Governor Dr. Zeti Emphasises Value of Continuous Education as IBFIM Launches Latest Skills Upgrading Programme (by MIFC)

An important part of the human talent development function is continuous education and upgrading of skills and competencies - from senior management to down the chain. This is the message which Bank Negara Malaysia's Governor Dr. Zeti Akhtar Aziz stressed in her keynote address at the launching in December at Sasana Kijang of the latest such initiative, Islamic Banking and Finance Institute Malaysia (IBFIM) Islamic Finance Qualification Framework & Progression Route (IFQFPR), which focuses on 'Talent Development in Islamic Finance over the Next Decade'.

According to IBFIM, IFQFPR is an innovative training framework that provides a progressive structured route to the acquisition of the relevant knowledge for the different levels throughout the career of the workforce in the industry. Successful completion of the comprehensive series of programmes would lead to qualifications at three different levels. The modules of the programmes have been developed with extensive consultation with the industry. The framework also offers flexibility in learning, as participants can complete the modules at their own pace.

"Important in the offering of these programmes," explained Dr. Zeti, "is that there needs to be clarity in the qualification that is earned so that it avoids confusion with other qualifications offered by other centres of learning to those practitioners aspiring to gain qualifications in Islamic finance. Our resources for investment in human capital development for the industry must be optimised. This would enhance Malaysia's potential to become a centre of excellence for education in Islamic finance."

Islamic finance is the most rapidly growing financial market segment not only in Malaysia but also in several other jurisdictions. As such, advised Dr. Zeti, in a highly dynamic and challenging environment, talent development for the financial services industry has become an even more important agenda to ensure that its growth and development is supported by the necessary skills and capabilities.

Malaysian Islamic financial system is the most progressive, comprehensive and competitive. The market share of Islamic banking assets of total banking industry has grown from only 6.9 per cent in 2000 to 22 per cent in 2011. Islamic finance accounted for 2.1 per cent of GDP in 2009, as compared to only 0.3 per cent in 2000. This has led to greater job creation where employment in Islamic financial industry accounts for 11 per cent of total employment in the financial sector. Malaysia of course has also opened up its Islamic finance market to foreign players, and Malaysian Islamic financial institutions at the same time are expected to expand beyond national boundaries to increase economic and financial linkages with other parts of the world in the pursuit of more competitive returns and rewards.

"This rapid internationalisation of the financial system and technology advancement," maintained Dr. Zeti, "will demand a corresponding increase in quality skills and expertise of the industry. Talent upscaling will be even more important in the next decade, to steer the industry's advancement in the increasingly complex and competitive financial ecosystem. A strong and dynamic workforce will be one of the important pillars for the industry to remain stable and competitive. It will also serve as a catalyst to spur innovation."

BNM anticipates that over the next 10 years, a workforce of about 200,000 employees would be required, which is an increase of 56,000 people from the current 144,000 employees. There will therefore be strong demand across the financial sector, particularly for specialised skills in high growth and niche areas such as wealth management, Shariah advisory, corporate finance and investment advisory services.

Dr. Zeti identified several challenges for human capital development in the Islamic finance industry going forward:
• Human capital development needs to be comprehensive and holistic in meeting the requirements for all levels. It must meet the specific requirements of the workforce career progression, from the pre-employment stage, during employment and up to the leadership positions. Talent development solutions must also be for beyond the circle of the financial services community, to include other business communities, such as legal fraternity, Government officials and IT solution providers.
• The education and training programmes in Islamic finance needs to achieve the highest quality, be credible and globally recognised. To ensure the standards, the required infrastructure for standard setting and accreditation for Islamic finance training and education has now been put in place. The Asian Institute of Finance (AIF) is ready to provide accreditation to training programmes offered by training institutes following a rigorous assessment under the new Assessment and Accreditation Framework and to ensure the highest standard of the trainings offered. The Association for Chartered Islamic Finance Professionals, a body entrusted to raise the quality standards and professionalism of Islamic finance practitioners, would also contribute to achieve this objective.
• There needs to be greater partnerships and collaboration between the industry and academia to align training and development with the requirements of the industry. Greater involvement by the financial institutions is needed in designing the academic and training curriculum, and providing real business exposure and training through internship and sharing of experiences. Industry-universities partnership can also take the form of "summer school" programmes that emphasise on practical aspects of Islamic finance via business operation simulations. More structured continuous learning programmes are also needed for practitioners to sustain their professional competencies.
• Research is an important investment for long-term competitiveness of the industry and is a key driver for greater innovation. Joint research initiatives should extend beyond geographical boundaries, with cross-border initiatives and convergence of ideas. Further in-depth research on contemporary Shariah issues relating to risk mitigation, liquidity management and hedging would facilitate the generation of new ground-breaking developments in Islamic finance. Greater involvement of the industry is essential not only to provide funding support, but also to give perspectives that contribute to the implementation of the research output.

US sells $30bn in F-15 jets to Saudi Arabia (by BBC News)

The United States has confirmed the sale of nearly $30bn (£19.5bn) of fighter jets to Saudi Arabia.

The US will send 84 Boeing F-15 jets to its key Middle Eastern ally, and upgrade 70 existing Saudi F-15s.

The agreement is part of a $60bn arms deal covering 10-15 years, approved by the US Congress last year.

The military hardware deal comes at a time when Washington is working to counter the influence of the Saudis' bitter regional rival, Iran.

The sale was formally announced on Thursday from Hawaii, where President Barack Obama is on holiday.

SEE BBC NEWS: http://www.bbc.co.uk/news/world-us-canada-16358068

British Airways owner IAG buys BMI from Lufthansa

British Airways owner IAG has agreed a binding deal to buy BMI from Lufthansa for £172.5m, but has warned the deal could lead to job losses.



IAG, which also owns Spanish airline Iberia, will gain 56 more slots at Heathrow airport in the deal.

The airlines said they hoped the takeover would be completed in the first three months of next year.

The deal remains subject to clearance by competition bodies, and rival Virgin has said it will oppose the tie-up.

Lufthansa had signed a non-exclusive agreement with IAG in November, but had also been in talks with Virgin.

SEE BBC NEWS: http://www.bbc.co.uk/news/business-16298167

Toyota restores Japan output to "near-normal levels"

Toyota Motor said it had restored vehicle output in Japan to "near-normal levels" on Monday, after severe flooding in Thailand disrupted supply chains.

Partial production at three Toyota factories in Thailand itself has also resumed.

Last month the carmaker was forced to cut production around the world.

The flooding in Thailand, the worst the country has seen in decades, has resulted in more than 600 deaths.

It has also forced many businesses to shut down.

Factory closures and other disruptions resulting from weeks of flooding have contributed to an 18.5% fall in Toyota's July to September profits.

The company has withdrawn its profit and vehicles sales forecasts due to continued uncertainty.

SEE BBC NEWS: http://www.bbc.co.uk/news/business-15814482

Open letter to Sir Alex Ferguson - Star, Saturday August 20, 2011

Article that came out of the Star newspaper on Saturday August 20, 2011.

Here are 12 reasons for a Manchester United IPO in Malaysia.

Dear Sir Alex,

I realise I should be addressing the Glazer family, the ultimate owners of the Manchester United Football Club, but they're Americans; it's painful to discuss football with people who insist on calling the sport soccer'. Sure, I could write to chief executive David Gill. Then again, he's essentially a backroom boy and a bean counter. Bringing this up with him is no fun either.



The fact is, you're the club's heart and soul, and its face as well. You're the longest serving United manager, and in your 25 years at Old Trafford, you and the team have won almost everything there is to be won in club football. If you had not joined the Red Devils, the United fans would have nothing but past glory to sustain their love for the club.

In other words, they would be more like Liverpool fans.

That's why this open letter is for you. I believe you, more than anyone else, can appreciate what I'm strongly recommending for United. Plus, I suspect that if you tell the Glazers something, chances are they will sit up and take notice.

Early this week, I was surprised (and I must admit, a little hurt) to read that United is planning a US$1bil (RM3bil) initial public offering (IPO) in Singapore by the end of the year.

The choice of a listing in Asia is understandable. The English Premier League (EPL) has a huge following in the region, and United is arguably the most popular of the EPL clubs. But why Singapore, which was reportedly picked over Hong Kong? Apparently, Malaysia wasn't even on the shortlist.

I say United should float its shares on Bursa Malaysia, the stock exchange here. I'd like to think that it's not too late to convince the Glazers to reconsider.

Typically, owners list their businesses where they think they can get the best valuation for their equity. Now, Sir Alex, you know a thing or two about putting a price on assets, what with all the players you have signed and sold over the years. It's all about the asset going to where it's most wanted and most likely to do well.

Here are 12 reasons one for each Premiership title you have collected for a United IPO in Malaysia:

1. We know how to value the game
Football betting in Malaysia generates tons of money, and we have a reputation as a hub for this activity. Although it's all illegal, it shows that this country has the know-how and experience to properly appreciate the worth of United shares.

2. No shortage of sponsors
Did you know that a Malaysian company is among the club's official sponsors, but there's none from Singapore? Telekom Malaysia Bhd and United have signed a five-year contract “linking the two brands in marketing campaigns and promotions throughout Malaysia”. Relative to our size, businesses in Malaysia are very generous supporters of sports. Not one, but three teams in Formula One racing have significant Malaysian involvement. If United lists in Malaysia, there will immediately be a queue of local companies eager to slap their logos on United property and merchandise.

3. Our tycoons understand the football business
In May last year, a Malaysian consortium, including Tan Sri Vincent Tan of the Berjaya group, acquired 36.4% of Cardiff City. Datuk Chan Tien Ghee is now the club's chairman. AirAsia Bhd's Tan Sri Tony Fernandes had failed in a bid to take over West Ham United, but he persisted. He just became a majority shareholder of Queens Park Rangers, another London club. These developments say plenty about how serious we in Malaysia are about the EPL.

4. Investor relations will be a breeze
Be assured that United will have no problems getting the attention of the investing community in Malaysia. Every briefing for analysts, investors and the media will surely be packed. Each announcement is likely to be picked up and publicised. People here just can't get enough of United.

5. Western-owned businesses are highly prized
Investors in Malaysia are willing to pay a lot for a piece of a company controlled by a big name from the West. Among the most expensive stocks on Bursa Malaysia, in absolute terms, are British American Tobacco (M) Bhd, Nestle (M) Bhd, DiGi.Com Bhd (a subsidiary of Norway's Telenor), Dutch Lady Milk Industries Bhd, Guinness Anchor Bhd, and Shell Refining Co (Federation of Malaya) Bhd. They're all above RM10 per share. Given United's fantastic brand visibility, its shares can surely reach such a lofty price level.

6. No profit track record, no problem
It has been suggested that one reason United prefers Singapore to Hong Kong for an IPO is that the latter has tougher listing qualifications. You won't have that issue in Malaysia either. Assuming the club isn't making profits currently and thus can't pass the profit test under the Securities Commission's Equity Guidelines, it can take another route for listing in Malaysia the market capitalisation test. All United needs is a total market capitalisation of at least RM500mil upon listing. If the US$1bil Singapore listing is for 30% of United's equity, the club is estimated to have a market value of US$3.3bil (RM10bil).

7. Loss-making, debt-laden businesses don't scare us
It was reported in March that United's parent company, Red Football Joint Venture Ltd, made a record loss of 108.9mil (RM533.6mil) for financial year ended June 2010, while total debt stood at 590.4mil (RM2.9bil). Over here, the probable response to that bit of news is a barely stifled yawn and a shrug of the shoulders. So what? Our investors aren't particularly averse to investing in companies engulfed in red ink and stacks of IOUs. Let's just say Malaysians recognise that to get great returns, they need to take on great risks.

8. Tune Group is Malaysian
The next time you have a gentle yet heartfelt discourse with a Premier League referee regarding your philosophy on the application of football rules, take a good look at his sleeves. The logo is that of Tune Group, Malaysia's own lifestyle and entertainment brand. I'm not saying that more refereeing decisions will go United's way just because the club's shares are listed on Bursa Malaysia, but never underestimate the power of 1Malaysia.

9. We're not a nation of whistleblowers
Considering your several run-ins with referees, I think you may fancy the idea that Malaysians are generally reluctant to blow the whistle. In fact, we had to change the laws recently to encourage whistleblowing. But relax, it may be a while before you see a lot of that going on here.

10. Red is fine with us
Unlike in Thailand or, say, Los Angeles, red is a broadly acceptable colour in Malaysia. It has no links to politics or gang identity. I note that your away kit for the current season is mostly blue. That's okay too.

11. Staunch support for United in Malaysia
The Red Devils' fans here are a very passionate and participative lot. This is evident in cyberspace. For example, the forum section of a website that calls itself the Manchester United Fan Club Malaysia Portal, has 8,000 members and 445,000 posts. Almost 9,400 people liked' its Facebook page. But that's not a lot compared with the more than 42,000 likes' for the Manchester United FC (Malaysia) Facebook page. And this is probably only the tip of the iceberg. Don't you think such a devoted support base should be rewarded with a United IPO?

12. Our PM is a big fan
It's widely known that Prime Minister Datuk Seri Najib Tun Razak, who's also Finance Minister, has been supporting United for a long time. On his Facebook page, “watching Manchester United games” is listed first among his favourite activities. On the other hand, his Singapore counterpart, Lee Hsien Loong, “enjoys reading, walking, listening to classical music and tinkering with computers”. That's on his CV on the Singapore Cabinet website. Really, need I say more?

Yours sincerely,
Errol

● Executive editor Errol Oh is a fair-weather fan of Tottenham Hotspur. He doesn't believe in blind loyalty. If the team is not doing what it's supposed to, it doesn't deserve support.

Apple now has more cash than the U.S. government

(CNN) -- Maybe the cash-strapped U.S. government should start selling iPads.

According to the latest statement from the U.S. Treasury, the government had an operating cash balance Wednesday of $73.8 billion. That's still a lot of money, but it's less than what Steve Jobs has lying around.



Tech juggernaut Apple had a whopping $76.2 billion in cash and marketable securities at the end of June, according to its last earnings report. Unlike the U.S. government, which is scrambling to avoid defaulting on its debt, Apple takes in more money than it spends.


CLICK ON THIS LINK TO SEE FULL ARTICLE FROM CNN

Is Business a zero sum game?

This is a very important question that needs to be answered. Is business a zero sum game?



By definition, business is about trade. Since population is a factor of demand, tradesman is a factor of business. Therefore, in business, assuming at the supply-demand equilibrium, the entry of a tradesman into the equation meant a reduction in demand for existing tradesmen to keep the supply-demand point fixed.

The possibility occurs in monopolistic or oligopolistic industries.



So, if you ever decide to go into business in such industry, expect resistance to your entry!