MBA Edge & Postgraduate Studies _January Issue 2012 by Penerbit Wawasan

Dr Juhari Samidi | Dr Lin Mei-Hua | Dr Alia Azalea | Dr Hendry Ng

Postgraduate Studies MBA Edge

MBA EdgeTM & Postgraduate Studies

22 Goals of the Firm, Profit Maximisation, Shareholders’ Wealth Maximisation and Corporate Wealth Maximisation 45 When is Cash Flow More Important Than Profit?

16 David Ng

UTAR, Head of Programme, Postgraduate Studies

38 Professor Dr Tengku

Akbar KLIUC, Centre for

Postgraduate Studies

50 Tunku

Abidin Muhriz Youths in Pursuit of Liberty and Equal Opportunity

msu

32 Soo Wincci

management & science university

on her PhD Studies

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Prof. Dato’ Wira Dr

36 Factors Influencing Sourcing of Family Funds by Young Malaysian Entrepreneurs

Mohd Shukri Ab Yajid MSU President PP17103/10/2011 (02804) 2011 Issue 6 Jan/Feb 2012 RM7.00

MBA EdgeTM & Postgraduate Studies

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MBA EdgeTM & Postgraduate Studies

EDITOR’S NOTE 2012 is here!

Happy New Year! After the Christmas and New Year Eve’s revelries, we welcome you back to working hard on gaining even more knowledge in 2012. Speaking of working harder, here’s a little reminder that our magazine is now bi-monthly so you can look forward to our next issue in March.

careers and jobs, and finding that great fit between employer and employee, Sharon Soon gives some useful tips on how to build your career and also a lasting relationship with your headhunter.

Our illuminating interviews with the President of the Management and Science University (MSU), Prof. Dato’ Wira Dr In our current and sixth issue, we bring Mohd Shukri Ab Yajid, Professor Dr Tengku you an eclectic collection of articles and Akbar Bin Tengku Abdullah from the interviews. Tunku Abidin Muhriz talks School of Business Infrastructure at Kuala about the role of youths in a democratic society and being engaged in the democratic Lumpur Infrastructure University College (KLIUC) and Mr David Ng from Universiti process; Tee Peck Ling and David Ng compare the benefits of using maximisation Tunku Abdul Rahman (UTAR) reveal the of profit, shareholders’ wealth and corporate various MBA programmes that are available in their respective universities and provide wealth as goals of the firm while Patrick also advice on which programmes are Tiong shares his experience of having to suitable for you. decide whether to enrol for postgraduate studies or get a job when faced with the dilemma of choice after graduation.

As we usher in the auspicious year of the Dragon, we wish you happiness, prosperity and success – in studies, work and life. Here’s to a more productive and peaceful year ahead! If you have any suggestions on what you would like to see in this magazine in relation to the MBA or postgraduate studies in general, or any comments on our current issues, please email us at: penerbitwawasan@gmail.com. Happy reading!

Janet Tay

Professor Dr Juhari Samidi considers the importance of cash flow and profit to a business and Dr Hendry Ng, Kalanithi Muthu and Teh Yah Yee explore the factors influencing the sourcing of family funds by young Malaysian entrepreneurs who have the luxury of looking to their relatives to build capital for businesses. On changing

CORPORATE Managing Director Steven Shim Office Manager Vicky Shim Key Accounts Manager Aniki Chen Finance Manager Bonnie Bang EDITORIAL TEAM Senior Editor Janet Tay Writers Nurraihana, Mohd Amil Contributors Tee Peck Ling & David Ng Ching Yat, Dr Hendry Ng, Kalanithi Muthu and Teh Ya Yee, Professor Dr Juhari Samidi, Patrick Tiong Photographer Tang Weng Kit, Brandon Leow Graphic Designer Tony Lam

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CONTENTS

MBA EdgeTM & Postgraduate Studies

26 Ask the Headhunter: An Insider’s View from a Leading Professional 32 Soo Wincci on her PhD Studies

36 Factors Influencing Sourcing of Family: Funds by Young Malaysian Entrepreneurs, By Dr Hendry Ng, Kalanithi Muthu and Teh Ya Yee 38 Interview with Professor Dr Tengku Akbar Bin Tengku Abdullah,Centre for Postgraduate Studies, KLIUC

PSYCHOLOGY

60 MyPHD

45 When is Cash Flow More Important Than Profit? By Professor Dr Juhari Samidi, Kuala Lumpur Infrastructure University College 50 Youths in Pursuit of Liberty and Equal Opportunity: What is their role in a democratic society and being engaged in the democratic process? By Tunku Abidin Muhriz, The Tan Sri Dato’ Sri Jeffrey Cheah’s Distinguished Lecture Series 54 Standing at the Crossroads: To enrol for postgraduate studies or get a job? By Patrick Tiong Liq Yee (Engineering Seismology & Earthquake Engineering Research Department of Structure and Materials) 57 Interview with Dr Lin Mei-Hua and Dr Alia Azalea on the Master of Science in Psychology (Organisational), Sunway University 60 Sin Chew Daily Education Fund (SCDEF)

63 UTAR Celebrates 10 Years of Success 65 Launch of Learning from Championship Brands

5 Prof. Dato’ Wira Dr. Mohd Shukri Ab 66 Refinancing for Success: Excerpt From Yajid: Interview with the President of the Management and Science University (MSU) Refinancing Now, Chapter 17 68 MyPHD Scheme 16 Interview with David Ng, Head of Programme, MBA/MBA Corporate Governance/Master of Commerce (Applied Accounting), UTAR 22 Goals of the Firm, Profit Maximisation, Shareholders’ Wealth Maximisation and Corporate Wealth Maximisation, By Tee Peck Ling & David Ng Ching Yat (Lecturers, Faculty of Accountancy and Management)

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msu management & science university

Prof. Datoâ&#x20AC;&#x2122; Wira Dr. Mohd Shukri Ab Yajid, President of the Management and Science University (MSU)

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Prof. Dato’ Wira Dr. Mohd Shukri Ab Yajid Interview with the President of the Management and Science University (MSU)

e have over the past 30 years moved from just a college that provided professional programmes for school leavers to a full-fledged university with a range of industry relevant programmes aimed at enhancing the human capital development of the nation. MSU recently established a massive new campus in Shah Alam. What does MSU aspire to become in five years? What is your vision of MSU? DMSY: Along the path of its growth, MSU has continuously redefined itself in its role and aspirations as a higher learning institution in Malaysia. Current trends, government regulations and policies as well as economic stability have also contributed to what MSU aspires to become in the future. The above have helped shaped MSU’s vision to be the University of Choice for quality learning. Through a very good mix of academic and non-academic activities, we believe that the students’ learning experience can be enhanced and graduates’ worth increased. This is crucial as we prepare ourselves to complement the government’s effort to make Malaysia as an education hub. Does MSU focus primarily on taught programmes or research programmes and why? DMSY: MSU is a university that is essentially focused on taught programmes.

However, as a centre for higher learning, we also need to play an active role in research as this will determine our standing as a reputable university. Three centres of excellence at MSU look at specific areas of research which are aimed at the social, scientific and technological developments of our society. These three centres are: IT and Innovation Centre (ITIC), Biomedical Research Institute (BRIM) and the Leadership & Entrepreneurship Advancement Institute (LEAD). How does MSU differentiate itself from other universities? What is unique about MSU? DMSY: I am of the opinion that one of the successes of a university should be gauged based on the employability of its graduates. Currently our graduates enjoy a 95 per cent employability rate within six months of their graduation. This has been achieved through a consistent effort on our part in ensuring that the programmes of studies offered are industry relevant and that the students’ learning experience is continually enriched.

What postgraduate offered by MSU?

programmes

are

DMSY: Our postgraduate programmes are offered through the School of Graduate Studies (SGS) and the Graduate School of Management (GSM). The SGS offers programmes ranging from postgraduate diploma, Masters to PhDs in the business, information sciences and health sciences disciplines. GSM on the other hand provides the MBA and DBA programmes. Why should students consider MSU? DMSY: Students who are interested to pursue further studies should weigh their options carefully. They must ensure that the institution selected meets the set criteria. Quality programmes, ranking, campus environment and graduates employability are some of the factors to be considered.

I am pleased to note that MSU meets the above criteria and possibly many more which are in the students’ preferred list. MSU is a Tier 5 Excellent Status University according to the ranking exercise undertaken by the Ministry of Higher Education, Malaysia. Besides

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Prof. Datoâ&#x20AC;&#x2122; Wira Dr. Mohd Shukri Ab Yajid, President of the Management and Science University (MSU)

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this, accreditation agencies such as the Malaysian Qualification Agencies, Malaysian Medical Council and other professional bodies have awarded MSU with specific accreditations for the programmes conducted. On the international front, MSU is recognised by more than 40 of its partner universities worldwide thus making it convenient for our students to continue or transfer their studies to these universities. We are the first non-Japanese university to be accredited by the Alliance for Business Education & Scholarship of Tomorrow (ABEST 21), Tokyo and one of the few universities in Malaysia that gained accreditation from the Accreditation Services for International Colleges, UK. Our efforts towards ensuring international and industry exposures while students pursue their areas of interest at MSU have helped the employability worth of our graduates. What are your top three challenges as the President of MSU? DMSY: Education has always been very close to me. I am passionate about it. However, there are challenges that we need to confront and I suppose these challenges have made the whole process of developing MSU interesting. My top three challenges are, first, the public perception of the private education industry. Over the years we have noticed the changing role of the private education industry. This has also resulted in the shift of perception from negativity to somewhat of an acceptance among members of the public with regard to private education institutions and the role that they play. However, this shift has been slow and private institutions and the authorities will have to work harder in winning over the public.

Second are the future trends in education. We have to be prepared and able to anticipate the changes that will take place as a result of the economic, social and political development. We cannot continue to operate in a defunct mode when the world is consistently looking for ways and means to make education more than a platform of human development. Third is getting the right talent for the right job. This, I believe, is not only a challenge to MSU but also the whole world. There are plenty of qualified people out there, but getting the right one can be an idealistic exercise sometimes. At MSU, we have always been concerned about talent management and human capital development. Through the studentsâ&#x20AC;&#x2122; learning experience, we hope to resolve this issue and contribute towards quality human capital for the nation. Nonetheless, it has to be a concerted effort from all i.e., the entire team at MSU, authorities, students, parents and the community to solve this problem once and for all. How do you maintain the quality of the programmes offered at MSU? DMSY: Since our inception, quality education has been one of the pillars of our existence. Through quality we are able to build public confidence. Quality programmes offered are also part and parcel of our mission. Quality is determined through

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Management and Science University (MSU), SHAH ALAM CAMPUS

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the accreditation and recognition that we receive from the local accreditation agencies such the Malaysian Qualification Agency (MQA), the Malaysian Medical Council (MMC) and other professional bodies. Likewise, recognitions or accreditations received from over 40 partner universities worldwide and other international agencies such ABEST 21, Japan and ASIC, the UK, have improved our international standings. What is your advice to fresh graduates entering todayâ&#x20AC;&#x2122;s workplace? How should they achieve excellence and success? DMSY: Fresh graduates must be prepared to find out that employability is not entirely about academic excellence or how many As secured while pursuing a particular programme of study. Employers today look for criteria beyond the academic realm. Communication skills, positive personality, self-confidence, independence are some of the positive traits that graduates should

â&#x20AC;&#x153;Our efforts towards ensuring international and industry exposures while students pursue their areas of interest at MSU have helped the employability worth of our graduates.â&#x20AC;? possess. These traits, a strong commitment and an attention to detail will lead them to the path of success. I am happy to note that these traits play a huge role in the generation of future graduates at MSU.

Main Feature

MSU Your University of Choice

he Management & Science University (MSU) is one of Malaysia's top 18 universities. MSU focuses strongly on critical areas of studies, encompassing medicine, health and life sciences, nursing, pharmacy, business, management, accounting, hospitality, law, information sciences and engineering. MSU emphasises quality education and the importance of creative teaching methodologies towards producing quality graduates. Besides incorporating international exposure in the studentsâ&#x20AC;&#x2122;

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learning experience, extensive industrial training components are also blended into the programmes of study to ensure the employability of graduates. As one of Malaysia's top universities, MSU has received many recognitions from Malaysian and international independent bodies. It is rated as an "Excellent Status University" by the Ministry of Higher Education of Malaysia through a rating system done on all universities in Malaysia. MSU is also accredited by the Accreditation Services for International Colleges (ASIC), UK. The programmes offered meet the stringent standards set by the local and international bodies. MSUâ&#x20AC;&#x2122;s award winning home-grown programmes are among the best in the region. The University aspires to provide education that will enhance employability of its graduates and enrich their learning experience with ethical and moral values at the same time. The credibility of any institution of higher learning lies on the strength of its programmes and faculty members. While ensuring the requirements of academically qualified faculty members are being met, MSU further fortifies its brand image

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through the deployment of international visiting professors, adjunct professors and institutional collaborations. A global exposure through MSU's International Students Exchange Programme (ISEP) unit further strengthens the employability of the Universityâ&#x20AC;&#x2122;s graduates. Through ISEP, students have the option of transferring their final year studies to foreign universities that are partners of MSU. There are over 60 universities in USA, the UK, Australia, Japan, South Africa, India, Eastern Europe, Indonesia and New Zealand to choose from. The opportunity for continuing education at these universities provides valuable international exposure for students.

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MBA EdgeTM & Postgraduate Studies

Until now, MSU graduates remain a popular choice among employers. A graduate tracer study conducted every year shows a 95 per cent employability rate of graduates entering the job market. This has, to a large extent, demonstrated the versatility of our programmes of study pursued by these students at MSU. MSU also offers postgraduate, undergraduate and foundation programmes through the Faculty of Health & Life Sciences, the Faculty of Business Management & Professional Studies, the Faculty of Information Sciences & Engineering, the International Medical School, the School of Pharmacy, the School of Graduate Studies, the Graduate School of Management and the Centre for Foundation Studies.

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David Ng Ching Yat Head of Programme

MBA/ MBA (Corporate Governance)/ Master of Commerce (Applied Accounting)

avid Ng Ching Yat is an Associate Professor at the Faculty of Accountancy and Management, Universiti Tunku Abdul Rahman (UTAR). He has a Bachelor of Arts in Accounting and Finance and a Masters of Science in Financial Management from Middlesex University. David has extensive teaching and training experience and lectures in the field of Finance. He has also served as an evaluator with the Malaysian Qualifying Agency (MQA) and the National Award for Management Accounting (NAFMA). He currently serves as an external examiner with Wawasan Open University (WOU). He has published papers in international journals and his research interests include Efficient Market Hypothesis (EMH), Capital Asset Pricing Model (CAPM), Portfolio Theory, and Behavioural Finance. What are the Masters programmes under your purview? DNCY: The Masters programmes under my purview are the Master of Business Administration, the Master of Business Administration (Corporate Governance) and the Master of Commerce (Applied Accounting). We have also recently received the approval to offer the Master of Business Administration (Building Management) programme. What are the differences between the programmes? DNCY: The MBA is a general masters programme that focuses on strategic management. It is meant for candidates seeking senior and top management positions in public and private enterprises. This programme provides a strong platform on a wide range of management issues, techniques and practices plus specialised knowledge in many areas of todayâ&#x20AC;&#x2122;s global business environment. The programme allows for detailed expertise to be developed across a range of subjects, thereby creating a unique insight into management decision making and practices. The MBA (Corporate Governance) covers many of the core

components of the MBA with an emphasis on addressing the importance of business ethics, good corporate governance, corporate transparency and accountability and issues that are of growing concern in the business world. The programme aims to acquaint candidates with the theory and practice of corporate governance, particularly relating to social accountability and reporting. The Master of Commerce (Applied Accounting) is designed for accounting graduates and professionals keen on advancing further in the accounting profession. It provides candidates with the core aspects of accounting through practical technical knowledge and also develops the skills necessary to deal with the strategic aspects of leading a business organisation. The MBA (Building Management) has been designed with a focus on training candidates interested in the building sector or who

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David Ng Ching Yat, Associate Professor at the Faculty of Accountancy and Management, Universiti Tunku Abdul Rahman (UTAR)

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are in the building sector wishing to improve their knowledge on key management issues relating to building management and critical thinking from the perspective of professionalism and from the perspectives of different societal stakeholders. Most of the courses that are offered now focus on the technical aspects of building management. We, on the other hand, will be focusing on providing knowledge on the management of buildings, properties, shopping complexes as well as condominiums. This includes providing insights into general management, human resource management, financial management, marketing and sales and event management as well. Building management is also about people management, and this MBA would equip managers with the right tools to better manage a building as they become more holistic and exposed to management techniques and styles. Most building management courses do not deal enough with management and are more technical based and more focused on marketing. We hope this course will make a difference in the quality of building management in Malaysia.

Other benefits of choosing UTAR include: 1. Providing global intelligence skills by providing exchanges between international universities. This will assist students to various cultural-related issues and develop their global mindset on the differences in institutions, organisations, norms, culture and the legal and economic framework; 2. The Faculty members involved in the MBA and MBA (CG) programme are all full-time academics, many of whom are certified trainers with Corporate Human Resource (Perbadanan Sumber Manusia Berhad) and consultants. This allows students to be constantly in touch with their professors/lecturers who share their experiences with the students; 3. The programme also includes a research project that in turn inculcates the spirit of conducting research. The research project serves to create and enhance knowledge, to disseminate and preserve knowledge for the benefit of coming generations. 4. Flexible timetable to cater to the needs of the students.

Who should pursue the respective programmes?

How do you ascertain the quality of the Masters programmes?

DNCY: Students who want to enhance further their knowledge in the area of general management, corporate governance and accounting. At the same time, by pursuing the postgraduate programmes, students get networking opportunities with other students from different/diverse backgrounds.

DNCY: Firstly, we have an extensive array of lecturers who are qualified and experienced. Seventy-five per cent of the lecturers that lecture in these programmes are PhD holders.

What do you hope to achieve through MBAs with a focus on Corporate Governance? DNCY: One of the reasons we started this course was to make people more aware that corporate governance is becoming more important to individuals, shareholders and corporations. We continuously try to promote corporate social responsibility, accountability to shareholders and being transparent in all transactions. These aspects are especially important to minority shareholders because they invest a lot of money into these companies. When companies are not transparent in their dealings, at the end of the day it is the minority shareholders who suffer the most. Why should a prospective student choose UTAR? DNCY: The learning process should not only be confined to the classrooms. At the Faculty, real life consultancy projects are part of the curriculum for each unit. These projects let students consolidate the knowledge they gain on the programme and apply it to a specific business problem. At the same time, it encourages students to develop a broad range of ‘transferable’ skills, initiative and self-confidence. The organisations involved could also benefit from fresh perspectives on their business needs.

Beginning this year, the University put into place a self-assessment procedure. In this, academics are appointed into a committee to review programmes and make recommendations. We have completed the assessment for both the MBA and MBA (CG), recommendations have been made by the committee to be implemented on an ongoing basis. From the external viewpoint, we have an external examiner from foreign universities appointed for each of the three programmes. They make visits to the Faculty to review the programmes from all aspects. At the same time, industry advisors have also been appointed to provide views from the industry. MBA – Professor Dr Anthony Hayter, University of Denver, USA. MBA (CG) – Professor Dr Denise Dimon, University of Sam Diego, USA. M Commerce (Applied Accounting) – Professor Dr Suzana Sulaiman, UiTM, Malaysia. When is the next intake for these programmes and where can prospective students obtain information on them? DNCY: We have three intakes a year, every January, May and October. The next intake will be on 16 January 2012. Information is available from the Faculty, website of the Faculty and also the Department of Programme Promotions (DPP). You

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workplace for a year have on your career, and how does that weigh up against the potential benefits of having a Master’s under your belt?

can contact the Head of Programme at ngcy@utar.edu.my or the Faculty at 0390194722 or the DPP at 03-79582628 or email enquiry@utar.edu.my What is your advice to prospective students who want to pursue a Masters degree at UTAR?

Postgraduate study is much more independent than undergraduate study, so, on a practical level, it is important to be aware that you may be working by yourself for much of the time. Are you selfmotivated enough to survive or will you end up feeling isolated and adrift? A lot of the time you will be on your own. It really needs a lot of self-motivation and selfdiscipline.

DNCY: For prospective students, you need to be sure that a Master's is the right qualification for you, work out what course is best, what type of study will suit you and even which is the right university or institution. Make sure that the course of study has been accredited. All of our programmes are accredited. There are, of course, as many individual reasons for doing a master's qualification. The answer for a lot of Master's students is employability. Yes, people go into postgraduate education simply because they want to get their grey cells working again or because they are passionate about a subject and wish to pursue it as far as they can. But for the vast majority of students the decision to pursue a Masters is as much about what they are going to do with the qualification afterwards – and what they hope the qualification is going to do for them – as it is about gaining that bit of precious paper itself. For some, pursuing a Master’s is the progressive step towards a PhD and a career in academia. For others, doing a Master’s is because you want to change career direction or accelerate the career you already have. Or it may be for students who go straight on to do a Master’s after their undergraduate degree – a Master's is a way of getting that little extra something on your CV to help you stand out before going off into the harsh world of paid employment. Being able to brandish a Master’s can set you apart from the masses of undergraduates and give you something extra to talk about in your job interviews, but will it allow you to gain a better job or

more money? It is also important to consider the possible negatives before you take the plunge, and to start by being completely honest with yourself. If you're attracted to the idea of postgraduate study because you can't think of anything better to do, or enjoy student life and don't want to engage with the real world, you certainly shouldn't rush into anything. Pursuing a Master's qualification is hard work and requires a lot of commitment. It has to be something you actively want to do. It is also not a cheap option. It can set you back quite a bit. If you are doing a Masters degree you will need to spend the year actively engaging in what comes next and researching your options carefully. Returning to academic study and juggling work alongside studies or taking a year out from the nine to five, you need to think about the effect this is likely to have on your career and family or personal life. Are you prepared to give up evenings and weekends, even holidays, for study? What family or financial commitments do you have and how will studying affect them? If you are going to be a full-time student, what impact will being out of the

Ultimately, if you have a clear goal in your mind as to why it is you want to do an Master’s – and it may just be because you've decided you really want to do it – then you're likely to benefit from a 'postgraduate premium', namely a boost to your finances, your career or even your own personal fulfilment. The key thing to remember is that your Master’s has to be right for you, not your tutor, not your employer (current or prospective) and definitely not just because your friends or peers are doing it. Do it for yourself.

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Professionals with Postgraduate Doctorate

YEAP KIM HO subjects. Kim Ho's research areas of interests are in electromagnetics and microelectronics. Since 2006, he has published about 11 international refereed journal papers, two national refereed journal papers, eight international conference proceedings, one book and one book chapter. Kim Ho also serves as the reviewer for five international journals and one symposium. He has also been given various awards which include four Kudos awards from Intel Microelectronics and four research grants. In 2010, Kim Ho was invited by the Perak Entrepreneur and Skills Development Centre (PESDC) to conduct training on electronic sensors. Kim Ho's biography is also listed in the 2012 edition of Marquis Who's Who in the World. What do you consider the best take away value from your postgraduate programme? Name Yeap Kim Ho Email yeapkh@utar.edu.my Name of postgraduate programme PhD in Engineering Studied at Universiti Tunku Abdul Rahman (UTAR) Year graduated 2011 Current occupation Assistant Professor Description Kim Ho Yeap received his Bachelor of Engineering (Hons) Electrical and Electronic Engineering from Petronas University of Technology (UTP) in 2004, Master of Science in Microelectronics from National University of Malaysia (UKM) in 2005 and PhD in Engineering from Tunku Abdul Rahman University (UTAR) in 2011. From July 2005 to December 2007, he was with Tunku Abdul Rahman University (Malaysia), based at the KL campus. In early December 2007, he was deployed to the Perak main campus. He is currently an assistant professor in the Department of Electronic Engineering (DEE) in the Faculty of Engineering and Green Technology (FEGT). Kim Ho has been actively involved in teaching as well as research. Since 2005, he has taught 10 different

Knowing that success comes at a price. What is your advice to prospective postgraduate students to prepare them for this programme? For candidates who wish to pursue postgraduate studies, especially those who wish to register for part-time studies, one must be physically and mentally prepared to work hard – excruciatingly hard – to attain success. Success usually comes at a price. Therefore, there are times where one may have to choose to sacrifice some of the most precious elements in one’s life. Where do you see yourself in five years? To me, my dream – one of my dreams, to be more precise – has finally come true. I am contented with what I have and what I am today. But I do have worries, though. There are people around us who are suffering and I would like to help them. I am thinking of integrating some of the knowledge I have gained throughout all the years with medical and health science. In five years’ time, I hope I will be able to make a small but significant contribution to this field.

Professionals with Postgraduate Masters

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TOH TSU TH’ING What do you consider the best take away value from your MBA? As a fresh graduate, I find the MBA programme very challenging because it combines management theory with practical skills. However, this provides me with the best understanding on how business operates in real life. In addition, the MBA research project enhanced my analysis skills in interpreting data and conducting research. What is your advice to prospective MBA students to prepare them for the MBA? The MBA is designed to take your career to the next level with an efficient blend of academic excellence and practical skills. It’s an intensive and challenging programme, but you will graduate with a solid foundation in finance, strategic marketing, operations management and leadership with the practical skills to back up your knowledge in the workplace. Where do you see yourself in five years? Name Toh Tsu Th’ing Email ttthing85@yahoo.com Name of postgraduate programme MBA Studied at UTAR PJ campus Year graduated 2011 Current occupation University Administration Executive Brief description of job scope - Providing academic- and administration-related support to the Deans, maintaining good relations and effective and timely communication with students, parents, partners and staff. - Carrying out daily operations of the schools/divisions to ensure efficiency, effectiveness and timeliness, consistent with policies and procedures. - Assisting in the maintenance of the systems and procedures for operating efficiency and continual improvement.

As a fresh graduate, I will see myself climbing up the career ladder and in a managerial position in five years. I also plan to start my own business in the future. The MBA covers a broad set of business topics and it is good to know a little of everything if you own a business. There is no doubt that what you learn in an MBA programme will be applicable to running your own business. What is your motto in life? Stay hungry, stay foolish.

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Goals of the Firm

Profit Maximisation, Shareholders’ Wealth Maximisation and Corporate Wealth Maximisation By Tee Peck Ling & David Ng Ching Yat (Lecturers, Faculty of Accountancy and Management, UTAR)

ver the years, academic scholars and practitioners have had different opinions on what the ultimate goal of the firm should be. Should a firm’s managers undertake investment and financing decisions that maximise the firm’s profits, the wealth of its shareholders or the wealth of all its stakeholders? The main difference between profit maximisation and shareholders’ wealth maximisation lies in the different basis of measurement for each goal. Profit, which is measured as revenue minus expenses, is based on the accrual method in accounting. On the other hand, shareholders’ wealth, which is measured as the number of shares held by a shareholder multiplied by market-traded share price, is cash-flow based. A company could have reported healthy profit or profitability ratios, but has cash flow problems which caused its share price to decrease. For example, a company has a financial year ending on 31 December and has just sold its products to customers invoiced at

RM100,000 with a 60-day credit period on 15 December. Assuming the company has a 25 per cent mark-up, i.e., the cost of goods sold is RM80,000, the company would have reported an additional profit of RM20,000 for the financial year. However, since the cash is not yet received, there will not be any increase in operating and free cash flow, and hence there should not be any changes in discounted free cash flow (which is a commonly used method of measuring share price). Moreover, profit maximisation is often seen as a short-term goal that benefits the managers rather than the shareholders. Managers usually prefer to show higher accounting profit and profitability ratios

in order to be rewarded with higher bonuses, fringe benefits and greater opportunities to climb up the corporate ladder. In countries with a lower index of corporate governance, some managers might even window dress the accounts to show higher profits. For example, the managers might contact some customers and offer them special discounts in order to induce them to purchase more towards the financial year end, or the managers might arrange factoring the company’s accounts receivable with a factoring firm. Both these window dressing transactions would record higher sales and profit for current financial year, but reduce the company’s cash receipts. Another typical example of window dressing would be that

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“Profit maximisation is the traditional and narrow approach that aims to maximise the profits of the company.” some managers decide to delay certain research and development expenditures or replacement of worn-out fixed assets on purpose in order to avoid recording higher expenses in the income statement and higher total asset in the balance sheet. Higher expenses will reduce reported bottom-line profit figures, while higher total assets will reduce the return on asset (ROA) ratio.

In countries with a lower index of corporate governance, some managers might even window dress the accounts to show higher profits

Profit maximisation is the traditional and narrow approach that aims to maximise the profits of the company. Profit is the measuring technique to understand the business efficiency of the company. Profit maximisation consists of the following important features. Firstly, profit maximisation is also called cashing per share maximisation. It leads to maximising the business operations for profit maximisation. Secondly, the ultimate aim of companies is earning profits, hence it considers all the possible ways to increase profitability of the company. Thirdly, profit is the parameter of measuring the efficiency of the company. It therefore shows the entire position of the company. The drawback of the profit maximisation principle is that it ignores the time value of money. The principle does not consider the time value of money or the net present value of the company’s cash flow. This can lead to certain differences

between the actual cash inflow and the net present cash flow during a period of time. Another drawback of the objective is that it ignores risk. Profit maximisation does not consider the risk of the company. Risk may be internal or external, which in some ways affects the overall operations of the company. Lastly, it is ambiguous. Profit is not precisely or correctly defined. This would create some unnecessary viewpoints concerning the earning habits of the company. On the other hand, shareholders’ wealth maximisation is a more long-term goal in nature. Share investors are more concerned with the future growth prospects of the company rather than its past performance. Hence, if the managers of the company made good long-term investment and financing decisions, estimated future free cash flows of the company will increase. With such good future growth prospects, more investors will go long with the company’s shares in the secondary market , which in turn will push up the traded stock price. If the managers made substandard decisions that are detrimental to the company’s future cash flow, its share price will fall and hence reduce shareholders’ wealth. Shareholders’ wealth maximisation is also known as value maximisation or the net present worth maximisation. This objective

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is a universally accepted concept in the field of business.

When managers choose to maximise profits and their personal benefits rather than shareholders’ wealth, some of the existing shareholders would sell their shares to the bidder company. Upon a successful takeover, the bidder company will often replace the target firm’s managers with their own team of managers.

Shareholders’ wealth maximisation is superior to the profit maximisation principle because the main aim of the business concern under this objective is to improve the value or wealth of the shareholders. It considers the comparison of the value to cost associated with the company. It provides the extract value of the company. The principle also considers both time and risk of the company. Shareholders’ wealth maximisation also provides efficient allocation of resources and ensures the economic interest of the society. Agency problems arising from overemphasis on short-term profit maximisation can be overcome by a more concentrated ownership structure where major shareholders assign a board of directors that can effectively oversee the managers. If that does not work, market forces of a corporate takeover should discipline the managers who do not look after the interests of the shareholders. When managers choose to maximise profits and their personal benefits rather than shareholders’ wealth, some of the existing shareholders would sell their shares to the bidder company. Upon a successful takeover, the bidder company will often replace the target firm’s managers with their own team of managers. With this threat of retrenchment, managers should be disciplined to adopt shareholders’ wealth maximisation. Another typical way to reduce the propensity of managers to focus on the short-term goal of profit maximisation is to offer them stock options. Stock options are likely to realign the managers’ goal towards shareholders’ wealth maximisation because good decision-making that lead to higher future free cash flows and share price will make the options in-the-money and enjoy the capital gains when exercise it. However, in recent years, especially in Japan and central European countries,

corporate wealth maximisation (also known as stakeholder approach) has become a more prevalent goal than shareholders’ wealth maximisation. Corporate wealth maximisation puts shareholders at par with other interest groups such as employees, suppliers, customers, government and the local community. Under this goal, the aim of the firm is to earn as much as possible in the long run but at the same time benefit all the interest groups. For example, when the company generates high earnings and net cash inflows from its operations, it should set aside part of the funds to install gadgets and filters to reduce pollution caused by their production process in order to look after the local community. In addition, the company should also invest part of the funds for employee training and scholarship to upgrade their skills and knowledge base. To benefit the customers, the company should invest more in research and development in order to launch a new product that meets the preferences of customers, or to upgrade after sales services provided to the customers. Although corporate wealth maximisation seems to be a better goal than shareholders’ wealth maximisation, it has some practical

difficulties. Firstly, corporate wealth consists of both financial and non-financial wealth. Non-financial wealth is intangible and might not be easy to measure. For example, how do you measure the skills and knowledge base of human capital (i.e., the employees), the welfare of local community, the close relationship with suppliers and the satisfaction level of customers? Even if it were measurable, it is quite subjective. Secondly, it is argued that under corporate wealth maximisation, managers are tasked with too many goals and it is sometimes impossible for them to satisfy all the interest groups at the same time. Given the limitations of corporate wealth maximisation, companies in most of the Anglo-American countries still adopt shareholders’ wealth maximisation as the goal of the firm. Nonetheless, this goal is not without its weaknesses. Share prices of companies can sometimes be unrelated to their fundamentals or their future cash flows, and instead be subject to speculative trading of their shares in the stock market.

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ASK THE HEADHUNTER

Interview

An Insider’s View from a Leading Professional Sharon Soon, Savant Search Malaysia

Working with a reputable headhunter opens doors. How so?

What is your advice to professionals when preparing their resume?

should seek a headhunter’s advice before he or she proceeds to negotiate.

SS: A reputable headhunter not only understands your career progression and desires all the way from after you have completed your education until your current job, but also takes time to analyse your personality and character and advises you where to move forward from your current position, the best time to move and also into which industry/ type of companies, and at what level to move into next. This is valuable advice a headhunter can offer a candidate. It is not just a one-time job match but a career-long relationship, and he or she can connect you with other exciting roles that fit your credentials as and when they arise.

SS: Many candidates make the mistake of making their CV/resume too long. They forget that HR/recruiters go through a mountain-high level of CVs.

How can one be the perfect candidate?

Recruiters, agencies, coaches and headhunters. What are the differences? SS: Recruiters and agencies are basically similar, they go through millions and millions of CVs to pick out those that fit the job role whereas coaches provide career advice besides just matching CVs. Headhunters are different – besides just the normal CV match with role, they give you good career advice on what to expect in terms of career advancement as well as how to negotiate your salary based on current economic and market conditions.

My advice is to keep it short and simple with key points highlighted/or in bold font. Maximum three pages. Just a paragraph in the cover letter will do as these are normally not read through by hiring managers unless it is for a management trainee post. Some candidates also tend to repeat points/ facts without realising it. Get a friend or your HR colleague to go through your CV/ resume and ask him or her for comments. This is a good way to streamline and improve your CV from their feedback.

SS: There is no perfect candidate. I can only say “best match.” You may try to be the best among the rest. To be the best candidate for a particular job, you must not only fit the job requirements but also have a very good attitude. Sometimes employers do not mind if a candidate does not fit the role 100 per cent if they feel the candidate has a good attitude to learn and shows a keen interest. How do you get headhunters to call or recommend you? What is the secret to getting shortlisted by headhunters?

SS: Salary ranges really depend on the market economic situations at a particular point in time. Some good headhunters will advise professionals/candidates on the best range to negotiate.

SS: Get in touch with some reputable headhunters and make sure your CV/ resume is in their database. Headhunters look for suitable candidates they can propose to their clients, and in return get good feedback on the candidates. Good quality candidates give headhunters repeat business from the clients. There is no secret to getting shortlisted by headhunters.

Some companies like to negotiate directly with the potential candidates and not through the headhunters, so it really depends. Whichever the case, professionals

But if you change jobs too many times within a short span of time, headhunters will not be keen on you. The secret is maybe to stay in a job for at least more

How should a professional negotiate with a headhunter in terms of remuneration?

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Sharon Soon (Savant Search Malaysia)

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than three years before moving on to the next. What are the characteristics of a good headhunter? SS: A headhunter who has been in the headhunting industry for a long time is a good headhunter. It shows that clients come back to them over the years and their candidate database is also good. He/ she must be friendly and approachable, someone people love to communicate with. A good headhunter can make you feel very comfortable as you share your career history and tell him/her your aspirations for the future. From there he/she can advise you on how to best to move on in your career. How do headhunters find candidates? SS: There are many ways. We use a combination of searching through job website databases like Jobstreet. So do deposit your CV/resumes into Jobstreet. It is a good way to get hunted if your CV is good.

Interview

We actively hunt candidates from clients’ competitors and persuade candidates to move too. Personal network is the best. Since our network is good, we will ask for good recommendations but in the end we will still meet every candidate via a face-toface interview. What do headhunters look for, skills, knowledge or attitude? SS: All three. Clients need candidates with minimum skills for the role. Knowledge is also important but I wouldn’t say it’s a prerequisite. Knowledge is something you can gain after you get into the company/job. Having the right attitude is important as it is a smart way of fitting in with the new company role and people – somehow your new colleagues will be more than willing to share their experience with you, for example, on how to survive the boss and the office politics.

What should a candidate ask when a headhunter calls? SS: Candidates should ask which headhunting firm he/she is calling from. Make sure it is a reputable one. There are many fake ones and “fly by night” headhunters. Be courteous and friendly because the headhunter can be a very valuable contact in advancing your career. If the candidate did not get the job, how should the candidate work with the headhunter in the longer term? SS: Even if the candidate did not get the job, he/she should always keep in touch with the headhunter so that the headhunter will remember them when the next suitable job comes along. Headhunters see thousands of candidates every month, so they may sometimes not remember you when a job pops up but the more you keep in touch, the more you will be remembered.

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Interview

A good headhunter can make you feel very comfortable as you share your career history and tell him/her your aspirations for the future. From there he/she can advise you on how to best to move on in your career.

As a headhunter yourself, tell us what you find most fulfilling? SS: In more than 15 years as a headhunter, the most rewarding moments are the times when a candidate you place in a good company comes back to you to tell you his impressive promotions as he grows with the company. Also when a client continues to come back to you and tell you that you are their best/ only headhunter, the feeling is out of this world I also get this feeling of having contributed to society/humankind by helping someone get a better life through the job I placed him/her in. Seeing a candidate progress well and fast puts a big smile on my face, a feeling one will never get in any other job. Is it true that Malaysia lacks talent and skilled labour? SS:

This is so true. The level of

remuneration in Malaysia is low compared to many other countries, and as such many good talents have gone overseas to work. They only return to Malaysia later in life due to ageing parents who ask them to come home. When they are at their career contribution peak, they are overseas, which is sad for Malaysia. What is your advice to postgraduate students entering the job market in terms of building a career? SS: These days, most people have a postgraduate degree before even entering the job market. My advice is to join the right company, stay humble and fit in well with all levels of people in the company. This will bring you far in your career.

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Article

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Soo Wincci

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Soo Wincci on her PhD studies Why study for a PhD? What is your motivation? SW: Generally, I hunger for knowledge and also think that this PhD can push me to another level to expand my career. After stepping into the entertainment business, I felt that talent alone was not enough â&#x20AC;&#x201C; in order to gain substance, I needed more knowledge and to develop my thinking skills, so I decided to challenge myself by studying for a PhD. At first, I was quite doubtful about my decision, but the knowledge I was gaining each day helped my acting and singing, infusing new spirit and soul into it, like adding new spices into your food to make it tastier and more interesting.

What is the topic of your research and why? SW: My research is on Artist Management in the Malaysian Pop Music Industry. Basically, this topic is closely related to my area of work. Artist management in Malaysia is an area still largely unexplored and no one has written much about this topic. I hope to be the first to write about the music industry in Malaysia so I can contribute to the entertainment industry and hopefully my work can also be used as reference by Malaysian artists and managers.

How often do you attend class? SW: I visit my supervisor once a month and we also constantly update each other via email.

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How often do you do your research? SW:

Weekly.

How do you cope with the demands of research? SW: Due to my packed schedule, I do not research every day, although I do sacrifice sleep to write and research. I have experienced non-stop researching and writing my thesis for 24 hours, then going to my shooting straight after. Also, my research is not only limited to books or journals â&#x20AC;&#x201C; I interview people for my research as well.

What do you think are some specific skills for PhD level research? SW: Well, I guess we have to be discerning in selecting research topics and persevere in the face of hardship.

What do you plan to do with your PhD? SW: I hope that the PhD will equip me to set up my own business. I also hope that my thesis will be used as reference by other researchers and readers.

What is your advice to students intending to pursue a PhD? SW: Just do it and once you have started, you must be determined and never give up.

Professionals with Postgraduate Masters

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Name Benjamin Chandran Dudley

Name Kevin Khoo Min Sinn

Name Lincan Sittampalam

Email bennydudley@yahoo.com

Email kevinkhoo7@gmail.com

Email lican@dshm.com.my

Occupation IT Consultant

Occupation Head of Infrastructure & Applications 1

Occupation An Administration Manager in a private hospital group in Kuala Lumpur.

University Sunway University, Victoria University

Job I am currently attached to Sunway Shared Services Sdn Bhd in the Information & Technology division. IT Shared Services was set up to provide IT services to the Sunway Group of companies. I am currently the Head of Infrastructure & Applications 1.

Job My job is to oversee administrative matters within the hospital I am stationed at as well as overseeing the running of another centre within the group. I handle a lot of paperwork, manage some of the staff and generally deal with things on an ad hoc basis.

What made you want to study for an MBA? I chose to enrol in the MBA programme after attending a six-day managementrelated crash course. During the six days, I realised that the only thing I learnt was that my understanding and knowledge of Management and Business was really limited and shallow. I came out from the course with more questions than answers.

What made you want to study for an MBA? I felt I needed to upgrade my skills in order to further add value at my current job. Having embarked on the programme, I have come to realise that it is a transformative experience and I have developed a passion for business.

University Sunway University, Victoria University Job Provide application support What made you want to study for an MBA? I have always wanted to pursue higher education, and I wanted a course that was related to the industry as much as it was academic. The MBA met my requirements and after months of searching, I decided on Victoria University. My first degree was technically inclined and the opportunities and challenges of the business were foreign to me. The MBA changed all that and now I have a different view of the business world and am more open to life as a whole. Career-wise, I believe the MBA will open more doors and provide me with a foundation in the know-hows of business. As for the future, the MBA can equip me with the skills needed to set up my own business. What inspires you? My inspiration comes from the desire to succeed, to be dynamic and forward driven. This said, my main inspiration comes from my father David Jeevaratnam Dudley who gives me tremendous support, not only financially but also spiritually. Favourite Quote “You can't teach anybody anything, only make them realise the answers are already inside them." Galileo

What inspires you? I am always intrigued and inspired by people, as every individual has his or her own personality, uniqueness, quality and their different life experiences. I find that through people and their sharing, we can learn things we might never have otherwise come across or thought of. Favorite Quote “Insanity: doing the same thing over and over again and expecting different results.” Albert Einstein

What inspires you? I have made many friends in my ongoing course of study. If there is one thing that inspires me, it is the support and encouragement from family and friends. Fovourite Quote My favourite quote is by Anthony Robbins: “Everything happens for a reason and a purpose, and it will serve us.”

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Victoria University MBA Programme

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Factors Influencing Sourcing of Family Funds by Young Malaysian Entrepreneurs By Dr Hendry Ng, Kalanithi Muthu and Teh Ya Yee

ntrepreneurs are people who want to own businesses, increase their income and prove that they can succeed in often risky business ventures (Chu, Kara, Zhu & Gok 2011). However, they lack the start-up funds and are unlikely to be given loans by financial institutions. As such, they would usually rely on the generosity of family members for their first business capital. This article outlines the propositions of a current research on analysing the experiences of young Malaysian entrepreneurs in sourcing initial business capital from families. The research goal is to identify influencing factors critical to the giving of funds by the parents or relatives who may be endowed with expendable funds. There are problems faced by small firms when attempting to raise funds from financial institutions. Tucker and Lean (2003) cite the key problem â&#x20AC;&#x201C; that entrepreneurs lack financial sophistication. They are often the product or technical specialist but are not well-versed in the area of finance, and as such may find it difficult to produce information on financial projection or track records. With willing fund givers among the family members, the young entrepreneurs may find family finance to be more easily acquired than the loans from financial institutions with their

troublesome processes of application. Family-based social capital The relationship between fund givers and takers is critical to the sourcing and giving of funds. In other words, there is a critical dependence on social capital as a means to get the necessary business capital. In a close-knit family, the interchange among members is more in-depth and involves interest-sharing and risk sharing (Au & Ding 2011). Family gatherings may lead to ideas exchange, opportunity discovery, then family investment. The families concerned may also have business networks with additional resources that they can provide for the entrepreneurs. These external resources are likely to be made available through family friends and associates. Thus: Proposition 1: the family-based social capital is critical to the sourcing of funds by young entrepreneurs to start their business ventures. Family-based human capital The human capital components include

education, previous work experience, employment motivations and the presence of entrepreneurial teams and the presence of family members in the firm. In their study, Lafuente and Rabetino (2011, p. 88) have found that business firms with a high proportion of family members are more sensitive to the costs of delegating managerial tasks to outside managers. In other words, family members are more favoured than outside managers if they are deemed capable to carry out the business tasks. If so, young entrepreneurs are likely to be supported when their business propositions fall within the business expansion plan of the families. Thus: Proposition 2: the sourcing of family funds is influenced by the expansion strategy of the family business such as setting up new branches. Perceived business profitability The decision made to provide the family funds may be affected by altruism where an informal investment is given for the benefit of an entrepreneur. Au and Kwan (2009) suggest that the closer the relationship

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between an entrepreneur and an investor, the lower the expected return. And half of the informal investors have expected to lose money or at best break even. However, apart from altruism and familism, there are other equally important reasons. These include familiarity in business, personal traits of young entrepreneurs, family background and similarity of opinions. It is no coincidence that most young Malaysian entrepreneurs are engaged in food and beverage businesses. It is suggested that perhaps the fund givers have perceived such business ventures to be profitable. Thus: Proposition 3: the fund givers are more willing to expend the funds for businesses that have been successfully implemented in the past. Through case studies of young business owners, there will be new insights into the complexity of solicitation of family fund by young Malaysian entrepreneurs. Firstly, funds must be sourced for new business start-ups. According to the Pecking Order hypothesis (Quan, 2002; Tucker & Lean 2003; Paul, Whittam & Wyper 2007) firms prefer internally financing to external financing of any sort. And if they must obtain external financing, they prefer debt over equity. An entrepreneur may rely mainly on internal financing from personal savings and borrowing from friends and relatives. However, when businesses expand, they may be keen on borrowing money from the debt market rather than equity financing (Wu, Song & Zeng 2008). Also, there is a cultural consideration in the sourcing of funds by young Malaysian entrepreneurs. In a study, Hussain, Millman and Matlay (2006) have found that the majority of respondents in the UK relied exclusively on financial support from their immediate families at the initial start-up stage. After two years, they relied on their own savings and the support of financial institutions. At the end of five years, they preferred to borrow from financial institutions.

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In contrast, entrepreneurs in China depended mainly on financial support from their immediate families. Familism values influence the Chinese to give preference to family membership in terms of support, sacrifice, loyalty, reciprocity, closeness, and respect (Au & Kwan, 2009). In addition, Chinese families have long been influenced by Confucian culture that has a strong emphasis on family relationships. For instance, a father may feel a moral obligation to help his son to start a business. Also, there may be similarities between legendary entrepreneurs in early colonial Malaya, and those in early colonial Hong Kong and mainland China who formed their own social networks of mutual help and protection (Zheng & Wong 2010; Chu, Kara, Zhu & Gok, 2011). In short, young Malaysian entrepreneurs sourcing for funds may benefit from the way family fund owners have emulated their forefathers on how they ought to consolidate, mobilise, aggrandise and transmit their family funds.

capital and growth in Romanian small firms”. Journal of Small Business & Enterprise Development, vol. 18, no. 1, pp. 74-96, February. Paul, S., Whittam G. & Wyper, J. 2007, “The pecking order hypothesis: does it apply to start-up firms?” Journal of Small Business and Enterprise Development, vol. 14, no 1, pp. 8-21. Quan, V. D. H. 2002, “A Rational Justification of the Pecking Order Hypothesis to the Choice of Sources of Financing” Management Research News, vol. 25, no. 1, pp. 74- 90. Tucker, J. & Lean J. 2003, “Small firm finance and public policy”, Journal of Small Business and Enterprise Development, vol. 10, no. 1, pp. 50-61. Wu, J., Song, J. & Zeng C. 2008, “An empirical evidence of small business financing in China”, Management Research News. Vol. 31. No.13. pp. 959-975. Zheng, V. and Wong, S. L. 2010, The Mystery of Capital: Eurasian Entrepreneurs' Socio-Cultural Strategies for Commercial Success in Early 20th-Century Hong Kong, Asian Studies Review; Dec, Vol. 34 no. 4, pp. 467-487.

REFERENCES Au, K. & Ding, Z. 2011, “Institutional influence on love money: informal investment to family, friends and strangers across countries”, Paper submitted to FBA, Perth, August. Au, K. & Kwan, H.K. 2009, “Start-up capital and Chinese entrepreneurs: the role of family”, Entrepreneurship Theory and Practice, July, pp. 889-908. Management Research News, vol. 31, no. 12, pp. 959-975. Chu, H.M., Kara, O., Zhu, X. and Gok, K. 2011, “Chinese entrepreneurs: Motivations, success factors, problems, and business-related stress”, Journal of Chinese Entrepreneurship, Vol. 3 no. 2, pp.84 –111, Emerald Group Publishing Limited. Hussain, J., Millman, C. & Matlay, H. 2006, “SME financing in the UK and in China: a comparative perspective”, Journal of Small Business and Enterprise Development, vol. 13, no. 4, pp. 584-599. Lafuente, E. & Rabetino, R. 2011, “Human

Authors: You may contact Dr Hendry Ng (above) at hendryng@sunway.edu. my, Kalanithi Muthu at kalanithim@ sunway.edu.my and Teh Ya Yee at yayeet@sunway.edu.my.

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Professor Dr Tengku Akbar Bin Tengku Abdullah Centre for Postgraduate Studies, School of Business Infrastructure, Kuala Lumpur Infrastructure University College (KLIUC)

rofessor Dr Tengku Akbar has a PhD in Accountancy, an MA in Accounting and Finance and is a member of the Chartered Institute of Management Accountants, United Kingdom, and the Malaysian Institute of Accountants. His areas of research include Management Accounting, Competition Policy, Strategic Management Accounting and Accounting Education. MEB spoke to him about the various Master’s programmes offered at the KLIUC. Why is it important to study finance at the graduate level? DTA: When we talk about finance, we mean money and managing money. When we are in the business world, we are talking about getting the money, then spending it to get more money. To understand “finance,” we must understand the entire business, indeed, the entire economy. As it is an important aspect of managing a business, it is important that one has the knowledge of finance beyond the undergraduate level. What are the differences between a Master of Finance and an MBA in Finance programme? DTA: An MBA programme offers choices of majoring. It incorporates core subjects that are general in nature. For example, the MBA programme has core courses of 33 units (11 courses) and major courses of 12 credits (four subjects). It is usually a two-

year programme. The MBA is more of a general degree while the Master of Science in Finance is focused solely on finance, has eight to 10 courses and is usually a one-year programme. Also, if you want to teach, none of these are considered terminal degrees, which are normally required to teach at universities. Who should enrol for the MBA in Finance and the Master of Finance programme? DTA: MBA students are trained to be in general management and with an emphasis on leadership. A good MBA programme requires its students to have work experience before they can be enrolled in the programme. The Master of Finance programme requires virtually no work experience and it places less emphasis on leadership potential. The programme tends to be more specialised than the MBA and emphasises quantitative skills. In the comprehensive finance course, courses like accounting, corporate finance, behavioural finance, stochastic calculus, derivatives pricing and financial engineering are offered. In the study of finance, are the theories of finance important? Or is it more important to have a general grasp on the issues surrounding the theories, and why? DTA: In order to understand finance, we have to know certain concepts, for example, asymmetric information, moral hazard, agency theory, adverse selection, monitoring, costly state verification, which we would not know unless we take a finance subject. Finance theories, such as agency theory, the theory of asymmetric information, the theory of adverse selection and moral hazard have many applications in the financial world.

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Professor Dr Tengku Akbar Bin Tengku Abdullah

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The existence of financial intermediaries can be explained by the theory of asymmetric information. Financial intermediaries, according to that theory of asymmetric information, exist to serve savers and investors as the financial markets are not perfect. As long as the markets are not perfect, financial intermediaries have a role to play. If we can get rid of these imperfections, there would be no place for financial intermediaries, who would lose their role as savers, and investors can obtain any information without any impediments and deal at optimal prices. Is the study of "history of finance" (stories of crisis and triumphs) important? Isn't the topic generally neglected? DTA: Financial crises from the 17th and 18th centuries to the recent ones with sub-prime lending in the US, and currently in the EU, are related to processes of mispricing and misperception of risk. After the collapses, drastic in-depth financial reforms were called for. In the case of the 1929 crash they were effective, but not for the Savings and Loans crisis. However, the stories of crisis and triumphs of the past have not been a subject in the finance course which is unfortunate for the finance students who are not able to grasp and analyse why certain policies were effective in dealing with one situation but not the other. In the case of capital investment analysis, is it more important to apply the techniques of analysis or the use of gut feeling or experience to judge an investment decision, and why? DTA: Many businessmen are fond of making decisions based on a gut feeling or intuition. Some businessmen are good in “seat-of-the-pants" decisions but others are more cautious of this approach. For those who are cautious, they prefer to have the results from a more formal or systematic analysis. If they intuitively disagree with the results from a more formal or systematic analysis, they can always keep on “probing" until they feel comfortable with the results. A systematic analysis of an issue or a problem will reduce the risk of making unwise decisions. In capital investment analysis, there are many tools that can be

used to aid a decision. For example, the payback period approach can be used to filter the projects for detailed analysis. The net present value and internal rate of return methods can be used for a detailed analysis. However, the results of the systematic analysis are just one of the variables that the decision makers have to consider. To make good decisions, decision makers need to rely on their intuition besides the information derived from the systematic analysis. The uncomfortable feeling could be a signal that more thinking about the problem is required. Do you have some of the great thinkers of finance you admire and how have they shaped the field? DTA: Harry Markowitz, William Sharpes, Merton Miller, Franco Modigliani, Robert C. Merton and Myron S. Scholes are Fathers of Modern Finance. Harry Markowitz, William Sharpes, and Merton Miller won the Nobel Prize in 1990, Franco Modigliani in 1985, Robert C. Merton and Myron S. Scholes in 1997 for their contributions in the field of Economics.

The field of modern finance was started by Harry Markowitz’s 1952 article on the theory of portfolio selection. Markowitz’s model can be applied by investors to pick their portfolios using a combination of past data and personal preference on means, variances and co-variances to obtain their expected returns. Merton Miller contributed to the field of modern finance in his writing on the theory of corporate finance with Franco Modigliani. William Sharpes developed the capital asset pricing model (CAPM). William Sharpes’ work spurred the creation of mutual funds that seek to hold all shares in the market in big proportions. Robert C. Merton and Myron S. Scholes developed a new method to determine the value of derivatives called Options. What is your advice to students who are undecided on whether to pursue a course in finance? What are the key factors to consider before pursuing the course?

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DTA: I would ask the students what their ultimate career goals are. If they want to be in business, the MBA is the best programme they can undergo. If they want to work in the finance industry, the best alternative is to pursue an MSc in finance. However, if they want to be in academia, they have to pursue a terminal degree in Finance. In academia, you have to specialise in order to enhance your marketability. The world is facing financial turmoil. Do you have any suggestions on how to solve this problem? DTA: I would like to state here that I am not a macro- or micro-economist. I am an accountant and I would leave the economic analysis to the macroeconomists. We have seen many incidents of financial turmoil and the latest one is the EU financial crisis. In my humble opinion, there is so far no long-term solution as the developed countries are not sincere in solving the problem. Their interests are self-serving that is to manipulate or even constrain developing countries and to transfer

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massive money wealth to their countries as evident in the speculative assaults on currencies. In the wake of Black September in 1998, for example, the G7 ministers of finance met in Washington to push through a USD90 billion plan to avert the risks of global financial meltdown. In that meeting, they warned speculators not to short sell a nationâ&#x20AC;&#x2122;s currency. What they achieved was the opposite result. The fund set up spurred the speculators to increase their deadly raids on national currencies. In the case of Brazil, a huge amount of money to the tune of USD40 billion was set aside by G7-IMF for Brazil to pay its Wall Street creditors. The economic austerity measures enforced on Brazil pushed its people into poverty and the cost of servicing the loan for Brazil was very high. Not only did the speculative assaults push up the external debts of the affected developing countries but also burdened G7 countries that financed the bailouts by the increase in public debts. The increase

in public debts created conditions that brought about the loss of production and employment. We now can see the impact of an increase in public debt in the US and the EU which are now facing financial crises. However, these countries do not prescribe the same bitter austerity measures that they forced on developing countries for themselves as they cannot face the resulting repercussions. What is your prediction in terms of finance for Malaysia in 2012? DTA: We know that the current economic environment remains very fluid and unpredictable, particularly in the face of crises in EU as well as in the US. The global weaknesses will have a profound effect on the Malaysian economy. However, a strong domestic demand will help to dampen the global weaknesses. It is fortunate that Malaysia does not depend on the US and EU for its export revenues. Though the US and Germany are still in the list of Malaysiaâ&#x20AC;&#x2122;s top 10 trade partners, the Asian countries are its major trading partners. China, Singapore and Japan account for about 34 per cent of our

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international trade. Thailand, South Korea, Indonesia, Hong Kong and Taiwan are the other Asian main trade partners.

to its knees. It discloses how the most powerful actors in finance and politics decide the fate of the global economy.

China, Malaysiaâ&#x20AC;&#x2122;s number one trade partner, is key to our economic growth as it has a huge demand for commodities for its development that will keep the prices of the commodities fairly stable. If we can implement the transformation plans announced recently, the volatility of global economy can be overcome. I expect that our economy will grow moderately. MIER and World Bank have forecasted that our economy will grow at five per cent and 4.9 per cent respectively.

Finance for Executives: Managing for Value Creation by Grabriel Hawawini and Claude Viallet of INSEAD (4th Edition, SouthWestern, 2011) I like this book because it adopts a different approach to discussing finance.

Please recommend some recently published books on finance to our readers. DTA: Get a Financial Life: Personal Finance in Your Twenties and Thirties by Beth Kobliner (Simon & Schuster; 3rd edition, March 17, 2009) This book is good for a fresh graduate who is trying to survive on his/her own. The Myth of the Rational Market by Justin Fox (HarperCollins Publishers, 2011) The book discusses the efficient market hypothesis which has evolved into a powerful myth. The hypothesis has made investors gain as well as lose a fortune. It is a story of free-market capitalism. Too Big to Fail by Andrew Ross Sorkin (Penguin, 2011) The book narrates the drama and turmoil that brought the world

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Mar / June / Sept / Oct Doctor of Philosophy (PhD) in Business Administration The Doctor of Philosophy (PhD) in Business Administration prepares candidates to acquire knowledge and skills necessary to function at the highest academic and professional levels. Exposure in the areas of management will be in-depth, whereby graduates will be focusing on a specialised area and will work to further develop their conceptual and intellectual knowledge and methodological tools necessary to design and conduct independent research.

Master of Business Administration (MBA) The corporate world evokes many unforeseen enigmatic scenarios. They are undeniably challenging, but once it has been mastered, great success follow along. To achieve and enjoy the success, School of Business Infrastructure, KLIUC offers a specially designed Master in Business Administration programme in the areas of Management, Marketing, Finance and Banking, Project Management, Human Resource Management and Accounting. They share the secrets of successful business management. Undoubtedly this programme strengthen your career path and achievements in your future business endeavors.

7 Postgraduate programmes available @ KLIUC, contact us for more details! KPT/JPS/DFT/US/B11

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MUHAMMAD HAFIDZI ABU BAKAR

AHMAD FUAD BIN MANSOR

Name Muhammad Hafidzi Abu Bakar

Name Ahmad Fuad Bin Mansor

Email hafidzi@kliuc.edu.my

Email afuad@kliuc.edu.my

Occupation Director of Finance Division

Occupation Lecturer â&#x20AC;&#x201C; Grammar & Critical Thinking Skills

University Kuala Lumpur Infrastructure University College

Job I have been in the Kuala Lumpur Infrastructure University College (KLIUC) for more than seven years now. Being a Director for Finance Division is no easy task, as I have to constantly oversee three departments, namely Account & Finance, Bursary and Corporate Advisory and the financial matters of KLIUC. Additionally, I also have to assist the Corporate Advisory of KLIUC in setting up financial policies, preparing the financial projection yearly budget and analysing financial performances and the feasibility studies. Basically I have to analyse financial performance and ensure that the staff comply with financial policies and procedures. I am also the Deputy Registrar of the university college and assist the Registrar in any administration matters or dealings with the students.

Job Being passionate about teaching and lecturing, I started as a lecturer in the International Islamic University Malaysia (UIA) for 10 years before joining KLIUC as a lecturer in 2007. Being part of the School of Communication & Language Studies team, I lecture in the area of Grammar and Critical Thinking Skills. In my lectures, I always emphasise that in order for students to excel in the field of Communication, they need to have very strong communication skills and dare to explore the world. In addition to my classes, I also assist the marketing team during exhibitions or roadshows to recruit students.

Why made you want to study for an MBA? These days, many of the top management of corporations hold postgraduate qualifications. This has set the bar for the upcoming managers and directors. I am pursuing the MBA for my personal growth. I find that after starting the classes, I am even more conscientious about financial matters and am able to apply what I have learned in class in my daily work. In every class I attend, I gain more knowledge and input, and this has boosted my career as an accountant and director. What inspires you? Successful men who have achieved their dreams despite the various challenges that they had to face. These men that I have met made me realise that achieving our dreams is possible â&#x20AC;&#x201C; we just have to work hard towards them. Sometimes these people amaze me because they started off just like the rest of us, but their continuous efforts have put them where they are today. Favorite quote The way to get started is to quit talking and begin doing.

Why did you pursue a Master in Communication? I wanted to expand my knowledge on integrated marketing communication and be formally qualified with a Master in Communication. I consider it a personal achievement to complete my Masters degree after successfully obtaining a Diploma (Education-TESL) from UIA and a Bachelor of Arts (Linguistics) from Macalester College, St. Paul, Minnesota, USA. I believe the knowledge and experience gained from my postgraduate studies will be useful to guide my students and may also be valuable to the industry. What inspires you? To be able to remain neutral and calm in dealing with day-to-day communication. Being surrounded by academicians from various backgrounds inspires me to not only to master linguistic fields but also other fields of communications such as public relations, public speaking and media management.

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WHEN IS CASH FLOW MORE IMPORTANT THAN PROFIT? WHAT IS PROFIT TO A BUSINESS? By Professor Dr Juhari Samidi Kuala Lumpur Infrastructure University College

he performance of business organisations is traditionally measured by profit, which is computed annually by deducting all costs and overhead expenses from sales revenue. Profit is a residual, and a consequence of what happens in and to a business. The profit of a business is reported in its income statement which is prepared regularly at the end of its financial year together with other financial statements as required by the authority, such as the balance sheet, cash flow statement and statement of changes of equity. The net profit is considered as an excellent measure of a business’s long term financial health; it shows whether or not a business is making money. The amount of profit

earned by a business as shown in its accounts could serve as an incentive to a number of interested parties. Shareholders are a particularly important group as they will receive a share of the profit in the form of dividends. The amount of profit will determine the amount of dividends they will receive. Showing high profit in its annual income statement is beneficial to the business itself, as it can attract more investors to buy its shares. The extra cash generated will definitely improve the business liquidity position and the extra profit accumulated every year is reported in its Statement of Financial Position as at the end of each year as ‘retained earnings.’ ‘Retained earnings’ or the retained profit is regarded as money kept in the business at the end of each financial year. It adds to the shareholders’ fund on the balance sheet. Profit is also important for the business to have a close relationship with its banks particularly when additional credit facilities are needed for financing purposes. Banks will be more confident to give loan and other credit facilities if the firm’s profits look good. Profit is also a useful figure to calculate the tax liability of the business

Professor Dr Juhari Samidi

A new small scale business organisation will need cash to survive especially in the first few years. But once they are more established, they might concentrate on getting more profit.

Article

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Cash flow is defined as the movement of money in and out of a business. The inflows are primarily coming from the sale of goods or for provision of services to the customers. The inflows occur when there is a cash sale or cash collected from receivables. Cash can also be coming from borrowed funds, sales of assets and investment incomes such as interests on investment.

To an investor, the cash flow reflects a firm’s financial health, which means that it is better to have more cash rather than less for business operations. and for annual reporting to the Inland Revenue Board. However, profit does not account for asset purchases, the repayment of loan principal or increases in working capital demands. Profit is also affected by non-cash items such as the depreciation of the noncurrent assets of the business. Depreciation expense does not require a current outlay of cash, though it does reduce profits. Theoretically, a profitable company can go bankrupt, if decisions are made strictly based on profit. Consider this: you are running a retail business and purchased from a supplier goods on credit worth RM10,000 and managed to sell it also on credit for RM20,000. On paper you have earned a profit of RM10,000, but what will happen if the buyer is slow in settling the accounts? Your firm might still show a profit, but you don’t have cash to pay your supplier and this will damage your credit rating. Such delays in getting payments from your customers might lead you to miss other profitable opportunities or force you to take loans, thus creating unnecessary debts. Besides the Income Statement for a financial year, a business firm is also required to prepare the Statement of Financial Position as at the end of an

accounting period, Statement of Changes in its Equity and the Statement of Cash Flows for the specific accounting period. All these statements are to provide information about the financial position, performance and changes in the financial position of the firm. They are also useful to a wide range of users in making economic decisions. Reported assets, liabilities and equities are directly related to a firm’s financial position. Reported income and expenses are also directly related to the firm’s financial performance. The financial statements of a business provide a representative overview of a firm’s financial condition in short and long term. One of the most important components of financial statements is the Statement of Cash Flows. Basically this statement allows investors to understand how business operations are running, where its money is coming from and how it is being spent. A firm can use a cash flow statement to predict future cash flows, and thus helping the firm to plan future activities efficiently. To an investor, the cash flow reflects a firm’s financial health, which means that it is better to have more cash rather than less for business operations.

Cash outflows are normally for paying business expenses, such as paying employees’ wages, purchasing inventory of raw materials, operating costs, purchasing of fixed assets, paying back loans and settling taxes. A thorough analysis of a firm’s cash inflows and inflows will reveal problem areas such as cash flow gaps. Narrowing or closing of these gaps is required for a successful cash flow management. A firm has to examine the patterns of its accounts receivables, credit terms and policies, inventory levels and accounts payables. Such an analysis will help to reduce unnecessary write-offs of bad debts, slow movement of inventory and maintain good credit rating with the creditors. Thus the management of cash is of utmost importance to a business’s long-term survival. Cash flow and profit are both equally important in a business. Cash flow focuses on the day-to-day business activities, but profit is for the longer term. Overall, it probably depends on the situation of the business. A new small scale business organisation will need cash to survive especially in the first few years. But once they are more established, they might concentrate on getting more profit. Big firms can also go out of business not because of a lack of profit, but because of a lack of cash. Thus profit and cash flows are both important instruments to evaluate a firm’s overall performance. Reliance on only one of them will not normally lead to a long term success of the business.

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Youths in Pursuit of Liberty and Equal Opportunity What is their role in a democratic society and being engaged in the democratic process? by Tunku Abidin Muhriz

The Tan Sri Dato’ Sri Jeffrey Cheah’s Distinguished Lecture Series Friday 21 October 2011 Sunway University

ood morning, everyone. Thank you for inviting me today to address you as part of your Malaysian studies course. It is rare that I get to address undergraduate students. Back in 2009, I was helping to teach a Masters course in public sector reform at the Lee Kuan Yew School of Public Policy at the National University of Singapore.

My audience there had a relatively serious demeanour. Around the same time, I was also addressing lots of secondary school children because of a project I was doing on the Negeri Sembilan State Anthem. I had found singers from several different schools around the royal capital of Seri Menanti to come to the palace and sing the anthem for some ceremonies and also to record the re-arranged version of the anthem with the Malaysian Philharmonic Orchestra. They too were very serious in their outlook: I think their teachers must have told them to be on their best

behaviour. Either that, or they were just shy! But you are mostly undergraduates. The good thing about being an undergraduate is that you can be yourself and try new things. In fact Elizabeth (Lee) was telling me that the university has few disciplinary procedures. I think this is a good sign that the university is respecting your freedom. My own undergraduate days were full of the pursuits of liberty and opportunity, and I strongly encourage you to do the same, because it’s unlikely that your life will ever be the same after you graduate. But I think the liberty and opportunity I have been asked to talk about today is of a rather different kind. So why is liberty so important? On one level you can talk about two kinds of freedom: the freedom to do things and the freedom from things. In political philosophy terms, these are known as “positive liberty” and “negative liberty.” These are not normative terms, in the sense that one is better than the other. But these two forms of liberty, articulated by Isaiah Berlin in the 1950s, are important concepts in political philosophy. This political philosophy that my colleagues and I at the Institute for Democracy and Economic Affairs, IDEAS,

promote is called “classical liberalism” in the UK and European or “libertarianism” in the USA. But in fact many of the same basic concepts have been found all over the world. Many early Muslim caliphs and Chinese rulers practised many of the same policies that we would support in Malaysia today. Before I give you some examples, it is necessary to split our conception of freedom into three general kinds, which we have found work quite well when talking to policymakers. These are political freedom,

Lecture

economic freedom and social freedom. Political freedom, at a basic level, refers to the ability of individuals to participate in elections, criticise the government through the media or other formal check and balance institutions and show dissent through protest. Most likely, a country that respects political freedom will be a democracy and the powers of each institution will be articulated by a constitution or even maintained through traditional means. We have in our own history many examples of how political freedom progressed throughout the ages. For example, the Batu Bersurat Terengganu dated to 1326 establishes the principle of a higher authority over a Ruler and subjecting him to a higher law. A later example of a written code is the Johor Constitution of 1895, which explicitly made the Sultan of Johor a constitutional monarch. We also have traditional political systems that have survived through cultural practice. For example, adat perpatih still plays a role in how the chieftains and the Yang di-Pertuan Besar of Negeri Sembilan are elected. But today, when one argues for political freedom, one is usually referring to abolishing things like the Internal Security Act, the Printing Presses and Publications Act and the Universities and University Colleges

MBA EdgeTM & Postgraduate Studies

Act, all of which are argued to restrict or regulate political expression in some way. Economic freedom refers to the ability to exchange – or buy and sell – things without interference from anyone else. It also refers to policies concerning taxation and employment. Generally, we think that individuals and companies should be able to make and sell things as people should be allowed to buy things with minimal interference from the government. One famous hadith says that only God knows the prices of things, and this has been compared with Adam Smith’s famous “invisible hand” metaphor. In Malaysia, examples of early moves towards economic freedom include ancient laws in Malacca and elsewhere that introduced low and flat taxation in the importation of goods, thus making those ports favourable to merchants and ultimately leading to growth and prosperity. Today, those who believe in economic freedom will usually oppose the New Economic Policy, oppose subsidies and licences such as Approved Permits and perhaps be uncomfortable with a minimum wage policy. This is because these policies create distortions in the market and it means that people are not paying the real price for their petrol or their cars.

Political freedom, at a basic level, refers to the ability of individuals to participate in elections, criticise the government through the media or other formal check and balance institutions and show dissent through protest.

Lecture

MBA EdgeTM & Postgraduate Studies

Social freedom refers to the ability of people to do things in the social sphere without interference from the authorities. This may include expressing oneself through music and art, or even individuals’ choice of recreational activities alone or with others. An example of diminishing social freedom in our own history might be the previous acceptance of behaviour that today is frowned upon or criminalised. This includes the consumption of certain substances, gambling, ostentatious homosexual behaviour or even depictions of mythical beings. If you don’t believe me, just watch some of the earlier P. Ramlee movies!

determine different laws for different people according to their religion? These are all questions Malaysians do not ask often enough.

Many government policies affect how much of these freedoms we enjoy. Sometimes our freedoms are affected through the implementation of a government programme. For example, if the government embarks on massive infrastructure projects, it may increase our tax bills. This may be perfectly democratic if the voters approve of such projects. If not, there may be incursions on economic freedom as well. If a big infrastructure project is not wanted by the local community, it may curtail their political freedom as well if the government prevents dissent.

That is why, in sum, I believe that individual liberty for everyone leads to prosperity. That brings me to the second topic I was asked about, which is equal opportunity. Carrying on from the same point that I just made about individual preferences, individual situations are different too. Individuals are physically and mentally different from each other and have different talents and skills. The term “equal opportunity” can be defined in so many ways. Some people believe this should mean equal wealth, equal education or equal treatment in whatever field.

Indeed, if we were to imagine that there was no such thing as government, and we were then asked to create and define what government should and should not do, we would all end up with different answers. Should the government build schools? Should the government build highways? Should the government set the price of rice? Should the government decide who is of what ethnicity? Should the government

Obviously these principles I outlined summarise what I believe in. You will have your own principles, or may be in the process of figuring them out. I remember being sympathetic to socialist ideas when I was younger, but then I grew up and saw how unrealistic they were. People are different: they have different wants and different needs, and no centralised agency is capable of taking all these unique individual preferences into consideration.

But I think the heart of equal opportunity is the ability to give every person a chance to fulfil his or her desires in life. The confusion arising from the term is why I do not think there is a better way to express giving people better opportunities. I think we would all be better off if individuals were given more opportunities. For example, I think everyone in this room could do with more opportunities than they have now. That evokes quite different

connotations to “equal” opportunity. After all, if we were all living in North Korea, cold and starving, we would have greater “equal” opportunity, but there would be less opportunities than what any of us have now. I have also been asked to talk to you about being engaged in the democratic process. I am in no position to lecture you on this. Firstly, because I count myself as being a youth just like you so it would be presumptuous for me to do so. Secondly, because there are literally so many things you can do to be engaged in the democratic process. As I implied earlier, even being involved in music or art can contribute to a democratic environment. The vast expansion of civil society in our country in the past few years means you can contribute in so many explicitly political ways too. My think tank, IDEAS, could not have existed here a few years ago. So many people are talking about the environment and animal rights too. Of course there have been the Bersih rallies for electoral reform. There are also so many avenues to express yourselves through writing. But since I believe in freedom, I am going to finish my speech here a little early and open up the floor to questions.

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Standing at the Crossroads To Enrol for Postgraduate Studies or Get a Job? by Patrick Tiong Liq Yee Engineering Seismology & Earthquake Engineering Research Department of Structure and Materials Faculty of Civil Engineering Universiti Teknologi Malaysia

n a blink of an eye, you have come to the final days of your undergraduate study. Days of rushing for assignment deadlines and burning the midnight oil preparing for examinations seem like they will be over soon. All of a sudden, a question appears in your mind: ‘What should I be doing next?’ It seems almost impossible to find the answer for this question regarding your future. Advice from senior students, parents or lecturers may guide you, but it is you who makes the final choice. There is no right or wrong route to choose. The only thing that matters is that you have a clear idea of what you want and need.

I faced this dilemma too when I finally reached my undergraduate convocation in 2007. Throughout the five years of pursuing my Bachelors, I constantly reminded myself to get a proper job after graduation to ease the financial burden of my family. I never gave any thought to further study after my first degree, so I attended an interview and started off working in a company abroad. I surprised even myself when I eventually decided to enrol for postgraduate studies after working in the industry for nearly two years. Nowadays, people may decide to further their studies to a higher level for several reasons. For some, they see a better chance for promotion in their workplace if they arm themselves with higher qualifications. People in the management and sales network might be able to broaden their network and sharpen their managing

skills via courses and hands-on sessions throughout their postgraduate studies. For others, particularly those who pursue their degree at doctoral level, research is something they are proficient in and academia is their chosen profession. My reason is rather simple. During my work life, I noticed the difference between the industry and academia. I wish to contribute to the current knowledge rather than merely using available information. Now, before you ask yourself, ‘Should I continue my studies or start working?’ you have to ask yourself first, ‘Why would I want to study again?’ or ‘Why should I try to find a job?’ These ‘why-should-I-bedoing-this’ questions lead us to brainstorm, compared to the ‘what-am-I-going-to-do’ queries. Unless you are able to provide answers to both these choices, do not make

Patrick Tiong your decision hastily. Take some time to gather information as well as think through the pros and cons of each option. Being a research student, whether at Masters or PhD level, you have to brace yourself to encounter challenges during your study period. Unavoidable challenges you have to be prepared for include critical financial support, choosing the right university, achieving targeted time schedule, adapting your research methodology to constraints and communicating with your supervisor. Of course, the most important issue that concerns every student is their financial support throughout their academic days. ‘Financial needs’ here do not only refer to your daily expenditure, tuition fees, subscriptions to academic references, conference registration, etc. While you may

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have a scholarship, you may feel unhappy when you try to compare yourself with your former schoolmates who are working and have achieved a certain level of success at your age – or worse, they may even be younger than you. This often causes you to have an inferiority complex and you may feel discouraged. When this happens, you might think, ‘Am I making the right choice? See, he or she is now buying her own car! The guy who used to sit beside me during lectures is now the junior management staff in his company!’

students and their supervisors is extremely challenging, yet important. Supervisors are busy academicians who expect their students to be able to work under minimal supervision. It is the responsibility of students to keep their supervisors motivated and enthusiastic about their research progress. At times, what our supervisors expect from us may be very different from what we have in mind. Hence, we need to update them from time to time on our research direction and findings.

As a research student, we need to overcome these negative thoughts. Consider it a temporary situation and look forward to the benefits of being equipped with a postgraduate qualification in the long run.

Despite all these challenges, it is fun to be a research student. The learning path to conduct good research trains a student from being a user to becoming a problem solver. You will learn and observe in detail various aspects of the subject matter that someone in the industry might not have noticed. You play the role, as a researcher, to keep improving the knowledge and theoretical development of your field of expertise. Along the way, you will notice the change in the way you view things.

Getting the right university means finding the university that suits your study needs best. This depends on the subject area of your research. A well-known engineering school may not be as good to students who are trying to get into business relevant study, and vice versa. Now, each university has its own preferred subscriptions to different subject areas of online databases for their students to obtain research material. Without these subscriptions, you may face difficulty in getting the research papers or journal articles you need. This is why you need to identify suitable institutions instead of simply the best one. As the saying goes, ‘It is a lot easier said than done.’ Nearly all research students tend to plan something huge when they first prepare their research proposals. This is why during the first level presentations, the scope of work and the research methodology are always very ambitious and daring. Bear in mind that the normal duration given for a research student to finish their studies is between two and three years for a Masters degree and three and five years for PhD. You may risk finishing late if your research subject matter is too broad. In addition to time scheduling, your research methodology has to be adaptive to changes in the environment, facilities, and available resources, particularly for those who are doing laboratory or experiment tests. If possible, always have few backup plans as alternatives in the event there are obstacles in the original plan. Establishing good and effective communication between research

In recent years, our government has been strongly encouraging prospective graduates in the country to continue their postgraduate education. The implementation of the MyBrain15 programme as one of the critical national higher education strategic plans has managed to attract the attention of students. With financial assistance and scholarships offered for postgraduate study, the first and foremost barrier of entry is already eliminated. Opportunities like these do not come often. When I enrolled for my postgraduate studies, I had to try very hard to seek financial support. Nevertheless, this does not mean that students who have managed to secure the government scholarship and funding should take it for granted. Having less to worry about in the course of their studies, they should be able to focus more and concentrate on their research. Good luck and happy studying!

Interview

MBA EdgeTM & Postgraduate Studies

Industrial/ Organisational Psychology is a field that applies psychological theories in the work setting.

Interview with Dr Lin Mei-Hua and Dr Alia Azalea on the Master of Science in Psychology (Organisational) Q. Is industrial/organisational psychology different from psychology? Psychology is an umbrella that covers several areas of psychology, one of which is Industrial/Organisational psychology. Q. What do industrial/organisational psychologists do? Industrial/Organisational Psychology is a field that applies psychological theories in the work setting. It includes areas such as Human Resources, Organisational Development, Internal Relations, etc. Thus, many Industrial/Organisational Psychologists usually work in human resources (e.g., hiring and placement of

people in an organisation), management consulting (e.g., training employees with skills such as management, leadership and communication that would allow them to do a better job), research organisations (e.g., conducting studies to see how satisfied or dissatisfied people are with their pay or benefits) or lecture in universities. Q. What are the employment issues that an Industrial/Organisational Psychologist has to deal with? • Personnel recruitment & selection •Performance appraisal • Compensation

Interview

MBA EdgeTM & Postgraduate Studies

Industrial/ Organisational psychologists take note of these changes that causes organisational change, therefore, individuals working in those organisations will also need to adjust to make a good fit with their working environment. • Corporate reengineering

communication.

vision?

• Job performance

Q. Who employs Industrial/Organisational psychologists?

This is because Industrial/Organisational psychologists are able to assess and suggest improvements on a wide range of behavioural, personnel selection and emotional issue affecting the working environment. Most Human Resource Departments in Malaysia and training consultancies are staffed with personnel who do not have formal training in behavioural sciences. With the addition of organisational psychologists to the human resource and consulting fields, Malaysian human resource departments may become more effective.

• Job analysis & design • Training – (e.g., diversity, decision making, stress management) • Work motivation • Analysis of job attitudes (e.g., job satisfaction, commitment, OCB) • Organisational culture • Teamwork performance Q. Who should study Industrial/ Organisational Psychology? People who have the following characteristics: • Interested in applying psychological principles in the work environment; • Enjoy observing and analysing human behaviour at work; • Likes to assess people’s abilities and help them realise their true potential at work; • Likes to devise research to explore human behaviour at work; • Detail oriented; • Good analytical skills; • Patient and caring; and • Good in verbal and written

• Management Consulting companies • Companies that need an HR-savvy person (basically almost any organisation) • Universities, for lecturing and research Q. Is there a professional body governing the practices of Industrial/Organisational psychologists? As the moment, there is no such body in Malaysia. Q. How does one become an Industrial/ Organisational psychologist? What are the routes? To receive an undergraduate degree in Psychology would be the best route, followed by a Master’s degree in Industrial/ Organisational Psychology. Some would go all the way to receive their PhD in Industrial/Organisational Psychology before joining the workforce. Please note that an individual has to receive at least a Master’s degree in Industrial/ Organisational Psychology to be called an Industrial/Organisational Psychologist. With only a Bachelor’s degree in Psychology, they cannot call themselves psychologists. Q. Why offer the Masters programme in Malaysia now? What’s the motivation or

Q. What is unique about the Sunway University Masters programme? Our MSc Psychology (Organisational) programme is a two-year programme that trains students to be able to work directly after graduation and also cater to those who want to pursue a PhD in the field of Industrial/Organisational Psychology and those who want to apply what they have learned into their current job. This programme allows students to take it full time (two years) or part time (three years). The classes are scheduled on three weekday nights and Saturday, thus it can cater to individuals who are currently working. We equip our students to do the following: • Assess the skills, attitudes and behaviour

Interview

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Aggression and violence occur because employees are extremely stressed or perceive that they have been treated unfairly by their superior, coworker or the organisation they work for. of employees in the organisation. • Design and develop training modules to maximise human potential. • Diagnose a wide range of behavioural, emotional and social problems within the organisation. • Identify problematic situations and apply psychological theories to analyse the problem and provide solutions. • Handle ethical and social issues related to the psychological well-being of employees. • Provide employers with appropriate standards-of-practice in carrying out organisational functions systematically (i.e., recruitment, performance appraisal, grievance handling, incentives/ compensation, promotions, fringe benefits.) • Develop research projects that explore organisational issues independently. Q. In the study of Industrial/Organisational Psychology, coping with change figures prominently as a major topic. Is it because humans are less adaptable to change? Or is it because the pace of change is too rapid? With so many changes happening around us (e.g., country’s political and financial situations) organisations need to adjust to survive. Industrial/Organisational psychologists take note of these changes that causes organisational change, therefore, individuals working in those organisations will also need to adjust

to make a good fit with their working environment. Employees are the most important asset in an organisation as they are the most adaptable asset and cause the most loss when they leave. Therefore, with the rapid but needed global change, organisations have to try their best to train their human asset to be able to keep up with these changes to survive the industry. Q. There seems to be a global rise in workplace aggression and violence. Why is this so? Aggression and violence occur because employees are extremely stressed or perceive that they have been treated unfairly by their superior, co-worker or the organisation they work for. The employee might also be sort person who has negative affectivity that causes him or her to always see situations as trying to put them at a disadvantage. At times, it can also be a combination of all three factors. Q. There are some issues like sexual harassment which involves aspects of the employment law and Industrial/ Organisational Psychology. What’s the contribution of Industrial/Organisational Psychology to this issue? Industrial/Organisational psychologists would be able to do the following: • Create awareness of sexual harassment. Many people who have experienced or seen sexual harassment do not know that it is sexual harassment, do not know how to deal with the issue or where to go to report such cases. Thus, awareness is very

important to assist employees on how to deal with such issue. • Research on factors (e.g., company policy, attitudes and perception of individuals involved) that influence the occurrence of sexual harassment. Thus, an Industrial/ Organisational Psychologist would know how to avoid or reduce the occurrence of sexual harassment in an organisation. Q. Will topics like change, sexual harassment and workplace aggression be taught in the programme?. These topics will be covered in some of our modules, particularly in Industrial Ethics and Counselling Skills in Industrial Psychology Q. Do you offer face-to-face counselling on the Masters programme for prospective students? Who can they contact? For any enquiries regarding our MSc Psychology (Organisational) programme, please send an e-mail to aliaazalea@ sunway.edu.my or mhlin@sunway.edu.my or contact our Admissions & Counselling Unit at +6 (03) 7491 8622 ext 3512 or email: info@sunway.edu.my.

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Sin Chew Daily Education Fund (SCDEF)

he SCDEF was established in 2003 to award scholarships in the form of free courses. In its first year, RM2.7 million worth of scholarships was awarded. This year, 2011/2012, the SCDEF awarded a recordbreaking RM9.3 million worth of scholarships to deserving students. The Philosophy of the SCDEF Education is the foundation of knowledge and wisdom. The Objectives of SCDEF • To aid the poor, needy and underprivileged students to further their tertiary studies with free courses offered by

participating educational institutions • To upgrade the educational levels of the community • To contribute to nation-building through the development of human capital • To further facilitate all participating partners in their efforts to be caring corporate citizens with a great sense of social responsibility Participating Colleges/Universities 2011/2012 Berjaya University College of Hospitality; DASEIN Academy of Art; FTMS College; HELP University; LACT College; INTI International University; INTI International College Subang; KBU International College; KDU University College; Kuala Lumpur Infrastructure University College; Limkokwing University of Creative Technology; Malaysian Institute of Art; Multimedia University;

New Era College; Nilai University College; PJ College of Art and Design; Sentral Technology College Speech by YB Dato’ Dr Hou Koko Chung, Deputy Minister of Higher Education at the Launch of SCDEF 2011/2012 Firstly, allow me to record my thanks and appreciation to Sin Chew Media Corporation Berhad for inviting me to grace this event for the third consecutive time. The last time I was here was exactly one year ago, on 15 December 2010, and my continued presence is a sign of the trust and confidence and also the support of Sin Chew Media towards me in matters of higher education. I note with delight that this will be the ninth year Sin Chew is championing this initiative. It actually complements the Ministry of Higher Education’s strategic plan to widen access and increase equity. Among others, the first thrust boldly states

Announcement

that every eligible individual will not be denied the opportunity to acquire tertiary education due to financial constraints. Hence, various funding mechanisms such as scholarships, PTPTN loans and others will be provided to qualified and deserving students. Going through the list of participating higher educations, I noticed that half of them are of university or university college status. I am making a particular mention of this because I would like to appeal to these institutions to also come forward with scholarship offers to do postgraduate studies. The Ministry of Higher Education (MoHE) believes that universities must engage in more R&D activations, hence the need for more postgraduate students. This is the way forward to becoming a reputable and established as a university. It is not enough that the MoHE has an allocation of RM2.68 billion for postgraduate studies in the form of scholarships. These scholarships are made available to the public through the MyPhD, MyMaster and Industrial PhD projects. For MyPhD project, the Ministry has set aside RM350 million to ensure the success of the project, targeting 5,000 students to benefit from it. Another boost to increase the number of PhD holders is through the Industrial PhD project. The Ministry is targeting 500 students to benefit from the allocated fund of RM50 million. The last of the three new projects, MyMaster, is to enlarge the Masters holder pool by allocating a total of RM400 million. Our target is to benefit 40,000 students. Now that the government had started the ball rolling, I hope there will be private organisations to also offer the same. I would also like to take this opportunity to address students who may not qualify for scholarships. It is not the end of the road and they do have an option to apply for study loans, in particular from PTPTN. I wish to reiterate that with effect from January 2010, students who graduate

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with First Class Honours are eligible to be considered to have their PTPTN loans converted to scholarships. This policy was implemented to spur students to study hard and graduate with distinctions. It is a fine way to reward high performing students. As at 31 October 2011, a total of 2,188 students were eligible. The amount of loans converted to scholarships, in short, loans written off by PTPTN, stands at RM60.74 million. This is a very substantial amount and, the public ought to know, is another huge contribution by the BN government towards our nationâ&#x20AC;&#x2122;s human capital development. Of the 2,188 students that qualify, 67 or 3.8 per cent, are Indians with loans written off at RM2.3 million, 594 or 27.1 per cent are Malays with the amount of RM12.11 million and 1,496 or 68.4 per cent Chinese with loans amounting RM45.5 million. This clearly shows that the government practises meritocracy when converting PTPTN loans to scholarships. I call on students to take advantage of the scholarship offers from Sin Chew. I also like to congratulate all the private HEIs who have graciously contributed to this fund. On behalf of the MoHE, I like to say a big thank you for your contributions which have helped to fulfil our pledge to widen access for more students to acquire tertiary education in Malaysia. Speech by Ms Lenny Chiah, General Manager for Corporate Communications Event Management of Sin Chew Daily The Sin Chew Daily Education Fund has now entered its ninth year and is still going on strong with more than RM9 million worth of free courses for the year 2011/2012. This figure is the highest since the establishment of the Foundation in 2003. Thank you all for supporting our philosophy that Education is the Foundation of Knowledge and Wisdom, and for helping to fulfil the college or University dreams of those needy and deserving boys and girls, so that they will not be denied the opportunity for higher education simply due to financial difficulty.

Jerrine Koay, Sunway University

Trilie Siow, Help University

Andrew Ting Teck Ing, Nilai University College

Angela Pok, Taylor's University

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Deputy Minister of Higher Education, YB Dato Dr Hou Kok Chung, will definitely agree that as the acknowledged leaders and innovators in the field of education, all of you here have done a great service to the nation as the hope of a nation also lies in the quality education of its young people. Here, I would like to define quality education as providing quality knowledge, ethical learning, equity, a sense of belonging, caring about mental health, spiritual and physical well-being, a conducive learning environment and security to the students. This sounds like a tall order, but it is actually a very basic CSR practice. So when Nelson Mandela said that Education is the most powerful weapon you can use to change the world, the key word ‘Quality’ should be added to before the word Education so that it reads: “Quality Education is the most powerful weapon you can use to change the world”. Education is indeed a powerful weapon that can create either a good or bad effect depending on who wields it. As an unfortunately horrifying example, last Thursday (8.12.2011), the whole world was again in a big shock that another shooting and killing could happen again on the campus of Virginia Tech for the second time. The first time was back in 2007, the shooter was their very own student from Korea. Since 1996 till today, altogether there have been more than 60 horrifying shootings at school campuses, killing classmates, schoolmates, teachers, principals, civilians and even police personnel in many parts of the world. Usually, after these tragedies, all sorts of analyses and findings would be focused on the shooters, but not much on the academic condition and well-being of the students to find out what might have led to the tragic outcomes. College or university life today can be a very isolating experience for many students in any part of the world. Some are very depressed. Some are very unlucky. Of course, there are some who are very happy. Some very lucky ones too. And all sorts of unthinkable things

can happen to them especially to those very depressed and isolated ones. Therefore, quality education as I have just defined earlier, is a very serious issue. As an advocate for quality education, YB will also agree that any institution that does not provide quality education is akin to cheating students out of their lives. In our Sin Chew Education Fund, we did have one or two such cases a few years back with complaints by the once hopeful but later depressed students about the very bad condition of the college or university at which they were given the free courses. Our reaction then was to immediately investigate and quickly help the students to get another better college or university, and of course, subsequently we had to shut the doors to the college or university in question. After all these years, Sin Chew still wishes to express its heartfelt thanks to Mr Lee Geok Chai of KLIUC for helping the students in the very nick of time. Thank you, Mr Lee. In addition, our applause must also go to Ms Elizabeth Lee, Executive Director of Sunway University, for going far beyond their innovative system, curriculum and teaching techniques with their yearly sponsorship of our Sin Chew Sunshine Girls and Sin Chew Sunshine Boys Competitions. The main objective of these competitions is to inculcate ethics, social, moral and cultural values in these young people so that when they have good values, they can do good and become useful to the society and the nation one day. We thank you for choosing to be with our Sin Chew Education Funds year after year. In addition, we must also salute you for your quality education and integrity. As quality educationists, you will agree that whoever who opens a door in quality education actually closes another to a prison cell. In other words, it means you have saved someone’s future and life by providing quality education.

Vicky Ho, IACT College

Stephen Doughty, The University of Nottingham Malaysia Campus

Margaret Soo, UCSI University Trust

Zuliana Tong, UCTI

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UTAR Celebrates 10 Years of Success

he year 2012 marks a significant milestone in the annals of history of Universiti Tunku Abdul Rahman as the University celebrates 10 years of excellence in education. UTAR was officially launched by the fourth Prime Minister Tun Dr Mahathir Mohamad on 13 August 2002. UTAR was established to fulfil the aspirations of the people and was built entirely from contributions in kind, in funds and efforts by the people, corporations, and state and federal governments. To serve the nation, UTAR charted its course to be a not-forprofit university with the primary goal of providing quality education affordable to all, as it moves towards achieving its vision to be a premier university with excellence in teaching and research. In short, UTAR is a university of the people, by the people, and for the people.

“While we celebrate the university’s 10th anniversary, let us not forget the contributions of our forerunners,” says UTAR President Ir Professor Academician Dato’ Dr Chuah Hean Teik, referring to the thousands of individuals from all walks of life who have contributed in building and nurturing UTAR. For that reason, he says, the university has come up with a special couplet to dedicate to the celebrations: “A decade of forerunners’ toil, we’ll treasure in our hearts. A century of nurturing individuals, we’ll achieve with greater glory.” Over the decade, UTAR has grown from a single temporary campus in Petaling Jaya to, now, four, located in Petaling Jaya, Setapak and Bandar Sungai Long in the Klang Valley and the main 1,300acre campus in Kampar, Perak, to serve a bigger student population. To meet the needs of the nation, the number of

courses has increased from eight in 2002 to more than 100 today in every essential discipline. Through the offer of up-to-date and industry-relevant courses, UTAR has been attracting numerous career-minded students. The number of students grew from 411 in 2002 to over 19,000 in 2011. Since its inaugural convocation in August 2005, UTAR has nurtured a total of 25,467 marketable and employable graduates. Its long-standing record of high graduate employability (more than 97% of the graduates are gainfully employed within six months upon graduation) speaks volumes of the quality education provided by UTAR. Within a short span of time, UTAR has well positioned itself as a reputable and credible institution of higher learning in this highly competitive educational landscape of the 21st century.

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Above: Lead researcher Tian Kian Wee (centre) and some of the UMSB team members

“Since its beginnings, UTAR has charted the right course to achieve its vision to be a premier university – one that excels in creating, preserving and disseminating knowledge,” says Professor Chuah. In creating knowledge, UTAR’s areas of research include diverse areas of contemporary and emerging importance which include stem cells, cancer, traditional Chinese medicine, building construction, waste water treatment, environmental health, mobile and satellite communications, solar and renewable energy, IT security, internet TV, cloud computing, multimedia education, computer vision, social capital, globalisation, agriculture and Chinese studies.

efficient multi-level microalgae cultivation system (MMCS), which they patented in November 2007. With the invention of MMCS, which can cultivate more than 20,000 litres of microalgae, the research group turned itself into a commercial entity in January 2010. UMSB is currently building commercial microalgae facilities in UTAR Perak Campus that will enable it to progress further into business.

Among the commercialisation successes of UTAR is its first commercial spin-off, UTAR Microalgae Sdn Bhd (UMSB), which embraces the mission to advance biotechnology for the mass cultivation of microalgae. UMSB was founded by a research group in UTAR, which could only produce two flasks of microalgae at a time when it started in 2007. The group soon devised a highly productive and energy-

UTAR 10th anniversary celebration kicks off with the launching ceremony on 14 January 2012. In conjunction with UTAR’s 10th anniversary, a series of faculty/ student/alumni activities and events are organised throughout the year. For more information on UTAR’s 10th anniversary activities/events, please visit http://www. utar.edu.my/utar10/

UTAR has achieved numerous successes over the past 10 years. On the future of the university, its president Professor Chuah has this to say: “Moving forward, UTAR community will advance together towards achieving greater glories in serving the society, nation, mankind and the world.”

Sampling to monitor the microalgae culture performance at UMSB.

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Launch of Learning from Championship Brands

(From left) Lo Jeng Wung, Tan Sri Ng Teck Fong, Koo Cheng, Dato’ Jimmy Choo, Lenny Chiah, Dato’ Hou Kok Chung, Siew Nyoke Chow, Eugene Wong, Pook Ah Lek, Keu Tien Seong, Tay Tian Yan, Chong Kwee Chin, Ralph Tang (Extreme right)

Lenny Chiah celebrates her birthday with supermodel Amber Chia

Lenny Chiah with the President of MRCA, Dato Tay Sim Kim

he launch of Learning from Championship Brands by Lenny Chiah at Sunway University College on 8.12.2011 saw guests from the business fraternity and well-known personalities like Professor Dato’ Jimmy Choo and presidents of various professional bodies including the Malaysia Retailer-Chains Association, PUMM, Branding Association, JCI and the Malaysia Speakers’ Association. The Guest of Honour was the Deputy Minister of Higher Education, Dato’ Dr Hou Kok Chong. In his speech, Dato’ Dr Hou encouraged everyone to always pursue learning, even after college or university

Dato Jimmy Choo & Lenny Chiah

studies – as knowledge is power – so that one can be competitive in the market place. He praised the author, Lenny Chiah for continuing to improve herself and for being persistent and courageous enough to write a book despite her hectic schedule. Ms Chiah talked about some topics in the book, namely Ethical Leadership, Brand Management and Corporate Social Responsibility. She said that one of the reasons she wrote the book was her passion for sharing her years of experience in the field of branding and social responsibilities with subordinates, friends and university students. She was prompted to collate

The Book

everything in a book so that outside of her friends and family, the general public would also able to benefit from the knowledge and experience she had gathered for the past 20 years. On the subject of individual social responsibility, Lenny was glad that her book was totally printed with recycled papers sponsored by Fine Papers Takeo Sdn Bhd. Despite using the more costly recycled paper, the book is sold at RM29.90. For enquiries, please send an SMS to 0193863880 (after 5pm).

Book Excerpt

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REFINANCING FOR SUCCESS Excerpt From Refinancing Now, Chapter 17

efinancing refers to the replacement of an existing loan with a new loan that bears different terms. The most common case of refinancing for consumers is for a home mortgage. In simple terms, it means you already have a housing loan with a particular bank, but now you will switch to another bank for a better term; for example one with a lower interest rate. Refinancing is used in most cases to improve overall cash flow. Refinancing for House Plan Property Market Value: RM 600,000 Original Loan Amount: RM 450,000 Original Loan Tenure: 30 years

Before refinancing Existing interest: BLR + 0.25% = 7% Remaining tenure : 28 years Current outstanding: RM 435,252 Current installment: RM 2,994 (A) After refinancing New Interest rate: BLR – 2.1% = 4.65 New loan tenure: 28 years New loan amount : RM 540,000 New monthly installment: RM 2,877 (B) Benefits - Reduce current installment (A) – (B) - Save RM 117 every month on installment - Maintain loan tenure of 28 years - Extra RM 104,748 cash What can an extra RM 104,748 in cash do for you? Consolidate all your high interest debt into one account and SAVE Credit card = From 18% p.a. to approximately 3.5% Personal loan = From 8% - 12% interest to approximatedly 3.5% Maximize your cash into high yield investment interest:

The authors (left) Benson, Ismail, Steven ASB (Amanah Saham Bumputra) = 8% Structural deposit Unit Trust Gold Investment Account Property Investments Emergency funds Children’s Education Medical Holiday treats Marriage Purchasing insurance for own and family’s protection Additional note: 1) Always look for the lowest Interest (%) for education loan and relatively reasonable tenure of repayment. For example: EPF fund, Government loan, Bank Education loan, Company staff education loan. 2) Refinancing of property is one of the ways for education fund if only is necessary. For example, 2 or more children required education fees which higher than personal loan limit

The Book

3) There is some questions to ask before refinancing: a. What is my purpose of refinancing? (e.g. too many banks to 1 bank, consolidation of debt, restructure home loan for lower interest, for cash flow) b. What does my chosen bank package offer? (Flexible package, Islamic, lock in) c. What is my property value? d. What is my remaining loan tenure? e. What is my current interest rate? (2% difference) f. Is my current loan still within the lock in period g. What is my penalty if I opt to refinance? h. Did my loan incorporate with MRTA? Can I redeem the surrender value? i. What is my current loan balance? j. What is the current status of title? (in the midst of changing strata title)

From the Publisher of MRCA’s book 69 Malaysia’s Most Outstanding Retailer Chains 50 Success Stories MBA EdgeTM & Postgraduate Studies

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MyPhD M YB Dato’ Dr Hou Kok Chung “For the very first time, the Government is offering scholarships to the rakyat to do postgraduate studies. The scholarship schemes are through the MyMaster Programme, MyPhD Programme and the PhD Industry Programme. The scheme comes with minimal conditionalities, namely the studies are to be done in local private or public universities. The recipients after completing their studies, should serve in Malaysia or in Malaysian companies overseas.”

yPhD merupakan salah satu Program MyBrain15 yang menyediakan pembiayaan pengajian di peringkat Ijazah Kedoktoran untuk mencapai sasaran 60,000 pemegang PhD dari kalangan rakyat Malaysia menjelang tahun 2023 selaras dengan agenda “Malaysia sebagai Pusat kepada Perkembangan Pengetahuan dan Inovasi”. Objektif program ini adalah untuk meningkatkan jumlah kumpulan tenaga kerja profesional tempatan yang berpengetahuan dan berkemahiran tinggi berteraskan inovasi dan kreativiti yang mampu menjana pertumbuhan sektor ekonomi dan industri tempatan. Program ini merupakan insentif yang diberikan Kerajaan dalam usaha meningkatkan pengetahuan dan kemahiran anggota masyarakat seiring dengan matlamat pembangunan ekonomi negara di bawah Model Baru Ekonomi (MBE) iaitu ekonomi berteraskan inovasi. Syarat (a) Pemohon mestilah warganegara Malaysia.

The uptake of the scholarships are as follows:

(b) Pemohon mestilah berumur tidak melebihi 50 tahun semasa memohon.

MyMaster

2011 Allotment 8,000 Uptake 5,496 Percentage 68.70% 2012 Allotment 8,000 MyPhD 2011 Allotment 650 Uptake 1,204 Percentage 185.23% 2012 Allotment 1,000 PhD Industry 2011 Allotment 100 Uptake 83 Percentage 83.00% 2012 Allotment 100 Source: Scholarship Division, MoHE

• Graduan yang belum bekerja dan tidak berpendapatan tetap; atau • Kakitangan swasta; atau • Pensyarah IPTS. (d) Pemohon mestilah memiliki kelayakan seperti berikut: • Ijazah Sarjana atau setaraf yang diiktiraf oleh Kerajaan dengan CGPA minima 3.00; atau • Ijazah Sarjana Muda atau setaraf yang diiktiraf oleh Kerajaan dengan CGPA minima 3.50; atau • Ijazah Sarjana Muda atau setaraf yang diiktiraf oleh Kerajaan dengan CGPA minima 2.75 dan pengalaman kerja dalam bidang berkaitan sekurang-kurangnya 5 tahun. (e) Pemohon telah menerima surat tawaran tidak bersyarat daripada IPT atau telah memulakan pengajian di IPT.

(f) Pemohon tidak pernah mendapat tajaan dari mana-mana pihak untuk melanjutkan pengajian di peringkat yang sama. (g) Pemohon dari kategori graduan yang belum bekerja dan tidak berpendapatan tetap adalah tertakluk kepada syarat berikut: • Perlu mengikuti pengajian secara sepenuh masa; dan • Tidak boleh menerima sebarang bentuk penajaan dari lain-lain penaja (kecuali pinjaman pelajaran dan elaun pembantu penyelidik siswazah). (h) Pemohon dari kategori kakitangan swasta dan pensyarah IPTS boleh mengikuti pengajian secara sepenuh masa atau separuh masa, tertakluk kepada syarat berikut: • Kakitangan swasta dan pensyarah IPTS hanya dibenarkan mengikuti pengajian secara separuh masa di IPTA; • Kakitangan swasta dan pensyarah IPTS boleh menerima penajaan atau pembiayaan tambahan daripada majikan masing-masing, sekiranya ia bukan biasiswa penuh; • Pensyarah IPTS perlu mengikuti pengajian di IPTA atau IPTS selain daripada IPTS tempat mereka bekerja; dan • Pensyarah IPTS boleh mengikuti pengajian selain daripada bidang pengajian yang disenaraikan. (i) Penjawat awam atau badan berkanun sama ada tetap atau kontrak tidak layak memohon. Tempat Pengajian Pelajar perlu mengikuti pengajian di IPTA dan IPTS yang terpilih sahaja. Sila klik di sini untuk mengetahui senarai IPT berkenaan. Bidang Tajaan Bidang pengajian yang ditaja adalah merangkumi bidang Sains & Teknologi (S&T) dan Sains Sosial/Sastera Ikhtisas. Sila klik di sini untuk mengetahui senarai bidang tajaan terperinci.

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Kemudahan dan Elaun (a) Kemudahan dan elaun yang layak dibayar kepada pemohon yang berjaya adalah seperti berikut: Graduan yang belum bekerja dan tidak berpendapatan tetap • Yuran Pengajian tidak melebihi RM24,000 (tidak termasuk wang hemat diri dan penginapan) • Elaun Sara Hidup (Tertakluk kepada syaratsyarat tertentu) • Elaun Bantuan Jurnal** • Elaun Tesis ** Kakitangan Swasta • Yuran Pengajian tidak melebihi RM24,000 (tidak termasuk wang hemat diri dan penginapan) • Elaun Bantuan Jurnal** • Elaun Tesis** Pensyarah IPTS • Yuran Pengajian tidak melebihi RM24,000 (tidak termasuk wang hemat diri dan penginapan) • Elaun Bantuan Jurnal** • Elaun Tesis** * Tempoh pembiayaan tidak melebihi 48 bulan atau sebahagian daripadanya jika semasa permohonan, calon telah memulakan pengajiannya. ** Tertakluk kepada siling peruntukan yuran masih berbaki. (b) Pembayaran yuran pengajian akan dibuat kepada Bendahari IPT manakala Elaun Sara Hidup akan dibayar ke akaun pelajar yang berkenaan. Ikatan Perjanjian dengan Kerajaan (a) Pelajar akan dikenakan ikatan Perjanjian

dengan Kerajaan bersama seorang penjamin dan pelajar perlu berkhidmat di Malaysia atau mana-mana organisasi yang mempunyai kepentingan kepada Malaysia selama lima (5) tahun. (b) Pelajar yang melanggar Perjanjian seperti berhenti atau ditamatkan pengajian oleh pihak IPT atau gagal dalam pengajian atau berhijrah ke negara lain dalam tempoh perjanjian akan dikenakan tindakan bayar balik atau ganti rugi. Pemohonan (a) Permohonan dibuka sepanjang tahun mulai 1 Disember 2010 hingga tahun 2015. (b) Permohonan perlu dibuat secara atas talian (online) melalui laman web MyBrain15 https:// payloan.mohe.gov.my/MyBrain15. (c) Permohonan perlu dibuat secara atas talian sepenuhnya dengan klik menu LOG MASUK di atas, dan mendaftar sebagai pengguna sistem. Permohonan secara manual tidak akan diproses. (d) Pemohon hendaklah memastikan rancangan penyelidikan (proposal) telah dipersetujui dan disahkan oleh penyelia. Pengesahan perlu dibuat pada muka surat pertama rancangan penyelidikan tersebut. Sila rujuk (Lampiran A) untuk panduan penyediaan. (e) Pemohon dari kategori Graduan Belum/ Tidak Bekerja dan Tidak Berpendapatan Tetap dikehendaki mencetak, mengisi dan memuat naik Borang Pengesahan melalui permohonan ini.Jika telah berhenti kerja, sila muat naik salinan surat berhenti kerja daripada pihak majikan. (f) Semua dokumen sokongan yang disertakan perlu diimbas (scan) dari dokumen asal dan disimpan dalam format imej (JPEG) atau PDF dan perlu dimuatnaik (upload) dalam sistem permohonan atas talian ini. Dokumen yang diambil (capture) menggunakan kamera tidak akan diterima. o Klik sini untuk panduan mengimbas dokumen sokongan. o Klik sini untuk panduan menukar format

dokumen softcopy ke format PDF. (g) Jika tiada dokumen asal, pelajar boleh mengimbas dari dokumen salinan photostat tetapi dokumen tersebut perlu diakui sah oleh pegawai Kerajaan / badan berkanun dari Kumpulan Pengurusan dan Profesional (Gred 41 dan ke atas) / Penggawa / Ketua Kampung / Ketua Masyarakat. (h) Dokumen sokongan yang perlu dimuatnaik adalah seperti berikut: BIL DOKUMEN FORMAT SAIZ MAKSIMA 1 Salinan kad pengenalan pemohon (depan dan belakang) 2 Rancangan penyelidikan (proposal) yang disahkan oleh penyelia (muatturun format di Lampiran A) 3 Salinan transkrip akademik di peringkat Ijazah Sarjana* dan Ijazah Sarjana Muda 4 Salinan surat tawaran kemasukan ke IPT, dan pindaan surat tawaran (jika berkenaan). 5 Borang Pengesahan Status Bagi Kategori Graduan Belum/Tidak Bekerja dan Tidak Berpendapatan Tetap Program MyPhD (muatturun borang di Borang Pengesahan) * Pemohon tidak perlu memuatnaik salinan transkrip Ijazah Sarjana jika mendapat tawaran terus ke peringkat PhD selepas menamatkan pengajian Ijazah Sarjana Muda. (i) Pemilihan calon akan dibuat berdasarkan penilaian oleh suatu Jawatankuasa yang dilantik oleh Kementerian Pengajian Tinggi. (j) Keputusan permohonan akan dimaklumkan kepada pemohon melalui emel dan pemohon perlu mencetak surat tawaran secara atas talian.

MBA EdgeTM & Postgraduate Studies

From the Publisher of MRCA’s book 73 Malaysia’s Most Outstanding Retailer Chains 50 Success Stories MBA EdgeTM & Postgraduate Studies

Congratulations to President Dato’ Tay Sim Kim & Malaysian Retailer-Chains Association Members

MRCA Branding Education Charity Foundation Advisors

Tan Sri Datuk Tee Hock Seng

Dato’ Ngeow Voon Yean

Malaysia’s Most Outstanding Retailer-Chains

50 Success Stories

978-967-5945-02-1 Penerbit Wawasan Nusa (M)ISBN Sdn Bhd Wisma Wawasan, Jalan PJS 8/12 Dataran Mentari, Bandar Sunway 46510 Petaling Jaya, Selangor, Malaysia Tel: 03-5630 1802 Fax: 03-5630 1803

info@pwn.com.my / penerbitwawasan@gmail.com

Malaysia’s Most Outstanding Retailer-Chains 50 Success Stories

Tan Sri Dato’ Sri Leong Hoy Kum

MBA EdgeTM & Postgraduate Studies

Penerbit Wawasan Nusa (M) Sdn Bhd (866716-P) Wisma Wawasan,19-2 Jalan PJS 8/12, Dataran Mentari, Bandar Sunway, 46150 Petaling Jaya, Malaysia Tel: 603-56301802, Fax: 603-6301803 Email: info@pwn.com.my, penerbitwawasan@gmail.com Website: www.pwn.com.my

MBA EdgeTM & Postgraduate Studies