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In the recently-published National Energy Transition Roadmap (NETR), Malaysia has affirmed the role of natural gas in its main transition fuel towards net-zero. With this green light, the Malaysian energy sector appears to have hit the accelerator, with national electricity company Tenaga Nasional Bhd (TNB) announcing 5,700 MW of combined-cycle gas turbine upgrading until 2039 and signing a memorandum of understanding (MoU) with national petroleum company Petronas to explore carbon capture and storage (CCS). The choice of natural gas can be seen as a “safe” approach because it involves mature technologies in which Malaysia has extensive experience.

However, a pathway that increases investment in natural gas may be very costly in the long run and could lead to Malaysia missing out on the benefits that new renewable energy generation and storage technologies might bring. When calculated over their project lifetime, the investment and operating costs associated with natural gas power generation are higher than renewable energy alternatives.  Based on Malaysian projects, natural gas costs 35 sen per kWh, which is higher than solar (20-27 sen), biomass (28 sen), and biogas (25 sen).

Natural gas is also more expensive than coal and requires a carbon tax of at least RM200 per tonne of CO2-equivalent emissions to be economically competitive. However, additional carbon taxes would make natural gas even less cost-competitive in comparison to low-carbon renewable energy. If CCS is to be adopted at scale, the government’s own NETR Phase Two document suggests that carbon pricing of at least RM400 (US$85) per tonne is necessary for it to become commercially viable for natural gas-fired electricity generation. Aside from high natural gas prices and carbon taxes, Malaysia has depleting natural gas reserves, with only around 15 to 40 years of production capacity left.

The NETR recognises the erosion of energy security but does not propose a concrete strategy to mitigate this problem. The large number of countries choosing natural gas as a transition fuel suggests that Malaysia will face increasing competition to secure its energy supply. In fact, experts from Japan’s Mitsui & Co, a leading global energy trader, see demand for LNG outstripping supply. As Malaysia’s own oil and gas reserves dwindle, the fiscal capacity required to subsidise fossil fuels also diminishes.

Revenue from oil and gas exports is currently used to hedge the domestic economy against international energy price fluctuations, costing RM28 billion in 2022, or 12 per cent of gross domestic product. Without income from oil and gas exports, Malaysia cannot afford such expensive subsidies. Although the choice of natural gas may seem safe, it carries serious risks for the Malaysian economy and energy security. If natural gas and carbon emission prices rise significantly, Malaysia could end up with notably higher energy costs than its neighbors, eroding its economic competitiveness.

Underinvestment in low-carbon renewable energy could also harm the manufacturing sector, which is closely intertwined with global supply chains that demand affordable and low-carbon energy. While low-carbon energy technologies such as renewable energy, biofuels, large-scale energy storage, hydrogen, and nuclear energy also pose challenges. Malaysia’s substantial bet on natural gas seems unlikely to pay off in the medium to long term and may turn out to be an expensive detour on its path towards net-zero.

*Ganesha Pillai is a senior research associate and Dr Pieter E. Stek is a postdoctoral researcher at the Asia School of Business’ Centre of Technology, Strategy and Sustainability in Kuala Lumpur.

Originally published by New Straits Times.
Photo source: fotoBERNAMA (2023)

Guest: Dr. Joseph Cherian, Practice Professor of Finance, Asia School of Business

As an ageing nation, Malaysia is becoming old before it becomes rich. How should we revamp the national retirement savings system to provide a better umbrella for old age? We discuss this as well as global investment trends with Dr. Joseph Cherian, Practice Professor of Finance with the Asia School of Business. He is also the author of a recently published compilation of essays, “Track to the Future: Investment, Finance and Lessons for the New Economy.”

Listen to the full interview below.

Originally published by BFM.

The proposed Employees Provident Fund (EPF) Flexible Account could spell trouble for Malaysia’s pension system as it contributes to reduced savings of members over time, reflected by post-pandemic numbers, says experts. Asia School of Business practice professor of finance Joseph Cherian told Business Today that it appears that the proposed EPF Flexible Account aims to grant members more flexibility in accessing their accounts at any given time.

During the tabling of Budget 2024 on Oct 13, Prime Minister Datuk Seri Anwar Ibrahim announced that flexible EPF accounts would be introduced where contributors could access them at any time. He said the EPF accounts of contributors would also be restructured to empower the savings of retirees. Cherian said flexibility, in the form of special withdrawals allowed during the height of the pandemic, has resulted in the reduced EPF savings across the board.

“The government estimates that around RM145 billion of retirement savings was withdrawn by 8.1 million members, resulting in a 50 percent reduction in the post-pandemic median savings of members compared to its pre-pandemic level. “Indeed, median savings decreased from RM16,600 in 2019 to RM8,100 in 2022,” he said.

Center for Market Education chief executive officer Carmelo Ferlito – Photo from LinkedIn

Center for Market Education (CME) co-chief executive officer Carmelo Ferlito agrees with Cherian that a flexible account could depletes contributor’s median saving in the long run, especially if it doesn’t involved additional contributions. “I tend to agree with the judgement, in particular if the new mechanism is not based on additional contributions. People may always have some sort of emergency to use their savings,” he said.

Ferlito reiterates the proposed flexible EPF will be applied to existing contribution, Malaysia’s future savings is at risk, especially as the saving capacity is already pretty low for the country. “I would wait for the mechanism to be announced before advancing a comprehensive judgement. The priority should be the long-term financial stability of households,” he said.

Meanwhile, economist Tan Sri Ramon Navaratnam added the current EPF system is good but it could be refined and improved to be made more pragmatic. Last week, Deputy Finance Minister I Datuk Seri Ahmad Maslan said the government is finalising details on the withdrawal access to the proposed EPF Flexible Account and said there will be no withdrawal access from EPF accounts like previously. The current EPF savings scheme structure for members under the age of 55 consists of Account 1 and Account 2, with a percentage rate of 70% and 30%, respectively.

Originally published by Business Today.

THE world is changing in more ways than one and all this is putting into question the reliance of the larger community on the existing education system. Citing developments in the “new world”, such as the rise of artificial intelligence (AI), Asia School of Business (ASB) chief executive officer, president and dean Sanjay Sarma warned that what students learn in the classroom may be outdated by the time they complete their studies.

“We have to change. There’s a way to rethink education in that when you get your degree, it’s intermingled with work and actual hands-on activity. “It’s called action learning. You don’t just learn – you go act on your learning, then you come back and learn some more,” he said. Likening the setup of most college curricula to a train ride, Sanjay pointed out that if students jump off the train, they are off and can’t hop back on.

“Action learning is the movement we need – this applies not just to college, but also to school and the future of the workplace,” he said. Speaking at the second of the four-part ASB Learning@Work Leadership Summit Series titled “Human Learning in the Age of Machine Learning” in Kuala Lumpur on Sept 13, he said the world is confronting a great job migration, brought on by technological advancements.

Learning is the oxygen of the new economy. A young person might need to quickly learn about hydrogen as a brand new technology, a middle-aged person cybersecurity, and an older person some new technologies. “The problem with our approach to learning is it’s going to take us four years to get from where we are to where we need to be,” he said, alluding to the duration of most bachelor’s programmes.

He added that even one-year master’s programmes have a very high opportunity cost.“Your job may change by the time you go back, your industry may change, your company may vanish or be acquired. We’ve seen all of this. We have to rethink our education system,” he stressed.

Amid climate change, technological innovations and shifts in the working world, he said one needs “speedboats and motorboats”, and not “cruise ships”, to cover the skills gaps. “If suddenly someone needs to learn cybersecurity, they’re not going to go back to college for a year; it’s not going to happen,” he said.

He also noted the emergence of digital nomads, where work and nationality are decoupled, and gig economy, as among the reasons why the education system needs to keep up with the changing times.“The half-life of the degree is plummeting. Young people graduating from college are going from gig to gig, not caring about which company they work for or about their careers.

“Your degree, which is a proxy, ceases to matter – it may matter to your first and second jobs, but when the third gig comes, what matters is how many stars you got for your previous gig. “It doesn’t matter that you went to the Massachusetts Institute of Technology (MIT) or an unknown college – if you delivered the software and got a few stars, you are better than the kid from the MIT who didn’t do well in the last gig,” he said.

He also drew attention to the duration of each lesson which, he said, violates the principles of cognitive science. “Every classroom is based on a half-an-hour, or 45- to 90-minute lecture. It turns out that after 10 minutes, the hippocampus, which is the switchboard of the brain, gets tired. What happens is you get in the mode of listening but not learning,” he said.

For the education system to address all this, Sanjay highlighted the importance of credentialing, other than action learning. “It’s a degree that is constituted of credentials where you don’t have proxy exams but exams that really test authentic skills, where you can hop on, hop off, and work while doing so – this is the movement we are starting,” he said. He also emphasised the need for quartenary education, which is the fourth stage of learning after primary, secondary and tertiary education.

“It is the duty of education institutions to provide quartenary education. “To create a quartenary education movement is going to take societal will, institutional commitment and corporate engagement – companies and professionals have to learn to work in a new way,” he said.

“This is the movement that Malaysia is uniquely positioned to start. You have over 30 million people, you’re on the threshold of becoming a high-income country, and you have a diversity of jobs, a very advanced economy and quite a forward-looking society,” he added.

‘New type of university’
MIT Director of Digital leaning and collaboration Philpp Schmidt.

TO design a new university, online learning and hybrid models are two components that universities can integrate into their building blocks. Pointing to a shift in student attitudes towards these modalities of instruction (see infographic), Axim Collaborative chief technology officer Philipp Schmidt said this is the right moment to think about a new type of university.

Axim Collaborative is a United States-based non-profit organisation founded by the MIT and Harvard to address systemic equity gaps in higher education. Citing data collected in the US, he posited that the shift in attitudes has happened with students but not the instructors yet. “We’re seeing an acceleration of people who are adopting technology get more optimistic about its use, and start using it more and moving further ahead – the fact that students are so far ahead of their instructors and administrators is something to keep in mind,” he told the ASB Summit via a video call.

Another development he highlighted is the growing interest in a flexible model of education among learners. In the US alone, he said, there are 25 million people in the market who are interested in this model. “Much of the education system still looks like the old model. Implicit in this old model is that when you’re done with education, you have now learned everything you ever need to be a successful professional in whatever career you are in.

“But the reality looks different now,” he said. Referencing Accenture’s 2021 study on learner mindsets, which presented six learner segments, Schmidt said four of them can be considered lifetime learners. “These learners will want to learn at different moments in their lives, and will come in and out of education,” he asserted. Education institutions, he said, are however relatively slow to adapt to the flexible model of education.

Cautioning that change can be extremely quick, he added that new, innovative institutions can move into leadership roles in the span of 10 years that looked very different before, while other institutions that have not moved all that much are grappling with how to innovate and change.

Online versus hybrid

Massive open online courses (MOOCs), he said, have fundamentally changed perceptions of online education. “Ten to 15 years ago, online education was considered a second-best option. Today, it’s more considered an option for highly skilled, highly motivated professionals to use to advance faster in their careers,” he said, adding that MOOCs have reached 220 million learners with offerings from 950 universities around the world.

Online learning, however, does not work on everyone or every course, he pointed out. “It largely doesn’t work for students who may need a little more help, and that includes students coming in to university because they haven’t had a lot of time learning how to learn,” he added.

Hybrid models, he said, are much more successful. “They make it easier to do active learning and project work, and spend time in a room critiquing each other’s projects – some of those things that are really easy to do in person but hard to do well online,” he offered.

Credentialing

To support this kind of learning pathway, Schmidt said the credential system needs to do a better job. “Traditional credentials in higher education don’t tell much about what students know and can do, yet the bachelor’s degree is by far the most important credential for accessing the job market, especially in the US,” he said. This, he added, is leading to degree inflation, which is a real issue not just for the learners, but also for the employers.

While things are starting to shift, with 14 states in the US eliminating the bachelor’s degree requirements and adopting skills-based hiring, he said hiring practices haven’t caught up yet. “One of the reasons is that our credentials don’t tell enough of the skills and competencies of the individuals,” he explained. Credential designs such as open batches can be used to address this.

“You could learn things in a variety of spaces and if you get a badge for things you learn in these environments, you could put those things in a ‘backpack’ or ‘wallet’. “If you apply for a job, you could select the badges you want to share with the recipient. The badges will contain digital information about what you learned, the projects you worked on, and some comments from other students who had worked with you, so there’s a merging of data,” he said. “Over 75 million badges have been created, so there’s been real interest in this,” he added.

Talent-building strategies/Forging better pathways for learners
Faculty Director Anjali Sastry

“Here’s my proposal for three things we need to do for better pathways for talent: First, vastly cheaper and more flexible learning. We need agile, customisable, flexible, iterative learning. It’d be great if we could rearrange and re-permute it, and if we recognise that many learners benefit from episodic deep dive into learning and interweaving that with real-world experience.

Second, thinking carefully about how we interleave online and traditional learning with direct, lived, tangible experience, projects and teamwork. MOOCs and online learning are not the be-all and end-all. We can adopt the notion of gemba, which means that a place where things happen should be the focus of managers – but it should also be the focus of learners who want to enter the industry. We can’t just do that through MOOCs.

The other idea, Genchi Genbutsu, which is related to it, means if you’re wondering about something, go to the place and observe. Doing so can fuel some ideation rather than walking in and judging the problem or trying to solve it right off the bat. There is a role for not only action learning, but also research, in which you acknowledge you’re a participant in the system and draw valid research findings out of it. It’s an invaluable tool for learning.

The new form of learning should think about how to intertwine these. Third, credentialing learning but also helping our students recognise what they have learned, especially from action learning and other forms of hands-on learning. Students very quickly incorporate what they learn. It gets to be second nature, and you do the thing without knowing you are doing it. That’s expertise, but when you’re learning, leading or managing, you need to be good at enrolling others or bringing others along.

You need to be able to not only solve the problem, but also frame what you did, bring others into the conversation and most importantly, disseminate insights in the ways that others can follow and make their own.” – ASB Summit speaker Anjali Sastry, who is MIT Abdul Latif Jameel World Education Lab faculty director and MIT Open Learning associate dean

Mini-interventions for the disadvantaged
Melati Nungsari

“Talent building does not begin after they graduate. Thinking about the lifelong journey of a potential worker is very useful in this case. One thing that is under-highlighted is how Covid-19 set people behind, in particular those who are completely under-resourced relative to us. A lot of these problems are structural, meaning things we cannot fix by giving them one-time intervention.

We might be able to fix lack of devices but we cannot fix issues such as access to the Internet and security concerns. We can’t control everything on the list, but the idea is that there are some things we can control and doing mini-interventions can make a huge difference in these people’s lives. A social mobility study by Harvard economist Raj Chetty found that networking or mixing together poor kids and rich kids improved outcomes significantly for poor kids, and also for rich kids.

The mechanism is through networking – that opens up economic opportunities, and the goal is to get everyone up the ladder, and not leave anyone behind. Exposure matters. In an ASB study we conducted, a lot of the 16-year-olds we surveyed who wanted to be accountants said it’s because one of the Big Four accounting firms once paid them a visit and exposed them to accounting.

These small touchpoints make a huge difference. In a situation where there are not many options, even a small option makes a huge difference. In all of our roles, be it in government or the private sector, we have a small but key role to play in helping us build the new workforce for the future. A lot of AI tools can help immensely. I had a study for the undocumented population which found that training people how to access gig economy is a lifesaver.

Another example is microcredentials. Children who cannot access formal education or afford private schooling can take microcredentials and get something that is recognised globally. There are tech innovations but they should not increase inequality – we should all be better off.” – ASB Summit speaker Melati Nungsari, who is ASB associate professor of economics, Asean Research Center director (ARC) and Rapid Youth Success Entrepreneurship (RYSE) director

Originally published by The Star.

Some people tend to romanticize how the likes of Bill Gates, Mark Zuckerberg or Steve Jobs became billionaires even if they had dropped out of college. But these are unique cases that won’t magically come true for just anyone who dreams to be a business tycoon, says Massachusetts Institute of Technology (MIT) professor and technopreneur Sanjay Sarma.

“We [instead] have to romanticize the hard work that goes into more measurable, more consistent more predictable success,” Sarma, president and dean of the Asia School of Business (ASB) and professor of mechanical engineering at MIT Sloan School of Management, says in an interview with Inquirer. “Bill Gates didn’t drop out of [just any] college—he dropped out of Harvard. He got into Harvard to begin with,” Sarma stresses. “Mark Zuckerberg created Facebook and it took off.

That’s a matter of his talent, but also luck.” “But most success is neither unicorn nor genius. It is based on hard work and knowledge.” Most of the success stories in Silicon Valley aren’t about college dropouts who had brilliant ideas that turned them into billionaires, he says. Mostly they are people with engineering or business degrees who worked hard, went into a series of trials and errors, learned from them and developed new skills and ideas along the way.

“That’s how it works: it’s 99 percent perspiration, one percent inspiration,” he points out. Creating an environment of knowledge is the key, he says. The reason why all the startups in the United States come from Silicon Valley, Boston and Austin is because these are the areas with great universities.

Having said that, the professor believes that a crisis in education stares humanity in the face. He reckons that the existing system hasn’t kept up with the complex challenges that individuals, companies and countries need to overcome, whether it’s geopolitics, artificial intelligence (AI), cybersecurity or business sustainability.

Generational challenges

“I really believe that we are facing generational challenges, and we need to create generational talent. And the education system has not kept up,” Sarma explains. If there’s something that could keep him wide awake all night—but he says he’s able to sleep soundly—it’s the existential threat from such a “crisis in education.” Existing educational systems are “old-fashioned” and not necessarily connected to what people need to learn, like AI, he says.

“I don’t think they have evolved. So that’s a big problem, not just universities but primary, secondary, tertiary education. Also, if you’re working in a company, and you’re 35 years old and you have two kids, you can’t just go to university and get a degree. It’s impossible. So we need a quaternary system,” he says, referring to the fourth stage of educational level that follows an undergraduate degree.

Sarma isn’t just taking words out of the textbook. He is an educator and also an entrepreneur. He was one of the founders of the Auto-ID Center at MIT, which, along with partners and its spinoff EPCglobal, developed the technical concepts and standards of the modern RFID.

Between 2004 and 2006, he took a leave of absence from MIT to establish software company OATSystems, which was acquired by Checkpoint Systems in 2008. He has served on the boards of various companies. Before leading ASB, he had also helped establish the Singapore University of Technology and Design.

Where to start?

The COVID-19 lockdowns would have been a great opportunity to make systemic changes to education. But since then, the world has gone back to memorization, to teachers giving lectures in classrooms and back to an “ex Where to start? am culture,” he laments. “What does passing an exam have to do with being able to be a good negotiator, being able to be a good business person?

The exam is a proxy of something. It’s not just necessarily a measure of the actual skill,” he says. Education must be based on a skills development approach, he adds. For him, the best way would be to usher in reforms is at the working world, where there’s no fixed system. He suggests developing a quaternary education system and working it backwards.

“Once [there is the quaternary] education system, you infuse tertiary education with some of those principles and then over time, it will bleed into secondary,” he says. “Meanwhile, we need to start with the other end, which is elementary or primary education. And there we need to bring in more like Montessori principles, which are less about exams and more about critical thinking, being creative and things like that.”

“So we have to start at both ends but you can’t start in the middle because the systems are too set. I’m not going to tell a 16-year-old who’s coming up with an important exam that the exam is useless, because they have to deal with it. The parents have to deal with it,” he says. At the other extreme end is the quaternary education via hybrid education. “That is more sort of like going to the gym to stay fit, except you’re staying fit for your job.” “Transformative” ASB is one of the institutions pitching to fill in the gap.

Based in Kuala Lumpur, ASB was established in 2015 by Bank Negara Malaysia in collaboration with MIT. It thus carries an element of MIT thinking and curriculum behind it, he says. ASB aspires to be a “premier business school that develops transformative and principled leaders who will contribute to the advancement of the emerging world, particularly in Asia.”

Sarma proudly cites ASB’s “great set of faculty”, including MIT professors and alumni. Former professors included no less than the Bangko Sentral ng Pilipinas Governor Eli Remolona Jr. ASB, he says, is very research-focused, with its researchers interested in both theoretical and applied learning. “We believe very much in the MIT principle of action learning — students do action while they’re doing their degrees and they go to companies and so on,”

Sarma says. Thinking about the future of work and learning is also something central to ASB’s strategy and philosophy, he says.“I don’t particularly believe in purely online education, although I know that space very well,” he says, adding that the strategy is to offer hybrid classes. Teaching can be scaled up through a combination of videos, automatic and AI-based assessment as well as in-person coaching, he says.

AI and the workplace

AI is going to change the way business is run, benefiting both consumers and businesses, Sarma says. “But AI is also risky because AI can make mistakes. This AI has liability issues. If you use AI and you make a mistake, there could be a lawsuit,” he says, citing the lawsuit slapped against Tesla in relation to self-driving cars. “It’s a complex field and you have to thread the needle.

All this takes critical thinking, analysis,” he says. “That’s why learning education becomes very important. It’s often said that education is the oxygen of the new economy. Meanwhile, the professor says innovation is not just technology. It could be in marketing, business process or financial management. First, companies must come to the realization that they should innovate.

Furthermore, he says companies need to have the people and the ecosystem of talent to implement these, as what can be seen in innovation hubs from Silicon Valley to Boston to Bangalore. Finally, he says companies must be able to attract talent and empower them. Many companies fail in these metrics, he says.

“They don’t look forward. They assume, because they’re doing well, the future is not a threat. They don’t have the talent ecosystems, and even if they have a talent ecosystem, they can’t attract and retain talent. They don’t grow talent necessarily. You need the cutting-edge, creative people who think outside the box, and they don’t have that. So the companies that fail on all three are in trouble.”

Originally published by Business Enquirer.

KUALA LUMPUR, Oct 25 — According to research conducted by the Rapid Youth Success Entrepreneurship (RYSE) project, Malaysian youths are in need of nurturing and guidance to excel as entrepreneurs. The research by RYSE revealed that many young people, particularly in rural areas, tend to lean towards stable employment rather than entrepreneurship. Furthermore, they often lack awareness about where to seek assistance, whether it be advice or financial aid, to boost their business endeavours.

The survey which took results from the past year up till July 2023 said that in addition to the fear of doing business, youths from less privileged financial backgrounds often lack the confidence to venture into entrepreneurship and tend to favour secure employment options due to the perceived risks associated with starting a business. During the survey presentation at Asia Business School, programme manager Danial Albakri shared that 444,800 Malaysian youth are currently unemployed, with approximately 40 per cent of degree and diploma holders experiencing underemployment.

“In 2022, about 28.7 per cent of graduates had starting salaries below RM1,999 a month and around 40 per cent of degree and diploma holders are underemployed. To bridge the knowledge gap, RYSE offers three to six-day boot camps, covering essential entrepreneurship skills with local case studies. “We’ve also transitioned to RYSE Online, a digital platform that teaches the A to Z of entrepreneurship. The online platform is open to all, catering to a wide age range and we’ve had an 11-year-old up to a 60-year-old use it,” he said.

In terms of their impact, Danial said that they have already reached 5,656 youths, upskilled 1,945 of them, conducted 11 boot camps, held 40 webinars, published five academic papers, interviewed 91 entrepreneurs, and supported 36 youths with funding, amounting to RM101,412 in seed funding. Chin Jia Wei the Principal Research Associate for the Asean Research Centre in her presentation noted that a youth’s family financial background and social support also played a big role in nurturing entrepreneurship.

She said most rural kids tend not to want to do business while urban youth were more receptive towards it. “To overcome this we recommend easy access to entrepreneurial education courses or business incubation programmes including mentorship. We also feel that universities have to increase the visibility of their support for entrepreneurship among students with social campaigns or entrepreneurial showcases,” she said.

Professor Melati Nungsari, the Faculty Director of the Asean Research Centre and RYSE, emphasised that the research aims to provide solutions to address specific issues. In this case, it focuses on Malaysia’s 2.5 million underemployed youths. She expressed concern, noting that it can be challenging to persuade individuals to invest in themselves when they don’t see a clear path to success. Entrepreneurship, she believes, can serve as a supplementary option alongside traditional employment.

“We are concerned because it’s very difficult to persuade people to invest in themselves if they don’t see the investment leading to anything. Entrepreneurship can come in as a supplement to the idea that you need a normal job,” she said during the panel discussion. 

Originally published by MalayMail.

The Communications and Digital Ministry (KKD) received an allocation of over RM2.84 billion under Budget 2024 to enhance digital connectivity initiatives, digital economy, cyber security, national information marketing as well as to support the development of local talent and creative projects.

We discuss insights and strategies for Malaysia’s growing digital economy on this Niaga Spotlight platform exclusive interview about what it takes to establish a well-designed, functional, profit and job-generating Tech Park with Professor Silvio Meira, Chairperson, Porto Digital Tech Park and Dr Renato Lima de Oliveira, Faculty Director, Center of Technology Strategy and Sustainability (CTSS), Asia School of Business.

The focus is on Porto Digital in Recife, Pernambuco state in Brazil – which stands as a model of implementing a technology park as a driver for economic development policy – achieved within just 20 years since its establishment.

Watch here:
Part 1: https://youtu.be/O9q-usq32gU?si=4mFaE_OsPK-YQJ0n
Part 2: https://youtu.be/iozSMfEkmSU?si=UcTGBl1trd-tz1iW

Originally published by Astro AWANI.

AT THE recent OECD-Asia Roundtable on Corporate Governance hosted by Securities Commission Malaysia, I was on a panel discussing corporate governance developments in Malaysia. I shared my reflections on how corporate governance in the country has evolved, and recent developments. I have followed developments in Malaysia since it started its corporate governance journey around 2000.

Some participants were surprised about my largely positive views, given my often critical comments about corporate governance in Singapore and elsewhere in my published articles, posts on my website, and comments on social media. There is no doubt that Malaysia has significant issues in public governance. This makes…

Read the full article HERE.
Originally published by The Business Times.

Join Joseph Cherian, Practice Professor of Finance at the Asia School of Business, as he shares smart strategies for funding your future in the context of Belanjawan 2024 including financial planning, investment opportunities, and effective budgeting techniques.

Originally published by Astro AWANI.

The conversations surrounding the consequences of artificial intelligence (AI) for jobs, productivity and quality of life are in full swing. AI is not merely a future concept but a present reality shaping our workplaces. As its remarkable capabilities become increasingly integrated into professional environments, understanding its impact on employees’ work and lives becomes crucial.

In a first-of-a-kind study in the Asean region conducted by Asia School of Business (ASB), researchers set out to measure AI’s impact on work-life balance, job security and job satisfaction among employees in various industries. The study employed a comprehensive survey-based research approach, gathering data from a diverse sample of 124 professionals across different sectors in Malaysia.

The study’s participants were drawn from industries such as technology, finance, healthcare, manufacturing and services. The sample included employees at different levels, from entry-level positions to top-level executives. The survey consisted of questions related to participants’ use of AI in the workplace, perceptions of work-life balance, job security and overall job satisfaction, all rated on a five-point Likert response scale.

Better work-life balance and lower job insecurity

Results based on independent sample T-tests show that employees who adopted AI at work reported a significantly higher level of work-life balance. Surprisingly, we found that employees using AI reported a significantly lower level of job insecurity. Intriguingly, we also found that this trend is even more pronounced among individuals at a higher seniority level. However, the study did not find a significant impact on job satisfaction among AI users compared with non-AI users.

Navigating challenges and embracing opportunities

The study comes at a pivotal time as businesses worldwide grapple with the challenges and opportunities presented by AI. While 54% of the 124 professionals surveyed reported regular use of AI in their roles, this advancement does not come without its concerns. The question of data security and potential leakage is one that many companies, including those in Malaysia, are contending with as they navigate this new technological landscape.

Despite these concerns, the evidence suggests that AI implementation can significantly enhance work-life balance and reduce job insecurity, particularly for senior professionals. These benefits provide a counterpoint to the challenges, underscoring the complex and multifaceted impact of AI on the modern workplace.

US-based cloud access solution provider Kisi in its study titled “Cities with the Best Work-Life Balance 2022” ranked Kuala Lumpur as the third most overworked city in the world, a fact that underscores the urgent need for improved work-life balance strategies in Malaysia. The co-authors believe the use of AI improves productivity, which leads to a reduction of long working hours, consequently leading to a better work-life balance.

Positive impact on career advancement and talent retention

In line with the key findings of our survey research, studies conducted in the US also indicate that early adoption of AI is linked to a host of professional benefits. A notable example is a recent CNBC SurveyMonkey Workforce Survey, which showed that 44% of early AI adopters reported excellent opportunities to advance their careers in their respective companies, compared with only 24% among those who do not use AI at all. This suggests a potential correlation between AI adoption and professional advancement opportunities, supporting our finding that employees using AI reported a lower level of job insecurity.

Power of AI in enhancing work-life balance

The use of AI has a measurably higher impact on work-life balance for more senior employees, likely owing to elimination of menial drudgery. These tasks, which often consist of administrative and routine work, can add to the already-demanding schedules of senior employees, contributing to job fatigue and reduced work-life balance. AI tools such as automated meeting schedulers, predictive email response and task management tools can significantly reduce the burden of these mundane tasks.

By eliminating the tedium that grinds one down, AI tools can free up valuable time, allowing senior employees to focus more on their strategic responsibilities and less on administrative chores. This in turn helps alleviate job fatigue and improves their work-life balance. According to researchers in organisational behaviour, employees with a better balance between work and life are better at performing, learning, innovating and relating to others at work.

These findings offer valuable insights for business leaders. The adoption of AI is not merely a matter of advancing productivity; it is a strategic decision that could facilitate talent retention and shape a positive workplace culture. A healthier work-life balance is a strong factor in employee retention, and companies that promote such a balance tend to experience lower employee turnover rates.

The reduced sense of job insecurity reported by AI users in our study could be due to the professional advancement opportunities that come with AI skills and experience.  The ability to use and adapt to AI technologies is becoming a highly valued skill in today’s digital economy, leading to better job prospects and security. By embracing AI as part of work, companies could use this technology as a strategic tool for attracting and retaining top talent.

The integration of AI into workplaces brings transformative potential. The study conducted highlights AI’s positive impact on work-life balance and job security, especially for senior professionals.  By recognising AI as a knowledge-work collaborator and embracing it strategically, businesses can navigate the AI revolution successfully, attract top talent and foster a culture of innovation. The time for action is now as AI’s multifaceted impact on the modern workplace continues to evolve.

Dr Wang Yi-Ren is the assistant professor of organisational behaviour at Asia School of Business (ASB), a higher education institution in collaboration with Bank Negara Malaysia and MIT Sloan School of Management. The research was led by ASB’s Masters of Business Administration candidates, Alvin Tang, Mohammad Azhary Abdul Aziz, Aizatul Akmar Abu Talib, Chia Shiroo and supported by Dr Wang.

Originally published by The Edge.