Wahid to cor­po­rate lead­ers: Have clear-cut plan, co­her­ent vi­sion

New Straits Times - - Business -

KUALA LUMPUR: A clear-cut de­liv­ery and suc­ces­sion plan is key for the suc­cess of any trans­for­ma­tion ex­er­cise, be it national or cor­po­rate.

May­bank’s cor­po­rate trans­for­ma­tion plan en­sured that the fi­nan­cial ser­vices group main­tained its mar­ket share and not lose out to CIMB Bank and Public Bank, said Per­modalan Na­sional Bhd group chair­man Tan Sri Ab­dul Wahid Omar, who was for­mer May­bank pres­i­dent and chief ex­ec­u­tive of­fi­cer.

A clear vi­sion of where to be and how to get there, and lead­er­ship by ex­am­ple, had helped as well, he added.

“Al­though we were the mar­ket leader at the time, our growth rate was slow and we could have slipped to the No. 3 po­si­tion at any time,” he said dur­ing a panel dis­cus­sion at the Global Trans­for­ma­tion Fo­rum, here, yes­ter­day.

May­bank is now among the top five banks in the Asean re­gion, with to­tal as­sets of more than US$150 bil­lion (RM663.75 bil­lion).

In order to achieve their trans­for­ma­tion tar­gets, Wahid ad­vised cor­po­rate lead­ers to­day to guide their or­gan­i­sa­tion.

“Even then, com­pla­cency can set in and, thus, from time to time, there is a need to set a new (tar­get).”

Wahid was also in­volved with the gov­ern­ment’s trans­for­ma­tion pro­gramme af­ter he left the bank to take up a cab­i­net po­si­tion.

“Key per­for­mance in­di­ca­tors (KPIs) are im­por­tant to mea­sure suc­cess and sus­tain­abil­ity,” he said, adding that a suc­ces­sion plan was also nec­es­sary.

One of the ques­tions put for­ward by Khaz­anah Re­search In­sti­tute man­ag­ing di­rec­tor Datuk Charon War­dini Mokhzani, who mod­er­ated the ses­sion, was what would be the sce­nario if coun­tries were run by bil­lion­aires.

Bil­lion­aires, said Wahid, could trans­form economies, but they would first need to en­ter pol­i­tics and se­cure the public’s man­date.

At the same event, Per­for­mance Man­age­ment and De­liv­ery Unit (Pe­mandu) chief ex­ec­u­tive of­fi­cer Datuk Sri Idris Jala said Malaysia was the only coun­try in the world to have self-im­posed lim­i­ta­tions of not bor­row­ing more than 55 per cent of the coun­try’s gross do­mes­tic prod­ucts (GDP).

“If the world were to have that law, we won’t have the sit­u­a­tion like in Greece,” said Idris, in ref­er­ence to the Euro­pean coun­try’s high sov­er­eign debt, which in 2015 had bal­looned to 176 per cent of its GDP.

“Be­fore the National Trans­for­ma­tion Pro­gramme (NTP), which was Pe­mandu’s first man­date, the com­pound an­nual growth rate (CAGR) of pri­vate in­vest­ment was at 5.5 per cent,” said Idris.

“Af­ter the NTP, how­ever, the CAGR of pri­vate in­vest­ment more than dou­bled, which is a phenom­e­nal growth.

“The trick to grow­ing the econ­omy, there­fore, is to al­low the pri­vate sec­tor to in­vest in the econ­omy, and that’s what’s hap­pen­ing in Malaysia right now.”

Per­modalan Na­sional Bhd group chair­man Tan Sri Ab­dul Wahid Omar speak­ing dur­ing a panel dis­cus­sion at the Global Trans­for­ma­tion Fo­rum in Kuala Lumpur yes­ter­day.

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