the population. They are a significant constituency that the government simply cannot ignore. Where the right to vote is given only at the age of 21, the government needs to ensure

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CRY HAVOC AND LET SLIP THE DOGS OF (CYBER) WARThe unrestrained nature of cyber warfare is posing serious challenges to the legal regimes of armed conflict.By Asrul Daniel Ahmed, Research Manager at GMMF

HE SECOND FRONTWhen the targeted killing of Ahmed Jabari, the chief of the Hamas’ military branch, by the

Israel Defense Forces (IDF) kick started Operation Pillar of Defense, they probably did not expect to be drawn into a war with two fronts. But while their sustained military offensive on the occupied territories saw a flurry of exchanges of hundreds of rockets and missiles that continue to rack up many casualties and injuries on the Gaza strip, both military and civilians, the second front received literally millions of attacks that, while potentially devastating, have yet to claim its first fatality. The second front, of course, refers to the war of networked aggression currently being waged against the state of Israel in cyberspace. One of the primary players in the second front is the infamous hacktivist group Anonymous. Claiming to have successfully rendered unreachable a number of prominent Israeli websites after having declared a targeted list of at least 600 URLs, the group

T


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LAWMAKERS AND PRACTITIONERS OF PUBLIC INTERNATIONAL LAW MUST GIVE THE UNRESTRAINED

NATURE OF CYBER WARFARE THE ATTENTION AND PRIORITY IT DESERVES

IF THE LEGAL REGIME COVERING ARMED CONFLICTS IS GOING TO BE RELEVANT TO THE REALITIES OF THE

21ST CENTURY BATTLEFIELD.

had reportedly been troubled by the apparent impunity with which the IDF had afflicted to civilians in the occupied territories, but had particularly taken umbrage over the threat issued by the government of Israel to sever all internet and other telecommunication channels going into and out of Gaza. And there has been evidence that the group has been stepping up their attacks; rather than being limited to basic Denial of Service attacks that merely prevents access to targeted websites, as has usually been the case in the group’s previous operations. Their most recent attacks include penetration of vulnerable sites that have resulted in the public exposure of tensof thousands of private data belonging to Israeli citizens.

DECENTRALISED… CONTROL?Originating from a decentralised, anarchic and loosely-organised collective, the attacks by Anonymous and other similar means of waging cyber warfare quite possibly represents the stuff of nightmares for the promulgators and practitioners of the international legal framework currently governing armed conflict around the world. For one thing, attacks that originate from, travel through, and offensively targets digitised electronic assets are problematic when defined under the category of armed conflict, as the latter is traditionally associated

with military operations with kinetic elements, i.e., physical exchanges of bullets, bombs and other conventional means of armed violence. But while cyber-attacks may be borne through and methodologically limited within the scope of electronic networks and assets, their actions may translate into “real world” and potentially tragic consequences. The recently discovered cyber weapon Stuxnet, for example, is believed to have been designed to specifically target the industrial controlling mechanisms for Iranian nuclear reactors. Revealed by the New York Times to be part of a US-Israeli effort dubbed “Operation Olympic Games,” the sophisticated computer worm was part of a programme to sabotage and cripple the nuclear enrichment capabilities of Iran and undermine its progress in developing radiological weapons. But the unofficial confirmation of the Obama administration in having a hand in the development and deployment of Stuxnet, along with the admission that they had inadvertently lost control of it, has been criticised as heralding a new and dangerous arms race. Besides damaging the confidence-building measures that had been painstakingly built over non-proliferation talks as well as the “Internet Freedom” agenda championed by the US State Department, the fact that Stuxnet did not come with a “kill switch” has complicated matters for its progenitors as it made it comparatively easy for anyone with some programming knowledge, some of whom might be afflicted with less than honourable intentions, to gain access, modify and even improve the effectiveness of the state-sponsored malware. Paired with the disturbingly low resource requirements of mass producing such malicious packages of code, the die has been cast for the playing field to be exponentially levelled between rivals and belligerents. LEGAL CHALLENGESThe potential for proliferation at an unprecedented scale, and the inherent lack

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CHINA AND THE WORLDWith such insecurities in the modern world, it is imperative for China to manage stable growth and create a balance between the economy, environment and society in realising ‘one world one dream’. By Tan Sian Hoo


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though. The fiscal and financial crisis of the West has made them vulnerable. With such insecurities in international relations, leaders need to remind themselves of the common ground that binds them all. One of them is the rejection of extremism; that any attempts to revise the balance of power are par for the course. But they must still handle it with care.

CHINA AS THE DRIVER OF MODERATIONThe crusade against extremism by propagating the concept of moderation launched by the Malaysian Prime Minister Datuk Seri Najib Razak, is a good case in point. The idea has since been applauded by world leaders like the British Prime Minister David Cameron and United Nations Secretary-General Ban Ki Moon. Nevertheless, the discourse of the Global Movement of Moderates (GMM) will not work as a global driver unless there is a country that can command the moderate majority in the crusade against extremists. Not surprisingly, together with Malaysia, China could yet be an important counterpart. As the late Sinolist Lucian Pye once remarked: "China is a civilisation pretending to be a nation state." Despite its seeming pretension, and the many problems attendant in China, Beijing maintains a moderate approach in the way it deals with its neighbours.

veryone is talking about China lately. The recently concluded 18th Party Congress has further added more grist to the talking mill. Now

that Xi Jinping has been selected as the next president, with Li Keqiang as the prime minister, how will they lead China after assuming power in March 2013? Given China's ever growing significance in today’s world (and of course, the Chinese Communist country), the once-in-five-years congress has attracted overwhelming attention that is comparable only to the coverage of the US presidential elections.

SHIFTING THE BALANCEOF POWERIt is not the first time China has grabbed the world’s attention too. For the past two decades, China has been making headlines all around the world, from unparalleled economic growth to territorial claims and military supremacy that intimidate regional neighbours. China’s rise, time and again, causes anxiety and nervousness to the region and the West like never before. The concomitant rise of China has also witnessed a shift in the balance of power. Sometimes, this is consciously cultivated by China too. For example, in 2009, China worked hand-in-hand with Brazil, South Africa and India to establish a new coalition of non-Western or independent countries. This underscores Beijing's attempt to tilt the balance of power in favour of not just itself but the emerging power. The emerging world, particularly China, has indeed been working to replace the old archaic powers. The rivalry between major powers has also led to growing confusion of where the real power lies. Is the West on top due to its hard or soft power? -- Or, perhaps both. There is no clear answer yet, the power struggles between the world’s developed and emerging powers are more intensified than ever. The tables are turning fast for the latter,

CHINA OFFERS EVERYONE A GLIMPSE

OF A MODERN, SUSTAINABLE AND MODERATE FUTURE.

E


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BRICS COUNTRIES: CAN THEY SAVE THE WORLD ECONOMY?Do these countries have enough clout to make global changes? By Shaun Orange

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Auxilliadora Figueiredo, Russia’s Ambassador, Her Excellency Vorobyev Lyudmila Georgievna and India’s Ambassador, His Excellency Mr. Vijay Gokhale. Datuk Seri Mohamed Iqbal Rawther, the chairman of the Malaysian Institute of Management, doubled up as the moderator of the Ambassadorial Brief. The dialogue of the three ambassadors was immensely informative, well-received barring odd dissent and adeptly delivered. By-and-large the statistics released on BRICS could not be disputed, while others have yet to be achieved. In the main, the forum proved a definite success and was largely due to it getting off on the right footing when Her Excellency Lyudmila pointed out that the bloc comprised more than 45 per cent of the world’s population, nearly 30 per cent of all the earth and accounted for some 25 per cent of the world GDP – measured on PPP (public–private partnerships) of national currencies. The Russian Ambassador, who has also held different posts in the Russian Embassy in Laos and Thailand, added there were common interests shared among those of BRICS. She said that “the desire to reform the outdated financial and economic architecture of the world, which ignores the growing influence of BRICS,” was one such challenge. Another was “the common commitment to principles and norms of international law, rejection of policies or armed pressure and infringement upon sovereignty of other nations.” The Russian Ambassador added that “there were numerous common challenges and problems related to the needs of modernisation of the economies and social life of BRICS which were equally important,” as were a wide range of sectors of national economies. “For the Russian Federation, cooperation among BRICS is a key long-term foreign policy priority. We welcome the step-by-step transformation of cooperation into a multilateral strategic partnership embracing

T HE grouping of emerging markets that comprises Brazil, Russia, India, China and South Africa, known as BRICS, might not be able to

save the world economy just yet, but it has certainly enough clout to make an impact on the global scenario. This was the consensus of the ambassadors to Malaysia from Brazil, Russia and India at a briefing organised by the Malaysian Institute of Management (MIM) hosted at the Sunway Pyramid Convention Centre in Petaling Jaya. The ambassadors of China and South Africa were not present due to other commitments, although the latter was represented in a lesser capacity. The forum, dubbed: “BRICS Countries: Can They Save the World Economy?” proved a timely and interesting topic that sharply brought into focus the current state of the world economy and the role that the bloc of emerging nations play in it. It also underlined the significance of the role that BRICS plays in it and to what extent this unique bloc can help to further fuel the economies of the regions that they find themselves in.

GOOD FORECAST AHEADThere is no denying that the BRICS countries have been enjoying healthy economic growth – a situation that was forecast at the Ambassadorial Brief to continue for some time to come – despite the rather negative press from the Western media. The forum had in attendance the Ambassador of Brazil, Her Excellency Maria

BRICS, MIGHT NOT BE ABLE TO SAVE THE WORLD ECONOMY JUST YET, BUT IT HAS CERTAINLY ENOUGH CLOUT TO

MAKE AN IMPACT ON THE GLOBAL SCENARIO.


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far-ranging issues of the global economy and politics. “As a group, BRICS members have already gained invaluable experience in coordinating their actions on major international issues,” she added. “The progress that has been achieved by this young group at such an early stage shows that BRICS has become increasingly important in defining world development in the 21st century.” On whether or not BRICS can save the world economy, Georgievna added: “We will have to see, but the chances are there.”

In her presentation to the forum, entitled: “Brazil in the Brics: A Point of View,” Figueiredo touched on the grave economic situation of the European Union and the slow recovery in the United States, before adding that the pace of world economic growth increasingly depended on the performance of BRICS and emerging nations in general. She drew attention to the International Monterey Fund’s (IMF) January 2012 forecast of the five BRICS bloc contributing 56 per cent of the world’s GDP growth this year and mentioned that of the G-7, which was pegged at 8 per cent and Latin America at 9.5 per cent. The veteran diplomat added that despite BRICS’ contribution to the world’s GDP being “quite important this year, it was hardly enough to save the world economy.” Further still, the Brazilian Ambassador said: “It can be verified, therefore, that in the economical sphere, BRICS has been acting towards the reform of the international finance institutions, trying to make them proportional to the weight of the group countries, but also in a manner to favour the interests of other developing and emerging countries. “In the political sphere, there has been a broadening of the dialogue in themes such as the reform of the United Nations, to which everybody agrees, and of its Security Council, quite a difficult subject.” Figueiredo stressed that BRICS was “not a bloc formed against the interests of other countries nor was it a coalition established to discuss world governance. “But rather, it is an association of countries that represent almost half the world’s population and an increasing part of the world economy – one which understands its responsibility in the construction of a new international world order.” She added: “We are together (as BRICS) because we want – we need – in the current disorder, to find a new world order based on effective multilateralism. “To become an influential economic and political entity is certainly one of our

YBhg Datuk Seri Mohd Iqbal Rawther, Chairman, MIM, delivering the welcome address

Dr Nazly Mohd Noor, CEO, MIM; H.E. Vijay Gokhale, High Commissioner of India; YBhg Datuk Seri Mohd Iqbal Rawther, Chairman, MIM; H.E. Vorobyeva Georgivena, Ambassador of the Russian Federation; H.E. Maria Auxiliadora Figueredo, Ambassador of the Federative Republic of Brazil; YBhg Tan Sri Dr Michael Yeoh, Executive Advisor, Performance Management Transformation Leadership Centre (PMTLC).

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In a vivid and most enlightening manner, participants at a Global Moderation Roundtable Lecture in Kuala Lumpur were treated to the insights of what makes the French National Institute of Oriental Languages and Civilisations (INALCO) tick.By Shaun Orange

COPING WITH DIVERSITY OR BUILDING CITIZENSHIP?


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Professor Marie-Sybille de Vienne, the Director of the International Studies Centre and Director of South Asia and Southeast Asia

Centre of INALCO, was the guest speaker at a conference co-organised by the Global Movement of Moderate Foundation (GMMF) and the Embassy of France, and delved into "Coping with Diversity or Building Citizenship? Some remarks beyond INALCO experiment". It was a timely event, in that the GMMF foundation was established by Malaysian Prime Minister Najib Razak just a year prior to it and it highlighted the goal to promote the concept of moderation and the rejection of extremism, something advocated by the GMMF. To this end, Professor de Vienne said it was a primary challenge of INALCO too, to face social diversity among its academics, among its staff, as well as among the students themselves. She gave the example of some 60 per cent of their students in standard and

dialectal Arabic who come from poor and/or uneducated families of the “banlieues” (suburbs). Twenty-five per cent come from the elite of Morocco, Tunisia, Algeria, Egypt, Syria and Lebanon, while the remaining 15 per cent are from the French middle class. Illuminating the point, Prof de Vienne said that HRH Princess Maria-Laura of Belgium studies Chinese at INALCO. “Another aspect of this social diversity is the educational background,” she said. “What is very specific to INALCO is that nearly half of our students are already graduates from other universities. “In Southeast Asian Studies, more than 60 per cent of our students are graduates. At the beginning of the academic year, you never know whom you may find in your class,” added Professor de Vienne. “And once you know, you have to adapt.”

THE CHALLENGES OF MULTICULTURALISMMulticulturalism, too, was a huge challenge INALCO faced over the years and remains one to this day. Professor de Vienne stressed the point by explaining that a single building hosts the biggest faculties of both Arabic and Hebrew studies in France. She added that Kurdish is taught alongside Turkish and Tibetan next-door to Mandarin and so on. “Perhaps, to sum it up best,” she said, “is maybe to say that INALCO is both the UN (United Nations) and the UNPO (Unrepresented Nations and Peoples Organisation) rolled into one. “With some 10,000 students of various nationalities, standards of living, ideologies and more than one opposite political affiliation, conflict could explode at any time inside our walls. To circumvent any such development,” said Professor de Vienne, “we endeavour to enforce a citizenship that goes far beyond identity. “Indeed, to prevent conflicts, we ask our students to sign a yearly contract


Professor Marie-Sybille de Vienne

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whereby they are committed to following the rules specific to INALCO – respecting others however different they might be and avoiding any ideological, political or religious controversies inside the institute. “The secular legal and institutional environment prevailing in France helps a lot – without being a panacea indeed.” Professor de Vienne said they recognise that knowledge of different cultures helps apprehending one’s own as well as mastering intellectual tools that allow a critical and scientific approach of the outside world.” Essentially, she noted, INALCO was a laboratory to experiment not the clash

of civilisations but the diversity of cultures. Turning to the institute itself, she said there were some 400 academics and 312 visiting professors who teach 93 languages and their “civilisations” which, in short, embrace social sciences such as history, history of art, sociology, law, geography, ethnology, as well as economics, international relations, and management to around 10,000 students from 114 different countries. Professor de Vienne said so far as scientific research goes at INALCO, there were 14 research units and some 100 workshops and international conferences held a year. Further still, it has the biggest scientific library anywhere, the ‘BULAC’, which is dedicated to non-Western cultures in Europe. It has 1.5 million books, manuscripts and documents written in 350 different languages – more than 51,000 books on the Arab world, 54,000 books on Iran, 5,000 books on the Malay World and 32,000 books on China.

Among the Alumni of INALCO are:• HRH Prince Henrik of Denmark,

husband of HM Queen Margarethe II (Chinese and Vietnamese)

AT THE BEGINNING OF THE ACADEMIC YEAR, YOU NEVER

KNOW WHOM YOU MAY FIND IN YOUR CLASS AND ONCE YOU

KNOW, YOU HAVE TO ADAPT.

The signing of the MoU. From left: The French Ambassador to Malaysia, Martine Dorance, Prof de Vienne, GMMF CEO, Khalek Awang and GMMF Chairman Tan Sri Razali Ismail.

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The film giant has lost its lustre in the business world. Can it turn around in good time to salvage itself from doom? By Fanny Bucheli

► S T R AT E G Y & O P E R AT I O N S ◄

HAS THE KODAK MOMENT LOST ITS FOCUS?

The Eastman Kodak Company, known the world over for its yellow square trade dress with the graphic red “K” element, is in the

financial dungeon. This undisputed pioneer in amateur and professional photography and cinematography for well over a century seems to have been overrun by recent technological progress. How could this have happened? A mere couple of years ago, out of a small office in San Francisco's South Park neighbourhood, 13 engineers set out to build a photo related app. In August 2012, Facebook buys Instagram, along with the access to its 100 million users, for USD1 billion; Zuckerberg's social network's largest acquisition to date. This was a start-up gone right, a modern day rags-to-riches story of the fast paced cyber industry. How different would the future of the hugely troubled Kodak conglomerate look, if only they had thought of that? As Michael Hawley, formerly of MIT's Media Lab and on Kodak's Board of Directors puts it, “It all comes down to company culture”. Big corporations with a long history of success in one particular sector need to keep producing what they are best known for, what their customers expect

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of them. Most won't dare stop to look around and thus fail to recognise the potential in emerging technologies.

A BIT OF HISTORYIf we allow ourselves to travel back in time to the late 1880's, we will find a very similar start-up, rags-to-riches success story, unfolding. A young high school drop-out, George Eastman, supports his widowed mother and two elder sisters on a meagre bank clerk salary of USD15 per week. He dreams of a holiday in Santo Domingo when a friend suggests that he record his travels. Eastman himself would later relate that it would have taken a “pack-horse load” of material, including several water canisters, chemicals and even a tent, in order to photographically document his voyage. He never takes the trip down South. Instead he stays in his native Rochester N.Y. and, at his mother's kitchen table, invents photographic dry plates which will make photography much less cumbersome and expensive. Within 10 years, by 1888, Eastman has invented, perfected and patented said plates, a camera to use them with and a production line to manufacture both, all mass-produced locally and cost-effectively. The young entrepreneur soon coins the slogan, “You press the button, we do the rest”, and so opens up photography to the world. Leisurely snapshots rapidly advance to become one of America's favourite pastimes

EASTMAN'S DREAM TO PROVIDE AFFORDABLE EQUIPMENT TO THE GREATEST POSSIBLE NUMBER OF

PEOPLE FUELS NOT ONLY THE GROWTH OF HIS COMPANY, BUT ITS NECESSITY FOR INGENIOUS NEW

PRODUCTION TECHNOLOGIES.

and the Kodak company is firmly set on the fast track to success. New inventions and technologies in the film and photography industry follow one another in close succession – all made possible by George Eastman's fast growing Kodak company. Thomas Edison's motion picture camera is invented based on Kodak flexible film in 1889; two years later cameras can be reloaded outside a dark room. By the turn of the century, X-rays are printed on Eastman paper and the first of the famous “Brownie” cameras, sold for USD1, makes photography accessible to virtually anybody in America. Within the next 30 years, Kodak is the driving force behind just about any and all the major accomplishments of its industry; professional and amateur motion picture, colour movies and sound included. As the twentieth century advances, brands such as KODACHROME, KODASCOPE and KODAK EKTRA continue to play an extensive role in the fast progress of photography, cinematography, pre-press production, image projection and even in the war effort of both WW I and II.

REVOLUTIONARYBUSINESS MODELThe Eastman Kodak Corporation is built on four basic principles: Mass production at low cost;International distribution;Extensive advertising;A focus on the customer.

Eastman's dream to provide affordable equipment to the greatest possible number of people fuels not only the growth of his company, but its necessity for ingenious new production technologies. By 1896, the 100,000th Kodak camera is produced and an average of 400 miles worth of photographic paper is manufactured monthly. By the early 1900s, the company runs production plants and distribution outlets in the UK, France, Germany, Italy as well as Japan, Canada and Australia.

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insurance, disability benefits and a Wage Dividend programme. After the founding father's passing, a long succession of presidents and chairmen of the board leads the Eastman Kodak Company, dutifully following George Eastman's vision, constantly expanding, and relentlessly innovating. In the early 1960s, Eastman Kodak's consolidated sales in the USA exceed USD1 billion and its worldwide work force reaches over 75,000 well-respected employees. Businessmen as well as students of the post war era will fondly remember Kodak inventions such as the Carousel slide projector, the Instamatic camera with its easy to load film cartridge, and later the Instamatic pocket sized camera with four flash functions. The seventies, sound home movies are introduced. Proud parents are now able to record their progeny's accomplishments with super 8 sound movie cameras, conveniently loaded with super 8 film cartridges. Employment at Eastman Kodak surpasses 120,000 worldwide.

THE KODAK MOMENT1975 may well have been the most pivotal year for George Eastman's company. The Kodak R&D team turns up a revolutionary new technology. The world's first digital camera is the size of a toaster and captures black and white images. But Kodak's upper echelons fail to realise the potential of this new invention. Or rather, its prospects are too big a threat for the company's century old 'razor-blade' business model. Eastman Kodak's core business being the manufacturing of photographic film, the company relies vastly on the distribution of cheap cameras to make a huge profit on the consumables. A digital future, where film is no longer needed, is inconceivable. Consequently, the digital technology is buried somewhere in the Rochester lab for the next 20 years. For the next 40 years, America's industrial flagship keeps generating evolutionary improvements in existing technologies as well

Furthermore, the corporation's principles are supported by three avant-gardist policies:Foster growth and development through continuing research;Treat employees in a fair, self-respecting way;Re-invest profits to build and extend the business. George Eastman, who died in 1932, had set the course for his company to be continually innovative, to be a forerunner in any of its endeavours. Eastman was the first American entrepreneur to hire a full-time research scientist, and he was the first industrialist to offer his employees benefits like accident and pension funds, life


George Eastman.

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as technical advancements and refinements, amassing a staggering 1100 patents along the way. While such a quantity of ideas and concepts should be enough to carry the company safely into the 21st century and beyond, most of them reinforce a vision of a firmly analogue future rather than addressing an impending and dynamic digital offensive. As Harvard professor and businessman Clayton Christensen suggests in his bestseller The Innovator's Dilemma: When New Technologies Cause Great Firms to Fail, companies looking back on decades of success in their core business persuade themselves of their customers recurrent need for tried and tested products. They often fail to embrace new technologies, also known as 'disruptive innovations', which will meet the market's future needs.

DOWNWARD SPINThe Kodak leadership of the 1990s clearly misreads the signs of the imaging and communication future. Being the uncontested number one in its field for nearly a century may well have fostered a lack of imagination and resulted in a somewhat complacent corporate culture. Ultimately, Kodak dangerously underestimates its main rivals such as Fuji, Sony, Nikon, Canon and eventually Apple. Unlike its competitors, Kodak fails to recognise that today, the imaging and communication landscapes are tightly interlaced and youth driven. Today's urbanite consumer (the online dictionary defines an

IN THE POST-DIGITAL LANDSCAPE, HOWEVER, KODAK IS LEFT WITH

VERY LITTLE CONTROL, AS IT DOES NOT HAVE ASSETS IN THE DIGITAL

SOFTWARE BUSINESS, HOME SCANNERS OR ONLINE SERVICES.

urbanite as a city dweller between 17 and 44 years of age and time-poor, city-proud, media-literate, brand-centric, trend-sensitive and culturally-aware) expects a technologically sensitive gadget to cover more than one function. A smartphone is a camera, a phone, a watch, a communication avenue and a never-ending source of information, all neatly packed into one single device. Therefore a traditional manufacturer needs to establish himself in a very specific niche either as a supplier of highly advanced professional equipment, like Hasselblad or Leica, or as a greatly coveted uber-luxurious and trend-setting brand like some top end watch makers. Kodak does neither. In the pre-digital age, Kodak had firm control over all the steps involved in picture capture, image processing and printing. It is even rumoured that the Eastman Kodak company kept its own cattle herds, the bovine bones being needed to manufacture the photographic gelatine. In the post-digital landscape however, Kodak is left with very little control, as it does not have assets in the digital software business, home scanners or online services. Storage devices such as hard disks and memory sticks as well as online transmission and propagation of images also eludes Kodak's grip. In a bid to catch up, the company finds itself trying to do a bit of everything without a long-term strategy, goal or commitment. Kodak does jump on the digital bandwagon in 2001 with the launch of its EasyShare range of digital cameras. After wide spread customer behaviour studies and market analysis, the company determines that women are the real number one target market for digital snapshot photography. The ladies' lack of tech savvy, however, frustrates their effort to transfer photos to a PC, a highly tedious process in the early days. EasyShare proves a stroke of genius, its docking station making it child's play to transfer and print photos at home. Within four years, Kodak is back at the top of US digital camera sales.

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A BLURRED PICTUREThis goes to show that a head start in the digital race could have been just the ticket for Kodak. But by 2006, Kodak is caught in such a whirlwind of sales and acquisitions of businesses they don't really understand nor have control over, that EasyShare alone can't save the day. The only foreseeable path leads down. Down from EK shares being traded at USD94.75 in 1997 to an embarrassing USD6 ten years later. The endless flow of corporate heads, exchanged at an ever-faster pace, robs the long-established structure of much needed stability. In January, 2012, finally, like the chronicle of a death foretold, Eastman Kodak Company files for Chapter 11 bankruptcy protection and is granted USD950 million credit from Citigroup. The formerly grand chemical conglomerate has until February 2013 to produce a reorganisation plan and turn the company's fate around. No easy task, considering that on September 10th this year, The Wall Street Journal reports that: “Cash held by Kodak's U.S. operations fell by USD72 million in July, the most recent figure available, compared with a cash burn of USD64 million in June and USD43 million in May. Creditors called for management


changes, specifically for Chief Executive Antonio Perez and Chief Financial Officer Antoinette P. McCorvey to resign. Can George Eastman's dream, “To make the camera as convenient as the pencil,” still be saved? What would the digital equivalent to the camera be – or to the pencil for that matter? Well, if someone knows, please feel free to apply for employment at 343 State Street, Rochester, New York. However, it begs to be said that, back in 1880, when George Eastman acquired his first engine, he remarked that the appliance was too big for his immediate needs. “I thought perhaps business would grow up to it. It was worth a chance, so I took it.” Of course, as a tiny start-up, he had nothing to lose if his idea went nowhere, and everything to gain if it worked out. He showed remarkable foresight though. He knew that a dynamic company, no matter its size, needs to re-invent and better its product incessantly. No one can rest on their laurels without being left behind. It is true for any industry; the moment you stop trying, you die. A new management with the courage to exhibit more of George Eastman's qualities might be able to create a Kodak moment once again. After all, they too, have hardly anything to lose at this point. m

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Do Malaysian companies have a risk management plan worked out?

RISK MANAGEMENT: THE KEY TO PREPAREDNESS FOR EMERGENCIESBy Dr Rajendran Muthuveloo


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The Prime Minister of Malaysia, on Thursday June 10, 2010 launched the 10th Malaysian Plan to propel the country towards becoming a

high-income and high-productivity economy. He mentioned that the gross national income per capita must increase to RM38,850 (USD12,140) by 2015 via real GDP growth of six per cent per annum. The five strategic thrusts of the 10th Malaysian Plan are designing government philosophy and approach to transform Malaysia through the National Key Result Areas (NKRA), developing and retaining a First World talent base, moving towards inclusive socio-economic development, creating a conducive environment for unleashing economic growth, and building an environment that enhances the quality of life. To ensure that these national aspirations are achieved as planned, Malaysian organisations should be prepared in planning for and responding to any form of emergency

(either man-made or due to the forces of nature). This article presents some of the findings from on-going research in the area of risk management from an organisational standpoint to support the above mentioned thrust especially in creating a conducive environment for unleashing economic growth and building an environment that enhances the quality of life.

HIGH PRIORITY VALUES THREATENEDRisk management plans can be defined as the preparedness for an emergency. An emergency is an unforeseen crisis that usually involves danger or any abnormal condition that requires immediate manual or automatic action to prevent loss of human lives, production, business opportunities or tarnishing the reputation of an organisation. We use the term ‘emergency’ for an unexpected or unanticipated event or disaster caused by either man or nature, which presents a restricted time available for decision making and threatens high priority values of the organisation’s goals. Emergencies usually occur suddenly, demand quick reaction, interfere with organisational performance, create uncertainty and stress, threaten the reputation and assets of the organisation, escalate in intensity and could permanently alter the organisation. On September 11, 2001, as reported in the Disaster Recovery Journal (2004), close to 20 per cent of companies surveyed in the study in North America did not have any formally documented risk management plan. By mid-September 2002, 66 per cent of companies studied, increased overall organisational commitment and efforts in planning for emergencies. Post 9/11, 36 per cent of companies increased resources devoted to emergency response; 53 per cent reported a modest increase. Only nine per cent said that there was no change in the organisation’s view of emergency response after the incident.


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SUCCESS STORIES OF MALAYSIAN COMPANIES GOING GLOBAL Several companies have successfully entered unchartered waters and emerged victorious. By Munis Krishna

► E N T R E P R E N E U R S H I P ◄

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I t is the dream of every small business to go global. However, with a volatile and rapidly evolving global economy, many small and medium businesses with limited

resources fear it is a daunting and uphill task to penetrate international markets. The good news is that the global market opens windows of immense opportunities for Asian companies, including Malaysian companies, to build a global presence in markets seeking products with competitive quality and pricing. Here are some companies that have successfully entered unchartered waters and emerged victorious in their pursuit of a bigger market share.

AVIALITE SDN. BHD. Avialite Sdn. Bhd. manufactures waterproof aviation obstruction beacons or lights installed in many local and international telecommunication (telco) structures. Avialite LED Aviation Warning Light’s uniqueness lies in its ability to withstand the wet, hot, humid conditions that is the norm in tropical weather. The lights, which are also dust and moisture proof, are manufactured in compliance with ISO9001:2008 and ROHS requirements. A significant milestone for Avialite was its participation in the Green Device 2010 Expo in Japan, as it was the first Malaysian company fully sponsored by the JETRO (Japan External Trade Organisation) to participate in this expo. Participating in MATRADE’s activities contributed to 80 per cent of Avialite’s total sales. Its foray into Bangladesh, Brunei, Cambodia, UAE, Indonesia, Philippines, Vietnam and West Africa further strengthened its presence as a reputable manufacturer and supplier of heavy duty LED Aviation Warning lights.

IT IS THE DREAM OF EVERY SMALL BUSINESS

TO GO GLOBAL.

CAREFOOD INDUSTRIES SDN. BHD. Carefood Industries Sdn. Bhd., established in 1989, produces Western as well as Asian sauces such as Malay, Indian, Chinese, Nyonya, Indonesian, Singaporean and Japanese sauces for household and the Food & Beverage industry use. Certified HACCP and Halal, Carefood Industries’s mission is to capture the rich flavours of Asian sauces and share it with the world. Carefood Industries had challenges initially due to its inexperience with product storage and shelf life, but it worked with MARDI and SIRIM to find solutions by investing in Research & Development (R&D). Eventually, with its commitment to continual improvement and R&D, the company had a breakthrough that enabled it to diversify its products from three to nine products with more than 200 recipes. Plans are also in the pipeline to launch new products such as sauces with soup and dry mix noodles, and ready to serve Malaysian dishes in the United States market.

CENTIUM SOFTWARE SDN. BHD. Centium Software is a one-stop healthcare and call centre solutions development and consultation software house. Since its incorporation in 1998, it has supported local and international clients in Indonesia, India and Vietnam, filling the gaps in healthcare software to provide a complete, reliable, scalable platform that is agile enough to fulfil the needs of small as well as large corporations. Centium Software expanded into healthcare ERP with the Centium Blood Bank Information System after it secured a software development and consulting job for a healthcare centre in India. Forming a joint venture with an international group of hospitals in South East Asia, Centium Software developed a product known as Centium HIS (Hospital Information System), which is presently in use in more than 15 hospitals in South East Asia. Centium Software was awarded

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OLYMPICS BOON OR BANE

Read how Brazil is gearing up for one of the biggest sporting events of the planet and the global spectators’ concerns on Rio’s readiness to host Olympics 2016. By Kalpana D. Subramaniam

RIO 2016:

Maracana Stadium, Rio de Janeiro


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the ongoing growth of Brazil’s economy. The Rio 2016 Games will also provide a long term boost to the tourism industry and Rio will be broadcasted showing superb games and stunning imageries by the global media which supports Brazil’s growing image as a good place to visit, do business and live. Rio will also serve as a powerful platform for the Olympic and Paralympic Movement, to deliver a celebration of sports, one that will touch the hearts of the young, 18 years and below, of South America, who are in dire need of motivation and inspiration; 65 million in Brazil and 180 million throughout South America. On the other hand, Rio 2016 will have an opportunity to deliver the broader aspiration for the long term future of the city, region and country, an opportunity to speed-up the transformation of Rio de Janeiro into an even greater city. In order to meet its objective to create a celebration and a transformation through Rio 2016, the Rio 2016 Business Council has identified five key areas:i) Engaging young peopleii) Social Transformation through Sportsiii) Regional Outreachiv) Global Promotionv) Successful delivery

BRAZIL’S PLANThe Rio de Jameiro Games are being taglined – “A City Leaps Forward”. The stunning Brazil 2016 Olympics Park will be built on the former Grand Prix track in a striking triangular layout spread over 300 acres. This British designer inspired beauty will stretch out into the still blue lagoon water and will be set against a backdrop of rugged mountains. It will play host to15 Olympic sports and 11 Paralympics competitions in 34 venues of which 18 are already in operation. It will also host a media centre to accommodate 20,000 journalists. The Olympic stadium however, is not located in the park, unlike the London Games. Instead,

A s Rio de Janeiro received the Olympics flag at the Closing Ceremony of London 2012, and became the official city of

Olympics 2016, the planet’s attention shifted to the next host of the 31st Summer Olympic Games, Olympics 2016 and the 15th Paralympics Games; Rio De Janeiro, Brazil. The announcement of Brazil being chosen as the host for the 2016 Summer Olympics games was made by the Olympics International Committee (IOC) after a lengthy and intensive bidding process, with the election of Rio De Janeiro as the host city, during the 121st IOC session, held in Copenhagen, Denmark on October 2, 2009. Brazil beat three other cities; Chicago, Madrid and Tokyo, to be chosen as the host of Olympics 2016. After three failed attempts to host the Summer Games; in 1936, 2004 and 2012, Rio de Janeiro had to commit to an ambitious array of social and redevelopment plans to win the bid for the 2016 Games. Brazil has committed to investing heavily in upgrading its public transportation systems, improve water sanitation, electricity, gas and telecom infrastructure network, build a 5 million square meters of Class A office and retail and redeveloping under-utilized areas like Porto Maravilha (the old port) with “Olympic Urban Parks” and iconic architecture. The Olympic and Paralympic Games 2016 will bring long lasting benefits to Brazil. Rio will make full use of its city’s natural beauty, diversity and energy to unite the Olympic and Paralympic spirit of sports with Rio’s spirit of celebration to bring about a celebration which extends beyond venues to communities in Brazil and the global media audience. As for the people of Rio, the Olympics offers the 2016 posts' opportunity to transform their city with new infrastructure, new environment, physical and social initiatives, worldwide recognition for Rio and new benefits and opportunities for all; where Rio 2016 Games will help continue


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the athletes will use the famous Brazil stadium, the Maracana, which will also be the site for both the Opening and Closing Ceremonies as well as the Joco Havelenge Stadium – home to the club Botafogo. The games will be staged in four areas: Copacabana, Barra, Deodoro and Maracana. Brazil is also focussing much effort on the Paralympic Games. “Our core Paralympic message is one of passion and transformation,” says Leonardo Gryner,

Chief Executive of the Rio 2016 organising committee for the Olympic and Paralympic games. The Paralympic project is a very special one for Rio de Janeiro. The journey to Paralympics 2016 started in 1990 for Brazil when it bid for the 2007 Pan American Games in its effort to prepare for the Summer Olympic Games. It was then decided that Rio would also bid for the Parapan Games for athletes with physical disabilities, the first time Parapan and Pan American Games has been staged in the same city. “The Parapan was a very successful event, with full stadiums and gave us the ability to understand the needs of the Paralympic Games,” says Gryner. “We will deliver a great Paralympics Game and raise awareness and change the approach for accessibility issues in Rio and across our country,” Gryner promised. Soon after hosting the Pan American and Parapan Games, the previous President, President Luiz Inacio Lula da Silva, tasked the Brazillian Paralympic Committee (CPB) with

WE WILL DELIVER A GREAT PARALYMPIC GAME AND RAISE

AWARENESS AND CHANGE THE APPROACH FOR ACCESSIBILITY ISSUES IN RIO AND ACROSS

OUR COUNTRY.

The sugar Loaf is a green, unearthly peak rising over Rio De Janerio.

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An insightful conversation with Parkson Corporation's CEO, Dato' Alfred Chang enlightens the challenges and advantages of taking your retail business into the global arena. By Sharmini M Rethinasamy

GOING GLOBAL WITH PARKSON

The Lion Group's retail arm Parkson Corporation has since its start in 1987, made formidable headway by propelling not just sales and

mushrooming stores within Malaysia but has grown as a retail force to be reckoned with within South East Asia. With stores in Sri Lanka, Vietnam, Cambodia and the one that started it all, China, this retail giant is continuing on its global spree with much ease. We spoke to Parkson Corporation's CEO Dato' Alfred Chang on sharing some insights on being a global player. "You may be the best in Malaysia but you will never get the recognition and respect as a world-class player, until you prove your business beyond your home borders."

Parkson, Tianshan, China

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1. Knowing When TheTime Was Right"It was 1992, when we realised that to be become a world class player, we'd need to adopt the world-class practices," explains Dato' Alfred Chang. "In order to do that we needed the volume. Malaysia's population at that time was only 24 million and given that we were already the largest departmental store then, we needed to extend our reach, which was to go overseas."

► G O I N G G L O B A L ◄

China's government is so tightly affiliated with its businesses, knowing what the government wants will help one draft your business plan. "This business plan coincided with the time when China's economy was opening its market forces to the global audience and the Malaysian Prime Minister was encouraging business relations with them," added Chang. "The enormous opportunities that exist in the developing and emerging markets around Asia, and many regions of the world. The opportunity to serve newly created and growing middle class consumers in these markets and to bring innovation to them, to help them with their lifestyle changing needs, and to help lift their standard of living is extremely intoxicating to me and my team. It's what keep us going forward and forward again."

2. Market PotentialYou need to investigate your market exhaustively to decide whether, in fact, you've got something someone there will take an interest in. It's imperative to understand the market conditions such as overall potential, competition and marketing channels. "I remember when China was being considered, we visited the only departmental store there," recalls Chang. "To buy perfume, one would have to bring their own container and have the perfume pumped in. Obviously, there was a lot of value for us to add! We realised that there was a market there."

3. Market ReasearchYou'll want to spend a significant amount of time analysing local spending habits, as well as how much time, energy, and capital will be dedicated to marketing your products or services. If possible, try setting up a trial run or conducting surveys before investing very much capital. Don't overlook how much you'll have to pay employees, nor what work habits are like in the country. According to Chang, intensive market research and studying the variable needs

Parkson Corporation's CEO, Dato' Alfred Chang

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THE OPPORTUNITY TO SERVE NEWLY CREATED AND GROWING MIDDLE CLASS CONSUMERS IN THESE MARKETS AND

TO BRING INNOVATION TO THEM, TO HELP THEM WITH THEIR LIFESTYLE

CHANGING NEEDS, AND TO HELP LIFT THEIR STANDARD OF LIVING IS EXTREMELY INTOXICATING TO ME AND MY TEAM.

of the people was essential in ensuring Parkson's success. "It took us a year to conduct the relevant research required," divulged Chang. "In addition to that, it took us another year to prepare the opening of our first store. In those days the regulatory department and the paperwork was very restrictive and this required a lot of work. Even after obtaining the first license, there was a lot more licenses to get approvals for before we were able to open our first store in February 1994 in Beijing." Going global did have its fair share of challenges. "We found that China, though more modern now in their outlook, was still coming out of their Planned economy. In a Planned Economy, everything is planned. You get distribution of rice and food and people are handed food vouchers. There was no concept of selling. Sales staff were there to do their job but it didn't involve selling. We realised then that we had to start from scratch. We had to educate the staff on how to sell. They comprised very smart people from rocket scientists to chemical engineers. At times their intelligence really intimidated me but they were unable to convert their knowledge to think commercially. "What we took for granted in Malaysia, we can't over there as these people have never been exposed. We introduced selling incentives, the concept of service, work ethics. They never paid overtime and had the

same salary every month regardless of the extra hours they put in. We introduced to them the idea of the more you sell, the more your income increases. The longer hours you work, the higher your overtime earnings and your overall income improves."

4. Being HumbleHumility plays a strong role in conducting business in a foreign country as Chang was fast to understand. "I always regard that no matter what, when one is in another country, we are guests. Till today despite having established ourselves for many years, I still regard ourselves as guests. We have to be receptive towards their culture. Even the relationship between you and the government has to be low profile. Meeting new regulatory environment in terms of governmental practices, business practices, culture and work ethics can all be as challenging from country to country. One must be able to adjust accordingly." Given that the will was strong to set up their business in China, Chang knew that he'd have to proceed with caution.

5. Bridging The Gap"The digital info age has arrived and certainly it has changed the way we communicate across markets, the speed to market and the impact of global and regional branding has taken on a whole new dimension," says Chang. "Businesses in general, not just retail, if we can harness the benefits of digital platform, can benefit a great deal. At the same time, we have to be better at what we do because this democratisation means that the benchmarks for the way we do business, and serve our customers have been lifted to regional, international and global standards. We can no longer hide in the comfort of one's domestic territory."

6. Brand Recognition"With 125 stores, today, we are regarded as one of the most visible retail store in Asia. Before we enter a market, such as in Medan, they are very familiar with the Parkson brand

► G O I N G G L O B A L ◄

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FRANCHISING – “WIN-WIN” SYSTEM CHANGEIt has been said that the only certainties in life are death and taxes, but there is one other — change. In business, change is inevitable. It will come and, when it does, franchisees and franchisors need to navigate through it together. By Robyn Hansen

► E N T R E P R E N E U R S H I P ◄

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F

FRANCHISING IS A COOPERATIVE GAME

REQUIRING FRANCHISORS AND FRANCHISEES TO

WORK TOGETHER.

ranchise systems undergo change for a variety of reasons – market changes, morphing channels of distribution, economics, management, pricing,

mergers and acquisitions, etc. Any one or a combination of these elements can force a system to respond with modification. Navigating change successfully requires that franchisees and franchisors seize it as an opportunity to champion one another. Change does not have to lead to a system fraught with adversity. The key to creating a “win-win” is in how both sides manage their strategy and response to change.

TALK IS CHEAP. LITIGATION ON THE OTHER HAND…Franchisees and franchisors are notorious for butting heads, particularly when it comes to system change. System change creates a situation where franchisees and franchisors often tout drastically dissimilar definitions of “value”. As franchisees and franchisors take stronger opposing positions, the definition of “value” for both sides’ starts to become eerily very similar; “zip, zero, zilch”. Communication between franchisees and franchisors is absolutely essential in order to avoid “zip, zero, zilch”. Both parties have a common goal and stake – to provide consumers with a worthwhile product or service and make money. Before implementing any system change, franchisors must, (in other words… no options here), invite franchisees to in-person meetings with franchisor executives who are credible and who have decision making authority. No

offense to middle management but, when it comes to their money, franchisees do not want to hear from their area rep. They want to know that their opinions and businesses are important enough to garner attention from the top. Franchisees must, (again, not an option), attend these meetings – leaving their predisposed notions and conspiracy theories at the door – and actively listen to what their franchisor has to say. If conducted effectively, meetings between franchisors and franchisees should generate ad hoc, candid, and transparent discussion. Franchisees should jump at the opportunity to drill down and better understand the rationalisation supporting system change. From these discussions, franchisors are provided a chance to gauge what system-wide reaction will be post-implementation, allowing them to proactively thwart anticipated negativity or heightened resistance. Following in-person meetings, open communication, candour and transparency must continue to be encouraged. If an advisory council or franchisee association exists, franchisors should make certain that franchisees know how to contact the members. Franchisees should avoid system gossip and make it a point to discuss rumours with franchisor executives or council/association members. Franchisors and franchisees need to work together to avoid assumptions, clear-up misconceptions and make certain that everyone in the system is well-informed in a timely manner.

CARROT OR STICK – ONE, NOT BOTH, WHEN INCENTIVISING…Good stew is not made with sticks and no tree will ever grow carrots. Nature is usually a fairly good measure of how to properly balance things. When implementing a system change requires the use of incentives, careful analysis of whether those incentives should be negative or positive is required. Incentives typically arise on the franchisor’s side, but they do not have a monopoly on

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► G L O B A L PA R T N E R S ◄

BRINGING KNOWLEDGE CLOSERMaking prestigious foreign university degrees accessible in Malaysia.By Munis Krishna

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E

STUDENTS GET THE BEST OF THE LOCAL ENVIRONMENT AS WELL AS INTERNATIONAL EXPERIENCE

WHEN THEY CHOOSE TO STUDY IN FOREIGN UNIVERSITIES

AS MOST OF THE FOREIGN UNIVERSITY COURSES MIRROR

THEIR MAIN CAMPUS OFFERINGS.

arning a foreign degree is easily achievable without setting a foot out of Malaysia. With a host of foreign universities offering prestigious,

quality education in Malaysia, students spend considerably less compared to studying in the universities’ main campuses overseas. Foreign universities also benefit from setting up campuses here. Presently, there are five world class universities that have set up their campuses in Malaysia. Australia’s Monash University got the ball rolling, followed by Curtin Western Australia, United Kingdom’s University of Nottingham, Australia’s Swinburne University of Technology and the latest one, United Kingdom’s Newcastle University. These universities offer the same programmes that are available in their main campuses.

MONASH UNIVERSITYMonash University, in partnership with the Sunway Group, opened its doors to students in 1998. Monash was the first foreign university invited by the Malaysian government to start a campus in Malaysia. Ranked in the top one per cent among world universities, Monash has built a sterling reputation for teaching excellence and as a research focused tertiary institution in a short span of 50 years. Moving beyond traditions and conventions, Monash focused on being a youthful, enthusiastic and accessible learning institution, making creativity, innovation and activism the

university’s culture. In 1999, Monash was invited to be the founding member of the Group of Eight, comprising Australia's most prestigious research-intensive universities, even though Monash was just over four decades old at that time. Monash is today Australia’s most prominent university with approximately 60,000 students and 250,000 alumni from over 170 countries. Focusing on what’s important, Monash is determined to make a difference by empowering people to make a positive impact in this world. Monash instils determination and hard work in its students and inspires them to realise their potential and achieve lofty goals. The university offers courses in 10 faculties comprising Art and Design; Arts; Business and Economics; Education; Engineering; Information Technology; Law; Medicine, Nursing and Health Sciences; Pharmacy and Pharmaceutical Sciences; and Science. Other than Australia and Malaysia, Monash has campuses in South Africa, Italy, India and China. Monash University Sunway Campus in Kuala Lumpur was rated Tier 5: Excellent in the Rating System for Malaysian Higher Education in 2011 (SETARA '11).

CURTIN UNIVERSITYCurtin University, rated amongst the best in Australia for research in areas of Earth Sciences, Geology, Analytical Chemistry, Curriculum and Pedagogy, commenced operations in its Sarawak campus in 1999. With six campuses in Australia, and two in Sarawak and Singapore, Curtin has more than 46,000 students of which 10,000 are international students from around the world. According to Pro Vice-Chancellor Professor Ian Kerr of Curtin University Sarawak, the then Vice-Chancellor of Curtin University decided to bring the campus to Malaysia since the majority of its international students in Australia comprised Malaysian students. Curtin University also opened another campus in Singapore for the same reason. Presently, Curtin’s local Malaysian students comprise 86 per cent of the student population,

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Management advert_TSSM special issue.pdf 16/01/2013 6:59:32 PM

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BOOKREVIEWBOOKREVIEW

TOP 10 BOOKS FOR SUCCESSEach of these books will bring to you a world of resources and knowledge as you learn from the experience of top industry leaders; on what works and what doesn’t, in becoming highly effective leaders and steering your organisation towards being world-class. By Kalpana D Subramaniam

f you are looking to groom yourself into an effective leader, learn from industrial gurus the ‘magic’ of turning your organisation towards innovation and transformation,

look no further. We bring to you, the top ten books, which have stood the test of time, are still best sellers to date and are widely used as learning materials in top-notch business

I schools. Read on and steer your destiny to where you wish to be.

1. ON BECOMING A LEADER BY WARREN BENNISDeemed the 'dean of management guru' by Forbes magazine, Warren Bennis had persuasively argued that leaders are made,

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not born. In this book, which was authored in 1989, Warren Bennis outlines his ideas and theories on the principles and implementation plans for becoming a leader. His theories can be summed up in one sentence: “A great leader must first know himself and his world; only then can he lead though a shared set of values and objectives with the passion and determination to make the vision a reality”. Bennis shares in ten chapters, a deep insight into his leadership ideas and numerous examples of good and bad leadership. Bennis contributed to the field of leadership in outstanding ways and he specifically has elaborated on the idea of 'self-actualisation' and 'reflection'. He sums up his book with three top recommendations for leaders; status-quo is not acceptable, recruiting and retaining smart people leads to competitive advantage and followers need direction, trust and hope. A definite must-read for those in leadership positions who aspire to lead from the core.

2) CONTROL YOUR DESTINY OR SOMEONE ELSE WILL (COLLINS BUSINESS ESSENTIAL) BY NOEL M.TICHYAs the CEO of General Electric (GE), Jack Welch’s motto is just one: “Be number one in every market”, and GE is doing just that. This book, written by Welch's closest advisor, is an exciting rendition of the Welch revolution

and is often hailed as the unofficial handbook of GE leadership. The revised version, with two new chapters added by the author; an added chapter long interview with Jack Welch and a complete set of Welch’s GE annual letters to the shareholders, presents a good case study of how Welch transformed GE from a corporate dinosaur into one of the most successful corporations in the world, increasing its market value from USD13billion to over USD400 billion through formulating six principles which guided the revolution. Welch introduced, through these principles, a new management style in GE, which reduced hierarchy and bureaucracy, empowers individuals and seeks consensus based on shared corporate values. These principles are adaptable from business to personal life. Whether you are just beginning your career or are in a leadership position, this book is a must-have.

3) DON’T FOLLOW ME: I’M THE LEADER BY DAVE DUNGANA true leader is more than someone who is in-charge. A true leader understands the need to empower others. The greatest opportunity for a leader is to lead other leaders. In this book, you will discover that leadership is more than just a rung on the ladder or a position. Dungan has revealed three fundamental truths about success in this piece, which is, first, success is never constant; second, that it is relative and third, that it is circumstantial. This book is a definite must-read for all those who believe they have what it takes to be a true leader. The choice is yours to build the ultimate skill-set to shine as a true leader. Lead on.

4) ONWARD. HOW STARBUCKS FOUGHT FOR ITS LIFE WITHOUT LOSING ITS SOUL BY HOWARD SCHULTZOnward is the true story of Starbucks Founder and CEO Howard Schultz's passion to restore his vision for his company. Eight years after stepping down from the role of daily oversight of the company, Schultz

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F ollowing the success of the Distinguished Lectures with United Nations Secretary-General Ban Ki-moon and British Prime Minister David Cameron earlier this year, Global Movement of Moderates

Foundation (GMMF) organised the third edition of this series with the ASEAN Secretary-General, His Excellency Dr Surin Pitsuwan on 30 October 2012 at the Royale Chulan in Kuala Lumpur, Malaysia. The lecture “Raising the Asean Value through the Concept of Global Movement of Moderates” was aimed to showcase Asean as a regional body that practises moderation and that the GMM was a concept worthy of global application and deployment. In his presentation, Dr Surin said GMM, could complement the Asean charter and help the body move forward and connect further with the global community. He added that the movement could share the importance and experience of moderation with countries of the world, including the Middle East and those plagued by extremism and violence m

EXECUTIVEBRIEFEVENT

RAISING THE ASEAN VALUECompiled by MIM

From left: Elizabeth Lee, Sunway University; Dato’ Ng Tieh Chuan, Member, Board of Trustees for Global Movement of Moderates, Jean Wong, ASLI.

Extreme right: H.E. Simon Mark Featherstone,

British High Commissioner signing in for the event.

Distinguished guests from Thailand.

Sayed Munawar the emcee for the event.

Dr Surin Pitsuwan delivering his lecture.

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From left: Tan Sri Hamidon Ali, National Authority for Chemi-cal Weapons Convention; Kamal Malhotra (UN); Selwyn Das, Deputy Secretary General, Ministry of Foreign Affairs.

Guests listening to Dr Surin’s lecture intently.

Guests.

Guests at the lecture. Guests at the event.

Michele Lynch (right), Policy Officer of the British High Commission with a fellow guest.

Tan Sri Razali Ismail, Chairman of GMMF

Guests listening to Dr Surin as he delivers his lecture.

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► C H A I R M A N ' S V I E W ◄

TO BE A MODERATE, ONE HAS TO BE JUSTLY BALANCEDModeration, as a principle of life, can be viewed from different perspectives. Every culture and religion has its own variation and characteristics related to its own belief system and mores.

Generally, this principle is exemplified in messages and the personal behaviour of prophets and messengers who

were chosen to guide mankind. In creation, man has the freedom of choice. However, this freedom is not absolute but limited to the constraints imposed by God as revealed in the scriptures. Thus, there is a clear way for an optimal application of the human intellect to achieve a balance between the dictates of the passions of the heart, the promptings of the mind and the cravings of the soul. This is the domain of the conscience where there is a huge gap between thinking, that is, the thought process, and its manifestation into actions. Moderation, in its most basic form, connotes a trait of avoiding excess. Put in another way, moderation means the lessening of the severity of an action. This implies a single reference point, that of extremism. Effort is needed to scale down the intensity to an acceptable or moderate level. Moderation can be viewed from a bipolar perspective. In almost every endeavour, there are at least two views and, very often, conflicting views. For purposes of theory or debate, extreme pole-centred views are tolerable. However, where actions are based on a lob-sided view, elements of partiality, bias and parochialism may overwhelm. Verbal

diatribes and emotional outbursts provide fodder for the escalation of a simple conflict into violent extremism. Moderation under such circumstances means an acknowledgement of the fact that one side is equal to the other and that no side can overpower or oppress the other side. Viewing differing perceptions equally and from opposite ends may defuse tension. A possibility for the narrowing of the gap and the creation of a comfort zone of tolerance can be found with empathy and understanding. Exaggeration and extremism can be mitigated or even eliminated by righteous initiatives. A third perspective, in a way a corollary of the second, is the limits imposed by laws, divine or statutory. For example, speed limits are imposed by road transport enactments. Limit actually means dividers and barriers that are structured to regulate behaviour. A driving behaviour in excess of the limit is considered a transgression of the law and therefore, punishable. In the case of divine laws, moral suasion and ethical criteria sway the behaviour towards a righteous conduct. The punishment for deviant behaviour or the reward for good conduct, of course, is in the hereafter. The transgression of a limit is self-evident in issues related to global warming and climate change. The adverse impact appears all of a

By Datuk Seri Mohamed Iqbal

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sudden, although the phenomenon has been alerted a long time ago. Also, the effect is pervasive and no country in the globe has been spared. The problem is truly global in nature. The Kyoto, Copenhagen and Rio resolutions have not brought significant change to the problems of climate change. Events unfolding throughout last year indicate extreme climate change convulsions. The severity of this problem is due to the transgression of the limits and a distortion of the balance in God-created eco-systems. The stewardship role of man on earth and his trusteeship over all that is created has been severely breached. The ecological imbalance is a neglect of the moderation principle in the approach to development. In a similar vein, the human eco-system itself is under bigger stress. The relationship

THE HUMAN ECO-SYSTEM ITSELF IS UNDER BIGGER STRESS. THE

RELATIONSHIP BETWEEN DIFFERENT RELIGIONS, DIFFERENT SECTS WITHIN THE SAME RELIGION, IDEOLOGICAL

CONFLICTS, CONCEPTUAL VARIATIONS AND DOGMATIC BELIEFS AND HARD-

CORE RADICAL VIEWS, ARE ARTICULATED IN A DRAMATIC, TRAUMATIC AND VIOLENT MANNER. THERE IS THE

DANGER THAT THIS TENDENCY FOR VIOLENCE MAY BECOME THE NORM,

RATHER THAN AN EXCEPTION.

between different religions, different sects within the same religion, ideological conflicts, conceptual variations and dogmatic beliefs and hard-core radical views, are articulated in a dramatic, traumatic and violent manner. There is the danger that this tendency for violence may become the norm, rather than an exception. Human personality is characterised by three aspects, namely intellectual, psychological and behavioural. When all these three are harmonised in an individual, then moderation prevails to maintain a balance. When one aspect dominates over the other two, the result often leads to extremism. Such extremism has no regard for any limit, in speech or in action. According to Dr Mohammed Rateb Nabulsi, moderation from an Islamic standpoint can be

management...YBhg Dato’ Ng Tieh Chuan YBhg Tan Sri Dato’ Sri Tay Ah Lek YBhg Datuk Seri Haji Mohamed Iqbal Rawther YBhg Tan Sri Datuk Yong Poh Kon YBhg Prof Dato’ Wira Dr Hj

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