Tan Sri Azman Hashim

One of Malaysia’s banking icons, Tan Sri Azman Hashim, will relinquish his chairmanship and positions in the boards of six subsidiaries within the AMMB Group, including its key entities such as the commercial and investment banks by the end of next year.

Azman will, however, remain as chairman of AMMB Holdings Bhd, which is the holding company of the group, and focus on strategic initiatives to strengthen the group.

As part of a transition plan on his chairmanship and board membership, Azman, who is responsible for growing the bank to its current position as the sixth-largest lender in the country, will retire as chairman and a board member of the six subsidiaries within the stated time frame.

Among the subsidiaries are AmBank (M) Bhd, which is the commercial bank, AmInvestment Bank Bhd and AmBank Islamic Bhd. These entities are the cornerstone of the banking group and are wholly owned by AMMB Holdings.

The other three subsidiaries are AmMetLife Takaful Bhd, AmMetLife Insurance Bhd and AmGeneral Insurance Bhd.

According to AMMB’s announcement to the exchange, Azman, who is AMMB’s second-largest shareholder with an effective stake of 12.97%, would leave the takaful insurance arm by the end of February this year, followed by the other two insurance divisions by the end of this year.

The banker, who will be 78 in July, will resign from the boards of AmBank and AmInvestment Bank by end-December 2018 and has scheduled an earlier departure of April this year from AmBank Islamic.

“Having put in place changes to the senior management of the group and as AMMB and its operating entities begin their next phase of growth and development, Tan Sri Azman is confident that it is now the right time for him to initiate the planned transition of the chairmanship at the respective operating entities,” AMMB stated.

Azman was appointed to the board of AMMB Holdings on Aug 15, 1991 and has been the chairman of the company since then.

“The board is appreciative and fortunate that he has agreed to remain in his role as chairman of AMMB.

“Over the last 35 years, Tan Sri Azman has been a guiding force in building the group to what it is today and has been exemplary in his role as chairman of the respective entities,” AMMB said.

It added that the transition and succession planning are another testament of his foresight in strengthening the group’s growth in decades to come.

In a letter to fellow employees obtained by StarBiz, Azman said he had been considering reducing his job commitments and had already done so for his two listed companies, AmCorp Properties Bhd, where his daughter Shalina is now the chairman, and RCE Capital Bhd, where his son Shahman has taken over.

“I am now planning the transition of my chairmanships and directorships of the operating entities within the AMMB Group over the next two years, by which time I will also be nearing 80 years old.

“I am confident that the orderly search process for the new chairman of the above entities that the group is undertaking over the next two years will ensure a smooth transition of my responsibilities,” Azman noted, adding that he would remain as AMMB group chairman and had no plans to divest his major shareholdings.

Azman also said in the letter that he would continue to collaborate with the boards and managements of the entities to enhance synergies among the business units, as well as harmonise the group’s policies and strategic plans.

“The board and I will maintain our oversight and monitor the performance, activities and progress of the operating units.

“I look forward to continue my role as AMMB chairman and believe that the talent of AmBankers with the support of our customers and stakeholders will enable us to create further value and drive sustainable growth in the group,” said Azman.

The transition in the leadership change taking place in AMMB is a string of moves that has taken place within the group in the last two years.

The board has seen some new faces such as former PwC Malaysia executive chairman Datuk Seri Ahmad Johan Raslan and Seow Yoo Lin, who was formerly managing director of KPMG Malaysia, and Datuk Rohana Tan Sri Mahmood as among measures to strengthen the supervision at the management level.

The bank also has a new group chief executive officer in the form of Datuk Sulaiman Mohd Tahir, who has brought in some new faces, including Uji Sherina Abdullah who is the group’s new chief human resource officer and Faradina Mohammad Ghouse, its new group chief compliance officer.

Sulaiman replaced Ashok Ramamurthy from the Australia and New Zealand Banking Group Ltd group, who had left to go back to Australia.

The changes in the board and top management came as AMMB Group became a focal point of attention because of its dealings with the troubled 1Malaysia Development Bhd (1MDB), which is a subject of investigations by local and foreign banking authorities for its money transactions.

AMMB had arranged the bonds for 1MDB’s first loan tranche of RM5bil. Subsequently, the money was channelled to several entities in the Cayman Islands for transactions that have come under investigations.

The transactions took place in about late 2009 and the bank was fined by Bank Negara to the amount of RM53.7mil for not following procedures when dealing with the remittance of funds overseas.

Towards this end, Bank Negara fined AMMB RM53.7mil for failing to comply with certain banking regulations that were carried out by commercial and Islamic banking arms.

Although the banking group did not reveal details of its non-compliance, it has been reported that the transactions were linked to 1MDB and SRC International Sdn Bhd, another entity that is owned by the Federal Government.

PAS Abusing Orang Asli

Frustration and disappointment with rampant deforestation was what brought a group of 40 Orang Asli all the way from 12 villages in Lojing in Gua Musang, Kelantan, to Kuala Lumpur yesterday, with the help of Parti Sosialis Malaysia (PSM).

“Our village is getting narrower, day by day, because of the rampant logging,” said Rada Jambu, the Tok Batin of Kampung Sigar in Lojing.

According to PSM, logging companies with logging licences are cutting down trees that are as close to 10 metres from the homes of the Orang Asli in Kampung Sigar and Kampung Sendrod.

Investing In Sharia - Indonesia

The National Development Planning Board (Bappenas) are studying the possibility of setting up a special sharia economic zone in Jakarta.

Sharia economy expert Adiwarman Karim said Indonesia had become the world center of sharia inspired aspects of life like in finance, food and entertainment.

In terms of the Islamic finance, Adiwarman said, “the clients of sharia-based banks, Reksa Dana equity fund, pawnshops as well as insurance products have reached 40 million people, bigger than the populations of Malaysia, Singapore, Brunei and the United Arab Emirates combined.

“So, now is the right time to declare Indonesia as the center of the Islamic world’s economy, starting from Jakarta,” he said as quoted by kompas.com.

Adiwarman also said Indonesia had unique aspects in the implementation of sharia compared to other countries.

“Only in Indonesia people can find sharia-based spas and karaoke establishments. You won’t find such a thing in Malaysia or Saudi Arabia,” Adiwarman told an audience of a discussion themed “Jakarta as the Center of Sharia Finance” in Jakarta.

The discussion also had Jakarta deputy gubernatorial candidate Sandiaga Uno as a speaker.

Commonwealth Life Bancassurance

Private lender Commonwealth Bank is partnering with its sister company, insurer Commonwealth Life, to launch new insurance products targeting Indonesia's rising middle class.

"This is the first partnership between the two sister companies," Commonwealth Bank president director Lauren Sulistiawati said during the launch in Central Jakarta on Wednesday.

The firms announced their bancassurance partnership, called the COMM Family Protection insurance series, which consists of unit-linked Maxiwealth Link and health insurance policies, COMM Classy Care and COMM Extra Care.

"Our target is the affluent and emerging affluent market," Lauren added.

The firm is of the view that growth of this customer segment will likely be higher than that of others.

The number of Indonesia's middle class and affluent consumers was about 74 million in 2013 and the figure is projected to almost double to 141 million people by 2020, according to the Boston Consulting Group (BCG).

However, Commonwealth Life refused to go into detail about the firm's financial targets following the issuing of the new products.

"We haven't set any target yet," the insurer's president director, Elvis Liongosari, said. "We want to give added value to our existing and prospective customers so that we formulate the products in line with the customers' needs."

The firm aims to book premium revenues of Rp 1.8 trillion (US$134.9 million) by June this year, the end of its 2016 book according to the Australian book system

Grameenphone Rocks

Grameenphone generated about $1.5 billion of gross value addition in 2015, which is equivalent to 0.8 percent of Bangladesh's total value addition and 30.8 percent of the information communication sector's.

The direct GVA generated by each full-time employee for Telenor in Bangladesh stood at $169,623 in 2015, which is almost 23 times higher than the national average labour productivity per full-time employee, as per the Norwegian telecom giant's Global Impact Report. Telenor owns 55.8 percent of Grameenphone.

In 2015, Bangladesh's leading mobile operator directly employed 4,728 full-time staff and created an additional 169,000 indirect jobs through its supply chain.

“For every job that Telenor generates directly in Bangladesh, an additional 61 are created in the wider Bangladeshi economy,” the report said. Between 2014 and 2015, the operator contributed $640 million to the national exchequer, according to the report conducted by KPMG.

“It is encouraging to see how Grameenphone operations have made a significant impact on the social-economic growth of the people as well as on the key financial indicators of the country,” said Petter B Furberg, chief executive officer of Grameenphone.

As the operator shifts its focus on transforming the digital landscape in Bangladesh, even greater social empowerment and development are expected, he said. “Telenor has committed to its journey in Bangladesh and we at Grameenphone are proud to play a core part of this nation's enlightenment,” Furberg added.

Over the last five years, Grameenphone has invested $1.18 billion, of which $248 million was invested only in 2015. Grameenphone also contributed $24 billion to the national economic growth between 2011 and 2015 with its subscription base of over 56 million, according to the report.

Its BillPay service processed 8.8 million transactions in 2015, generating total value of $325 million. Through its provision of mobile services in the country, it also enabled an estimated $8.5 billion of mobile financial transactions that year.

Additionally, Grameenphone enrolled 5.71 million customers in its free micro-insurance service 'Nirvoy Life Insurance' in 2016. In 2015, the customers of the operator generated 108 billion voice minute calls with 15 billion text messages.

The company operates 2G and 3G network and its network infrastructure includes 5,487 kilometres of fibre and more than 10,068 base-station sites, all of which have 3G and 4G capabilities.

As part of its 'Internet for All' ambition, the operator's mobile data subscribers shot up 45 percent to 15.7 million between 2014 and 2015.

Telenor also ran the same kind of study in India, Malaysia, Myanmar, Pakistan, and Thailand.

In six countries in Asia, Telenor generated $9.6 billion gross value addition and worldwide $20.3 billion.

Telenor's total global investment stood at $3.2 billion in 2015, including $3.1 billion of capital expenditure.

The report also analysed contributions of Telenor's 13 markets across the world, including six in Asia. “In Telenor, we believe that connected societies are empowered societies,” said Sigve Brekke, president and CEO of Telenor Group.

In a changing digital landscape, it is imperative that governments, businesses and organisations work together to develop frameworks that stimulate growth and create shared value, he added.

China Forex Control

Hong Kong’s insurance sector is likely to come under increased pressure after Beijing tightened its scrutiny of individual foreign currency purchases at the start of the new year in a bid to further restrict capital outflows, analysts say.

The city’s insurance companies were already feeling the pinch from a raft of earlier measures designed to make it harder for mainlanders to purchase insurance products as a way of hedging against the declining yuan.

As of January 1, 2017, individuals are required to explain the purpose of their foreign currency purchases at Chinese banks and provide additional information, according to a recent announcement by the State Administration of Foreign Exchange (SAFE), the country’s top currency regulator.

Specifically, individuals are restricted from using foreign currencies in overseas investments, including property, securities, life insurance products and investment-related insurance purchases. Analysts expect Hong Kong’s insurance industry to feel the effects of the latest measures.

“We expect more material impact on the business Chinese tourists bring to Hong Kong insurers, given the fresh restrictions on outbound personal investments,” said Jenny Jiang, an equity analyst for Morgan Stanley.

“The new rules for 2017 not only make US dollars less accessible to individuals but also effectively prevent customers from using the onshore banking system to pay for cross-border insurance premiums.”

According to the rules, the annual cap of US$50,000 for each person seeking to sell yuan remains unchanged. However, the process has become more restrictive and complicated, said analysts.

“Although there are still other ways of making the insurance payment, this move could dampen interest in and demand for Hong Kong insurance policies to a certain extent, as customers may see the

transaction as too risky and too complicated, ” Jiang said. In addition, it could make renewal payment more difficult and lead to surrenders in extreme cases, she said.

Analysts from Credit Suisse said the latest measures were “a clear reaction” to the yuan’s recent weakness and the government’s mounting concern about capital outflows. In particular, the authorities are worried that there will be a rush to buy foreign currencies in the early months of 2017, as Chinese people try to use their US$50,000 quota for the year before the yuan weakens further or additional tightening measures are introduced.

“There will be some sectors which could face a more fundamental impact on their business under this new measure, most notably insurance companies that rely heavily on business from mainland customers as well as Macau gaming operations,” they said.

The Credit Suisse analysts expect the government to introduce more capital controls.

“Indeed, the current measure is only a relative measure, as the level of the individual quota has not been removed. Therefore, if the RMB continues to weaken, whether this measure will be really effective in containing capital outflow remains doubtful. In this case, one should not be surprised if more capital account control measures follow,” they said.

Share prices of Hong Kong-based insurers have been under pressure since last year, as China gradually tightened capital controls to stabilise the yuan. Mainland investors have poured into Hong Kong’s insurance sector in recent years as they try to skirt strict capital controls to move money offshore.

In October, the Chinese authorities banned UnionPay cardholders from buying investment-related insurance products in Hong Kong and launched a probe into illegal sales of overseas insurance policies on the mainland.

AIA Group, the largest life insurer in the city, has slid 20 per cent from its peak in October. It fell 0.5 per cent to close at HK$43.55 on Wednesday.

“The uncertainty facing the Chinese tourist business has been a key overhang on AIA’s share price since last year as China gradually tightens capital controls to stabilize its currency,” Jiang said. Nonetheless, she said the policy risk has been “largely reflected” in AIA’s current share price and the company’s fundamentals still look attractive.

Siam Commercial Bancassurance

Siam Commercial Bank Plc (SCB) has begun to formally seek bids for its life insurance business in a sale that could raise about 106 billion baht ($3 billion) for the country's third-biggest lender, said people with knowledge of the process.

Prudential Plc, AIA Group and Manulife Financial Corp are among insurers weighing a bid for SCB Life Assurance, the people said.

SCB was looking to sell a 49% stake in the unit last year, but the process was delayed due to expected changes in foreign shareholder rules governing the sector, according to separate sources aware of the process.

Whether it sells all or only part of the business depends on the offers it receives and who they are from, the people said. First-round bids are expected to be submitted by early February, they added.

The sources for this story declined to be identified as they were not authorised to speak to the media. SCB CEO Arthid Nanthawithaya declined to comment. Prudential, AIA and Manulife also declined comment.

Thailand caps foreign companies' stakes in domestic insurance ventures at 49%, but the government relaxed the rule last March. However, an approval from the finance minister must be sought first.

Bangkok-based law firm Tilleke & Gibbins said in a note last week that the move is a significant reform for Thailand's life insurance industry, following liberalisation of the country's non-life insurance sector in recent years.

SCB's deal is expected to include rights for a buyer to sell insurance products through the bank's 1,200 branch network. The so-called bancassurance model is lucrative for banks as global insurers are willing to pay hefty fees for access to lenders' branch networks and for exposure to a rapidly growing middle class in developing markets, such as Thailand.

SCB Life is ranked fourth in Thailand's life insurance market, with Muang Thai Life Assurance Plc the market leader. Other major players are AIA, France's AXA, which has a deal with Krung Thai Bank, and Thai Life Insurance.

Southeast Asia is seen as a growth region for foreign insurers, who are attracted by relatively faster growth rates of life premiums and the region's low insurance penetration.

The Thai Life Assurance Association said this month that total premium income in the country grew 5.4% from January to November 2016, to 508 billion baht. Analysts expect strong growth.

"The Thai economy is expected to grow and there are more savings coming out as well, so things are looking better than before," said Rajnish Juta, who looks after Southeast Asia insurance services at Deloitte & Touche.

"I would look at Thailand and Indonesia as the ones where companies will be looking for growth. But the reason why they might choose Thailand is because it's much more stable than Indonesia. It's easier to do business in Thailand," he said.

SCB Life was set up in 1976 with registered capital of 100 million baht under the name Mahanakorn Life Insurance Co Ltd. Two years later, SCB, the Crown Property Bureau and affiliated companies held a majority stake in the company and changed the name to SCB Life Assurance to support the business growth.

In 2000, SCB and New York Life International Inc signed the joint venture agreement to expand SCB Life and changed the company’s name to Siam Commercial New York Life Insurance Plc. 

In 2015, SCB acquired all the shares of the company held by New York Life International and PMCC (Thailand) Co Ltd, making it the largest shareholder with 94.7%. The company changed the name to SCB Life Assurance.

SCB Life shares were delisted from the Stock Exchange of Thailand in late May 2015 after SCB acquired the remaining 5% of the shares it had not already owned from all minor shareholders at 1,117.25 baht each a year earlier.

SCB shares closed unchanged on the SET on Monday at 150.50 baht in trade worth 1.3 billion baht. The report came after the market closed.

Rat Shamed For Stealing

Photos have emerged on social media in China that appear to show a rat tied up and "shamed" after stealing rice from a shop.

The photos - posted to the Chinese micro-blogging platform Weibo - show the rodent tied by all four paws to some kind of trolley and wearing a sign explaining that it was caught stealing rice from a convenience store.

They were apparently taken in Heyuan city in southern China's Guangdong Province. Two pictures were posted on Jan 23 by a Weibo user with the screen name "jiu lian shan she zhang", said the Daily Mail.

The Weibo user said: "A friend of mine found a small rat in the warehouse of a convenience store. He or she then expressed symapthy for the "poor rat" being treated in such a way ahead of Chinese New Year.

In another photo, the rat has a post-it note attached to its body, which reads: "I dare not do it again!" said the Daily Mail.

The account holder of the "jiu lian shan she zhang" account confirmed to the Mail that the rat had been caught at a shop owned by his friend. He said the notes had been written by staff at the store.

The man did not expect the photos to draw so much attention on social media, the Mail said. He explained that many people had left comments under the pictures with different opinions. 

"Some people pitied the rat, some people hated the rat, and some people found it to be funny," he said, according to the Mail. I pity the rat. It's just a small animal. It would almost certainly die being treated like this."

The owner of the shop where the rat had been caught confirmed that the creature was found by his staff. The man, named Lai Tiancai, said the Mail, said "it was just a rat" and this was a "small incident".

The uploader has called for attention from the Shenzhen Traffic Police through his post. In response to the pictures, the Shenzhen Traffic Police posted three smiling face emojis on its official account on Weibo, the Mail reported.

In January 2016, a man and woman from China filmed themselves tying up a defenceless mouse and "interrogating it" for allegedly stealing bananas, the Mail said.

Mentoring Woman Leader

“If I hadn’t had mentors, I wouldn’t be here today. I’m a product of great mentoring, great coaching. . . Coaches or mentors are very important. They could be anyone – your husband, other family members, or your boss.”—Indra Nooyi, CEO of PepsiCo

WHILE women have always been contributing members of their community, they have only been legally part of the workforce for the last 60 odd years. Prior to the 1960s, women largely assisted their family businesses or took clerical and other lower-level positions in companies. Over the years, many countries have worked to engage women in the labour market and deal with issues like wage inequality, harassment and discrimination.

However, as men had a significant head start in workforce leadership, the highest positions of management, chief executive officers (CEOs) and directors are still predominantly occupied by males in almost every society. This means that many up-and-coming male professionals have access to a host of mentors of their gender who have journeyed along career paths they aspire to, whereas women struggle to find female mentors who have “been there and done that” in terms of walking a path they would like to follow.

Aside from these abovementioned issues, the limitations of the glass ceiling and the struggle to make education more accessible to girls contribute to a situation where women, even in developed economies, still shoulder a larger portion of parenting, homemaking and other social or familial obligations.

The need for mentors

While women make up nearly half of the workforce today, only 14% of senior executive positions at Fortune 500 companies are held by women. Studies have found that besides the lack of childcare facilities and support for mothers with dependents, most women struggle to climb the corporate ladder due to a lack of suitable mentors and networks.

As stated in a study by Margaret Linehan and Hugh Scullion, “Female managers can miss out on global appointments because they lack mentors, role models, sponsorship, or access to appropriate networks – all of which are commonly available to their male counterparts.”

A crucial benefit of having a credible, respected mentor is that it legitimises the mentored individuals’ capabilities and professional prowess in the eyes of managers and leaders alike. The wisdom and experiences shared by a mentor can also be pivotal to helping a protégé successfully navigate the complexities of corporate terrain. Knowing that an advocate within the organisation or industry has your back can provide a tremendous boost of confidence if you are a woman manoeuvring through tedious office politics further weighed down by gender imbalance. In addition, coaching and sponsorship increases one’s visibility to notable members of her organisation and industry.

What’s more, a mentor who can empathise and is aware of the unique gender differences in career management also offers valuable psychosocial support by being a role model and counsel to her mentees. For any woman – or any a human being, for that matter – this acceptance and affirmation results in an elevated sense of competence as well as self-worth.

Putting the 'Men' in mentor

Currently, however, men are still dominating positions that enable senior professionals to be influential mentors. In truth, many of these male professionals could mentor women just as well as they mentor men if they had a forum to discuss and understand the gender-related issues faced by their female protégés.

A man’s ability to be an effective mentor to women depends greatly on the extent to which they understand the challenges that women disproportionately face when managing their careers. A mentor who can adapt their mentorship approach to address the gender-related needs and concerns of their mentees will not only enhance their mentees’ career trajectories, but also contribute to women staying in that field. This in turn helps to extend the positive influence and legacy of the mentor.

So how do we go about developing better mentoring relationships between the sexes?

1 Prioritise listening skills over quick-fixes

Contrary to popular belief, neuroscience has found that women are not more emotional than men. In fact, when compared, women were better at reframing their negative emotions by utilising positivity while men were more inclined to control, or even mute their feelings.

In short, our gender difference lies not in our level of emotionality, but rather in the form of our emotional expression. Women are more likely to express their feelings through words or even tears while men tend to bottle it up.

These differences can lead to misunderstandings and miscommunication, as well as relational breakdown, if a mentor is not attuned to his or her female mentees’ neurological inclination to be more analytical of her emotions and therefore more openly expressive of them.

The first step in addressing this is for the mentor to exercise his listening skills, aiming to empathise rather than to diagnose or instruct his mentee towards what he sees as an easy solution. This habit also serves to develop the mentor’s interpersonal skills, open doors to larger networks and help them win access to insider details of their company, which in turn, enables them to be more effective leaders.

2 Manage your mentor-mentee relationship openly and transparently

One of the main reason many male mentors do not take women under their wing is the fear of engaging in a close professional relationship with a woman and how this might be perceived by others. While people’s openness to platonic male-female friendships and professional relationships is a work in progress, a mentor can start to mitigate some of these concerns by engaging two female mentees at the same time and encourage them to mentor each other even as he mentors them.

Additionally, conduct your catch-up discussions in the open to avoid generating grist for the rumour mill. Maintaining transparency and openness is the best way to keep your mentorship professional and effective.

Other avenue for women to seek mentors

Malaysia has taken great strides to start programmes that empower women to take the next big step in their career and also find mentors to support their journey. MaGIC (Malaysian Global Innovation & Creativity Centre), SME Corp Malaysia, and the Mentoring Women in Business Programme – implemented through a collaboration among the Cherie Blair Foundation for Women, Qualcomm Wireless Reach, Maxis and the Foundation for Women’s Education and Vocational Training – are some resources available to women seeking mentors or support in their professional career.

Informed and inclusive mentor and mentorship programmes for female professionals are pivotal to equitable global and community development.

As female mentees enjoy a more successful career path with timely promotions, better salaries, improved job satisfaction and commitment to the organisation, they ultimately develop a stronger sense of self-worth that benefits their families and, ultimately, the next generation.

Organisations that create and encourage mentorship opportunities for women also help position themselves for further success in the future. Mentoring relationships promote more collaboration and creativity within the organisation. At the end of the day, this makes everyone more self-aware and attuned to one another – widening and enriching our interpersonal skills and professional synergies.

Contributed by: Louisa is a psychology major and freelance writer for Leaderonomics. She believes the time to change and be greater than you’ve ever been is now. To reach out to Louisa, e-mail louisa.allycyn@leaderonomics.com