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AB Accounting and Business
Malaysia Accounting and Business February/March 2020
Malaysia February/March 2020
Urban challenge
Smart tools help cities function more efficiently
Taking the lead
Why the finance function
should embrace analytics
Eyes on the prize
What does it take to make
it to the C-suite?
Talent quest
SMPs are seeking out new ways
of attracting recruits
AP_COV_inner.indd 1 21/01/2020 11:21
Welcome
As we continue our theme of the power of future-ready talent, we look at how financial
professionals and the organisations they work for can achieve their ambitions
As a global population of consumers, leave to accelerated pathways to partner
we routinely inspect our possessions level. Meanwhile on page 28, we look at
so that they are fit for purpose. We upcoming research by ACCA into how
regularly service our vehicles so that the finance function can take the lead
they are safe to drive; we are reminded on the analytics agenda and help to
to install the latest software updates on embed the use of technology across an
our tech so that our data is protected; organisation. And, to keep our mental
and we check our home appliances health in check, our insightful article
so that we know they won’t blow a on page 58 on mindfulness for busy
fuse. But how often do we give our professionals has helpful suggestions on
careers a check-up? How frequently how to gain some perspective.
do we measure the standard of our In our interview, we speak with Cherie
occupational hardware? Is our skillset Sim, group financial controller at
robust enough to meet our ambitions? Owndays Singapore (page 12). Sim has
As we continue ACCA’s theme on the scaled the corporate ladder, relishing
profession – the power of future-ready challenges and grasping opportunities
talent – we hear from members in Asia to further her skills while putting her
who’ve set their sights on reaching the family first. She explains how her role at
C-suite. Getting to the top needs careful the Japanese eyewear brand offers the
planning so that aspiring CFOs have the chance to expand her finance team and
experience, exposure and know-how build the Singapore office’s capabilities.
to ensure that they have a good shot at Finally, to celebrate International
hitting their target. Our feature on page Women’s Day on 8 March, we highlight
46 explains what you can do to boost ACCA’s global webinar on diversity and
your chances of success. On page 38, we inclusion in the workplace (page 66). AB
find out how small and medium practices
are rethinking ways to attract and retain Colette Steckel, Asia editor
accounting talent, from unlimited unpaid colette.steckel@accaglobal.com
Accounting and Business About ACCA Leadership
The leading monthly magazine for ACCA (the Association of Chartered President: Jenny Gu FCCA
Deputy president: Mark Millar FCCA
finance professionals, available in seven Certified Accountants) is the global Vice president: Orla Collins FCCA
different versions: China, Ireland, Malaysia, body for professional accountants. It Chief executive: Helen Brand OBE
Singapore, UK, Africa and International. offers business-relevant, first-choice Member services
* Magazine contacts, page 66 qualifications to people of application, ACCA office details, page 66
ACCA Connect: +44 (141)582 2000
* Available in app and pdf ability and ambition who seek a
members@accaglobal.com
* AB Direct: weekly news bulletin rewarding career in accountancy, finance
and management. ACCA supports its
accaglobal.com/members
AB is circulated to all members in print
Our alliance with CA ANZ
and digital formats. ISSN No: 1460-406X 219,000 members and 527,000 students More about ACCA’s alliance with Chartered
More at accaglobal.com/ab in 179 countries. accaglobal.com Accountants ANZ: accaglobal.com/alliance
February/March 2020 Accounting and Business 3
MY_welcome.indd 3 05/02/2020 16:56
23 26
23 Unlocking potential
Why women
entrepreneurs benefit
from a safe space
24 What cost progress?
The environmental
implications of tech
innovation cannot
be ignored
26 CPD Going overground
Cryptocurrencies are
emerging into the
financial mainstream
28 Business transformer
Analytics leadership
will reinforce finance’s
strategic role
Management
18 Manu Bhaskaran 30 CPD Test of success
News Interview
An oil-price spike will be It’s time to ditch the
6 News in pictures 12 Cherie Sim ACCA bad for Asia’s economies traditional leadership
A different view of Group financial controller competency model
19 ACCA president
recent headlines at Owndays Singapore Civic engagement is
Careers
8 News in brief a force for good, says
Digest of developments
Comment Jenny Gu 32 CPD Inspired approach
across the globe 16 Chris Davis Servant leadership
Insights could be good news
11 News in infographics Skills training needs a
for everyone
While the representation radical overhaul 20 Urban revolution 34 The complete package
of women on boards 17 Errol Oh Smart cities could be Find out all you need
is on the rise, progress Malaysia gets tough on transformational – if the to know about becoming
varies across the globe financial crime technology’s right a forensic-data expert
6 8 20 28
4 Accounting and Business February/March 2020
MY_CON_contents.indd 4 05/02/2020 16:58
35 40 46 60
35 Greater good 40 All change at IAASB 46 Right on track 54 IFRS 15 angst
International Tom Seidenstein, the Want to join the C-suite? Distinguishing between
volunteering can board’s chair, talks about Follow our guide on the principal and the
transform your career the challenges making it to the top agent can be challenging
Technical 56 Tough on corruption
Practice Corporate New legislation comes
49 CPD IASB update into force soon, but are
37 The view from 43 The view from
Presentation of profit you ready?
Eva Low of EY Malaysia, Haiyu Mao of NTT and loss faces major
plus practice news DATA, Tokyo, plus changes Basics
38 New horizons corporate news
52 Technical update 58 Clear thinker
SMPs are raising their 44 CPD Work smarter The latest on audit, Embracing mindfulness
game in the battle to Add value without tax and reporting across is easier than you think
attract talent compromising quality the region
People
12 60 Accountant turned artist
We meet Yip Yew Chong,
creator of Singapore’s
celebrated murals
ACCA
63 The right track
A look at ACCA’s
‘It was important disciplinary procedures
64 News
for us to show our
ACCA’s YES Malaysia
kids the need campaign is putting
for continuous ethics on the map
lifelong learning’ 66 Update
ACCA is marking
International Women’s
Day with a webinar on
bias in the workplace
66
February/March 2020 Accounting and Business 5
MY_CON_contents.indd 5 05/02/2020 16:59
6 Accounting and Business February/March 2020 AP_Newsinpix.indd 6 21/01/2020 12:05
Wildlife and property
have been devastated
during Australia’s latest
catastrophic bushfires.
With the initial insurance
bill since fires began in
September standing at
A$700m, analysts suggest
that GDP could fall by as
much as A$20bn.
Carlos Ghosn, former
head of Nissan, faced
the media after he fled
to Lebanon from Japan,
where he was due to
stand trial on financial
misconduct charges. He
told reporters that he was
innocent and faced an
unfair trial in Japan.
As carmaker Tesla’s
market capitalisation
approached the
combined value of
General Motors and
Ford, CEO Elon Musk
was in jubilant mood
in Shanghai as he
launched the Chinese-
made Model Y.
Barcelona is the highest
earning football club in
the world, according to
the Deloitte Football
Money League 2020. The
Spanish club generated
a record-breaking €841m
in 2018/19, becoming
the first club to break the
€800m barrier.
February/March 2020 Accounting and Business 7
AP_Newsinpix.indd 7 21/01/2020 12:05
News in brief
This edition’s stories and infographics from across the globe, as well as a look
at the latest developments and issues affecting the finance profession
Fintech leader report evaluates more year, even though they types of businesses, nor to
Singapore is the fintech than 230 cities and 65 had made a gross profit. professionals working for
leader of Asia Pacific and countries, and is designed to Nevertheless, the Australian government agencies, the
occupies fourth spot globally, highlight opportunities and Taxation Office’s (ATO) latest BNM said.
according to a ranking of drive transparency across corporate tax transparency
fintech ecosystems. Billed the ecosystem. The San report shows a net increase Expectancy gaps
as the first global, real- Francisco Bay Area came top of A$6.6bn in tax payable Despite their best saving
time, objective ranking overall, followed by London, compared with a year earlier, and investment intentions,
of all cities with a fintech New York, Singapore and which is attributed primarily more than half of the people
cluster, the Global Fintech Sao Paulo. to strong commodity prices living in 10 of the world’s
Index City Rankings 2020 in the mining, energy and fast-growing economies will
Report was launched by Cashing in water segments. Among not meet their retirement
Findexable, a new digital One-third of Australia’s the 710 companies that goals. According to Standard
platform for fintech insight largest companies paid no paid zero tax (out of a total Chartered’s new Wealth
and benchmarking. The corporate tax last financial of 2,214 entities covered Expectancy Report, on
by ATO’s data for 2017-18), average across China, Hong
many claimed tax losses and Kong, India, Kenya, Malaysia,
concessions that often go Pakistan, Singapore, South
back several years. Korea, Taiwan and the
UAE, nearly six out of 10
New AML guidelines people are facing a wealth
Bank Negara Malaysia (BNM) expectancy gap of 50%
has issued a revised policy or more. This highlights
document on anti-money the difference between
laundering/countering the wealth that individuals
financing of terrorism and with disposable income to
targeted financial sanctions, save and invest can expect
effective from 1 January in retirement, and what
2020. The document they say they need to live
Firms have their eye on AI provides guidelines for comfortably.
The major accounting firms are investing billions of dollars designated non-financial
in artificial intelligence (AI) and data technology products to businesses and professions CFOs lack X factor
change the industry in new ways. Christian Rast, KPMG’s global and non-bank financial Only 22% of CFOs achieve
head of technology and knowledge, told the Bloomberg Tax institutions such as licensed a high degree of personal
website that ‘technology is core to our future’. Narayanan casinos carrying on gaming effectiveness outside of
Vaidyanathan, head of business insights at ACCA, agreed business, moneylenders the finance department,
that new technology was fundamentally changing the nature and pawnbrokers. It is, according to Gartner
of accounting. In December, KPMG announced a US$5bn however, not intended research. ‘CFOs tell us they
investment in technology, people and innovation over the next to be applicable to have more demands than
five years. PwC has previously committed US$3bn over four lawyers, accountants and ever, but the surprise in this
years, and EY US$1bn over two years. company secretaries who research is just how few
are employees of other activities differentiate the
8 Accounting and Business February/March 2020
AP_newsinbrief.indd 8 21/01/2020 08:27
nb
Hong Kong IPO market continues to hold strong
PwC expects that Hong Kong will ‘continue to thrive’ in 2019 reached HK$315.5bn, marking an increase of 10% from
the initial public offering (IPO) market in 2020, basing its the previous year. Looking at Mainland markets, the Science
forecast of total fundraising of between HK$230bn and and Technology Innovation Board (STAR Market) has raised
HK$260bn on ‘a healthy pipeline of companies lining RMB82.4bn for 70 high-tech innovative companies since it
up for floats’. launched last July. In 2019, there were 201 IPOs on four main
More new economy enterprises are expected to seek boards in the Mainland, with a total of RMB253.3bn funds
listing on the Hong Kong Stock Exchange thanks to raised. The increases in number of IPOs and total funds
regulatory reform, PwC says. Total funds raised by IPOs in raised were 91% and 83% respectively.
Money raised via IPOs in Asia-Pacific (10-year overview) (US$)
8bn 952
761 620 668 684 653
397 542 427
363
1.5bn 6.1bn
17bn 6.5bn 5.8bn 4.8bn
175.3bn
1.5bn 10.2bn
91.0bn
51.3bn
48.2bn
66.2bn
77.8bn
71.5bn
81.3bn
93.5bn
43.0bn
2.4bn
Asia Australia Number of IPOs
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 (up
to Q3)
Asia Australasia Number of IPOs
Top countries in Asia Pacific for money raised via IPOs
in 2019 (up to Q3)
most successful operators Hong Kong-listed Chinese
from the rest of the pack,’ smartphone maker; and Sea, Other
said Peter Nagy, research a South-East Asian consumer 16%
Thailand
vice president in the Gartner internet company. MAS will 5% Mainland
36%
China
finance practice. ‘The most announce the successful Australia 5%
important relationships that applicants in June, which 6%
India
drive high performance in are expected to commence
the CFO role are found in business by mid-2021. 33%
the boardroom and where
the customers are, not in the Welcome to Beijing Hong Kong SAR
finance department.’ Another 600 foreign-funded
companies settled in
Digital contenders Beijing’s central business contributed more than China, Japan, Australia,
By the close of the district (CBD) in 2019, 40% in total tax revenue in India and South Korea will
application period on 31 bringing the total to more the CBD from January to be the five leading revenue-
December, the Monetary than 10,000, according to November of last year. generating countries,
Authority of Singapore a senior official. Zhou Ying, accounting for nearly 80%
(MAS) said it had received from the CBD management Data centre forecast of the overall data centre
21 applications for up to commission, says this China is set to lead the and hosting revenue in the
five digital banking licences shows the increasing Asia-Pacific (APAC) data region, which is estimated
it plans to issue this year. internationalisation of the centre and hosting market to be US$32bn in 2023. The
Seven of these were for retail capital, which is home to with 36% share – worth company says that the APAC
banks and 14 for wholesale the headquarters of 88 US$11.5bn – in the region’s region provides vendors
banks. Contenders include multinational corporations. overall estimated revenue in with unique benefits in
Ant Financial, the fintech Statistics indicated 2023. According to forecast terms of costs, continuous
unit of Alibaba; Xiaomi, the that foreign companies modelling by GlobalData, investment in connectivity
February/March 2020 Accounting and Business 9
AP_newsinbrief.indd 9 21/01/2020 13:55
though, that the 67% of retail private companies in the
organisations in the region world. First established
that have not started on their in 1993 in Canada, the
AI journeys risk missing out programme is now in
on competitive benefits. 17 countries worldwide.
Shortlisted companies
Networks merge receive tailored support
MGI Worldwide and CPA from Deloitte specialists
Associates International in undertaking a detailed
(CPAAI) have merged to analysis of the companies’
create a new organisation businesses focusing on
ACCA’s voice is heard at Davos of 257 member firms with strategy and operations. A
Senior representatives from ACCA were in Davos at the World revenues approaching judging panel consisting
Economic Forum (WEF) in January, sharing thought leadership US$1bn, placing it in 16th of business and academia
on sustainability and global trade. ACCA’s head of Pakistan, position in the current representatives will review
Sajjeed Aslam, delivered a number of talks at various side global accountancy network applicants based on the best
events, addressing Pakistan’s potential for becoming a hub of ranking. Those involved practice, and determine the
global outsourcing, while also sharing insights into the Belt say the two groups’ well- Singapore Best Managed
and Road initiative. At the main forum, Council member Ayla established markets – with Companies for 2020.
Majid FCCA moderated a panel discussion on environmental CPAAI especially strong in
risks under the theme ‘How to Save the Planet’, featuring the US, China and Mexico New board for ACCA
contributions from global leaders. Majid is part of WEF’s and MGI Worldwide with a ACCA has announced a
Global Future Council on Energy and has written extensively greater global reach – are new Council Board, which
on the future of energy. highly complementary. comprises the president,
Clive Viegas Bennett, deputy president and
CEO of the renamed MGI vice president, three
infrastructure upgrades and the American Institute of Worldwide with CPAAI, Council members, two
capability to serve a broader Certified Public Accountants. said that, for members, non-Council appointees
set of customer requirements ‘our coming together will and the chief executive. It
in their pursuit for digital AI winning in retail bring a wide range of new will meet six times a year
transformation. According to the latest benefits, access to more and will be responsible for
findings from Microsoft business opportunities, wider oversight of performance
New FASB chief Asia and IDC Asia/Pacific’s geographical scope, and in delivering the strategy,
Richard Jones, EY’s chief Future Ready Business: significant knowledge and reporting to Council. ‘As
accountant, will become Assessing Asia-Pacific’s technology exchange’. a global, growing and
the next chairman of the Retail Sector with AI study, successful organisation,
US Financial Accounting retail organisations that have Quest for best these developments are
Standards Board. His adopted artificial intelligence Deloitte Southeast Asia all about modernising our
appointment is effective from (AI) are already seeing has launched the Best governance structure,’
1 July when he will succeed improvements of 16% to 19% Managed Companies said president Jenny Gu.
Russell Golden. Until now, in customer engagement, program in Singapore. ‘The overall objective of
Jones has spent his entire business intelligence, profit This flagship programme our governance remains
career at EY, joining in 1987. margins, competitiveness of Deloitte Private, which steadfast: to ensure that
He previously served on and innovation. By 2021, focuses exclusively on ACCA continues to deliver
the Financial Accounting retail organisations in the serving private clients of all the objectives stated in our
Standards Advisory Council region expect AI to drive sizes, enables the executive Royal Charter – to act in the
and was also a member of a further improvement of teams of private businesses public interest.’ AB
the Accounting Standards between 37% to 44% in these to benchmark themselves
Executive Committee of areas. The study also found, against some of the best Peta Tomlinson, journalist
10 Accounting and Business February/March 2020
AP_newsinbrief.indd 10 21/01/2020 13:05Rebalancing act
Driven by the desire for a more inclusive capitalism, the proportion of women on boards
is on the rise, although progress globally is patchy, according to a recent Deloitte survey
2018 2016
On the up
According to the sixth edition of Deloitte’s Women in the boardroom, which
analysed over 8,600 companies globally, the number of women holding board
seats around the world has gone up in the past year by 1.9%, as has the Finance leads the way
number of women in board chair positions, by 1.5%. There are nearly three times as many
women in CFO roles as CEO roles.
Women on boards
CEOs
3.9%
15.0% 3.8%
16.9% 5.3%
10,856 4.4%
CFOs
Board seats Board chairs Total number of 12.7%
held by women who are women women on boards
Committee variance Top performers
Of all board committees, women were best represented on The retail sector had the highest proportion of female
risk committees and worst represented on compensation board members. Across all sectors, the country with the
and nominating committees. highest percentage of women on boards was Norway
(41%); the lowest was Qatar (0.6%).
Women board committee presence
23.8% Top industries with the highest percentage
of women on boards
21.1% 21.4%
20.7%
19.9% 19.8%
18.5%
17.7% 17.5% 17.5%
16.6% 15.2% 15.1%
19.4% 17.9% 17.6%
Consumer Life science Financial
business and healthcare services
Compensation
Governance
Nominating
More information
Audit
You can find more details of Deloitte’s report, entitled
Risk
Women in the boardroom: a global perspective,
at bit.ly/WiB-global.
February/March 2020 Accounting and Business 11
UK_NewsinGraphics.indd 11 21/01/2020 13:07A clear view
Cherie Sim ACCA, group financial controller at Owndays Singapore, has built a
successful career and moved up the corporate ladder while putting family first
U i
sing numbers to look at the world in 2003, after almost four years with the
CV
has always been in Cherie Sim’s firm, Sim reached the first juncture of her
blood. As an example, the group professional life.
financial controller at Owndays Singapore 2019
relates an incident from her youth when, Group financial controller, Family first
on discovering that she and a friend were Owndays Singapore ‘I had to decide if chasing the partner
heading in the wrong direction, she quickly track was the path I wanted. Around the
assessed the situation and announced: ‘We 2017 same time, my mother had taken ill, so
are only 20% up this flight of stairs; we can Regional finance manager, I decided to leave my job for a while to
still turn around and go the other way.’ Owndays Singapore take care of her,’ she says, adding that
Her friend paused for a moment before she was not too concerned about the
responding: ‘Twenty per cent? Who talks 2009 possible impact on her career. ‘I was quite
this way?’ Establishes financial confident that, with my qualifications and
When it came to her decision to pursue accounting consultancy, experience, it wouldn’t be difficult to find
accountancy as a career, Sim sat down to Connecting… a new job.’
plot the quickest route towards fulfilling During this period, Sim also felt that
her objective. She researched the various 2007 it was an opportune time to reflect on
pathways available and discovered that by Finance manager, Otto her future on a personal level, and she
taking a polytechnic diploma, followed by Marine Offshore began planning her wedding to her long-
the ACCA Qualification, she would be able term boyfriend.
to enter the workforce six months before 2006 ‘At Deloitte, we really didn’t have too
her peers who picked the junior college and Senior accountant, OTO much time to date; a lot of my time was
university path. Bodycare spent working,’ she says. ‘But now that I
‘I remember that when I found out about had some extra time, I was able to plan our
ACCA, one of my first questions was: 2000 wedding and honeymoon.’
“What’s the fastest time I can complete my External auditor, Deloitte Sim has continued to adapt her career
ACCA Qualification?”,’ she recalls. around her personal life and, with the
Besides being able to start working arrival of her two children, in 2009 she
earlier, Sim also felt that the syllabus that ACCA offered decided that the best way to have more quality time with
was a lot more focused on real-life applications, rather her young family was to work as a freelance consultant.
than just academic understanding. In addition, Sim This eventually led to her starting her own practice offering
leveraged on ACCA’s flexible learning programme to attend training, consultancy and accounting work.
night classes, while taking on an accounts administration job Keeping a foot in the industry was, says Sim, a way of
in the day. maintaining her identity beyond motherhood. ‘I always
‘I found that the most I could cope with at the beginning was tell other accountant mums: “Don’t let your professional
four papers each semester,’ she says. ‘What I really like about training completely go to waste. You’ve spent so many
ACCA is that it allows you to choose for yourself the number years on it.”’ Staying involved does not have to be for
of papers that you are able to manage.’ monetary reward, either, she adds. ‘You can still get
In the run up to completing the ACCA Qualification in involved by sharing your knowledge with the community;
2000, Sim started investigating audit opportunities in the you can give tips to budding entrepreneurs on how to
Big Four firms. Her persistence paid off and she soon found manage their accounts, or even teach financial literacy to kids
herself working as an external auditor at Deloitte. Then, at the community centre,’ she says.
12 Accounting and Business February/March 2020
SG_INTER_Sim_Owndays.indd 12 20/01/2020 12:52February/March 2020 Accounting and Business 13 SG_INTER_Sim_Owndays.indd 13 20/01/2020 12:52
In 2017, after eight years doing consultancy work and with always make it out of what was available,’ she says. ‘So even
more free time as her children’s needs changed, Sim was though I didn’t have access to AS2 after I left Deloitte, I
starting to get restless. figured out how to use Excel to perform the same tasks.’ This
‘I craved a new challenge. I knew I had more to offer technique and attitude is something that Sim has been able to
than just teaching my kids primary school maths,’ she says. use to her advantage throughout the course of her consulting
‘Apart from my regular pool of clients, not many people work, as well as at Owndays.
knew my name.’ In order to further develop her skills and understanding,
She applied for a role as regional finance manager at Sim also decided to pursue a master’s in professional
Owndays, a Japanese optical brand with more than 300 retail accountancy. ‘I asked myself if I was crazy: I had a new job, a
stores globally. new change, and then to go back to studying after more than
10 years, my brain really had to be kickstarted. It was tough,
New challenge yet I knew that doing my master’s would better prepare me for
With this new challenge, Sim had her work cut out for her. global development work.’
Owndays’s accounts were previously outsourced and she set For six months, Sim spent almost all of her free time
herself the task of restructuring the entire accounting system studying, always focusing on the finishing line. ‘It’s not an
and processes. endless task,’ she says. ‘You just have to look at where the end
‘For a company of this size, I felt of the tunnel is and just grit your
that we should not be relying on teeth and get on with it.’
outsourcing,’ she says. ‘It takes too Sim acknowledges that her
long to generate a report; if you husband’s support during this
aren’t able to see your numbers very time was vital; while she studied,
quickly, you won’t be able to perform he took the children for multiple
at your best.’ trips to the Universal Studios
Her plate was full, implementing theme park.
‘It was important
a new accounting system, creating ‘After six months, my husband
group policies and manuals and
for us to show was so sick of the rides!’ she recalls.
recruiting new staff, as well as our kids the need ‘But he knew how important it was
putting in processes and workflow for continuous for us to show our kids the need
for Owndays’s subsidiaries. lifelong learning’ for continuous lifelong learning. By
‘Previously, our subsidiaries demonstrating how at our age we
managed their own accounts, are still learning, they have a good
so one of my big challenges was example to follow.’
regaining our position as the holding company and getting
all the various branches to follow the newly established group Building capability
policies,’ she explains. While Sim has managed to overcome many challenges during
In overcoming these challenges, Sim says that she was her time at Owndays, she believes she is still at the beginning
thankful for both her experience at Deloitte and for the of her journey and she has many more plans in store for the
example that her late father set her. company. One of these is to continue to build up the Singapore
At the Big Four firm, Sim was not only drilled in the office’s capabilities as a shared services centre for the group. To
importance of a clean audit but was also exposed to do so, she is expanding her team, both in terms of scale and
automated systems early on. ‘Deloitte was one of the first ability. She is also examining the feasibility of implementing
audit companies in Singapore to use the AS2 audit system,’ robotic process automation (RPA) into her workflow.
Sim recalls. ‘With the system, you just had to upload the Recognising the impact that technology will have on her
client’s trial balance, and the schedules and lead sheet would accounts team, Sim has made it a priority to expose them to
be generated automatically. We were able to do things new concepts, frequently sending them to relevant conferences
quicker and more accurately, and not spend a lot of time tying and training courses; she is also continuing to keep herself up
up numbers.’ to date by attending workshops in areas such as data analytics.
At the same time, Sim’s father was an important role model ‘I am introducing my team to technology and showing
in how to be innovative. ‘If he needed something, he would them how it has the potential to disrupt the industry before
14 Accounting and Business February/March 2020
SG_INTER_Sim_Owndays.indd 14 21/01/2020 12:08we actually start on projects such as RPA,’
she says. ‘I need to give them mental
i Basics overtime. If my staff work overtime, they’ll
be tired the next day. This will snowball
preparation so that they can start to and, in the end, they will have less work-
see how these changes can be good Owndays is a leading life balance, become dissatisfied and it
and beneficial, and how they should be eyewear brand, which was will ultimately result in more mistakes
futureproofing themselves.’ established in Japan in being made.’
As part of the process, Sim has recruited 2002. By 2008 the company Sim has also become more involved
an IT specialist to help the accounts team was struggling and was with ACCA since becoming a full member
automate more processes as well as plan acquired that year by last year. ‘Even though I qualified with
the IT roadmap for the future. 30-year-old Shuji Tanaka, ACCA many years ago, I never took the
As the demands and challenges of its current president and step to become a full member until now,’
her career grow, Sim continues to be an CEO. The brand’s retail she admits.
advocate for work-life balance, actively footprint has grown to more ‘My first year has been a whirlwind. I’ve
supporting working women with children. than 300 stores globally, of attended many workshops and conferences,
‘One of the advantages of Owndays is which 29 are in Singapore; and the team at ACCA has been very
that we have flexible working times: we can in 2019 Owndays opened kind, inviting me to be part of several
start any time between 7am and 10am,’ she its first shop in India. It roundtables already. Through ACCA,
explains. ‘I start at seven and I knock off also operates Owndays I’ve certainly been able to build up my
on time at 4pm, which means that I reach Eye Camp, a project network and get to know a lot more people
home about the same time as my kids. aimed at providing aid in in the industry.’ AB
‘This is the culture that I want to set developing countries.
in my department: that there will be no Rufus Tan, journalist
February/March 2020 Accounting and Business 15
SG_INTER_Sim_Owndays.indd 15 20/01/2020 12:52Dance to a new rhythm
As organisations rethink their training programmes for developing talent, Chris Davis
finds out how pivoting and swivelling are key to learning the skills of tomorrow
There is little doubt that each industrial schedules to be tailored to their
revolution, including the current aspirations, experiences and interests.
Fourth one, creates new jobs requiring During an HR conference that
a different approach to training, took place in Hong Kong late last
development and skills learning. year, a panel of young practitioners
As robots, automation and artificial suggested that the HR function should
intelligence (AI) perform an ever tear up the traditional training manuals
expanding range of tasks in a fast- and take a more free-range approach.
changing world, the future focus needs Employers were advised to re-imagine
to be on skills, their transferability and how skills development should be done,
their role in career mobility. casting aside the structured, process-
According to a recent Strategies oriented skills learning delivered
for building and maintaining a skilled inside a classroom. Instead, learning
workforce report from IBM, an estimated should be on demand, mobile-first
120 million workers worldwide will and delivered in easy-to-digest pieces,
need to be retrained as a result of AI especially when directed towards
and automation within the next three millennials and Generation Z, who have
years. While talk of digital disruption, a different relationship, expectation
AI and other forms of automation is and approach to learning than
considered by some to prophesy the previous generations.
demise of current skills, according to To unleash personal growth, the
IBM, executives recognise the skills panellists suggested that employees
gap but most of their organisations are take a lesson from Latin dance and
not tackling the issue to ensure that learn to pivot and swivel – in other
people remain their greatest asset. So, words, embracing rotation programmes,
given the wave of new technologies transferring across business units and
disrupting and transforming current acting in other roles and assignments
job skills requirements, how does with client or partner organisations.
an organisation put together a While exposure to pivoting and
training programme? swivelling can apparently unlock
Some experts suggest that the positive outcomes, such as acquiring
answer lies in flexible training Learning should entirely new technical skills, it is also a
programmes where employees – with be on demand, springboard to developing all-important
a little help from their employers – behavioural competencies that include
mobile-first and
direct their own learning outcomes. problem-solving, critical thinking and
In the same way that personalisation
in easy-to-digest effective communication – essential
in the consumer world has become pieces, especially skills for innovating and succeeding in
part of everyday life, employees, when directed at this constantly evolving, technology-
especially younger ones, are millennials and driven landscape. AB
demanding the same experience in
Generation Z
their workplace. They expect their Chris Davis is a freelance journalist who
learning development and training writes for business titles in Asia.
16 Accounting and Business February/March 2020
AP_COM_CD.indd 16 17/01/2020 13:52Ready for combat
With the National Anti-Financial Crime Centre Act coming into force in Malaysia, now
the challenge of dealing with financial crime head on begins in earnest, says Errol Oh
Never underestimate the power of a Integrity, a Washington, DC-based
clever catchphrase. In psychiatry, for thinktank estimated illicit flows of money
example, it is common to advise people into and out of 148 developing nations
to ‘name it to tame it’, a reference to between 2006 and 2015 as a result of
the idea that when we clearly identify their trade in goods with advanced
the emotions that trouble us, we can economies. The January 2019 report
better deal with them. placed Malaysia in the top 30 in terms of
This catchphrase applies in other dollar value of illicit outflows.
spheres, too. After all, the first step The NAFCC Act provides the centre
towards tackling any problem is to with three functions: coordinating
properly label it. It is therefore helpful enforcement agencies in integrated
that Malaysia at last has a statutory operations relating to financial crime
definition for financial crime, thanks and advising these agencies on related
to the National Anti-Financial Crime matters; setting up and maintaining
Centre (NAFCC) Act, which came into a centralised data system on financial
force on 2 January. crime; and carrying out activities for the
According to the act, financial crime prevention of financial crime.
means offences under the Second Before this, the government had
Schedule to the Anti-Money Laundering, assembled multi-agency teams to
Anti-Terrorism Financing and Proceeds address revenue leakages and the
of Unlawful Activities Act. Some of the outflow of illicit funds. These had some
wrongdoings (such as drug trafficking, success but the extent of cooperation
causing explosions, import and export and collaboration has to increase.
of endangered species, and kidnapping) The scale and complexity of financial
do not fit most people’s notion of crime is ever growing and the offences
financial crime, but their inclusion makes often involve multiple laws, agencies
sense once we understand the origins of and even jurisdictions. The enforcement
the NAFCC and its role. bodies cannot afford to work in silos. In
The trick here is to look at things fact, to escape the long arm of the law,
from the government’s perspective. In the bad guys count on such blind spots
the eyes of those running the country, and lack of coordination.
serious and organised crime (including The most effective way to go after
terrorism) has a weighty financial the criminals is to share information
dimension because it threatens financial and work together. And if we need a
To escape the long
stability and the national economy. The case study to drive home this point, the
government loses revenue when there
arm of the law, the 1MDB scandal is an obvious choice.
is outflow of illicit funds, tax evasion and bad guys count Now that the naming has been done
smuggling. Also, where there is serious on blind spots and the law is in place, let the taming of
crime, corruption and money-laundering and lack of financial crime begin in earnest. AB
are usually lurking nearby.
coordination
In this aspect, Malaysia is in an Errol Oh is executive content officer of
unenviable position. Global Financial The Star.
February/March 2020 Accounting and Business 17
AP_COM_EO.indd 17 17/01/2020 13:58Shock absorber
As oil prices spike on the back of tensions in the Middle East, Manu Bhaskaran
considers the implications for Asian economies if the situation escalates
Oil prices surged recently as markets and the disruptions caused by new
feared a clash between the US and technologies. An oil-price shock would
Iran. While they eventually settled deepen this nervousness and cause
lower as a serious confrontation capital spending – a major determinant
looked less likely, risks have not gone of Asian exports – to dive.
away and a prolonged spike in oil Second, higher oil prices could cause
prices is possible. In such a scenario, consumer prices to accelerate, forcing
Asian economies are likely to be Asian central banks to tighten monetary
substantially hurt. policy just as weaker global growth
The Middle East remains in ferment, was compromising their own economic
with Libya, Syria, Iraq and Yemen in the expansions. Monetary authorities in Asia
throes of worsening violence. The start have generally been cutting policy rates,
of this year has seen tensions rise in Iran so anything that limits such support
while last year’s missile attacks on Saudi would be unwelcome.
Arabian oil fields led to the temporary Third, higher oil prices would also
shutdown of half of the country’s oil cause the external deficits of countries
production. There is a growing risk of such as India and Indonesia to worsen.
disruption in the Strait of Hormuz; since These countries depend on volatile
more than 30% of the world’s traded portfolio capital flows to finance
oil passes through that narrow body of their deficits – but these could be
water, any dislocation there would cause compromised if investors become much
oil prices to go up dramatically. more risk-averse and withdraw capital
Certainly, the growth of oil supplies, from emerging markets.
especially shale oil in the US, has helped Finally, countries such as India,
to cap oil price surges in recent years. Indonesia and Malaysia have fuel
However, supplies are unlikely to grow subsidies in place, and higher oil prices
as rapidly in 2020 as producers are will increase the fiscal burden. Since
finding it increasingly difficult to obtain these countries have rules on maximum
the credit they need to expand. Hence size of budget deficits, a weaker fiscal
a political shock is now more likely to position could force them to cut back in
cause oil prices to adjust up sharply. other areas.
For Asian economies, a sharp increase Economies with the policy toolkit to
in oil prices could be damaging, respond effectively, such as mainland
undermining business confidence China and Singapore, should be able
and creating higher costs of energy, to absorb such shocks. However, India,
transport and related inputs. Income
An oil-price shock Indonesia and the Philippines could be
would also be diverted to a narrow would deepen more at risk given their dependence
set of oil producers with a lower nervousness and on volatile capital flows to finance their
propensity to spend. Businesses are cause capital external deficits. AB
already anxious because of uncertainties
spending to dive
over the US-China trade war, the Manu Bhaskaran is CEO at Centennial
fraught prospects for big economies Asia Advisors.
18 Accounting and Business February/March 2020
AP_COM_MB.indd 18 17/01/2020 14:16Lessons from Rwanda
The venue for the second Africa Members Convention epitomises how reconstruction,
aspiration and civic engagement can pay off, says ACCA president Jenny Gu FCCA
This article is a story of three numbers:
33, 99 and 840. It features one
continent, Africa, and one astonishing
nation, Rwanda, where I spent an
inspiring few days at the end of 2019.
The 99 came to my mind while I was
in the country for our second Africa
Members Convention, as that was the
number of days the mass slaughter of
Tutsi went on for in Rwanda in 1994. For
the people who lived through it, it must
have seemed like the end of the world.
But roll on a generation, and although
the memories remain, a new Rwanda
has emerged as a beacon of hope for
Africa. That’s why the now peaceful
capital, Kigali, was the perfect venue for
840 ACCA members to gather from 33
nations across Africa – from South Africa
in the south, Ethiopia in the east, Sierra
Leone in the west, Sudan in the north,
and all points in between.
It was an awe-inspiring display that
showed the determination of our
people to develop the next generation
of finance professionals and play a full
part in the rise of Africa as an economic stories of people who had come to in accountancy, or by simply sharing a
power. It was so uplifting to hear the share their dreams and show their faith social media post. Not only does all this
in our ability to fill a leading role in activity help to raise your professional
making Africa a better place, and the body’s profile, it also helps to build your
world a better planet. own in the process.
It was uplifting to I took one clear message away There are so many ways we can serve,
from the event: we can all do more and it’s important that we do what
hear the stories of
to raise our voices as advocates for we can to protect the public interest,
people showing ACCA – whether that means going to defend ethical integrity and promote
their faith in a conference, contributing in public ACCA as a force for good in whatever
ACCA’s ability to forums, building local networks, way we can. It is that kind of civic
fill a leading role speaking on ACCA’s behalf at devotion that can turn a nation away
community events, recommending an from the dark and towards the light.
in making Africa
AB
AB article or professional insights report,
a better place holding informal conversations with Jenny Gu FCCA is chief executive officer
friends or family who express an interest at Richemont China.
February/March 2020 Accounting and Business 19
GL_COM_pres.indd 19 17/01/2020 14:09Urban smarts
As the world’s population grows and urbanises, the sustainability challenges for cities
are mounting. Tech-based solutions are emerging, but reality lags behind the hype
C
armaker Toyota chose the first week of the new efficient and livable,’ says Richard Ezike, senior policy associate
decade to unveil its plan to build a smart city in at the Urban Institute. ‘It’s less common to read about these
Japan. Its Woven City project will span 700,000 pilots being scaled at a widespread level across cities.’ The
square metres, ultimately house 2,000 people, and test application of tech to urban spaces is going to require far
all sorts of pioneering technologies – from robotics and more investment over the coming decade, as well as steps to
intelligent devices in homes to driverless vehicles. allay cybersecurity and privacy concerns.
Impressive as the project sounds, Toyota’s ‘living laboratory’ The initial impetus for applying technology to urban spaces
embodies one of the main criticisms of the smart city came from large tech companies around the time of the 2008
movement. ‘Every week you can read about fascinating and financial crisis. The timing was no coincidence, says Boyd
innovative ways cities are using technology to become more Cohen, former dean of research at EADA Business School in
20 Accounting and Business February/March 2020
GL_I_SmartCities.indd 20 20/01/2020 10:01Spain and chief executive of smart mobility startup IoMob. can save lives, prevent crime and reduce the disease burden,’
‘Big tech vendors like IBM and Cisco came up with the concept the McKinsey team concluded. ‘They can save time, reduce
at a time when companies were cutting back on investment waste and even help boost social connectedness. When cities
spending due to the recession and financial turmoil,’ he function more efficiently, they also become more productive
explains. ‘The pitch to mayors was that technology could boost places to do business.’
efficiency, save money and make their cities better places to Harnessing such benefits is becoming more important as city
live.’ The idea took off and enthusiasm spread to progressive populations swell. At present 55% of the world’s population
city officials and more recently to citizens themselves. lives in urban areas. This is expected to rise to 68% by 2050 –
The IMD 2019 Smart City Index ranks the world’s 10 smartest an extra 2.5 billion people. ‘That magnifies the challenges of
cities as Singapore, Zurich, Oslo, Geneva, Copenhagen, transport, air quality, healthcare and other issues,’ says Hisham
Auckland, Taipei City, Helsinki, Bilbao and Dusseldorf. The Elkadi, dean of architecture and the built environment at the
index focuses on citizens’ perception of the scope and impact University of Salford in the UK, who has been closely involved
of efforts to make their cities smart, balancing ‘economic and in developing smart city projects. ‘The ecological challenges
technological aspects’ with ‘humane dimensions’. are particularly pressing and mean that successful cities need
The potential benefits of implementing smart technologies to be flexible in adapting.’
are wide ranging, and are summarised in six main areas in
Cohen’s ‘smart city wheel’ framework: Who foots the bill?
1. Smart mobility can encompass technologies that make The most obvious challenge is funding. ‘Implementing smart
travel more efficient, often by using city data to integrate city technologies can be very costly,’ says the Urban Institute’s
ride-sharing apps with public transport or monitoring Ezike. ‘It can be a challenge for cities to get the resources to
traffic flows to reduce wait-times for motorists at red lights. roll out big tech projects.’
2. Smart government can harness technology to ensure One financial solution is to shift the implementation cost
more public services are accessible online and municipal to the technology providers. For example, providers of smart
information is available to businesses that can make cities building systems – which save energy and money by controlling
better places to live. The technology can also feed back into the heating, lighting and ventilation – could bear the expense
better public policies, by providing officials with more data. of installing their technology in return for a percentage of the
3. Smart environmental initiatives could improve the energy resulting cost savings. ‘That way, the city doesn’t face a major
efficiency of buildings and waste disposal. upfront cost for technology and starts making cost savings right
4. Smart people technology can improve education away,’ says Cohen. ‘Meanwhile the energy services companies
opportunities and create a more inclusive society. get a reliable stream of revenue for years ahead.’
5. Smart living focuses on improvements to public health and A similar model has been tried in some cities with smart
safety. Wearable devices, for example, could spot health parking meters, which let drivers book city parking spots
problems earlier to ensure better treatment at lower cost. in advance, with the price varying according to demand. In
6. Smart economy aims to improve productivity and increase exchange for free installation, city governments can offer the
job opportunities. providers a share of the revenue.
In each of these areas, the gains Beyond funding, smart city
to citizens and taxpayers can be projects raise three main concerns:
significant. A recent report by cybersecurity, inequality and privacy.
McKinsey Global Institute found ‘Smart tools can First, as cities become more reliant
that they could improve some save time and on smart devices, the potential of
city quality-of-life indicators by reduce waste. When hackers to cause chaos and even
10%–30%. Most notably McKinsey loss of life also increases. ‘Clearly,
cities function more
calculated that smart tools could cybersecurity must be a priority at
accelerate emergency response
efficiently, they the inception of all projects,’ says
times by 20%–35%, shave the also become more Ezike. ‘Cities can’t risk having hackers
average commute by 15%–20%, productive places to snarl city traffic or harness self-driving
lower the disease burden by do business’ vehicles as weapons.’
8%–15%, and cut greenhouse gas Second, cities will need to strike
emissions by 10%–15%. ‘These tools a balance between collecting
February/March 2020 Accounting and Business 21
GL_I_SmartCities.indd 21 20/01/2020 10:01Top-down and bottom-up
Smart cities use data and internet technologies to solve
the mounting economic, social and environmental issues
facing cities. The sheer range of technologies that can be
incorporated – everything from expensive hardware (control
centres, smart grids, autonomous vehicles) to much cheaper
mobile apps, online platforms and environmental sensors –
makes for a broad spectrum of smart city definitions.
Top-down definitions focus on integrating data from
internet-connected systems into a central operations centre,
while bottom-up definitions focus on social media, apps and
open data that let citizens solve issues that matter to them.
The archetypal smart city application is the autonomous
vehicle, which communicates with parking meters and charging
docks to direct the driver to the nearest available spot.
Among the many other applications are utility metering, traffic
management, preventive maintenance and green buildings.
information for the public benefit and infringing the privacy
of citizens. ‘Big Brother concerns have been raised, especially
where cities are deploying cameras, artificial intelligence and
predictive policing to avert crime,’ says Cohen. It’s a worry
that dates back to early smart city projects, such as Rio de
Janeiro’s IBM-developed operations centre, which can monitor
everything from weather, traffic, waste collection, electricity,
water and gas to disease outbreaks and emergency situations.
The use of facial recognition technology has also provoked
criticism for its role in the surveillance of civil populations.
Third, Urban Institute scholars and others have expressed
concern that the benefits of smart cities could be unequally
distributed. Citizens with low incomes may struggle to afford
the devices and data coverage that would enable them to take
advantage of smart city services. The Argentine town of Tigre,
just north of Buenos Aires, sought to address this issue by
subsidising smartphones and giving them away free to citizens
who couldn’t otherwise afford them.
Such challenges highlight the need for technology to be
intelligently and prudently deployed, says Cohen. ‘If these
drawbacks can be managed, smart city initiatives have the
potential to significantly improve the quality of life in cities
around the world,’ he argues. ‘Being a smart city, for me,
involves a mindset of constant improvement, a journey
that never ends. Cities can’t just rest on their previous
achievements but need to keep evolving. They need to be
constantly innovating.’ AB
Four of the smartest cities on the planet: (from top)
Singapore, Copenhagen, Zurich and Taipei City. Dijana Suljovic, journalist
22 Accounting and Business February/March 2020
GL_I_SmartCities.indd 22 21/01/2020 17:06Come on up
Rachel Stockey explains how King’s College London is helping women to succeed as
entrepreneurs by offering them the crucial support of networks and mentors
I
t is widely acknowledged that there is still a long way Devonshire says the Women Entrepreneurs
to go in realising equality of opportunity and pay for programme aims to give women the skills, advice
men and women, particularly for entrepreneurs. and networks that will make their investment
According to the Rose review of female opportunities more equal to the outcomes
entrepreneurship, commissioned by the UK of those from male-led ventures. She adds:
government, women typically have a higher risk ‘Our passion stems from the inspirational and
awareness than men and are more cautious about creative women entrepreneurs of today and
starting or scaling a business – less willing to risk their tomorrow and, until we achieve gender parity,
livelihood on an uncertain venture. They are also less likely it will remain our mission. We aim to become
to believe they have entrepreneurial skills: 39% of females the first university accelerator to reach gender
in the UK say they are confident in their capabilities to parity, sustainably, getting there each year by
start a business, compared with 55% of men. building a reputation, a pipeline, a brand,
There are many social, economic and personal factors championing alumni, and more.’ AB
that account for these statistics, including social gender
roles and biases to access to finance (only 1% of all Rachel Stockey is head of entrepreneurial skills
venture funding in the UK goes to businesses founded by at the UK university King’s College London.
all-female teams). The Rose review found that women are
less likely than men to know other entrepreneurs or have
access to sponsors, mentors or support networks. While 31% King’s College programmes
of the women surveyed stressed the importance of networking
as a business skill (compared with 21% of men), only 30%
* Women Entrepreneurs. This is a space for passionate
women to come together and discuss their emotional
already knew an entrepreneur (versus 38% of men). Traditional journeys into entrepreneurship as well as the practical
networking methods are also a challenge, with a lack of steps for getting their idea off the ground. The
professional networks seen as a particularly imposing barrier initiative, supported by Santander Universities, offers
for newer female entrepreneurs. a ‘retreat’ for 16 to 24-year-olds who attend school or
university or are employed. It aims to give women insight
Going through the gate about idea validation and pitching so they can make a
In response, King’s College London’s Entrepreneurship Institute solid application to the King’s20 Accelerator programme.
has started a programme to increase women’s exposure to It arranges discussion events with industry leaders,
entrepreneurial skills, knowledge sharing and community workshops, networking opportunities and mentoring,
building (see panel). The aim is to create a space where women among other activities.
can try their hand at entrepreneurship, learn the skills they
* King’s20 Accelerator. This year-long programme supports
need, and know there is a place for them and their ideas. the 20 brightest venturers from King’s College – students,
Institute director Julie Devonshire FCCA says ‘imposter staff and alumni – to reach their potential. This year’s
syndrome’ can be a problem. ‘Women sometimes judge their cohort includes Aysha Ingar, whose Muslimah app makes it
ventures, ideas and endeavours more harshly than men do. As easier for British Muslim women to fit life around their faith
women come to a “gate” on their entrepreneurial journeys, by providing a female-friendly prayer room locator, Islamic
they sometimes don’t step through as readily as some of period tracker and modest-fashion directories. Since the
their male counterparts. They can miss out on support from King’s20 Accelerator was launched in 2016, its ventures
mentors, accelerator, networks and investors when actually have raised more than £14m in investment and £11m in
their ideas are as valid as others and are destined to thrive. revenue, and employ over 250 people.
Our job is to make sure all valid ideas pass through each gate.’
February/March 2020 Accounting and Business 23
GL_I_femaleentrepreneurs.indd 23 20/01/2020 13:00You can also read
