|
From the Dean's Desk
September 2005
New
Dynamics
The School is entering an exciting phase of change and expansion
brought on by competition and globalisation. We will rise to the
new challenges by creating a community of highly successful individuals
bonded by an illustrious heritage, a global vision and tight team
work. We draw from one of the finest groups of faculty anywhere
in Asia who not only integrates world-class research into their
pedagogy but who are aware of the Asian perspective that our foreign
competitors cannot fully appreciate.
In this phase, we will consolidate our resources for key programmes,
maintain a world accomplished faculty and scale up our executive
education, our new building and our fund-raising efforts.
It is in this new dynamics that we will move to the next level in
the global ranks to become among the world’s top 30 business
schools.
Growth Strategies
We will adopt four strategies to grow in this environment of change
and expansion:
- Professionalising our administration
The Undergraduate, Graduate and Executive Education Offices
have been restructured to deliver maximum value to our customers
throughout the service delivery chain. We will also expand our
administration as we augment our services, programmes, students
and participants. Our customers will see us tapping on our increased
strength to continue to maximize their satisfaction.
- Teaching and programme innovations
The curriculum will be fine-tuned to cater to market demands using
cutting-edge research innovations from our faculty. From double
degrees, joint degrees with internationally renowned universities,
increased number of concentrations to leadership courses and improved
teaching methodologies, students will have greater choices to
support their interests and aspirations.
Student development will be a big feature
at both undergraduate and MBA levels. This includes a Leadership
Differentiated Track and a specially designed executive education
programme for the crème de la crème of our undergraduates;
an expanded student exchange programme to encompass half of
our student population; and a completely revamped Career Services
unit.
We seek to groom leaders and transform
businesses in Singapore, Asia and the world. Entrepreneurs,
managers and corporations can look to enhancing their competencies
through an expanded Executive Education Programme aligned with
strategic partners including London Business School, Stanford
University and UCLA. The programme will include more leadership
and customised courses providing the quality of executive education
found only at the World's finest global business schools. Watch
this space for new modules and flagship programmes.
- World-class facilities
We will lay the infrastructure needed for
growth. The School will have a new S$20 million building in 2007-8.
Students and customers can look forward to facilities which would
enable them to learn, interact, and access information and communication
amenities seamlessly. The 9, 000 m2 building will occupy a highly
visible location and accommodate a highly connected cluster of
administration and learning spaces. The distinctive landmark this
side of Kent Ridge campus will mark NUS Business School as an
institution of distinction.
- Funds for expansion
We will need the philanthropy, connections
and service of our 25,000 alumni and the corporate sector more
than ever to deliver these enhanced programmes and value in the
next few years. The resources of our alumni and business leaders
appreciating our work and reputation will jumpstart programmes,
scholarships, bursaries and research, and push the School immediately
into the echelons of the world’s top b-schools.
Chris Earley
Dean
Lead Story
SE Forum 2005 showcases Bizaders'
leadership and passion
Organised
by the undergraduate students of NUS Business School, SEforum 2005
expanded the inspirational platform of the first SEforum 2004 by
providing an enabling environment for social agencies, youth and
budding entrepreneurs to embark on socially motivated business projects.
Education Minister Tharman Shanmugaratnam, who
was impressed by the colourful exhibition put up by 19 social enterprises
in Singapore, said in his speech at the Forum, “I am heartened
to see the passion our youths have for social causes. Possessing
intrinsic desire is the root of creation of the greatest impact
and success.”
Associate Professor Quek Ser Aik, Vice-dean of
Undergraduate Studies for NUS Business School, said in his opening
address that the national-level conference, which required a year
of preparation, brought out the “full leadership potential
of the students”. “That they managed to involve business
people, civil servants, social fighters, NGOs, fellow students,
local and foreign social entrepreneurs and members of the public,
local and international, in one platform, speaks volumes of their
vision and skills in stimulating positive social change.”
The 19 social enterprises included the Highpoint
Halfway House, which aims to put former offenders on the road to
recovery, and has opened a popular restaurant, Goshen, where ex-offenders
constitute 80 per cent of the full time staff strength. Another
social enterprise is NUS-SIFE (NUS-Students in Free Enterprise),
http://www2.bschool.nus.edu.sg/corpdev/
bizleads/ Jul05/studenthighlight.htm#sh2, which is part of a global
student organisation promoting social entrepreneurships.
| "Social
entrepreneurs respond to their own instincts and values, even
though there were strong family and social pressures pushing
them in the direction of marketable and socially acceptable
jobs. Any one of them could have been incredibly successful
and made millions. But they drove forward in their visions
because they believed in them, and they were able to convince
others along the way. This courageous spirit is the beginning
of a spectrum of social change." |
Dr
Pamela Hartigan, Managing
Director of the Schwab Foundation for Social Entrepreneurship,
a Swiss-based organization focused on advancing the practice
of social entrepreneurship globally, educated the audience
on the different models of Social Entrepreneurship in the
world, illustrating their relevance in both developed and
developing nations. |
| "Making
poverty history is a sound bite that has been repeated over
and over again, but poverty should not just be solved through
charity. We have to move from charity to inclusiveness, from
inclusiveness to a just society, and from a just society to
peace." |
Mr
Anil Chitrakar, the energy planner, conservation
advocate and Ashoka Fellow from Nepal, is part of 1,500 Ashoka
Fellows in 53 countries around the world who are social entrepreneurs.
He stressed that charity and the business world are not mutually
exclusive, and any gap between the two can be bridged by social
entrepreneurs. |
Participants
were also treated to a panel discussion on social needs in Singapore
by both practioners and academics, including Ms Braema Mathiparanam,
President of Association of Women for Action and Research (AWARE);
Associate Professor Tan Ngoh Tiong of the NUS’ Department
of Social Work; and Mr Sam Kuna, Executive Director of Teen Challenge.
The Forum drew a full-house crowd of 1,300 at
the University Cultural Centre on 13 August. Education Minister
Tharman Shanmugaratnam and NUS President Professor Shih Choon Foong
graced the occasion.
School Notes
Inaugural
UCLA-NUS Executive MBA commencement ceremony in LA
The
first intake of participants in the UCLA–NUS Executive MBA
program graduated in a glittering commencement ceremony on August
27 at the UCLA Anderson School of Management, Los Angeles, USA.
Fifteen months ago, this inaugural class brought
together 18 participants from around the world, with strongest representation
from the United States and Asia. Mostly senior managers and key
decision makers from diverse industries, these high-fliers devoted
two weeks once every three months to formal classes. These six two-week
sessions (over 15 months) met in three different business hubs -
Singapore, Los Angeles and Shanghai, and brought out the best in
the participants as they matched the pace and rigour of the programme.
Even lunchtime was an occasion for learning.
All the hard work translated to pride and joy and a strong sense
of personal and professional accomplishment at the commencement
ceremony. The participants particularly expressed their delight
about the global nature and rigour of programme, as well as the
quality of professors and fellow-participants.
(For details of the UCLA-NUS Executive MBA program, please visit
www.ucla.nus.edu.)
In their commencement addresseses, Professor Bruce
Willison, dean of UCLA Anderson School of Management, and Associate
Professor Jochen Wirtz, Academic Co-Director of the UCLA-NUS Executive
MBA Program at NUS Business School, expressed their immense pride
in the accomplishment of this newest group of Executive MBAs. Dean
Willison conferred the degrees on the graduates.
The class chose Mr Lai Chong Meng as the valedictorian
to speak on their behalf. To read more about him, visit http://www2.bschool.nus.edu/corpdev/bizleads/Sep05/
perspective.htm.
At the ceremony, the brand-new alumni of the schools
gave away two Teaching Excellence Awards to Associate Professor
Kulwant Singh from NUS and Professor Christopher Tang from UCLA.
Careers opportunities and challenges in
Singapore's finance sector
The
Saw Centre for Financial Studies and The Institute of Banking and
Finance are presenting a series of three talks by industry veterans
on the challenges and career opportunities offered by the rapidly
expanding financial services sector in Singapore. The organisers
hope to help students understand the requirements of the industry
and prepare themselves adequately for a career in finance upon graduation.
The first talk of the series, “Singapore’s
Fund Management Industry and Career Prospects”, was held on
31 August and warmly received by the students, with a full-house
audience.
Mr Andrew Kwek, Executive Director of the Investment Management
Association of Singapore, talked about the various factors that
have fueled the growth of the fund management sector. These include
high domestic saving rate and the introduction of new products.
The growth offers many entry-level positions that fresh graduates
can pursue. The audience particularly liked Mr Kwek's witty presentation
and practical tips on job search.
The other talks covered careers in banking (Mr
Terry Lee, Executive Director of ACI Singapore - The Financial Markets
Association on 7 September) and wealth management (Mr Henk de Glint,
Deputy Managing Director on 14 September). Watch this space for
updates on these talks.
Investment experts
share perspectives on personal finance
From
the academic world
Mr John Allen Paulos, Professor of Mathematics from Temple University
in the US and the author of several bestsellers, including A
mathematician plays the stock market, was invited to speak
to the NUS community on 12 August.
Prof Paulos delineated how mathematics can
help us understand the vagaries of the stock market. He gave an
engaging presentation, using real life scenarios to examine the
paradoxes associated with the market. He also illustrated his intriguing
analysis of investor psychology with his own misadventure with the
now defunct WorldCom, a company that became synonymous with fraud
in the late 1990s.
The Department of Decision Sciences and
Saw Centre for Financial Studies of NUS Business School organised
the talk with the Department of Mathematics, Faculty of Science.
More than 300 staff, students, alumni and members of the public
attended the talk.
From
the corporate world
In another talk organised by the Saw Centre for Financial Studies,
Mr Tay Han Chong, Head of Investments, Treasury and Asset Products
for Global Consumer Banking at Citibank, Singapore, spoke to an
audience of 110 from the NUS community.
Mr Tay spoke on the results of a recent Citibank
study on the emotions behind investing, and how having different
psychological biases affect investment decisions. Singapore investors
were found to be more risk-averse due to unfamiliarity with assessing
and managing risk.
Mr Tay also highlighted the need to review various
investment instruments as a portfolio rather than as individual
instruments. He underlined the importance of starting a regular
savings and investment plan early in life.
A prelude to NUS
Business School's 40th Anniversary Gala Dinner
NUS Business School will be celebrating
its 40th anniversary with a gala dinner at Meritus Mandarin on 5
November. This will be an evening of nostalgia and networking as
faculty members, staff, alumni and corporate partners meet to celebrate
this significant milestone of the School.
To commemorate the celebration, the School will
publish a 172-page book entitled: Developing Business Leaders
For The Global Marketplace, Commemorating 40 Years of Business Education.
The hard-cover book is well-illustrated, containing
exclusive interviews with prominent alumni, outstanding students,
faculty and staff reminiscing the “good old days”, and
sharing their aspirations for the School.
For further information about the gala dinner,
please check out the website, www.bschool.nus.edu/bizdinner/.
Dean meets International Resource
Panel Patron
Dean
Professor Christopher Earley hosted a dinner on 27 August to thank
the Patron of the NUS Business School International Resource Panel
(IRP), Tan Sri Frank Tsao, for his support of the School.
Among the guests present were IRP Chairman Mr
Peter Tay, alumni Mr Wong Ah Long and Mr Yeo Keng Joon. Vice-deans,
Associate Professors Prem Shamdasani, Quek Ser Aik and Trevor Wilkins
were also present.
The NUS Business School International Resource
Panel acts as a special advisory panel for the School's development
as the leading business school in Asia. It supports the School’s
growth by garnering industry feedback, establishing key networks
and bringing in financial and other resources.
Visitors from abroad
Indonesia
On 16 August, a group of 35 faculty members from the Economic Faculty
of Airlangga University, Indonesia, visited NUS Business School.
The team was led by its dean Professor Budiman Chr. The Corporate
Development Office hosted the visitors with a presentation and briefing
on the structure and development of the School. The visit ended
with a campus tour and exchange of corporate souvenirs.
Bangladesh
A group of 30 business students from the American International
University of Bangladesh (AIUB) Educational Group (Business), and
their coordinator of Student Affairs Assistant Professor Ehsan Ahmed
visited NUS Business School on 2 September. The visitors wanted
to learn more about the School’s MBA programmes and student
life.
Ms Chua Nan Sze, Marketing and Admissions
Manager for the MBA Programs Office, gave an engaging and informative
presentation on the School’s various MBA programmes. Nikhil
Kochbar, head of the MBA Club, and his club members were also present
to mingle with and give the visitors a glimpse of MBA student life
at NUS.
Based in the capital of Bangladesh, Dhaka, AIUB is committed to
excellence and innovation in computer-based education, discovery
and application of knowledge through research and creative activities.
Student Highlights
Mr and Miss Bizad finalists revealed at
Jam and Hop 2005
The
School held its Jam and Hop, “Reveal”, at Zouk on 24
August. The night started with a pageant preview, in which the Bizad
Pageant finalists were announced. For the first time, there was
“open voting” for the most popular Pageant finalists,
and the result contributed 10 per cent tothe final score. The segment
drew a large crowd eager to support their favourite contestants.
Following the pageant preview was a stage game,
“Search for Mr Hunky and Miss Sexy”, where three male
and female contestants were selected and invited on stage. The male
and female winners won for themselves a bottle of Jack Daniel each.
The event saw a big turn-out from the Bizad
population, who stayed on after the programme to party.
BizBall "Secret
Garden" a grand finale for Freshmen Orientation 2005
BizBall
2005 was held at Mandarin Court in Meritus Mandarin on 3 September.
The highlight of the ball was a combined performance
by the three pairs of the finalists of Bizad Pageant 2005.
There was also an impromptu “Prom King and
Queen” segment where the seniors were picked from the audience
to vie for the titles of Bizad Prom King and Queen 2005. Diana Lee
and Khoo Wee Sheng, both BBA Year 3 students, won the respective
segments.
The evening ended with the screening of a video
showing activities from the entire Freshmen Orientation Programme
2005, from the Freshmen Orientation Camp and Rag and Flag to Orientation
Week and Jam and Hop. Tokens of appreciation were also presented
to heads of four programmes.
Staff News
Dean speaks at Harvard Business Review
Conference in Chile
The
dean of NUS Business School, Professor Christopher Earley, was a
keynote speaker at the “Diversity and Leadership” conference
in Chile held from 30 to 31 August.
Prof Earley spoke on “Cultural Intelligence”
(CQ) as a combination of intelligence quotient and emotional quotient
in adapting to different cultures. CQ consists of the actions one
takes, the level of motivation to adapt, and the capacity and willingness
to change one’s habits in a culturally diverse environment.
He shared on ways to develop CQ in employees so
as to lead globally diverse organisations effectively, and compared
traditional approaches to CQ approaches in meeting cultural differences.
For example, CQ managers identify specific strengths and weaknesses
in a culture and provide training for weaknesses.
Prof
Earley developed the new idea of cultural intelligence http://www.bizjournals.com/charlotte/stories/2005/09/12/focus23.html?page=2 with
Elaine Mosakowski, and has co-authored several books on the topic,
including Developing Cultural Intelligence at Work (Stanford
University Press, 2005).
Five hundred business leaders from Chile and South
America attended the Conference sponsored by Harvard Business Review
Latin America and Universidad de Catholico.
Other speakers included the Chilean Minister for
Trade, a professor from the Wharton School of the University of
Pennsylvania and a consultant from the Centre for Creative Leadership
(USA).
Faculty in
technopreneurship awarded National Day Public Admin Medal
Associate
Professor Wong Poh Kam from the Department of Business Policy was
awarded the National Day Public Administration Bronze Medal on 12
August.
Assoc Prof Wong, who has been the Director of
the NUS Entrepreneurship Centre since 2001, received the award for
his contribution to entrepreneurship education in Singapore.
He said modestly of his win, “This award is not really for
me, but for all my colleagues in NUS who share the passion of contributing
to educating a future generation of entrepreneurial leaders in Singapore.”
The other winners of the Bronze Medal are Dr Catherine
Chua, Head of University Health and Wellness Centre, and Mrs Phang
Wat Kum, Jennifer, Vice-Principal of NUS High School of Mathematics
& Science.
Long Service
Awards
At a staff meeting on 6 September,
many staff and faculty meetings with the dean Professor Christopher
Earley, various members of the NUS Business School family were given
the Long Service Awards for their dedicated service and contribution
to the School in the past two decades. The recipients are:
25-Year Award
- Assoc Prof Ter Kah Leng (Business Policy)
- Assoc Prof Hum Sin Hoon (Decision Sciences)
- Professor Leong Siew Meng (Marketing)
- Mr Abdul Rashid Bin Ghazali (Dean’s
Office)
- Ms Renuka Peter (Dean’s Office)
20-Year Award
- Assoc Prof Lawrence Loh (Business Policy)
- Professor Lim Chin (Business Policy)
- Assoc Prof Quek Ser Aik (Decision Sciences)
- Dr David Wan (HRM Unit)
- Assoc Prof Lim Ghee Soon (Management &
Organisation)
- Dr Chia Ho Beng (Management & Organisation)
- Assoc Prof Ang Swee Hoon (Marketing)
15-Year
Award
- Assoc Prof Teo Chung Piaw (Decision Sciences)
- Assoc Prof Ho Yew Kee (Finance & Accounting)
- Dr Winston Kwok (Finance & Accounting)
- Dr Chng Chee Kiong (Finance & Accounting)
- Ms Chee Mew Leng (HRM Unit)
- Mr Abdul Rahim (Dean’s Office)
10-Year
Award
- Assoc Prof Pangarkar Nitin (Business Policy)
- Assoc Prof Chen Renbao (Finance & Accounting)
- Ms Cui Jing Lan (MBA Office)
- Ms Jocelyn Neo (MBA Office)
- Ms Hamidah Bte Rabu (Dean’s Office)
- Mr Asnan Bin Mat (MBA Office)
New appointments
Associate Professor Chen Renbao has been appointed
Academic Director of the NUS-PKU International MBA Program for a
period of one year from July 2005 till June 2006.
Associate Professor Peter Hwang has been appointed
as Director of the Asia Pacific Chinese (APEX-Chinese) MBA program
from September 2005.
Tenureship
Associate
Professor Inmoo Lee was granted Associate Professorship with tenure
with effect from 1 July 2005. Formerly an Associate Professor with
Korea University, College of Business Administration, Dr Lee's research
in corporate finance has published in several top-tier finance journals.
Alumni Updates
CEO Unplugged 2005 - The 10th Instalment
CEO Unplugged is a series of informal talkshows that invites CEOs
to share their views and experiences on a variety of topics-both
business and personal.
The 10th Instalment held at NUS Business School on 25 August drew
a full-house audience of over 200 participants comprising high-profile
members of the industry, alumni, current students from NUS and other
universities.
CEO guests are this instalment’s guest CEOs
were Mr Alphonsus Chia (Deputy CEO, IE Singapore), Mr Hans-Ulrich
Mayer (Managing Director, Nestle Singapore) and Ms Kitty Fong (General
Manager, Nokia Singapore). Here are some highlights and insights
from the guest speakers:
Mr Alphonsus Chia
- Deputy CEO, IE Singapore |
More
Singapore success stories needed
Singapore companies have got to be less complacent and more
aware that many other countries are moving much faster than
before.. Our nation needs more success stories like SIA to fuel
the growth of our nation.
His take on leadership
Leadership starts and ends with people. A good leader is one
that is able to lead and motivate his people towards a common
goal. In this vision, you need an organisation to be creative
and innovative, to be constantly adapting to the needs of
the people while ensuring consistency and stability where
it matters. Balancing these two areas are essential in ensuring
a company moves forward smoothly.
What
are some of the beliefs that you continue to hold on to?
Be true to yourself. When you start working, you will find
that you will be pulled in different directions to meet your
objectives. You will face different opinions so you have to
be sure of your principles and stay true to them. You have
got to stay focused and carry through. |
| |
Dr Hans-Ulrich
Mayer
- Managing Director, Nestle Singapore |
| The
addiction of working overseas
I believe that those who start to travel and work overseas
find the experience addictive and difficult to stop. When
you work in different countries, you discover that every culture
is different and every country has a lot of exciting things
to offer, making life that much more memorable.
What attracted
you to switch to Nestle
Nestle offers the opportunity of working in a fast-moving
consumer market where one is able to gain a total overview
of the industry from back-end operations to front-end marketing
is a refreshing change.
Nestle is a company which deals with many
technologies, markets and industries. If one sees the diversity
and the international outlook of our company, one will understand
that we are one of the most innovative companies in the world.
|
| |
Ms Kitty Fong
- General Manager, Nokia Singapore |
| Her
postgraduate studies
It was the different perspectives offered by my classmates
which made my postgraduate course a really interesting and
meaningful one.
However, I felt that there was a need for
Asians to start asserting themselves and voicing their opinions
more. Today, we are working in a competitive environment,
looking at a global market where we are no longer competing
among ourselves but with talents all over the world. If you
do not stand up and voice out, it will be more difficult for
us to stand out in this global environment today.
Customer-driven
solutions
For Nokia, our focus is making our products and services as
intuitive as our consumers want them to be. Human technology
is Nokia’s design vision where we start from the end-user.
Follow your
hearts in carving out your career
You have to find happiness in whatever you do. Usually the
answer lies within yourself and knowing what you want. Throughout
your student life and career, it is important to take it easy
and listen to yourself. Know what you really need from life,
because in the end, that will be what really matters. |
The NUS Business School Alumni
Association organised the highly successful series.
Bizad80's
strong bonds "Then & Now"
Bizad
Class’80 held their 25th Anniversary Reunion, themed "Then
& Now", on 27 August at the Royal Plaza @ Scotts.
The evening began with cocktails at the poolside
followed by a dinner party. Alumni Mr Ronald Ong and Mr Francis
Yuen entertained the crowd with nostalgic renditions of the evergreens
of the 70s and 80s. Lecturers and classmates then spontaneously
went on stage to share fond memories. A commemorative DVD was also
screened to recount the good old days.
Associate Professor Lau Geok Theng, Assistant
Dean of Undergraduate Student Affairs, attended the reunion as one
of the 1980 alumni. He said, “It was a fun evening of renewing
old ties with former classmates and lecturers and networking for
the future. The program was well organised. Our bonds of friendship
are strong and I am sure like me, everyone is looking forward to
the next get-together.”
Eighty people attended the reunion, including
former lecturers such as Professors Tan Chin Tiong and Wee Chou
Hou, Mr Chua Joon Eng, Dr Juzar Motiwalla, Dr Ling Sing Chee, Dr
Mukul Asher and Dr Ta Huu Phuong.
Perspective
UCLA-NUS Executive MBA Program equips
senior managers with skills to compete in a global economy
"The UCLA-NUS EMBA
is a unique programme structured to equip participants with a solid
foundation to operate effectively in a highly competitive global
environment, "said Mr Lai Chong Meng, graduand and valedictorian
for the first cohort of UCLA-NUS Executive MBA Program.
I
am 60 this year, and like others from my generation, I witnessed
the splendid transformation of Singapore.
As a child, I grew up amidst the poverty of family and friends.
The hard-work, determination, humility and gentleness of some of
my closest kin and friends gave me the determination to succeed
in my own life. I started as an apprentice in Singapore, did my
studies in England, returned to Singapore and was subsequently sitting
on several senior general management positions.
My wife Judy has been a very supportive partner;
she gave up her job when our two children, son Wai Cheong and daughter
Siu Yin were young. Now Wai Cheong (University of Western Australia
- Economics), 29, and Siu Yin (National University of Singapore
- Mechanical Engineering), 27, are pursuing their own successful
careers.
Though I have achieved significant success in my career, I was not
content to rest on these laurels. Singapore progressed from a third-world
country to that of a first world in less than 40 years. In the context
of a globalised economy, its success in going forward will depend
on whether the population has the skills to create a sustainable
value-add to its trading partners. Any executive who wishes to remain
relevant to the needs of his organisation and its customers must
continue to upgrade himself with the relevant skills.
That was why I decided to enrol in the UCLA-NUS
Executive MBA (EMBA) Program, a rigorous 15-month journey that led
me to classrooms in Los Angeles, Singapore and Shanghai. The UCLA-NUS
EMBA is a unique programme structured to equip participants with
a solid foundation to operate effectively in a highly competitive
global environment.
Now, after graduation, I am like a seasoned carpenter
with a new set of tools, or at least a set of well-honed existing
tools! These tools have enabled me to be more structured in my thought
process. I have acquired a much better understanding of the need
to balance informed intuition with structured analysis in a decision-making
process, and have become a much more effective manager as a result
of the programme.
Mr Lai Chong Meng graduated with 17 other
classmates in the first cohort of the UCLA-NUS Executive MBA Program
at the Anderson School of Management in the University of California,
Los Angeles, and was the valedictorian for the commencement ceremony.
As a senior executive, he was instrumental in the start-up of the
main core businesses of Brambles (a listed company on the Australian
and London Stock Exchange) in Asia when he joined the company in
1995. Today, the core business units employ more than 700 people
in Asia with revenue in excess of US$100 million. Previously, he
held senior management positions in industries such as shipbuilding,
manufacturing and construction.
Special Feature
Corporate governance for business
success
Business Leads catches up with Associate Professor
Mak Yuen Teen, whose book From Conformance to Performance: Best
Corporate Governance Practices for Asian Companies was launched
on 29 July 2005 by McGraw-Hill and the Singapore Institute of Directors
at the Executives' Club, OCBC Centre.
The book launch attracted 150 people, mainly
directors, senior executives and industry professionals. Assoc Prof
Mak gave a speech on "What's New in Corporate Governance?",
which covered changes in the recently revised Singapore Code of
Corporate Governance, emerging best practices in international companies,
changing expectations with regard to directors' duties, and key
issues to be addressed in “whistle- blowing” arrangements
in organisations.
How
does conformance to regulations lead to better performance? Is that
not a contradiction?
There is a misunderstanding that corporate governance
is purely about conformance to regulations. Companies often approach
corporate governance with a "box-ticking" mentality, making
sure that rules and codes are complied with in form, rather than
in substance.
Real improvements in corporate governance can only come about if
companies embrace the spirit of good corporate governance that includes
inculcating a strong ethical culture within the organisation emanating
from the very top. This would mean having a board of directors who
have the right skills, are committed to the company and have adequate
independence.
Currently, local companies pay their independent directors between
S$15,000 to S$25,000, when countries such as Australia or UK pay
theirs at least three times as much. If companies embrace the spirit
of good corporate governance, pick directors with the attributes
I referred to above and pay them appropriately, then the governance
and the performance of the companies will improve.
The book goes far beyond teaching companies how to comply with regulations
and codes. It also provides ideas on practices that can truly improve
corporate governance and result in better performance.
Any successful
examples of Asian firms which have used corporate governance to
their advantage?
The typical Asian company, because of its concentrated
shareholdings, faces special challenges because of the blurring
of the lines between shareholders, the board of directors, and management.
The biggest challenge is ensuring that independent directors are
able to protect shareholders' interests against conflicting interests
of management, and also ensuring that large shareholders do not
take advantage of small shareholders. The latter problem is usually
less of an issue in companies in the U.K. and U.S., for instance.
Companies like Singtel, Keppel Corp, and SMRT take corporate governance
very seriously. Singtel is one of the few Singapore companies with
an independent Chairman of the Board, and the first Singapore company
to have the CEO and CFO sign off the financials. Singtel has a very
well-designed performance share scheme for its CEO, and good disclosure
of remuneration, amongst other good practices.
Keppel Corp has a lead independent director to
compensate for the fact that they do not have a separate Board chairman.
It is one of the first few Singapore companies to have a “whistleblower
procedure”.
In Asia, we generally still do not have what I would call effective
shareholder engagement, whereby unaffiliated institutional investors
who have a significant stake in a company engages with the senior
management and the board to effect real changes in corporate governance,
such as replacement of the CEO and directors.
We have seen Sovereign Asset Management attempting this in South
Korea but recently quitting their presence completely there, after
appearing to have made little headway. Yet, there is increasing
evidence that such shareholder engagement leads to significant improvement
in stock price performance.
In your opinion,
and based on the recent Corporate Governance and Financial Reporting
Centre (CGFRC) survey findings, what will be the future trend of
corporate governance in Singapore? Is it picking up at a fast enough
pace?
I think recent corporate scandals relating to
companies such as CAO, Citiraya, ACCS, Informatics and others have
led to considerable soul-searching about the true state of corporate
governance in Singapore and whether further improvements are needed.
However, the counterbalance to this is the concern
that further enhancements to our corporate governance framework
will increase business costs, and make Singapore uncompetitive.
My view is that we need to first make sure that existing rules are
properly enforced.
Singapore can never set as high a threshold as the U.S. in terms
of corporate governance standards, but I think we should constantly
review our standards relative to the more developed economies. Corporate
governance costs are a small part of total business costs, and if
properly implemented, corporate governance can minimise the risk
of corporate governance failures and the massive destruction of
shareholder value and damage investor confidence.
Singapore is moving a little slower than I like, but improving corporate
governance is a long distance race, not a sprint. I think more can
be done to assist companies to move further up the curve, such as
training and building up a pool of good directors.
Why is the area
of corporate governance of special interest to you?
Corporate governance is one of those areas where
there is almost a seamless relationship between research, teaching,
policy making and practice. This is not the case in many other areas,
where there is a large disconnect between research, teaching and
practice.
The experience and knowledge I have gained from sitting on various
corporate governance-related bodies in government and industry and
from my interactions with directors, executives and other professionals
immensely enrich my teaching of this subject at NUS Business School.
I would say that I've learnt as much from practitioners as I have,
hopefully, enhanced their understanding of issues.
Coming Events
DBS NUS Heritage Run
18 September 2005
Mid-Autumn Festival Celebration
19 September 2005
NUSBSA Happy Hour
29 September 2005
3rd Sino-Japanese Optimization Meeting in the e-Business
Era
31 October - 2 November 2005
40th Anniversary Reunion Dinner
5 November 2005
Calendar of Events - http://www2.bschool.nus.edu.sg/corpdev/calendar3/
In Touch, In Tune
We welcome feedback and suggestions. Please
e-mail us at askbiz@nus.edu.sg.
Calling all Bizaders: Stay in touch. Please update your contact
details at https://www.alumni.nus.edu.sg/alumNET/index.jsp
Published
by Corporate Development Office, NUS Business School.
© All rights reserved.
|