30% Women Power at the Top

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In 2014, 53.6% of the labour force (in Malaysia) is female with 24% at Senior Management level. When it comes to Board of Directors composition, only 10.2% are women. If there are no intervention, the regression analysis of such historical trend would mean that we will need another 84 years before the 30% target can be met.

 

 

ATO' SRI IDRIS JALA led the drive for more women participation at the top at an event, "Lead the Change: Getting Women on Boards" organised by Talent Corp and 30% Club Malaysia. He started his speech with some salient facts about the economy which includes statistics as a result of the Economic Transformation Programme. The more prominent one would be the Malaysian Cumulative Average Growth Rate (CAGR) for the economy of 15.9% for the years 2011 to 2015 vs 5.5% for 2010 to 2014. Although this is a general gauge of the economy, he believes that it presents lots of opportunity for women.

 

The Government, through the 10th Malaysian Plan, targeted 30% key decision making role to be held by women by 2016. In 2014, 53.6% of the labour force is female with 24% at Senior Management level. When it comes to Board of Directors composition, only 10.2% are women. If there are no intervention, the regression analysis of such historical trend would mean that we will need another 84 years before the 30% target can be met. We are not alone in this quest - The United Kingdom is now at 20%. Australia at 18%.  Hong Kong at 8%. Singapore on par with us at 10%.

 

Research proves that women are better in achieving educational results. However, the question that is still lingering would be, "Why are women's corporate executive participation low?" The usual answer would be: Raise Family, Lack Work-Life Balance, and the like. Efforts need to be put in to address this. There needs to be incentives such as child care support, career breaks and non-prejudice career progression. We ought to benchmark developed countries such as the ones in Europe where they have legislated women participation with penalty clause for corporations that do not adhere to the legislation.

 

Statistics also showed that organisations with more women participation at executive decision level achieve higher Return on Equity (ROE), Earnings Before Interest Taxation Depreciation and Amortisation (EBITDA) and stock prices. Of course scientifically it is quite difficult to prove that women's participation do achieve higher results but empirical data strongly suggests so. One undeniable consistent observation would be the earlier mention of women performing better than men at educational level.

 

Dato' Sri Idris urged the business leaders, investors and shareholders to champion this advocacy of 30% Women Power at the Top. An honest effort of sourcing and identifying talented women of merit needs to be committed. This involves conscious efforts via Human Resources activities and conviction by the other Board of Directors, via their Nomination Committees, to take bold and affirmative steps in achieving the intended 30% target.  To demonstrate the leadership role of such effort, he shared his team's achievement at PEMANDU whereby they have now officially achieved 37.5% women on their Board of Director, namely Tan Sri Zarinah Anwar, Ms Vimala Menon and Datuk Yvonne Chia.

All the attendees of the session that consist of Chief Executive Officers of Government Linked Companies, Public Listed Companies and Multinational Organisations were given a pledge card (See image below) to complete and to declare their commitment to achieve 30% women on their Board of Directors by 2016. Of course we (including me) we quite delighted to give such commitment but little did we realise that we were making that pledge to the Prime Minister, Y.A.B. Dato' Sri Najib Razak. The pledge cards were collected and tabulated. The results were: 98% committed with 23% Not Confident, 23% Somewhat Confident, 24% Confident and 30% Very Confident. As for me, the Company that I am managing is now at 25% - so all I need is just one more, then I will be sailing :)

 

* kopihangtuah

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