| | leave recruitment to market forces and principles of meritocracy!ethnic diversity ought to be encouraged in all companies. however, what we fear is that companies will feel co-erced by this disclosure requirement to restructure their managerial teams to include more bumiputras...recruitment should be done regardless of skin colour...if a Malay is qualified to lead, then that's fine...but leave it to market forces to fulfil HR objectives!
No punishment for those whose workforce do not include all races
By Carolyn Hong, Malaysia Bureau Chief
The Straits Times
PUBLIC listed companies in Malaysia will now have to disclose the
racial composition of their workforce, a move that the government has
insisted is not aimed at forcing firms to restructure their staffing.
Second Finance Minister Nor Mohamed Yakcop was quoted in the New
Straits Times yesterday as saying that there will be no 'punishment'
for companies that do not have employees of all races.
'If your company recruits 100 per cent Malays throughout, let people know you are not recruiting Chinese and Indians,' he said.
The new requirement was in the 2008 Budget presented by Prime Minister Abdullah Badawi last Friday.
'Beginning financial year 2008, PLCs (public listed companies) will be
required to disclose their employment composition by race and gender,
as well as programmes undertaken to develop domestic and bumiputera
vendors.
'The private sector should leverage upon the strength of Malaysia's
diversity by employing Malaysians from all ethnic groups,' he said in
the speech.
The Straits Times understands that the Malaysian Chinese Association
(MCA) intends to raise this issue in Parliament during the Budget
debate this week.
'Is it intended to force companies to restructure?' asked a party insider.
CIMB Bank chief executive officer Nazir Razak, the younger brother of
Deputy Prime Minister Najib Razak, said in a statement that the
requirement could have 'unintended side effects' even if it was
well-intentioned.
Under existing rules, public listed companies must have at least 30 per cent Malay equity ownership and employment.
However, the latter requirement is hardly enforced. There are fears that the government intends to enforce it.
It is unclear why Datuk Seri Abdullah chose to announce this ruling at
a time when race relations are strained, but some observers believe it
could be a reaction to last year's controversy over Malay equity
ownership.
A think-tank head had said the Malays owned as much as 45 per cent of
corporate equity, instead of the official 18.9 per cent, based on
ownership of public listed companies.
The government said its calculation took into account all companies, not just those listed on the stock exchange.
The debate had angered Malays, who said that many PLCs hardly employed Malays in managerial positions.
Transparency International Malaysia chairman Ramon Navaratnam said data
collection is to be expected in a multiracial country, but people want
to know why.
' It is not wrong to want a balanced workforce but it should not be done unfairly,' he said. |
| | Posted 9/11/2007 6:40 AM - 1 view - 0 comments
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