VOL. 55 NO. 1 • 2020 DIGITAL Redesigning for the Digital Economy: A Study of SMEs in Southeast Asia FEATURE The Future of Asia LEADERSHIP SERIES Leadership that Matters Today The Coronavirus Crisis: Are Leaders Ready? OPINIONS Managing Conflict of Interest in a Business Enterprise DIGITAL BUDGET 2020 MALAYSIA GETS IT (MOSTLY) ABOUT THE DIGITAL ECONOMY West Malaysia RM15.00 East Malaysia RM17.00 www.mim.org.my PP 938/10/2012(031402) Contents LEADERSHIP PUBLISHED BY 06 The Coronavirus Crisis: Are Leaders Ready? MALAYSIAN INSTITUTE OF MANAGEMENT (MIM) Institut Pengurusan Malaysia 08 Leadership that Matters Today Unit T1-L16-1, Level 16, Tower 1, PJ 33, No. 3 Jalan Professor Khoo Kay Kim, Seksyen 13, 46200 Petaling Jaya, Selangor, Malaysia. 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CEO's Message In accordance to date of admission HONORARY FELLOWS YM Royal Professor Ungku Abdul Aziz Ungku Abdul Hamid YAB Tun Dr. Mahathir Mohamad YB Dato’ Seri Anwar Ibrahim YABhg. Tun Abdullah Ahmad Badawi Sivanganam Rajaretnan YB Dato’ Sri Mohd Najib Tun Abdul Razak Chief Executive Officer COURT OF EMERITUS FELLOWS President Malaysian Institute of Management YABhg. Tun Haji Mohammed Hanif Omar Vice President YBhg. Dato’ Ng Tieh Chuan YBhg. Datuk Dr. Paddy Bowie t’s 2020! Let’s start the new decade with enthusiasm and renewed YM Tunku Tan Sri Dato’ Seri Ahmad Tunku Yahaya YBhg. Tan Sri Dato’ Azman Hashim vigour. We ended 2019 momentously with the 29th Tunku Abdul Ir. George Lee Yau Lung Dr. Tarcisius Chin Nyet Leong Rahman Lecture Series which saw the honourable YABhg Tun Dr. Daim Mr. Robert Kuok Hock Nien IZainuddin speak on the future of Malaysia. T.Y.T. Tun Pehin Sri (Dr) Haji Abdul Taib Mahmud Prof. Liew Shou Kong This year promises to be another exciting year for the Institution, YBM Tan Sri Tengku Razaleigh Tengku Mohamad Hamzah with a wide range of events and programmes in the pipeline. On the YBhg. Prof. Tan Sri Dato’ Dr. Mohd Rashdan Haji Baba YBhg. Tan Sri Kamarul Ariffin Mohamed Yassin professional development front, we have introduced new programmes in YBhg. Tan Sri Osman S. Cassim YBhg. Tan Sri Dato’ Sri (Dr) Sallehuddin Mohamed line with the top 10 skills relevant to achieve the requirements of Industry YBhg. Tan Sri Wan Azmi Wan Hamzah 4.0. From leadership development programmes to Masterclasses and YBhg. Tan Sri Kishu Tirathrai YBhg. Tan Sri Dato’ (Dr) R V Navaratnam C-Suite Series, MIM works to curate our offerings to address current Mr. Niels John Madsen R, R1 YBhg. Datuk Haji Mohd Saufi Haji Abdullah and emerging market needs. We kicked off the year with the 1st of our YABhg. Tun Dr. Ahmad Sarji Abdul Hamid Emotional Intelligence programme series, ‘Leaders as Coach’, conducted YABhg. Tun Musa Hitam YBhg. Tan Sri Dato’ Sri Dr. Teh Hong Piow by our partner, Genos International, Australia, which further accentuates YBhg. Tan Sri Dato’ Dr. Lin See Yan our efforts in providing world-class executive education programmes. YBhg. Gen (Rtd.) Tan Sri Dato’ Seri Mohd Zahidi Haji Zainuddin YAM Tunku Tan Sri Imran Almarhum Tuanku Ja’afar March will see our signature Ready-To-Fly Youth Leadership YBhg. Tan Sri Dato’ Dr. Mohamed Munir Abdul Majid YBhg. Tan Sri Dato’ Sri Mohd Hassan Marican Programme which is open to MIM Member’s children and Student YBhg. Tan Sri Dato’ Sri Tay Ah Lek Affiliates. Its sixth year running, the all-expense-paid experiential YBhg. Datuk Seri Haji Mohamed Iqbal Rawther YBhg. Tan Sri Datuk Yong Poh Kon learning programme is designed to help youth develop a greater breadth YBhg. Prof Datuk Seri Dr Haji Khairil Annas Jusoh YBhg. Tan Sri Dr. Ali Hamsa of skills to meet the new demands of the workforce of tomorrow. Then, YBhg. Tan Sri Dato’ Seri Siti Norma Yaakob join us in April as we discuss governance and accountability at the MIM YBhg. Tan Sri Lim Kok Thay YBhg. Tan Sri Dr. Jeffrey Cheah Fook Ling Crucial Conversations: Corporate Liability 2020. YBhg. Tan Sri Dato’ Seri Megat Najmuddin Megat Khas On a solemn note, MIM also mourns the loss of two illustrious figures, YBhg. Tan Sri Dato’ Lim Wee Chai YBhg. Datuk Prakash Chandran the Late Chief Justice (Rtd.) Yong Pung How and Allahyarham Tan Sri GENERAL COUNCIL Abdul Aziz Abdul Rahman, who were both our Court of Emeritus Fellows. Chairman They embodied the admirable qualities of a leader and led lives governed YBhg. Tan Sri Dato’ Seri Megat Najmuddin Megat Khas Vice Chairman by honour and principles. A tribute to these icons is in the article Puan Rahima Beevi binti Mohamed Ibrahim ‘Remembering Icons’ on page 57. Representing Court of Emeritus Fellows YBhg. Dato’ Ng Tieh Chuan As 2020 speeds full steam ahead, I would like to take the opportunity YBhg. Tan Sri Dato’ (Dr.) R. V. Navaratnam to thank you for your support in the past year. Our success is a reflection YBhg. Tan Sri Dato’ Seri Megat Najmuddin Megat Khas Representing Corporate Members of your continued belief in our efforts as we strive to achieve greater Puan Rahima Beevi binti Mohamed Ibrahim accomplishments in the new year. YBhg. Datin Dr. Hasnorliza Abu Hassan Mr. Thiagarajan a/l S. Rengasamy Representing Fellows Mr. Ong Weng Leong Representing Associate Fellows Mr. Azlan bin Abdullah Representing Ordinary Members Mr. Rama Krishnan a/l Thiruyangadam Mr. Selvaraja Muthaya Mr. Sugumaran a/l Vairavappillai Mr. Lim Eng Weng Representing Associate Members Puan Rosmawati binti Mohd Ali LEADERSHIP The Coronavirus Crisis: Are Leaders Ready? By Korn Ferry 2020 • VOL. 55 NO. 1 • MANAGEMENT Do leaders have enough supply-chain contingencies for a global epidemic? 06 LEADERSHIP s trade talks between the United States and China dragged on last year, organisations spent much of that time analysing their supply Achains and making contingency plans to avoid any long-term disruption and mitigate business risk. That's why, in times of But with the coronavirus outbreak, firms across the sudden disruption, risk globe face a whole different level of challenges. Experts say the critical difference is time—or management becomes very lack of it. It’s been about three months since important. – Kent Brown Chinese researchers first identified the deadly respiratory illness that has so far infected more than 75,500 people and claimed the lives of more than 2,000 people in 29 countries. “When something like this happens, it’s all about how quickly you can react,” says Kent Brown, North American practice cargo. “The full affect of the virus won’t be known leader for Korn Ferry’s Supply Chain Center of for months, but it is going to test the adaptability Expertise. and nimbleness of supply chains for multiple global The speed and agility with which organisations industries,” says Deboo. react can be the difference between losing millions That's why, says Brown, in times of sudden and tens of millions of dollars—particularly in a disruption, risk management becomes very 2020 • country like China, where every global company important. “What kind of exposure does a company has some operations. Already, Apple, Starbucks, have, how close to the source is it located, when and Ikea have temporarily closed stores, while might the ban be lifted?” says Brown. “You have to automakers have delayed production and airlines figure out these logistical questions and manage have canceled flights to the country. The closer VOL. 55 NO. 1 from there.” From an inventory standpoint, • operations are to the Wuhan/Hubei region where identifying factories and warehouses that can the virus originated, the deeper and more costly take on additional capacity, accelerate production, the impact, of course. "Most companies were not or source components is critical. But that’s a prepared for such a nationwide shutdown for this luxury for some organisations—others are too MANAGEMENT long," says Diana Chan, leader of Korn Ferry's small to have multiple warehouses or suppliers Global Industrial Markets practice in Greater China.