Category: Business Planning

Kuala Lumpur-based Fuller Academy is poised to enrol to 30,000 learners across ASEAN through its 12 sustainability short courses, designed and curated by the industry, for the industry, to enhance talents’ knowledge and skills in sustainability.

Chief Executive Officer Wan Imran said all programmes certified by Human Resource Development Corporation (HRDCorp) are part of micro-credential short courses, which aim to provide knowledge solutions for talents, in line with the global demand for talent upskilling in sustainability.

“Based on a recent analysis by Bloomberg, global ESG assets are on track to exceed $53 trillion by 2025, representing more than a third of the $140.5 trillion in projected total assets under management. This is a strong driving force encouraging the industry to shift towards a more sustainable approach. Hence, now is a critical time for organisations to start enabling their talents with knowledge and purpose in the areas of sustainability. This is also aligned with our national agenda of creating 200,000 green jobs by 2030.” he said during the launch of Fuller Academy.

To date, more than 1,600 participants from various industries have signed up across various of our programs from within the country and abroad.

“Our learners come from different industries and backgrounds, as we offer a range of courses targeting different skill sets from sustainability communications to the introduction of carbon emissions. We have been getting a lot of learners from ASEAN and other regions, with many learners hailing from Europe. The courses which were curated with our global instructors have set a new standard in sustainability learning, which is effective, practical and engaging.” he added.

Breaking it down further, Imran said the courses are all designed and created by industry experts and practitioners thus providing insights into the practical industry knowledge.

“We have made it accessible geographically and financially. Being an online platform, anyone from across the region and beyond can sign up as a learner. For Malaysia-based companies, they can benefit from the financial support HRDCorp can provide, and for outside of Malaysia, they can also take advantage of our entry-level pricing.”

“The courses are designed to be short and bite-sized, with the flexibility for the learners to complete the course in their own time within the monthly cohorts. This on-demand format is

ideal for busy professionals, allowing them to learn around their working schedule through a structured yet flexible course.”

In conjunction with the launch, Fuller Academy also hosted a series of dialogue sessions on sustainability, attended by experts in the field such as Elina Jani from Malaysian Green Technology And Climate Change Corporation (MGTC), Wan Dazriq from Ethis Malaysia, Karina Cady from Nandina Partners, Yasmin Rasyid from EcoKnights, and Yasir Qureshi from Kantar Malaysia.

About Fuller Academy:

Fuller Academy is the trusted strategic partner in the business sustainability journey, providing industry-driven sustainability education through online courses. Current open enrollment includes Fundamentals of Business Sustainability, Introduction to Carbon Emissions, Internal Communications for Sustainability, and Shaping Consumer-Centric Sustainable Strategy.

As a lawyer who has had the opportunity to represent and defend different types of clientele; from medium to large scale businesses, corporations and high net worth individuals, I am occasionally confronted with the odd client who would retort, “This is a pretty standard contract, right? So why do we need to review it? Just sign!” or “Why do we need to take so long to look into this joint venture agreement? Isn’t this pretty much a standard contract?” or worst still “Can you give me a discount since it’s a standard contract!”

In my 15 years of legal experience, I have never come across two contracts that are exactly the same. I have never given any of my clients “standard” contracts because no such thing exists in my books.

Contracts should be crafted according to the particular and specific requirements, needs and requests of the parties involved.

It is always good to remember that contracts once entered into and signed are binding on the signatories. You can’t plead ignorance nor can you say that you did not understand the terms of the contract or that you did not foresee the consequences of breach or non-compliance.

Unless of course you were coerced, forced or unduly influenced into signing the said contract. However, do take note that the threshold of proof for coercion and undue influence is one that is high and onerous.

Oftentimes clients, in a bid to save on legal cost, use “standard” contract templates that they obtain from the Internet. You are forewarned here that doing so and not reviewing the specific terms can lead to devastating legal repercussions.

Let me give you some examples of matters that are not covered in these template contracts that you find on the Internet.

“Jurisdiction” Clauses

The laws applicable in any other country will not be applicable here in Malaysia. This clause is extremely important if you are contracting with a foreign party.

For example, if you are entering into a contract with a party from Singapore but the subject matter of the contract, for example the sale of a factory in Malaysia and the governing laws are Singapore, you will be faced with difficulty in the event litigation arises.

If you have an incompatible or inconsistent clause in your agreement, it will make the litigation process rather cumbersome and costly for you. The issue of jurisdiction will have to be dealt with before the substantive issues of fact and law can be addressed.

This is an unduly protracted and costly affair.

The Appropriate “Governing Laws”

Oftentimes when you use a standard contract, no one looks at the ‘Governing Laws’ clause.

There is a huge difference between the arbitration process and laws as compared to the Court process. Arbitration is an excellent alternative to litigation but if the value of your contract is small and the subject matter of the dispute is straightforward, then the cost of the arbitration process may exceed the value of your claim in itself. 

Do not attempt to deal with governing laws and jurisdiction in the same wording. The two concepts are different and the contract should address them separately.

Conflicting Clauses

Let’s assume two people enter into a contract which contains Clause (1) and Clause (2). Further let’s suppose that the two clauses do not contradict one another yet come into conflict with each other. For example:

This contract shall only be terminated upon mutual agreement by both parties

Clause (1)

This contract may be terminated at any time upon written notice to the other party

Clause (2)

Clearly both these clauses can be in conflict with one another. Conflicting clauses are one of the most commonly litigated contractual disputes in Malaysia. 

Once there are conflicting clauses, the Courts will then have to resolve the conflict by interpreting and “making sense” of the contract by reading all of the contractual documents in context and also consider parties’ commercial intentions by way of oral evidence in Court.

It is worthy to remember that not all standard contracts are advantageous. A standard contract may not capture the specific needs and circumstances of your business, and therefore not protect you from risks. On the contrary a badly drafted standard contract that you glean off the internet can cause more damage than benefit to you.

Always remember that there is no such thing as a standard contract. You are entitled to negotiate the terms of a contract you wish to enter into based on your own circumstances and facts. Investing in good legal and professional advice will reduce risk and save you a lot of legal cost in the long run.

Lawyer’s fees may seem expensive when you voluntarily decide to hire them initially but it is wise to remember that lawyers become more expensive when you have no choice but to hire them just because you decided not to in the first place.

This article was written by Sharmila Ravindran

A well-coordinated team is a true asset to any organisation. According to research on team dynamics and performance, diverse and inclusive teams tend to make better decisions and are more innovative.

Striving to increase workplace diversity is not an empty slogan — it is a good business decision.

Diversification and equity initiatives are critical to a company’s success. However, these aspects don’t mean anything in the absence of an inclusive workplace. So the question becomes – how do employers establish a workplace that prioritises all three elements?

Diversity, Equity & Inclusion In the workplace

Diversity in the workplace usually involves people from different backgrounds, ethnicities, genders, ages working together without any disparagement. It usually refers to a gender ratio that is balanced, but it can also refer to people of non-binary genders. As a result, it can be defined as a balanced representation of all genders in any workplace.

On the other hand, equity is the value of being fair and equal based on individual contributions. There may be some confusion as to the difference between equity and equality. While equality means being equal to everyone by providing the same benefits to all, equity is an organisation’s ability to offer flexi-benefits according to individual needs so that they are able to reach their full potential.

Workplace equity is all about empowering employees and ensuring that everyone is on an equal footing. When organisations promote equity in the workplace, they gain a competitive advantage by employing a diverse workforce. There is equal opportunity when there is equity.

Inclusion is the state that provides each and every employee with a sense of belonging despite gender racial and age differences. Workplace inclusion efforts help to give traditionally marginalised groups, even those with physical or mental disabilities, a way to feel equal in the workplace.

However, because we are human beings driven by emotions as much as objectivity, it is easy to fall short of what constitutes a best practice and mistakes happen. To safeguard all employees and to ensure the highest standards of diversity, equity, and inclusivity, nonetheless, I would recommend using an automated system like WorkSmartly.

With a trusted tool that is unbiased, employers can be more assured of employees having access to equal opportunity. 

How Organisations Can Develop Diversity, Equity & Inclusion

Developing equitable workplaces will require sustained and prolonged efforts on the part of management and Human Resource (HR)  teams as the most effective way to implement major changes effectively is through the top-down approach. Understanding internalised biases and their effects are the first steps in building equitable work environments as everyone was brought up differently and coming from various walks of life. This leads to different work experiences.

Everything should be colourless and generous to every employee, with a focus on matters or incidents rather than individuals. For example, companies should look to have a neutral time (example: company fiscal year) to hand out bonuses during “neutral” time periods, rather than during festive periods like Chinese New Year, Hari Raya, Deepavali as this may show bias toward a particular race.

Additionally, recruiters should demonstrate neutrality when selecting candidates. They should hire new employees based on their performance, skills, and capabilities, not on their own culture or other factors.  Robust HR platforms like WorkSmartly filter candidate profiles and resumes according to their achievements, skills, and suitability.  This would be particularly useful here as automated systems do not run the risk of being swayed by non-work-related differences. Ultimately, this ensures transparency in an environment that prioritises growth.

Another aspect to look forwards to is increasing digitisation which will create more opportunities for diversification. From remote work options to the rise in the gig economy, employers are no longer forced to default to traditional work practices. New generations are becoming more open and their cultural acceptance has increased due to greater exposure via  technology. For example, the way the current workforce thinks and acts is getting more unified based on the influence of social media.

Challenges that Malaysian Employees Face in the Workplace

More than ensuring the diversity, equity and inclusion of a workplace, I think that it is important for employers to be aware of the external challenges frequently faced by the workforce. One of them is gender inequality. To date, it has been reported that only 38% of women occupy managerial roles as compared to 62% of men in managerial positions.

In Malaysia, 56% of women have experienced at least one form of gender discrimination in the workplace, according to the “Voices of Malaysian Women On Discrimination & Harassment in the Workplace” survey. Women’s low participation in the workforce could be due to a variety of factors, including discrimination, harassment, and a greater unpaid care burden, which affects both employees and job seekers.

Besides that, people who have been out of work for a while have typically found it much harder to get a job. If being unemployed and finding a job weren’t hard enough already, research shows that large work history gaps are the main reasons that unemployed people aren’t getting hired. Prejudice against the unemployed isn’t limited to those who have been out of work for a long time, it can also apply to those who have recently quit or lost their jobs.

While this has been an ongoing problem for many during the pre-pandemic period, those who faced retrenchment due to pandemic-related business closures have been particularly hard hit.

It is also important to note that diversity, equity and inclusion can’t be achieved when there is bias in the hiring process-the number one step for organisations to build strong, long-lasting foundations. Most companies typically lean towards hiring more experienced employees rather than fresh graduates. Many employers believe that this hiring strategy makes the transition easier as they already have background experience.

The downside to this practice, however, is that it limits the opportunities and options for fresh graduates to learn new skills and demonstrate their talents to a company, eventually resulting in an out-dated talent pool. Therefore, I urge organisations to keep their windows as open and inclusive as possible to provide younger talents with opportunities to grow, thereby making way for fresh, new ideas that could result in a breakthrough.

It’s important to value diversity, equity, and inclusion. They make organisations stronger and more agile, and they are more important than ever in today’s rapidly changing business environment. Leaders who want to make significant progress should apply universal principles with care to their unique cultural and strategic circumstances. It’s important to consider the context.

This article is written by Victor Phang, CEO and Founder of WorkSmartly

About WorkSmartly

WorkSmartly is an end-to-end HR solution that is designed specifically for HR processes throughout the employees’ work life cycle. It began as iTalent in 2008 before being rebranded to WorkSmartly in 2018. With 8 offices globally and more than 200 clients including several Fortune 500 companies, WorkSmartly is aspiring to be the leading enterprise HR-tech provider globally. Among WorkSmartly’s clients are EasyParcel, Emart, Exabytes, MDEC, PETRA Mobilia, Pgeon, Roche, See Hup and Sony.

“The Malaysian experience seems to suggest that raising the minimum wage has been good for us.“

The need to implement minimum wages is based on the protection it offers to workers at the lowest income strata. These often tend to be workers from groups often marginalised in society such as youth workers and women. They may not have the bargaining power to demand higher wages without direct government intervention.

For several decades there was a near-consensus among economists that raising minimum wages just like any other floor would substantially reduce employment. Some persist on the potential employment costs argument. However, that view has changed where a majority now view a significant rise to be a good idea.

To understand the shift, it is important to appreciate the natural experiments conducted by Nobel Laurette David Card, who found that increasing minimum wages did not lead to increased unemployment[1]. In fact, it was found to lift many out of poverty and benefit those in the bottom half, including those making more than the minimum wage[2].

There are those who view the implementation of a higher minimum wage as harming low-wage workers as it is an artificial value imposed by the government rather than determined via market forces. This is because those with lower skills or experience tend to have lower productivity levels. Hence, a higher cost structure would put-off hiring of these workers rather than employing them at lower wages until they become more experienced.

However, my opinion is that the wage policy in Malaysia should be based on the domestic context. In 2013, the minimum wage was first set to be at RM 900 per month for West Malaysia and RM 800 for East Malaysia. The rate has since gone up in stages over the years. About a decade later, it is set to reach RM 1,500 per month effective 1^st May 2022.

This seems to be a fair rate given that the International Labour Organisation reported that the average minimum wage around the world for developing and emerging nations to be about 67% of the median wage[3].  At the end of 2019 before the pandemic, according to the Department of Statistics Malaysia (DOSM), the median income in Malaysia was at RM 2,442 where the minimum wage was set at RM 1,200 (about 49%). However, according to data from DOSM, the pandemic has lowered the median income to RM 2,206, a minimum wage of RM 1,500 represents about 68% which is in-line with the global average. Given that the economy is expected to see a strong rebound of more than 5.5% in 2022, the median wage can be expected to surpass 2019 levels by 2024. This would eventually represent a minimum wage representing 60% of the median wage.

Research on the implementation of previous minimum wage levels in Malaysia shows that it tends to increase labour productivity, act as a motivator, and reduce employee turnover[4]. In fact, longer terms studies have shown that it reduces unemployment and increases labour participation rates[5]. Research also documents that the previous increase in 2016 also did not result in any significant reduction in labour demand[6].

There have been views that increase of minimum wages may lead to inflationary pressures. For example, if a restaurant owner is suddenly forced to pay his workers RM 1,500 instead of RM 1,200, he needs to raise the price of his product to account for this increase in costs.

But in the Malaysian context, it is likely that most employees in urban areas are already being paid close to the proposed rate of RM 1,500. Thus, there might be very little additional price pressure in these areas.  It is likely that the new rate would account for the difference in wages and costs in urban versus rural areas, in-line with the current approach.

In addition, inflation tends to be insignificant as a determinant of employment in Malaysia[7]. In fact, research in Malaysia shows that labour markets in Malaysia tend to follow the efficiency-wage theory where the increase of costs (of higher wages) would be recouped through greater productivity as well as increased employee retention[8]. Thus, inflationary pressures are unlikely to be severe, given that increased productivity would then counter the potential increase in price levels. Thus, it seems that the new higher rate may point towards a positive picture overall.

However, given the potential that it may harm SMEs which are unable to offer higher wages, there is a need to explore a mechanism beyond minimum wages going forward. Imposing minimum wage laws puts the role of reducing poverty on the business owner. But a different approach via social welfare programmes for low-wage workers would allow all taxpayers to share the financial burden.  Among areas that would be beneficial to B40 households would include part cover for housing costs, healthcare as well as childcare costs.

About the Author

 Professor Dr Hafezali bin Iqbal Hussain is the Head of Research at the Faculty of Business and Law, Taylor’s University and a member of the Centre for Industrial Revolution and Innovation (CIR4I). Taylor’s Business School is the leading private business school in Malaysia for Business and Management Studies based on the QS World University Rankings by Subject 2021 edition.

[1] Microsoft Word – aea3.docx (nber.org)

[2] Minimum Wages and the Distribution of Family Incomes – American Economic Association (aeaweb.org)

[3] Global Wage Report, 2020-21.

[4] Minimum Wage Policy: Is There Any Impact on Low Skilled Workers in Electrical and Electronics Companies in Malaysia? | International Journal of Business and Society (unimas.my)

[5] http://myscholar.umk.edu.my/bitstream/123456789/2586/2/ICBT2020_039_MW.pdf

[6] Minimum Wages: Helping or Hurting Producers? | SpringerLink

[7] ICBT2020_039_MW.pdf (umk.edu.my)

[8] The effect of real wages and inflation on labour productivity in Malaysia: International Review of Applied Economics: Vol 28, No 3 (tandfonline.com)