Malaysia: Impact of defunding Public Universities


January 24, 2017

Malaysia: Impact of defunding Public Universities

by Dr. Lee Hwok Aun
Published in The Edge, January  16, 2017

Malaysia’s public universities are headed for troubled waters and it is unclear whether our policy makers and executers are even on the lookout. The university rankings business is a debatable one, but I bring it up here because it is the government’s ultimate performance benchmark, and recent developments underscore the detachment of officialdom from the institutions’ woes.–Dr. Lee Hwok-Aun

Image result for Defunding Malaysian Public UniversitiesMalaysia’s Finance Minister Najib Razak–Presiding over a soon to be financially insolvent nation

Malaysia’s public universities are headed for troubled waters and it is unclear whether our policy makers and executers are even on the lookout. The university rankings business is a debatable one, but I bring it up here because it is the government’s ultimate performance benchmark, and recent developments underscore the detachment of officialdom from the institutions’ woes.

The University of Malaya’s rise to #133 on the QS World Universities score sheet in 2016, its best position ever on this rankings scheme, was greeted on campus with surprise, nonchalance, and a dash of despair. The sentiments are distinct from previous years. When UM inched up the rankings, from #156 in 2012 to #146 in 2015, these small and steady gains brought relief, and a bigger hop from #167 in 2011 to #156 in 2012 infused a sense of accomplishment. Research grants were quite abundant, there was support for internationalization, for recruiting and retaining talent. Universities were basically supported, we seemed to be doing things better; improvement in the rankings made sense.

Then came the funding cuts. Federal budget allocations for universities were slashed by 12% in 2015, 15% in 2016, and 19% in 2017. UM took the biggest hit in 2016, when it suffered a 27% shortfall from the previous year. And here lies the trigger of despair. This defunding spree, coinciding with a major leap in the rankings, might be taken as vindication, and perhaps embolden further budgetary constriction.

The government will be perilously mistaken to do so. Continual aggressive defunding brings three significant deficits on Malaysia’s public universities.

First, a personnel deficit. Severe fund-slashing compels severe cost-cutting, shock therapy induces desperate measures. Contract staff are one of the first on the chopping block because the funds for this specific category of employees have dried up. Many contracts have not been renewed, and they are not substituted with allocations for part-time instructors or new recruits. Financial dispensability, however, does not equate with importance to core activity and service. Numerous academic departments count on contract academic staff to teach core courses and produce research and publications.

As contract staff are ushered out, the same workload gets distributed among the remaining staff, increasing their burden and contributing to the second deficit, in morale. Academics will likely see burdens increased, while concerns toward the funding cuts are typically dismissed by invoking the seemingly non-negotiable policy of reducing public subsidization of university expenditure. The Higher Education Blueprint 2015-2025 outlined new funding formulae, with performance-based allocations and per student funding as appealing new features. This formulae is to be rolled out on a “gradual”, “gate-staged” basis.

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ISEAS-Yusuf Ishak Institute Senior Fellow, Dr Lee Hwok-Aun

“Performance funding” is especially contentious. If fixated on numbers and not adequately anchored to the public interest and long-term objectives, as seems to be the case, there is every potential for the system to be gamed, for example, by lowering academic rigour to boost completion rates and student satisfaction, or pursuing quantity over quality of research. Given these complexities, one would expect the policy to be agonizingly deliberated, and gradual and systematic if implemented.

Image result for University of Malaya

But Universiti Malaya and Universiti Kebangsaan Malaysia have already, for 2016 and 2017 respectively, been administered huge funding cuts of 27% and 31%. Why? Enrolments have not fallen precipitously, nor have the universities massively scaled down operations. Have they performed so badly? The lack of coherence and transparency in the targeting of funding cuts, compounded by drained research grant reservoirs, are disconcerting, and cannot be good for morale in the academic community.

Some initiatives with good potential risk derailment. At the University of Malaya, to allow for academics to play to their relative interests and strengths, different career tracks – focused on research or teaching – are also being rolled out. But in the hasty pursuit of extracting more output from less resources, research track targets have been made frighteningly difficult to hit. Few select that option, and some – the more diligent, productive, conscientious ones – have been forced to take it against their wishes, to the detriment of their morale.

What of the next generation of academics? Policy brims with rhetoric of talent development, and reference to the Higher Education Talent Roadmap, but the Malaysian approach diverges from the practices in recognized institutions. Globally leading universities excel by attracting talent, then trusting them, through their dynamism, creativity and self-motivation, to research, teach and contribute to public knowledge with light monitoring. Malaysian universities are increasingly inclined to do the opposite – micromanaging rewards for formulaic outcomes, distrusting the industry and capability of staff, monitoring for compliance and resisting change, which seriously risk repelling and losing talents that are drawn to institutions that safeguard trust, autonomy and freedom.

Which brings us to a third deficit that can grow as public financing shrinks: our international profile. Malaysia’s public universities, having made inroads in internationalization, could see these gains reversed. The public universities are subject to the public services employment scheme, including the rule that a non-citizen cannot be hired on a permanent basis. All non-Malaysian academics are on contract, predominantly short term. The more contracts are not renewed, the less international our profile. Will Malaysia’s public higher learning institutions, especially the research universities, become more domestic, less global? That might happen, and if so, our presence on the world academic stage will fade. A specific recruitment scheme for public universities, promoting secure employment of international academic staff, is worth considering.

The presumption that rebalancing of university funding sources and reducing of government subsidy necessitates budget cuts also warrants scrutiny. These can be achieved by maintaining the federal allocations, while facilitating growth in other sources. There is currently a baffling downward spiral and multiple moving targets. Both the share of government subsidies and the overall expenditure of universities are falling – why?

Suppose a university currently spends RM100 million and receives RM90 million from government, in line with the current 90% subsidization rate. Expenditure of RM120 million in ten years would be a reasonable projection. If the government share declines to 70%, then in ten years – a “gradual” rollout as the Blueprint stipulates – the government’s contribution would amount to RM84 million, or basically holding steady, not dropping steeply.

Will the government assess the impact of the funding cuts and reconsider the policy – at least its pace and severity? This will take courage, since reducing public funding has been high on the higher education agenda for a decade, and the government defends the deep cuts apparently as a mark of its resolve.

But at the rate we are cutting funds, it will be impossible to avoid deficits in personnel, morale, and international profile.

Dr. Lee Hwok Aun is Senior Fellow at ISEAS-Yusuf Ishak Institute.

 

From Economic Analysis to Inclusive Growth


January 23, 2017

From Economic Analysis to Inclusive Growth

by Kemal Dervis

Most economies are seeking a recipe for inclusive economic growth, whereby high rates of investment, rapid innovation, and strong GDP gains are pursued alongside measures to reduce income inequality. Conservatives insist that growth requires low taxes and incentives such as flexible labor markets to encourage entrepreneurship. But reducing inequality requires higher levels of government spending and taxation (except when government is pursuing deficit spending to stimulate a depressed economy).

Related imageFree Education for All–Investment for an Educated Citizenry

The Scandinavian economic model is often invoked to bridge this gap. The Danish “flexicurity” system, in particular, has historically delivered solid economic performance alongside low inequality. Leading economists such as Philippe Aghion have published excellent analyses of how this model could balance growth, equality, and overall satisfaction of citizens elsewhere in the world.

These economists argue that labor markets with few restrictions on hiring and firing, low taxes on entrepreneurship, and generous incentives for innovation are compatible with a relatively equal income distribution, high social spending by government, and equalizing social policies such as universal free education.

This model has sustained an ongoing debate in Europe, one that is now relevant in the United States, because Donald Trump’s new administration has promised to help globalization’s “losers” while improving innovation and growth. But in the US, it is far more difficult, politically, to argue for generous public spending on education, health care, and financial security for retirees, because doing so always raises the specter of high taxes.

An inclusive growth model would seem to have to square the policy circle. It would have to increase substantially public spending, particularly on education, unemployment benefits and training, and health.

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Inclusive Green Growth?

It is useful to look at the numbers from the oft-cited Danish and Swedish examples. Generally speaking, these countries have excellent economic indicators. Although GDP growth is not higher than in the US, most people share a high standard of living, and surveys show that Scandinavians (particularly Danes) are some of the happiest people in the world. But, as the following chart shows, these countries also have some of the highest government spending- and taxation-to-GDP ratios in the OECD.

spending to taxation ratios

Hypothetically, if the US adopted Denmark’s universal free education policy, but kept its tax-to-GDP ratio unchanged, its fiscal deficit would exceed 6% of GDP. The US has run deficits that high only during World War II and the Great Recession of 2008-2009, when a huge stimulus package was implemented to spur recovery. So, just providing universal free education in the US would run the country’s deficit up to the highest level ever recorded in normal times.

In the context of this comparison, it would seem that the circle cannot be squared without a major macroeconomic shift. Scandinavian countries are smaller and can more efficiently collect revenues and administer public services. But even if the US approached this efficiency – a difficult feat in such a large and diverse country – social solidarity still would demand high effective taxes, as it does in Denmark and Sweden.

Another crucial component of the Scandinavian model is labor-market flexibility. On the OECD “Employment Protection Legislation” index, the US scores a 1.2 on a 0-5 scale, where zero indicates full flexibility. Meanwhile, France and Germany come in at 2.8, Italy at 2.9, and Denmark and Sweden at 2.3 and 2.5, respectively. This shows that, though Scandinavian labor markets are more flexible than elsewhere in continental Europe, the US labor market is far more flexible – and provides less security – than any of them.

Such broad static accounting suggests that we should proceed cautiously in applying lessons from the Scandinavian model to large countries like the US. Then again, to assess a model’s long-term impact on citizens’ welfare, we would need a more dynamic analysis over the course of at least a decade. Only then could we gauge how strongly investment and innovation would respond to incentives, how much free universal education would cost in the medium term, or how demographic structures would affect different social policies.

Economic analysis alone cannot settle the political debate between right and left. What it can do is help to narrow and focus that debate. The key is for participants on both sides to be more explicit about the values and objectives they believe that society should pursue, and to quantify their assumptions about how dynamic performance will respond to particular incentives. Only then can a democracy choose effectively between potential paths.

Good economic analysis can enable “constructive populists” to debate the “post-fact, fanciful populists” who seem to be on the rise, with a realistic alternative discourse – one that is transparent and based on credible expectations of economic policies and outcomes. In other words, economic analysis can facilitate good choices; it cannot make them.

Untapped Women Power: The key to a brighter Malaysia


January 12, 2017

Untapped Women Power: The key to a brighter Malaysia

by Dr. Anas Alam Faizli*

Received via e-mail from the writer)

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Free them to pursue their dreams and they will make Malaysia great again

THE High Income Nation ambition or the “number game” has been our central economic discussion for the past seven years. Countless policies have been crafted for this end game but the solution remains elusive.

I have a revelation. The key and the secret to achieve this lies within humanity’s other half; Women. Let me explain.

Women empowerment could potentially unlock an additional income per capita of approximately US$2,300 for the country; which will easily enable an overnight achievement of our target.

The preamble of the Universal Declaration of Human Rights mentioned that: “Whereas recognition of the inherent dignity and of the equal and inalienable rights of all members of the human family is the foundation of freedom, justice and peace in the world.”

However, the world is not ideal. It is true that all humans are equal, but some are more equal than others, and none more unequal than the status of women itself and everyone must be held responsible.

Women form one half of humanity, and are as equal to men in every aspect, except physical strength — hence, weaker sex, and more beautiful to look at — hence, fairer sex. Unfortunately, in this modern and progressive era, gender discrimination and stereotyping is still alarmingly prevalent.

Women in Tertiary Education

Image result for women in universitiesThis is what they do in Iran and Malaysia too is heading in that direction, thanks to our Ulamaks and UMNO salaried  Mullahs

The society at large has always been fast to dismiss women’s achievements. This also include women’s remarkable achievements in tertiary education; where women have shattered a glass sphere that was once only available to men.

This is not surprising considering tertiary education has traditionally been dominated by men throughout the centuries. Some have even argued that this is due to the simple fact that there are more women nowadays compared to men.

Data, however, contradict this. According to the Department of Statistics Malaysia (DOSM), as of 2016, Malaysia’s gender ratio indicates that there are 107 males to every 100 females. That brings the actual figure of 16.4 million males and 15.3 million females in Malaysia. Over the past decade, there has been a big shift in the gender balance; women have begun to outnumber men in university enrollments.

This global trend is seen not only in developed countries such America and Europe, but it also prevails in Asian countries such as Brunei, China, Philippines, and Indonesia; with Malaysia being an extreme case in the region.

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In 2015, close to 55 percent of higher education intakes (public and private universities, community colleges, and polytechnics) were dominated by females at 280,296 versus males at 230,858. Females showed a higher domination in public universities’ intake at 106,277; equivalent to 63 percent, versus males at 61,850.

Note: On November 4, Nancy Malkiel, Professor Emeritus of History at Princeton visited Churchill College to give a talk to launch her new book “Keep the Damned Women Out”: The Struggle for Coeducation — exploring the decision in the 1960s and 70s by several Ivy League universities in the USA and colleges in Cambridge and Oxford to ‘go mixed’.

Her research took her to the archives of the three Cambridge colleges that were the first to go co-educational: Churchill, King’s, and Clare.

Churchill College is proud of being the first men’s college in Cambridge to decide to admit women. So it is salutary to remember that it was the last Cambridge college to be founded for men only. What was unexceptionable in 1960 had become unthinkable by 1970. A wave of reforms swept through higher education, and coeducation was one element in a multilayered revolution. On the larger canvas, Churchill’s decision in 1969 was unremarkable. In just five years, 1969-74, dozens of colleges on both sides of the Atlantic ‘went mixed’, including Princeton, Yale, Dartmouth, and Vassar, and three Cambridge and five Oxford colleges. The momentous decision at Churchill is set in the wider context in an impressive new book by Nancy Weiss Malkiel, ‘Keep the Damned Women Out’: The Struggle for Coeducation (Princeton University Press).

Nancy Malkiel speaking to a seated audience in the Churchill Archives Centre

Professor Nancy Malkiel speaking at Churchill College, November 4, 2016.

She argues that, on both sides of the Atlantic, the move to coeducation was largely inspired, not by high principle, but a desire for positional advantage. Colleges were worried, as ever, about their competitive edge for the best students. Young people increasingly did not want to be at single sex institutions. In Britain, whereas Cambridge had just 10 per cent women among its undergraduates in 1965, the new universities reached ratios of around 40 per cent. Admitting women was part of a wider move toward diversifying student cohorts. In the USA that typically involved religion and race (Jews, Catholics, African Americans), in Britain it meant school background (grammar instead of public schools). There was little high-minded talk about justice and equality, and, in so far as general principles were expressed, it tended to be the language of national efficiency: avoiding wastage by exploiting a larger pool of young talent. The primacy of the competitive edge expressed itself nowhere better than in Princeton’s chaotic scramble to admit women in 1969 so as not to be upstaged by Yale.

According to Malkiel, the switch to ‘coed’ was more difficult in the US than in Oxbridge. The alumni were far more powerful and controlled purse strings, and the male dining clubs were more intransigent (it took the New Jersey Supreme Court to force the Princeton clubs to open up). Her book is depressingly rich in examples of visceral hostility. A Dartmouth alumnus expressed the sentiment which she uses for the title of her book. Women students experienced condescension from staff and horrendous misogyny from male students, especially in initiation rituals. She argues that the change in Oxbridge was much smoother (though I think she’s too roseate about the lack of sexism there). True enough, Oxbridge had been educating women for a century, and, similarly, Harvard and Radcliffe had been interacting for decades, whereas at Yale and Princeton the change was more abrupt. One thing certainly made things easier at Churchill: nobody could say that the College’s 600 year heritage was being betrayed. (At Clare, the Master wittily and accurately retorted that in 1870 it had been said that allowing Fellows to marry betrayed a 500 year heritage and would ‘distract’ men from scholarship.)

The relative impacts of college heads, faculty, and students varied as drivers of change. In Oxbridge, college heads sometimes set the pace, especially Sir Eric Ashby at Clare College. At Churchill, the decision was forced by the Fellows against the opposition of the Master, Sir William Hawthorne, with the Senior Tutor Dick Tizard leading the way. When Alison Finch became the second female Fellow in 1972 Sir William told her, ‘Well, Miss Finch, I voted against the admission of women’.

In the early coed years, Yale and Princeton maintained caps on female numbers, declaring that the production of ‘leaders’ (which meant men) must not be diminished. There was a cap at Churchill too, with the parallel case that the College had been founded to produce ‘leaders’ for industry and technology. But the quota, like single-sex staircases, and female tutors for female students, soon lapsed.

It is good to see a key aspect of Churchill College’s short career now becoming the stuff of history books. Malkiel’s Ch. 21 takes for its title a remark by Sir John Colville to Sir Winston Churchill when Winston dared to suggest that maybe his new College could have women. That would be ‘like dropping a hydrogen bomb in the middle of King’s Parade’.

 — Mark Goldie, November 2016

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Nonetheless, their male counterparts have balanced out the numbers in private universities; where the ratio is close to 50:50. The same year also saw 169,198 females successfully graduating from higher education versus males at 120,596.

These numbers are showing that women are in the forefront in higher education. With over 50,000 more females whom have managed to graduate as compared to males in 2015 alone, imagine the existing disparity formed over the past decade.

Unfortunately, significant gains by women in tertiary education have not translated into better labour market outcomes. Aside from the teaching industry, women are not seen to be participating dominantly in the workforce nor as leaders in the corporate, legal, academic, economic or the political scene in proportion to the educational gain demonstrated.

Labour Force Participation Rate

In 2015, our women’s labour force participation rate was at a modest 54.1 percent (out of the total 9.9 million potential women labour force), a far cry from the men’s rate of 80.6 percent.

This number has improved only slightly from 47.2 percent in the year 2000.

Aside from the formal sector, women are seen to be prospering in the informal sector where they are offered more flexibility in working hours.

Aside from the formal sector, women are seen to be prospering in the informal sector where they are offered more flexibility in working hours.

Our neighbours are faring better where women’s labour force participation rate for Myanmar is at 75.2 percent, Cambodia 78.8 percent, Laos 76.3 percent, Vietnam 73 percent and Thailand at 75.2 percent.We are left questioning, “Where have the women gone to and where are they now in our society?”

The next set of questions would be, “what are the socio-economic benefits in empowering women?” and “What are the challenges and how should we address them?”

A study by the World Bank on Malaysian women participation in the workforce found a pattern that suggested Malaysian women older than the age of 26 are more sensitive to life-cycle transitions as compared to other countries in the world.

Married women both in urban and rural areas have the lowest participation rate. Additionally, Malaysian women also retire earlier than their male counterparts.

The World Bank attributes this factor to women being caught in a “double burden” syndrome of managing both the home and caring for their children or the elderly. Another contributing factor to the labour force participation rate gap is that women that leave the workforce after the age of 26 will never return.

This is called a “single-peaked” profile. As opposed to other countries in Asia, an example being in Japan and Korea, they have “double-peaked” profiles; where there is a recovery in labour force participation after women hit the age of 35.

These conditions leading to a woman’s decision to remain or withdraw from the labour force must be assessed within the context of Malaysian cultural and social values to determine the appropriate policy environment and incentives to retain a larger number of women in the labour force after marriage.

Aside from the formal sector, women are seen to be prospering in the informal sector where they are offered more flexibility in working hours.

One of the most popular routes taken by these women are by conducting businesses through social media platforms.

Women in Politics, Local, and State Governments

Since our independence, Malaysian women have had the right to vote in elections and to hold public office. Today, women comprise one half of the registered voters and are active in political life. However, instead of being political leaders themselves, a majority of women have continued the trend of only engaging themselves primarily in raising financial support, turning out in full force during elections, carrying out routine tasks related to daily campaigning, and facilitating voter participation during the election process for their political parties.

The old-fashioned gender roles remain where women are adherent of male leaders and retain traditional positions in political parties. The number of women gaining electoral office in the federal and state governments is also dismal. Gender inequality still persist in this sphere, as indicated by the extremely low percentage of women at all levels of political office.

Malaysia ranks number 156 out of 189 countries in the number of women representatives in the national parliament at a dismal 10.4 percent or 23 seats of the total 222 parliamentary seats. The state assemblies also indicate a similar trend at a measly 10.8 percent or 55 seats represented by women, of the total 505 state parliamentary seats.

Perhaps Malaysia should take a cue from our neighbours, Vietnam (24 percent), Lao (25 percent), Singapore (25 percent), and the Phillipines (27 percent) where women have higher levels of political participation.

The same situation in the Executive arm of the Malaysian Government also transpires in the Legislature. Since 1957, the number of women ministers has never exceeded three and that remains as of today where of the 35 members Cabinet; one is a Women Minister and the other two are ministers in the Prime Minister’s Office. This scenario is similar across the board for all state governments while Terengganu and Sarawak have never appointed a female Exco.

The Pakatan Rakyat State Government in Selangor made a breakthrough when they lined up four women of the total ten exco positions in 2008. However, they did not do the same for Perak when they were in power, failing to appoint any female excos despite having the second highest number of women to the State Assembly and Selangor reduced their women excos to two in 2013.

Women are also observed to be given limited appointments as local authority council members where they are only appointed to 362 (14.1 percent) of the total 2,567 positions.

Women Leaders in Civil Service and Corporations

As of 2015, there are 718,044 (57.1 percent) women civil servants from a total of 1,257,166 civil servants in professional and support services (Grade 1-54), however in the top management tiers (Grade Jusa C and above), only 1,498 (37.1 percent) women made it from the total of 4,041 government servants.

Subsequently only 5 (11.4 percent) were appointed as director of government’s statutory bodies, 13 (31.7 percent) as deputy secretary-general and 7 (29.2 percent) as secretary-general.

While in corporations, according to Bursa Malaysia for the year of 2015, women held 26.3 percent of top management positions across public listed corporations. However, women only form 15 percent of the total members of Board of Directors in MOF (Incorporated) companies.

Women have previously held high positions as the Bank Negara Governor, Chairman of the Securities Commission, Managing Director of a Bank, Bar Council Chairman, Chief Executive Officers of Air Asia X and SME Corp, and many others. Women remain an exception in these positions and not the norm.

Women as Educators and in the Legal System

There are 421,828 teachers in Malaysia and close to 72 percent of them are women. However, only 3,580 (37.2 percent) women made it as the primary school master, or secondary school principal or the residential school principal out of the total 9,615 positions. There is a sizeable gap here considering the number of women teachers who made it into decision-making positions.

The same disparities persist in Universities, while there are 11,931 (56.6 percent) women lecturers of the total 21,077, and only 13 (19.12 percent) of 68 are appointed as deputy vice-chancellors and four (20 percent) of 20 are appointed as vice chancellors.

Women in the legal system are growing in numbers, which hopefully will be the key to inducing reforms that will improve the legal status of women. Women represent 3 (27 percent) out of the 11 judges in the Federal Court, 12 (41.4 percent) judges from a total of 29 judges in the Court of Appeal and 29 out of the 58 (50 percent) judges in the High Courts.

The Syariah courts are lagging behind where women represent only 8 (10.8 percent) out of the total 74 judges. In the legal practice, women form 8,551 (51.7 percent) of the total 16,537 lawyers.

Like teachers, there still persists a disparity in the gender ratio between junior and senior lawyers as opposed to female lawyers in partner positions and even in the executive committee of Bar Councils in the country. More women should be placed in decision-making positions.

Empowering Women for Socio-Economic Benefits

A study by the Organization for Economic Cooperation and Development (OECD) on Gender Inequality found that increasing the share of household income controlled by women changes spending in ways that benefit children and family as a whole. The study also found that increasing women and girls’ education contributes to a higher economic growth for about 50 percent in OECD countries over the past 50 years.

Additionally, another study by Dr Emmanuela Gakidou from University of Washington found that; for every one additional year of education for women of reproductive age, child mortality is decreased by 9.5 percent (based on historical data from 219 countries from year 1970 to 2009).

McKinsey & Company (2014) deduced that women’s economic equality is good for businesses. Companies reap bountiful benefits in terms of organisational effectiveness by increasing leadership opportunities for women.

Companies with three or more women in senior management functions score higher in all the measured dimensions of organizational effectiveness.

Women are able to perform better in this particular arena as they generally have higher aspirations and emotional intelligence.

If we are to be on par with the women labour participating rate of Singapore which is at 63 percent; an additional 1.4 million more women in the workforce are needed and if we are to use Canada as a model at 74 percent; that’s an additional 2.3 million women needed in the workforce. That’s only half from the total missing women in action of 4.5 million.

The World Bank estimated that the 2.3 million women missing in action from the workforce can leapfrog our income per capita by 23 percent from entrepreneurial activities (six percent) and “absent” women workforce (17 percent) translated to about US$2,300 per capita, which will enable an overnight achievement of the high-income status for Malaysia.

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Working Mothers Produce Better Sons and Daughters

A comprehensive study of 50,000 adults from 25 different nations by the Harvard Business School inferred an interesting result contrary to popular and admittedly traditional beliefs. The study found that growing up with a working mother improves future career prospects for daughters and sons and is unlikely to harm children socially and economically when they become adults.

Women growing up with working mothers show better performance in the workplace. They are more likely to hold supervisory responsibility at those jobs, and earn higher wages than women whose mothers stayed home full time.

But the study found no effect to their sons’ performance at work as men are naturally expected to work. However, sons of working mothers do better in domestic duties and spend more time caring for family members.

The study also found that sons who have working mothers spend nearly twice as many hours on family and child care as those hailing from more traditional households; a weekly average of 16 hours compared to 8.5 hours.

Barriers and Challenges in the Workforce

Where do we rank in the gender inequality charts? Malaysia ranks 111 out of 145 in the World Economic Forum’s Global Gender Gap Index. In contrary, based on the UNDP’s Gender Inequality Index (GII), Malaysia did better; coming in at 62 out of 188 countries. Regardless, there is still much to be improved.

A study by the United Nations have found that women bear disproportionate responsibilities for unpaid care work. Women devote one to three hours more a day to housework than men; two to 10 times the amount of time a day to care (for children, elderly, and the sick), and one to four hours less a day for paid labour.

This is similar to Malaysia. These differences, deeply rooted in gender roles, reduced women’s leisure, welfare, and well-being. As a result of these different domestic responsibilities, men and women have different patterns of time usage; periods of leisure and high activity.

These patterns have implications for women’s ability to invest in education, their ability to take up economic opportunities and entrepreneurship, and to participate more broadly in current economic, political, public and social life.

In Malaysia, 67 percent of women cite care and other familial and personal responsibilities as the reason for not being in the labour force, versus only two percent of men. This is a wide difference from EU’s 25 percent. This directly and negatively impacts women’s participation in the labour force in Malaysia.

Women are also more vulnerable to economic shocks considering a majority of women are employed in low and semi-skilled positions.

Salary disparity between men and women is still prevalent in Malaysia where women earn less than men in all occupational sectors, notably in elementary occupations in the range of between 10-40 percent compared to men. (Source: Salaries & Wages Survey, 2014)

Additionally, a safer environment for women to commute to work is also a challenge considering crimes, especially snatch thefts, are on the rise; with women being their primary target.

Discrimination against Pregnant Women

The Women’s Aid Organisation (WAO)’s Workplace Discrimination Survey found that 40 percent of women polled have experienced job discrimination due to their pregnancy.

The survey revealed that the top five ways used by employers to discriminate pregnant women are by making their positions redundant, denying them promotions, placing them on prolonged probation, demoting them, and terminating their jobs.

The survey also showed that about 20 percent of women have had their job applications rejected or job offers revoked after they disclose their pregnancy.

Survey results indicate that 30 percent of women are likely to delay their pregnancy plans because they fear losing their job or promotion. But only about one in eight women who have lost their jobs or have been looked over for promotions due to pregnancy, have actually lodged formal complaints.

Majority of women do not know their rights or fear backlash and harassment for speaking up. Additionally, both the Employment Act 1955 and the Industrial Relations Act 1967 provide very minimal relief, if any at all. Existing legal safeguards are insufficient and there are no specific laws in Malaysia that deal with pregnancy related discrimination.

Sexual Harassment against Women

Sex-based discrimination takes on many forms at the workplace and in public. Sexual harassment may include verbal, non-verbal/gestural, visual, psychological, and physical harassment.

As with pregnancy discrimination, there is no specific law in Malaysia that deals with sexual harassment. Currently, women can lodge a complaint under The Employment (Amendment) Act 2012 which has expanded the definition of sexual harassment and put into place legal ramifications for sexual harassment at the workplace.

Unfortunately, the law only applies for harassment in the workplace; which is, at most, limited. The act only covers women in employment and excludes those working in the informal sector.

Provisions in the Act also excludes many sections of the female community, such as Member of Parliament (MP)s who are sexually harassed by fellow male MPs, domestic workers by employers, students by teachers, nurses by patients, patients by doctors, and passengers by bus drivers.

The Federal Court in June 2016 made a landmark ruling paving the way for sexual harassment suits to be heard in civil courts beyond the current narrow limits dictated by the Employment Act and the judges too agreed that the Employment Act is insufficient.

Barriers and Challenges in Politics

There are five major obstacles that stand in the way of women who wish to participate in politics, namely, social perception of women’s leadership abilities, role conflicts, religious and cultural constraints, structural constraints within political parties, and finally, limited financial resources.

Structural constraints within political parties exist, where the existence of women are in subordinate status modes confined to the women’s wing within the parties; being only party auxiliary. The real power remains within the firm grasp of men who hold the gate to party positions and electoral candidacy.

Parti Keadilan Rakyat is paving the way for change with its woman party president and one woman vice president who is also in charge of its electoral candidacy. For supreme council members, Parti Keadilan Rakyat and Parti Maju Sabah are leading at 26.7 percent and 23.1 percent women representation while BERSATU, UMNO, MIC, DAP behind at 13 percent, 11.7 percent, 10.3 percent, 10 percent respectively and both PAS and MCA at 8.6 percent. AMANAH and UPKO most behind at 6.9 percent and 4.5 percent.

Furthermore, in politics, women face the same problem as in the workforce, carrying “double burden” which remains an inhibiting factor to their full political participation. These challenges result in lower women representatives in both federal and state legislature; providing direct causal effect to the number of executives in the government. So how do we move forward to face all the barriers and challenges in women empowerment?

Women’s Institutions and Decision Making

The Malaysian government in 1975 introduced the National Advisory Council on the Integration of Women in Development (NACIWID) as a machinery to mobilise women’s participation in development. It was tasked with advising the entire government on women’s issues.

In 2001 the Ministry of Women’s Affairs was formed with Datuk Seri Shahrizat Abdul Jalil acting as the Minister to solely focus on the development of women.

Three years later, the scope of the Ministry was widened to include family development and social welfare and the name was changed to its current name, Ministry of Women, Family and Community Development.

NACIWID has then been placed under this ministry and is called as Majlis Wanita. Instead of advising the entire government, it now only advises this one ministry.

To begin addressing women’s challenges and spearheading a way forward, the “toothless” Majlis Wanita must be revamped as the National Women’s Commission given the prime authority and power to direct, oversee, and monitor national implementation of Gender Equality and Woman Empowerment.

In accelerating women’s political leadership, an independent, non-partisan Women’s Political Institute must be set up to flourish and nurture women leadership abilities. More studies and institutes for women like the Kanita (Institut Kajian Wanita) at USM and the Gender Studies department at UM must be established and supported.

More women should be placed in decision-making positions in all spheres of life; politics, civil service, corporations and the general public.

The current simplistic target of having at least 30 percent women in decision-making positions in both the government and the private sector is beneficial. Unfortunately, we end up with an hourglass structure.

Women’s participation is observed to be heavy on top management (within the 30 percent target) and entry-level positions with hollow participation in between. More measures are required to strengthen the occupational pipeline.

Unleashing Women for a Brighter Future

While current initiatives to leverage and highlight women’s talent are laudable, other policy options must be explored, evaluated, and tailored, to enable Malaysian women to fully contribute to Malaysia’s transformation towards a high-income, inclusive, and sustainable economy.

Initiatives must be taken to end all forms of discrimination against women, to eliminate all forms of violence against women, to ensure women’s full and effective participation in all political, corporate and public affairs, to undertake reforms to equal rights to economic resources, and most importantly, to recognise and value unpaid care and domestic work.

Women are leading both in class and extracurricular activities over their minority men cohort within the higher education environment and it is pertinent for this to continue after leaving universities. A change in the stereotype of women as only housewives and child bearers must take a paradigm shift.

The status quo has been broken. Women are fast becoming income earners and providers equivalent to men but at the same time unpaid care work is not recognised. Women are tasked to work and at the same time no efforts are made to lessen their care burden. This is not healthy and is not sustainable.

In the long-term, prevailing social norms need to evolve for gender gaps to be bridged. A social re-engineering and going back to the drawing board is required to formulate the best solution for this new emerging social dynamic.

Gender sensitive education must start from school, enforced by the legal system, engendering government institutions, and also the authorities; including the police force.

Legal Support for Women

The Convention on the Elimination of All Forms of Discrimination against Women (CEDAW), adopted in 1979 by the UN General Assembly, is synonymous as an international bill of rights for women.

It has a prominent preamble and 30 articles, defining what constitutes discrimination against women and measures to end such discrimination.  As a ratifying member to CEDAW, Malaysia must integrate these articles into domestic legislation and enact the Gender Equality Act.

A revisit on existing legislation must be conducted to amend legislations which are discriminatory against women. Subsequently, every state must establish its own Gender Policy guided by pressing national concerns.

This will ensure Gender Equality will be mainstreamed in all policies and programmes from federal to state governments. Comprehensive laws must be in place to protect women from sexual harassment by enacting the Sexual Harassment Act.

Gender discrimination must be halted at all cost by penalising government departments or companies found to condone such acts and its perpetrators.

We need to protect pregnant women by adopting the Pregnancy Discrimination Act. Both Acts will provide legal protection to women and ensure that they feel secure at their workplace and in society, as a whole. Remember, anything that makes a woman feel inferior and takes away her self-respect is abuse.

Making Work Family Friendly

The existing tax relief for enrolling children aged 6 years and below to registered nurseries and preschools is not enough. Free nurseries at all government agencies and linked companies are severely required to assist in reducing the burden of childcare and to assist families in achieving work-life balance. This must be implemented in achieving a family friendly workplace.

As of 2015, there are 3,193 registered private child care institutions, and on top of that there’s 118 government offices and 24 private offices that provided child care. This illustrates a huge demand of private child care institutions that the government and private offices should be providing.

The government sector is slightly ahead compared to the corporate sector. Both are lacking in initiative and is largely failing to provide working mothers with better access to child care, flexible working hours and longer maternity and paternity leaves.

Childcare is a shared responsibility; which means that the attitude and treatment towards fathers will also need to change. More measures must be undertaken to ensure women have more social protection in the informal sector. This would drastically reduce the number of women leaving the workforce. Support must also be given to inculcate more women entrepreneurs.

To address the different needs between women and men, these issues have to be reflected in public transportation policy, healthcare delivery, women in politics, and strengthening corporations in promoting gender diversity.

Stakeholders’ Responsibility

All of the above calls for every stakeholder to relentlessly push for changes with full support from the government; including the agencies and the private sector.

Third party players from the civil society must be supported as they will be able to dive deep into the grassroots level, increase the awareness of Malaysians at large, and will be supplementing both the government and the private sector.

A prime example would be The Joint Action Group for Gender Equality (JAG), formed in 1985, a coalition of 12 non-governmental organisations that work towards gender equality by the Association of Women Lawyers (AWL), Women’s Aid Organisation (WAO), All Women’s Action Society (AWAM), Women’s Centre for Change (WCC), Tenaganita and others.

JAG must be credited for spearheading multiple campaigns and legal reform efforts, leading to the enactment of the Domestic Violence Act 1994 and the inclusion of “gender” under Article 8(2) of the Federal Constitution in 2001.

Emerging NGOs such as Lean In Malaysia, Women: girls, The G-Blog, and also a social media initiative like the Leading Ladies of Malaysia and others must also be supported and sustained.

There exists a huge socio-economic benefit of tapping into and unlocking women’s potential that this country badly needs.

*Anas Alam Faizli holds a doctorate in Business Administration. He is a construction and an oil and gas professional, a concerned Malaysian and is the author of Rich Malaysia, Poor Malaysians and tweets at @aafaizli‎

 

Najib Razak drags Singapore’s reputation as a Regional Centre into the Selut (MUD)


December 29, 2016

From the moment Malaysian Prime Minister Najib Razak took over 1Malaysia Development Bhd. in 2009 the fund has remained controversial. Plagued by heavy debt and questions about its management, 1MDB grew into a scandal that moved closer and closer to the heart of the Malaysian government and has resulted in numerous foreign probes.

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Najib Razak drags Singapore’s reputation as a Regional Centre into the Selut (MUD)

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From the 1Malaysia Development Bhd.-linked scandal to a 333-count front-running case and the largest market-manipulation prosecution in Singapore’s history, this year’s allegations of moneymen behaving badly have put the city-state’s image as a squeaky-clean financial hub to the test.

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Regulators have responded with their busiest year of enforcement actions, shutting the local units of two Swiss banks, fining some of the world’s biggest lenders and seizing S$240 million ($166 million) of assets. Ravi Menon, the head of Singapore’s central bank, summed up the city’s mood as the 1MDB-related cases escalated in July: “We can do better.”

2016 was the year of significant crackdown in Singapore,” said Hamidul Haq, a lawyer at Rajah & Tann LLP and author of ‘Financial Crimes in Singapore.’ “Companies, financial traders and bankers are being kept on their toes.”

The stakes could hardly be higher for a city that relies on finance for 13 percent of its economy and has 200,000 jobs tied to the industry. With exports sliding and the local oil services industries in a slump, Singapore needs to protect the reputation of its financial sector as it grapples with the weakest economic growth since 2009.

 Ravi Menon

Strengthening enforcement functions under a new department is a strong signal of its commitment to uphold Singapore’s reputation, the Monetary Authority of Singapore said in an e-mailed response to questions. The regulator said it will continue to boost its enforcement and surveillance capabilities to deter criminal behavior and poor controls.

“This will ensure that any wrongdoing is swiftly detected, thoroughly investigated and firmly dealt with,” the MAS said.

Least Corrupt

Singapore, which prides itself on having a clean and trusted system, is rated by Transparency International as the least corrupt nation in Asia and consistently ranksamong the top 10 globally. That reputation was forged 51 years ago when Lee Kuan Yew, the founder of modern Singapore, and politicians from his People’s Action Party dressed in white to show they couldn’t be corrupted. That image helped to lure foreign investment to the city, where more than 200 banks have since set up shop.

The island  republic emerged unscathed from the Bank of Credit and Commerce International global money laundering scandal in 1991 after MAS refused to grant it a license, though it isn’t immune to financial wrongdoing. In 1995, Nick Leeson’s $1.5 billion loss from unauthorized trades brought down Barings Plc, the U.K.’s oldest merchant bank. In 2004, China Aviation Oil (Singapore) Corp. revealed a $550 million derivatives fraud.

While Singapore has undergone significant change in tackling money laundering since 2008, “moderate gaps” remain in the city, Paris-based Financial Action Task Force said in September.

 MAS Chief Menon vowed to take stern action after the city’s reputation took a hit following revelations that money linked to 1MDB went through Singapore. The fund, at the center of global money-laundering and corruption probes, has consistently denied wrongdoing.

The city is the only jurisdiction to charge and convict bankers in connection with 1MDB. Yak Yew Chee, an ex-banker at Swiss firm BSI SA, pleaded guilty in November to charges including forging documents and failing to disclose suspicious transactions, while Yvonne Seah Yew Foong, who reported to Yak, was sentenced to two weeks in jail for aiding in forging documents. A former wealth planner at BSI, Yeo Jiawei, was found guilty of perverting the course of justice and faces further charges of money laundering and forgery, among others. Yak and Seah didn’t appeal their convictions and sentences. Yeo is considering an appeal, according to his lawyer.

 “There’s no doubt about the tone that we take,” Singapore Law Minister K Shanmugam said at a media lunch earlier this month, adding that the rule of law is the city’s life blood. “It’s got to be understood that the MAS will be very tough if you don’t follow the rules.”

Bigger Stick

The MAS was given a bigger stick to wield in 2015 after a penny-stock crash in 2013 mysteriously wiped out S$8 billion over three trading days, an event seen contributing to lower subsequent trading volumes. Lawmakers granted the regulator enhanced powers including being able to search premises, seize items and order financial firms to monitor customer accounts.

The alleged “masterminds” in the penny-stock case were charged in November after MAS investigators and white-collar crime police sifted through two million e-mails, thousands of phone records and financial statements and 180 trading accounts to solve the largest securities fraud in the city’s history. Previously, the regulator had to refer criminal probes to the Commercial Affairs Department and could only fine culprits.

“Hopefully, the MAS will continue to focus on catching the bigger fish like they have done in 2016,” said Lan Luh Luh, a professor at the National University of Singapore Business School. “It’s always a dilemma between tightening the reins too much, going after the very little guys and staying open for business.”

Crowdfunding and financial technology may come under scrutiny in 2017, according to Lan. The two areas aren’t heavily regulated and may be open to abuse, she said.

More Scrutiny

Singapore’s enforcement actions this year have made it one of the most active financial regulators in Asia. In rival Hong Kong, the Securities and Futures Commission has been settling probes and creating specialized teams under new enforcement chief Thomas Atkinson.

Other countries have also seen heightened supervisory focus. Indonesia started a tax amnesty plan aimed at repatriating cash stashed overseas while giving evaders a way to come clean. China has placed regulatory curbs to rein in shadow banking and contain debt risk.

“That’s the global trend — it’s going to become harder to hide illicit money,” said Andre Jumabhoy, a Singapore-based lawyer who advises on government enforcement at K&L Gates LLP. “There’s a real emphasis in making sure that if you want to be a serious global financial center like Singapore wants to be, you’ve got to abide by the rules.”

Here’s what the Monetary Authority of Singapore was busy with in 2016:

Banks and bankers

* Fined Standard Chartered Plc, Coutts & Co., UBS Group AG and DBS Group Holdings Ltd. over breaches related to 1MDB. The banks have said they cooperated with authorities.

* Said it plans to bar former Goldman Sachs Group Inc. star banker Tim Leissner from the securities industry for 10 years. Leissner’s lawyer had said he intends to respond to allegations raised by MAS.

* Falcon Private Bank Ltd. was fined and ordered to shut over weak controls; local branch manager arrested by police. The bank had said it welcomed the completion of investigations.

* BSI SA was fined and directed to close after “serious” money laundering breaches; six senior executives referred to prosecutors. BSI said it cooperated fully with investigations.

Alleged errant traders

* Three people were charged for orchestrating largest market manipulation case in Singapore’s history.

* Three former traders were charged with 333 counts in Singapore’s first front-running case.

* Man charged in the city’s first spoofing case, which was also the first case that the regulator and Commercial Affairs Department jointly brought to court.

* Fined a former chief financial officer of Sinomem Technology Ltd. and asset manager Triumpus Assets Management Pte for insider trading. Both had admitted to the contravention.

Barred a former trader for two years and fined him S$110,000 for insider trading.

Other enforcement efforts

* Joint announcement with Attorney-General’s Chambers and police that S$240 million in assets have been seized, including from Malaysian financier Low Taek Jho. Two calls to Low’s Jynwel Capital Ltd. in Hong Kong weren’t answered

* Set up units to centralize and further boost enforcement as well as target money-laundering activities

Dean Keo Chhea addresses University Of Cambodia Alumni on Techo Sen School of Government and International Relations


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University Of Cambodia  SECOND ALUMNI  REUNION– December 24, 2016

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Dean Keo Chhea (pic right) who assumed Deanship of Techo Sen School of Government and International Relations on December 1, 2016 was a diplomat and served for  more than decade with The ASEAN Secretariat in Jakarta, Indonesia. A graduate of Monash University in Economics and International Trade and served as a high ranking Cambodian diplomat to India and Brunei, he brings his wealth of diplomatic experience to bear on his current post at The Techo Sen School. It is my pleasure to be working with the affable, intelligent and very experienced Dean Chhea.–Din Merican

Dean Keo Chhea addresses University of Cambodia Alumni on Techo Sen School of Government and  International Relations on December 24, 2016 at the Second UC Alumni Reunion.

Excellency President,

 VPs, Deans and Directors,

Ladies and Gentlemen,

Fellow Alumni,

 Good Afternoon.

The Techo Sen School of Government and International Relations (TSS) was established in 2014 as integral part of the University of Cambodia with an aim to train and develop our young leaders and researchers, preparing themselves to be marketable for government institutions, multinational corporations, regional and international organizations, and civil society institutions.

During the dark era of 1975 – 1979, Cambodia plunged into the abyss of the despicable crime of genocide by the Khmer Rouge regime, millions of people were killed, currency and markets were destroyed, schools and educational systems, especially our intellectuals were completely exterminated.

After the collapse of the KR regime, the  subsequent Cambodian governments have spent tremendous efforts in restoring and reforming the education system in Cambodia. We can see lots of improvements in this field with numerous young intellectuals and smart people entering the job market to meet the needs of a rapidly expanding economy. Nevertheless, our human resources need further improvement and refinement, and that is why, we from the private sector also need to contribute to reinforce the Royal Government’s effort in building up our future human resources.

Cambodia needs its own intellectuals to do research and analysis. It is about time that we stop relying totally on outsiders to analyze our own issues and development. It is time we do it ourselves, and that is what our Tech Sen School is doing just that. Let us begin doing things in the Cambodian way and in the progress that contributes to our society, our community, ASEAN and the world.

It is a great pride for us that Cambodia, which has just emerged from ashes and is less dependent  today on foreign aids and assistance, has for the past two decades, re-positioned ourselves strategically within ASEAN and within international community, including the UN. From receiving UN aid and assistance, we are now contributing to UN peace keeping and demining efforts in many crisis areas such as Sudan, South Sudan, Chad, Mali, Central African Republic, Cyprus, Lebanon and Syria.

Our economy also enjoy steady growth of 7 plus percent till 2020, according to the ADB index. Politically, we are also able to manage to contain the influence of two major powers, United States and China contributing to peace and stability in the region, and enable the stable economic growth in Southeast Asia.

 Excellency President,

Fellow Alumni,

The TSS with your help and guidance, President, is designing its programs to equip its students with self-awareness, let them know who they are, where they come from, and where they should go. TSS will also guide them to wisely use information and analyze it, balance foreign policies, brainstorming through our own think tank and make political and economic recommendations for our government as well as for private sectors. We seek to train young leaders in every field and make them competitive and productive for the skilled labor markets, both domestically and internationally.

To date, we have 22 staff, which includes 19 teaching staff and 2 admin staff, among which there are 15 PhD holders and 19 Master holders.

TSS holds 6 subjects for Master program, 6 subjects for PhD program, 4 subjects for other programs and 3 subjects for Think Tank.TSS currently has 186 students, among which 78 students are from the first intake and 108 students from the 2nd intake.

In the way forward, TSS is working to expand its programs for both Masters and PhD to cover political science, economics, international law, defense, security and strategic studies. TSS also plans to increase the number of teaching staff and its student intakes to reach triple of what we have by the end of 2017. We are establishing our own think tank to work on current contemporary political and economic issues and publish articles and make recommendations for both public and private sectors. Apart from this, we are also designing short courses for govern officials, private entrepreneurs, foreign companies, and non-governmental organizations, to meet their needs.

We are also working to establish formal linkages with centres, institutions, and think tanks of similar goals and interests in the region as well as in Europe and America, and work toward joint activities, courses in the near future, aiming at raising image of Cambodia and of course our UC to the highest level in the international arena. We also actively contribute to the hygiene, cleanliness and greenery of our University.

Fellow Alumni and students, education is a life long journey and there is a home here for you to do just that, so let join the TSS, for together we can make Cambodia proud, prosper and respected by the world outside!

Thank you.