Featured in the Media – Page 21 – Asia School of Business

Any mention of a Master of Business Administration (MBA) degree brings up two things: the return on investment (ROI) and the price tag to achieve it. These inevitably lead to the question: “Is an MBA worth it?”

For Michelle George Tan, “worth it” doesn’t even sum up what her MBA has given her.

Born and bred in Manila, Philippines, she grew up witnessing the benefits an MBA could bring: her father built a family business out of his MBA thesis – one that’s still running today.

This became a major source of inspiration. George knew that an MBA was in her future, but she didn’t know how valuable it would be.

The journey to earning an MBA

George’s MBA journey started not with an application to a business school, but by joining a competition.

She took part in a Malaysian bank’s “GO Ahead Challenge” which gathered 60 students from around the world in Kuala Lumpur to participate in business case challenges that even brought them to the shores of neighbouring Indonesia.

At that time, George was pursuing a bachelor’s degree in business administration at the University of the Philippines.

Thanks to the challenge, George was offered a graduate position in Maybank Philippines. Soon after, she was invited to a training opportunity in Kuala Lumpur.

“That was the first time I went out of the country for anything work-related, and I went thinking it was only going to be six months,” says George.

She ended up winning a position in the Malaysian branch, where she would trade in the financial markets for nearly four years.

“But I didn’t see myself doing that for too long; I felt like something was missing,” says George. “Maybe it was the fulfilment aspect – I wanted to do something I felt was more meaningful, and an MBA was one pathway I found that could give me the answer.”

Having been in Kuala Lumpur for so long, George knew she wanted to pursue an MBA here. It was close to home, and there were plenty of opportunities to explore that wouldn’t break the bank.

An MBA often comes with a hefty price tag – the most prestigious MBAs, like one from Harvard Business School, cost US$149,820 for the 2022-23 academic year.

George didn’t have to worry about that though – she got into the Asia School of Business (ASB) with an 80% scholarship.

The school’s one-year, full-time MBA programme features a core curriculum taught by ASB and MIT Sloan faculty, complemented by Action Learning projects with organisations across Asia and beyond.

Students also spend four weeks of immersion in MIT Sloan’s Cambridge, Massachusetts campus.

“That made it really worth it,” says George.

“You get an MIT experience and knowledge by having their professors fly in, but you don’t pay for the same thing in MIT. During the immersion weeks, we would even get classes by highly sought-after MIT professors where even MIT students can’t sign up for those classes.”

Is an MBA worth it? That depends on the jobs you can get

Most of what makes an MBA intense are the many varied business case studies and experiential learning opportunities.

In George’s case, ASB offered Action Learning experiences that took her around the region.

Throughout her programme, she’s worked in a Malaysian financial technology start-up, an Indonesian philanthropic organisation, a Singaporean exchange, and a Malaysian venture capital.

And it’s not just experiences, knowledge, and a network of connections that George is walking away with too – she’s set for a position with her last Action Learning experience company once she’s completed her MBA.

“The programme actually helped me get something concrete out of it, partly because of what I’ve gone through,” says George.

Each of her Action Learning experiences has played a crucial role in equipping her with the skills necessary to take on her new role.

From learning to navigate the start-up scene and finance models to being exposed to sustainability funds, George can pinpoint exactly where she picked up the skills that landed her the position.

“The stars sort of aligned because of those Action Learning projects,” says George. “I was able to excel and ended up getting a job offer. So my MBA experience is really worth it.”

And that’s not counting George’s post-degree salary jump.

According to the Graduate Management Admission Council (GMAC) Corporate Recruiters Survey 2021, the average starting salary for MBA holders was between 22% and 40% higher than for bachelor’s degree holders.

North American full-time MBA students received a 50% median compensation increase from pre-MBA to post-graduation: from US$80,000 to US$120,000.

Likewise, George is expecting the same jump too, but that’s not all she’s taking away from her MBA.

More than just professional development

At the start of her MBA journey, she was a competitive and “kiasu” person. “Kiasu” is a Hokkien Chinese word that translates to an extreme fear of losing.

“I felt like to progress in my career. I need to be the best. I need to be right,” says George.

Unlike other bachelor’s or master’s programmes, MBAs are primarily designed to emphasise group work and team effort.

As a programme catered towards those seeking to advance their careers in business and management, especially those hoping for leadership roles in various settings, the ability to lead and be part of a team is key throughout all MBA curricula.

“I remember that in my first year, I had a mindset of, ‘Oh my god, my teammates are slower than I wanted,” says George. “I pulled out my ‘kiasuness’, pushed everyone, and we achieved good results. But I felt distanced from my team; it did not feel right.”

“It is what made me realise that relationships are more important than being right and being fast. That’s actually the best thing I learned.”

It’s a bond that extends outside of formal learning environments too.

As much as many view the relationships formed during an MBA as transactional, those who’ve experienced it find genuine, lasting friendships.

For George, being able to stay in ASB’s on-campus accommodation means having more opportunities to be with the friends she’s made during the programme.

Located in the heart of Kuala Lumpur and within the national bank’s learning hub, ASB’s 65,000-square-metre facility makes it one of the largest academic facilities in the world.

Like George, students have the option to stay in a multi-block facility that houses up to 350 visiting and full-time students for easy access to the campus and the community.

“Staying here is part of the experience because you have all these water cooler conversations,” says George. From there, it’s turned into hangouts over the weekends and trips to India and Indonesia, all hosted by the friends in the programme.

A path of personal growth

George’s MBA journey may be coming to a close, but the lessons she’s gained are more than she’d expected when she first joined the programme.

Before the MBA, George didn’t know what she was looking for.

“When I was younger, it was just about finding a glamorous job,” she says.

“But being here and seeing my classmates who are into social impact and having done those Action Learning projects made me realise that I want to do something that gives me the same meaning and fulfilment from those experiences.”

Outside of all the perks for her career, George reflects that she’s grown and transformed as a person too.

“I feel more mature than when I started my MBA and I connect better with people now,” says George. “I have the confidence that I can survive anywhere you put me.”

“I know having a positive career outlook is important, but I feel like the more important thing is developing yourself first as a person because wherever you end up putting yourself, you will survive because you have that confidence. That, to me, is important.”

So, is an MBA worth it?

Looking at every aspect of her professional and personal journey, George’s answer is “yes.”

Originally published by Study International.

SOVEREIGN wealth funds (SWFs) had a mixed financial year in 2023 (FY23) which saw the investment climate strained by geopolitical tensions, elevated inflation and higher interest rates, but also major enquiry benchmarks at fresh highs.

Read the full article HERE.
Originally published by The Star.

Why do so few Malaysians can afford retirement? Joseph Cherian, Practice Professor of Finance at the Asia School of Business, delves into pension challenges and proposes fairer, sustainable alternatives to ensure inclusive coverage in their later years.

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Originally published by Astro AWANI.

Can anyone be an entrepreneur? What defines an entrepreneurial mindset? All this and more as Enterprise explores ‘The Psychology of Entrepreneurship’ with Professor Michael Frese, Professor of Management at Asia School of Business. With a particular focus on his paper titled ‘The Psychology of Entrepreneurship: Action and Process’, we will dive into the underlying psychological factors that drive entrepreneurial success and the practical implications for aspiring entrepreneurs.

Other than that, we will also look into the nuances of the Action Theory Process Model of Entrepreneurship, dissecting how it offers a deeper understanding of entrepreneurial actions and outcomes. Professor Frese recently won the renown Global Award for Entrepreneurship Research from the Swedish Entrepreneurship Forum. Established in 1996, the award celebrates outstanding research that significantly influences the field, recognizing Professor Frese’s work and substantial contributions to psychology in entrepreneurship theory, small business development, and entrepreneurship training.

Listen to the full interview below.

Originally published by BFM.

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Originally published by RTM.

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Originally published by Niaga Spotlight.

From economic uncertainty to the rapid rise of artificial intelligence, businesses face a variety of challenges today. But perhaps the most fundamental is the need to transition to a green economy.

Increasing regulation and growing consumer consciousness are just some of the factors ensuring that, more than ever, businesses must assume responsibility for their impact on the planet and society.

According to a recent Capgemini report, the proportion of top executives who feel there is a strong business case for sustainability tripled between 2022 and 2023. The same report found that the majority of executives planned to increase investment in sustainability over the next 18 months.

As companies endeavor to reduce their negative impact, supply chain—the mechanism by which organizations get their products into consumers’ hands—becomes increasingly fundamental to this transition.

What is a sustainable supply chain?

A sustainable supply chain refers to a process whereby every part of a product’s life cycle is accounted for: from procurement of raw materials to the point where the product must be repaired, reused, or recycled.

Also referred to as ‘closed loop supply chains’, they contribute to the establishment of a circular economy—a system of consumption based on products and materials that can be reused for as long as possible.

“Basically, you’re not just thinking about how a product will function for the consumer or a company, but also what happens to the product at the end of its life,” explains Dr Shardul Phadnis, associate professor of Operations and Supply Chain Management at the Asia School of Business (ASB).

Why are sustainable supply chains important?

Historically, there have been companies focused on operating within a sustainable business model which have taken steps to implement closed loop supply chains.

Outdoor clothing brand Patagonia, for example, began measuring and publishing the environmental impact of its clothing products back in the 1990s. The company also has a reverse distribution system allowing customers to return their products at end of life. However, companies like Patagonia have typically been the exception, rather than the rule.

“Traditionally, companies have not thought about it,” explains Dr Phadnis (pictured). “Instead it’s: ‘Okay, let’s make the product that consumers want, that is most appealing to them, and is most cost-efficient for us to produce’.”

However, heightened awareness of sustainability issues among businesses and consumers alike is bringing about change—even at an industry level.

Palm oil, a resource that from the 1990s onwards became integral in the production of a whole host of products ranging from lipstick to baby soap, developed a controversial image during the 2000s for industry practices that were detrimental to the environment, particularly deforestation.

However, since the industry came under scrutiny, palm oil firms have made efforts to change their ways. While the industry remains far from perfect, over the last decade palm oil deforestation has largely declined year-on-year, hitting record lows in 2021.

Another factor that’s helping drive a change in practices is the increasing move towards ESG (environmental, social, governance) regulation. Across the globe, there have been more than 1,200 new ESG regulations introduced since 2011.

Major initiatives—such as The EU Taxonomy, the Corporate Sustainability Reporting Directive (CSRD), and the UK’s Sustainability Disclosure Requirements (SDRs)—are forcing companies to provide increased transparency across all areas ranging from financial resources to hiring practices. Companies must also comply with regulations over their use of language in marketing material.

Compliance within this ever-increasing regulatory landscape means that making supply chains more sustainable—closing the loop—is therefore a key focus within business, particularly among larger companies, which face more public scrutiny.

How can businesses make their supply chains more sustainable?

Developing a sustainable supply chain is a large focus within teaching of supply chain management on the ASB MBA program. For Dr Asad Ata (pictured), associate professor of Operations and Supply Chain Management at ASB, it starts with tracing the very beginnings of a product.

“Traceability is the core factor to even begin having a sustainable supply chain,” he explains.

He recommends those in charge of implementing supply chain changes start by focusing on the source materials—asking who the producers are and what practices they use. Understanding how a product’s life cycle begins can provide the framework to then map out the entire chain. Depending on the length of the chain, this mapping process can be laborious requiring significant time and multiple team members.

Once complete, the next stage is to enact positive changes within the various stages of the product life cycle.

“This almost always requires you to change the incentives in the system,” explains Dr Phadnis. “You have to change the incentive to change the behaviour.”

For example, this could be through relaxing the specifications on materials to reduce waste, or providing longer time windows for suppliers to maximize efficiency. At the early stages of the process, educating stakeholders on sustainability may also be necessary.

“Often some of these supply chains go back to mother nature. Farmers, fishermen, people who work in mines, some of these people are extremely poor and for them sustainability is not at the top of the agenda,” Dr Phadnis adds.

Encouraging all stakeholders within the supply chain to take responsibility, and implementing a process allowing this to be traced and held accountable, is fundamental in successfully developing a sustainable supply chain.

“You’d rather not take a reactive approach but take a responsible approach,” says Dr Ata. “You go back and do your due diligence all the way up, and through the process you have a supply chain where everybody understands that sustainability is their responsibility.”

How can business schools help the transition to a circular economy?

With sustainability in supply chain proving fundamental in achieving a circular economy, business leaders of today must understand how to close the loop. For this reason, the subject is taught within core and elective modules on the ASB MBA program.

However, theory is not necessarily enough to allow graduates to successfully navigate the problems that an organization may face when trying to implement supply chain changes, explains Dr Phadnis.

“For us at Asia School of Business, this matters a lot. We focus on these skills and not only do we teach them, we also talk about action learning. Our students actually work with companies and get to experience these issues first-hand. So when they go into the workplace, they are trained on the job.”

When working with stakeholders and attempting to implement changes, business school graduates benefit from the soft skills they have developed such as communication and negotiation, as well as the responsible mindset they develop throughout the experience.

This mindset shift places graduates in a strong position to not only lead but also bring about positive change once they enter the workplace, feels Dr Ata.

“Good education will inculcate within you a sense of responsibility,” he says.

Originally published by BusinessBecause.

The world is getting older. With declining fertility rates, many countries in the world are faced with an ageing society and slowing population growth, and in some cases, shrinking demographics.

This trend, spurred by various factors such as lifestyle choices and education levels, is particularly prevalent in advanced as well as major economies in Asia.

Read the full article HERE.
Originally published by The Star Malaysia.

On this episode of Biztech’s ESG Conversations show, Dive into the insights from AsiaSchool of Business experts – Dr. Melati Nungsari Deputy Dean for Research, Asia School of Business , International Faculty Fellow at MIT and Dr. Pieter Stek Postdoctoral Scholar at Asia School of Business as they discuss the transformative power of ESG practices in ASEAN and Korea.

Key Takeaways :

Diverse Regional Focus: ASEAN countries exhibit unique ESG priorities, spanning from data collection to green finance, reflecting the region’s diverse landscape.
Global Influences: External factors, such as demand from global supply chains and regulations set by major economies like the EU and US, heavily shape ESG adoption in ASEAN.
Sectoral Opportunities: Infrastructure and renewable energy sectors emerge as promising areas for ESG investment, with innovative financing models making projects more financially viable.
SME Challenges: Small and medium-sized enterprises (SMEs) face hurdles in ESG compliance due to limited information, unclear incentives, and financing constraints, underscoring the need for streamlined support.
Regulatory Role: Governments wield significant influence in advancing ESG agendas through regulations, incentives, and green procurement strategies, ensuring businesses align with sustainability objectives.

Watch here.
Originally published by Biztech Asia.

With environment, social and governance (ESG) issues emerging as important factors in today’s global economy and will determine trade access into developed nations and blocs, where do Asean states stand in this development?

As Asean region and ESG experts from the Asia School of Business (ASB), Dr Pieter E. Stek and Dr Melati Nungsari have both co-authored the ESG Practices in Asean and Korea: Pathways Towards Sustainability guidebook, which provides Asean countries and stakeholders relevant to the ESG landscape with a comprehensive overview of the policies that have been effective and ineffective.

The guide also introduces the different strategies and industrial sectors that each nation is focusing on. They both offered StarESG with some insight on how ESG is being pursued across Asean countries, particularly among the small- and medium-sized enterprises (SMEs).

As the Asean region adopts more ESG practices, how would this affect inter-regional trade, as these practices involve regulations and requirements?

The main drivers of ESG practices in emerging Asean countries are global supply chains, governments, more progressive business leaders, and a young(er) demographic group that pushes for and demands more sustainable consumption.

Although there is also growing ESG awareness among Asean consumers, this is to a lesser extent than in North America and Europe, that is, it is less bottom-up. Because a lot of intra-Asean trade already takes place as a part of global supply chains, and the traceability and reporting requirements are getting increasingly stringent, there are spillovers of ESG practices into the entire Asean production system.

Many producers, who may face higher ESG requirements for sales to North American and European customers, will often use this higher benchmark when designing their processes, even when they are selling to say, India, China or elsewhere in Asean, where buyers have lower requirements.

The question of the diffusion of ESG practices is one of speed (when will sectors or firms move to a higher ESG standards), but also of inclusion, as SMEs may not be able to meet the certification, documentation and traceability requirements that are demanded by customers and supply chains.

We will see more firms embracing good ESG practices, but may also see some being excluded from them due to high compliance costs. Asean nations are also particularly neighbour- or network-focused, so we expect that there would be a trickle through networks as more countries start adapting to ESG regulations and requirements across the region.

SMEs play a huge role in the Malaysian economy and no doubt in the Asean countries as well. However, this segment is slower in adopting ESG. Is this very concerning and will that change this year?

SMEs, by definition, have limited capacity to deal with various kinds of compliance and regulation. Therefore, they need some form of external support to help them implement ESG practices, be it from consultants, industry associations, financial institutions, or the government. The type of support needed depends on the industry/supply chain that they are in, with the export-oriented sectors being most affected.

The Malaysian government appears to be paying lip service to this problem, for example by announcing the National Industry Environmental, Social and Governance framework (i-ESG) and the New Industrial Master Plan 2030 (NIMP 2030), but these provide few details.

It’s also important to note that a number of our SME respondents in the study conducted between ASB and the Asean-Korea Center were unaware of the policies and benefits that were given by the government for them in order to ramp up ESG adoption, which is a fairly large issue for communications, but one that is easily fixable.

Are reasons for the slow ESG adoption by SMEs the same around the region and can a concerted effort by the Asean countries that combine both push and pull tactics, such as enforcing regulations while availing green financing and knowledge-driven approaches, work as persuasion?

Businesses always respond to regulation and incentives, and SMEs are no exception. Consistent enforcement of regulations is also an area of concern in most Asean countries. Overall, SMEs in more developed and export-oriented Asean markets such as Singapore and Malaysia are probably more aware of ESG concerns.

For example, many manufacturing firms that have already implemented quality and food safety standards tend to view ESG standards as an additional layer of compliance which they will move towards once they sense that the market demands it.

Because Malaysia is very lightly regulated in terms of ESG, SMEs have very few incentives to proactively adopt ESG standards. Even if they wish to, they may be unable to justify the higher costs.

However, if the incentives are there, Malaysian SMEs will take advantage of them. We see this now with rooftop solar: for many SMEs it has become a no-brainer, as it lowers their energy costs and it can be easily financed by their bank, who understands the risks and financials of the technology. The government can play a role to accelerate these processes in other areas of ESG as well by providing incentives and eventually, imposing taxes.

The guidebook highlighted South Korea’s best practices in ESG, such as the K-ETS and commitments to the Renewable Energy 100 initiatives. How can other Asean countries learn from and implement similar initiatives to advance their ESG goals?

The best practices mentioned are all driven or facilitated by South Korean government policies. Asean countries can take similar steps that fit with their particular circumstances. With regards to carbon trading, South Korea will become an importer of carbon credits, while many Asean countries also have significant potential to export credits, due to their large forest cover.

Renewable energy is especially attractive to countries that are nett-energy importers. So while Asean countries should not copy South Korea, the government must step in and create the rules needed to facilitate the energy transition.

With regards to the Partnership for Carbon Accounting Financials (PCAF) in South Korea that was mentioned in the guidebook, how can other Asean financial institutions follow suit to assess and disclose greenhouse gas emissions in their loans and investments?

Several Asean central banks, including Bank Negara Malaysia, already have greenhouse gas disclosure requirements. In Malaysia this system is currently principle-based, which means that there are some general guidelines about how this disclosure must be done.

It is a process that is constantly being reviewed by the Task Force on Climate-Related Financial Disclosures (TCFD), as this is still a very new field – not just in Malaysia, but globally. PCAF is another initiative to figure out how banks can do their carbon disclosures, which has members in Korea, but also in other Asian countries like China, Mongolia and Nepal, although it originated from The Netherlands.

If PCAF emerges as the de facto global standard for carbon disclosures, it will probably be adopted by banks in Asean as well.

Dr Pieter E. Stek is a research centre postdoctoral scholar at ASB involved in managing the ESG Investment in Asean project funded by the Asean-Korea Center. He also is chief analyst in higher education ranking and rating agency ApplieHE and managing editor of Quality & Quantity: International Journal of Methodology at Springer Nature, the Netherlands.
Dr Melati Nungsari is an Economics associate professor at ASB and an MIT Sloan School of Management research affiliate.

Originally published by The Star.

Category: Featured in the Media