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KUALA LUMPUR: Techbase Industries Bhd’s (TIB) wholly-owned subsidiary Honsin Apparel Sdn Bhd (HASB), has filed a suit against the major shareholder of South Malaysia Industries Bhd (SMI) and Asian Pac Holdings Bhd for its management practices. In a statement, HASB expressed disappointment with the current SMI board for persistent losses since 2019. Further, given the company’s financial performance, the substantial increase in director fees for the financial year ending June 30, 2023, is disproportionate. HASB noted that this concern follows SMI’s recent announcement of filing a judicial review against the Securities Commission Malaysia (SC). HASB is also particularly troubled by SMI’s prolonged delay in convening an annual general meeting (AGM), which has persisted for 21 months without any public explanations to SMI’s shareholders. “This departure from the customary 12-month AGM timeline raises serious questions about SMI’s management’s transparency and accountability. “We are profoundly disappointed with the actions of the current SMI board. Their focus and priorities appear to be starkly misaligned with the interests of the shareholders. “Certain decisions seem to lack transparency instead of fostering the company’s advancement. “We hope no further delay of the AGM,” HASB spokesperson said in the statement. The company said the actions of SMI’s directors, which undermine shareholders’ rights and erode confidence in the company’s governance, could have profound implications on foreign investment confidence in Malaysia. Investors keenly observe corporate governance standards in public-listed companies, and any deviations from these standards can significantly impact investor sentiment, HASB noted. Moreover, there is a pressing concern that the incumbent SMI directors have failed in their fiduciary duties by persistently delaying the AGM, thereby obstructing shareholder engagement and oversight, without demonstrating any tangible efforts to address SMI’s ongoing financial losses. Note that HASB had previously won a case calling for an extraordinary general meeting (EGM). However, SMI has applied for a stay on the judgment, further delaying the EGM. Additionally, SMI has applied to the Companies Commission of Malaysia (SSM) for a delay in holding the AGM without providing any reasons to the shareholders. HASB and HIQ Media Malaysia Sdn Bhd (HMM) have filed a suit against Mah Sau Cheong and 15 others. To note, HASB and HMM collectively own a 10.01 per cent stake in the loss-making SMI. SMI’s ownership is spread among various owners, with BH Builders Sdn Bhd owning the largest portion, or 9.31 percent. This company is fully owned by Asian Pac Holdings Bhd, another property developer listed on the main market of Bursa Malaysia. “We urge all shareholders to attend and vote in the upcoming AGM to exercise their shareholder rights and express their views on the company’s management. “We must stand together to ensure transparency, accountability, and good governance in SMI,” added HASB spokesperson. HASB remains committed to advocating for the rights of shareholders and the betterment of SMI.

KUALA LUMPUR: Smart Reader Worldwide Sdn Bhd (SRW), the early childhood education franchiser, aims to establish a stronger presence in Malaysia next year as the demand for new centres is picking up pace post-pandemic. Executive director Kevan Ong said the East Malaysian market has been the company’s strong growth state, and part of the company’s strategy is to establish a broader presence there. “We believe Sarawak is the right choice for expansion, as there are ongoing developments coupled with the resumption of oil and gas activities in the state. “We are experiencing a surge in inquiries from young entrepreneurs keen to become our franchisee and operate new early childhood centres in smaller towns. “We are also receiving inquiries from Sabah and Peninsular Malaysia. We foresee 20 new centres being operational throughout Malaysia in 2024,” he told The Exchange Asia. Ong said a nationwide demand for affordable and quality preschool education continues to exist, and the rapid development and urbanisation in East Malaysia create more demand for educational services. “We also have a regional office and hub in Kuching, Sarawak, and our centres in Kuching and Kota Kinabalu. “Besides accessibility and support for existing centres, the team provides valuable insights and allows us to focus on targeted and viable locations for expansion,” Ong said. Ong said SRW currently has approximately 300 centres nationwide, including those awaiting the granting of a franchisee licence to begin operation. The company has 40 franchisees currently operating in Sabah and Sarawak. “Apart from our target to expand 20 more centres in Malaysia this year, we are also targeting international expansions in Australia and Indonesia,” Ong said. SRW offers preschool education programmes for children aged three to six. The curriculum is focused on promoting learning through play. The SRW franchise fee is RM270,000, including setup costs, and the company offers several incentive plans for young entrepreneurs interested in entering the early childhood education business. “We hit our target for 2023, especially with the new Smart Reader Kids++ concept, designed as a daycare and transit centre for primary school students. “Further, we opened our fourth centre in Melbourne, Victoria, with the launch of Smart Reader Kids Hallam,” Ong said. Touching on listing plans, Ong said the company aims to be a public-listed firm in Malaysia and abroad by 2025 after establishing a stronger brand presence, expanded operations, better earnings volume and perks to offer future shareholders. “When want to make sure that when we are going for initial public offering (IPO), we want to show an upward trajectory of the company and a bigger appetite for shareholders as they may want to see positive organic growth,” he said. Ong said SRW’s market goal would be to continue growing the Smart Reader Kids brand in Malaysia, Australia, and Indonesia. “We aim to achieve this by expanding our geographical reach by opening new centres in untapped markets. This will also increase our enrolment numbers to 20,000 students,” he said. Ong said the main criteria SRW seeks in selecting entrepreneurs to join the Smart Reader Kids fraternity is passion. “We want people who are passionate about working with children. In terms of support, we have an established franchise system that has been in operation for more than 20 years, providing support from all areas, including training and development, human resource (HR), legal, branding and marketing, research and development, and operations,” he said. When asked to comment on what the government should look at to improve early childhood education and initiatives, Ong said one factor would be initiatives to encourage home-bound mothers to return to the workforce. He said one primary cause is that many home-bound mothers want to return to the workforce and how they can send their children to a proper education and care centre. He said countries such as Australia already have similar centres for working mothers, and employers encourage a proper work-life balance for working mothers. “The government and related ministries should emphasise new initiatives for young mothers keen to return to the workforce. “There must be subsidised and affordable early childhood education and care centres in major cities. This would make it easy for home-bound mothers to return to the workforce and have their children begin their education in these centres,” Ong said.

KUALA LUMPUR: The demand for internet bandwidth in Malaysia will continue to grow this year, fuelled by specific sectors such as e-commerce, online entertainment, remote work, and cloud-based services. The Malaysia Internet Exchange (MyIX) chairman, Chiew Kok Hin, said that to accommodate this surge in demand, MyIX is implementing specific measures to enhance the overall internet infrastructure and focusing on infrastructure expansion. “These include upgrades, investments by local internet service providers (ISPs) and global players, and the adoption of new technologies that drive further enhancements in internet connectivity,” he told The Exchange Asia. Chiew said the country’s demand for internet bandwidth continues to show strong and sustained growth. This trend is evidenced by the record peak of 2.1 terabits per second recorded in May 2023, and as the current demand for internet bandwidth is also around this mark, MyIX foresees it rising further in the months and years to come. Chiew said this internet usage surge is driven by various factors, including the proliferation of the latest and most powerful digital technologies, the expansion of online services, and evolving user behaviours. Moreover, the increase in participation from various entities, including hosting companies, universities and enterprises, has enriched the MyIX ecosystem, leveraging the ‘network effect to improve connectivity across Malaysia. “By encouraging more entities to join the exchange, we aim to enhance our users’ overall internet performance and reliability,” said Chiew. He also said the advancements in video conferencing, large-scale display technologies, and emerging technologies such as cloud computing, IoT (Internet of Things), and 5G have significantly contributed to this surge. “In particular, artificial intelligence (AI) seems to be progressively moving mainstream. The proliferation of AI in various aspects of life and work significantly contributes to the sustained high demand for internet bandwidth. “AI technologies are becoming increasingly embedded in our daily activities, from personalised recommendations on streaming platforms to intelligent productivity tools in the workplace. “In this light, MyIX recognises the importance of adapting our infrastructure to accommodate the bandwidth requirements of AI technologies, ensuring that Malaysia remains at the forefront of digital innovation and connectivity,” said Chiew. Chiew said there is also a convergence of AI with some of the technologies mentioned. For example, a noteworthy development in this realm is the availability of the Zoom AI Companion in Bahasa Malaysia, marking a significant milestone in making advanced AI tools accessible to a broader audience in Malaysia. For video conferencing meetings, it offers capabilities like quick catching up on missed discussions, smart recording with highlights and chapters, and even generating summaries with the next steps. These developments enhance the efficiency and effectiveness of digital communications and highlight the growing demand for internet infrastructure capable of supporting sophisticated AI applications, said Chiew. In response to these trends, Chiew said MyIX remains committed to ensuring its infrastructure is robust and adaptable to meet the growing demands. “We are planning for substantial infrastructure investments and capacity expansions in 2024, focusing on enhancing the efficiency and capability of our internet exchange infrastructure. “These initiatives are designed to future-proof our network against the increasing traffic volumes and ensure the provision of fast, reliable internet connectivity to our users,” said Chiew. Chiew pointed out that in the last financial year, MyIX underwent a comprehensive restructuring of its backend network, implementing various improvements. “We invested in new firewalls, specifically Fortigate, to fortify our network’s access redundancy. This addition significantly bolstered our system’s resilience when accessed via non-MyIX networks. “Furthermore, we expanded our upstream providers at no cost. The two providers, namely REDtone Engineering & Network Services Sdn Bhd and IP Serverone Solutions Sdn Bhd, were crucial additions to our network architecture,” said Chiew. He also noted that MyIX recognises the importance of collaboration in this dynamic ecosystem. “We are actively engaging with ISPs, content providers and other stakeholders through ongoing discussions and partnerships to optimise the internet ecosystem in Malaysia. “Such collaborative efforts are vital for collectively addressing the escalating bandwidth demand and ensuring a seamless internet experience for all users,” he said. MyIX’s vision is to shape the future of internet connectivity in Malaysia by building a resilient and scalable infrastructure that can support the dynamic needs of its users and the broader digital economy. On the corporate social responsibility (CSR) front, Chiew said MyIX launched a national initiative, the Network Infrastructure Training Programme, aligning to empower the Malaysian workforce with essential digital economy skills. The programme kicked off last month at MyIX’s headquarters in Puchong, Selangor, selecting 25 participants from a pool of hundreds for the inaugural ‘Explore the World of Network Infrastructure’ course. This effort, in partnership with Forward College, aims to address the digital skills gap by providing hands-on training in critical areas such as internet protocol (IP) network and systems operations, routing protocols, and distributed denial-of-service (DDoS) prevention strategies. Chiew said this initiative was designed to benefit recent graduates, professionals from MyIX member companies, and the industry at large. With the backing of MyIX members, the programme reflects a strong commitment to collaborative efforts in technological education, underscoring the importance of building a skilled workforce ready to navigate the challenges and opportunities of the digital future. “This programme is not just about theoretical learning but also about equipping participants with practical skills that can be immediately applied in the workforce. “Through such initiatives, MyIX plays a pivotal role in enhancing internet speed, reliability and security in Malaysia, contributing significantly to the country’s digital economy,” Chiew said.

The seismic shifts triggered by the global pandemic have propelled leadership into uncharted territory, particularly in Southeast Asia. As the region undergoes a rapid digital transformation, technology and sustainability are colliding to reshape old views of leadership, creating a landscape where integrating technological prowess with a human-centric ethos is not something to consider but something that needs to be done. Let us take a closer look at the trends now defining leadership dynamics and their nuances to understand the implications in the long term. Embracing Digital Transformation for Operational Excellence In the wake of the pandemic, organisations in Malaysia are now redefining leadership paradigms, placing a premium on leaders who are adept at navigating the intricate interplay between digital technology and human-centric strategies. The emphasis is not merely on adopting technology but on strategically leveraging it. Digital tools, ranging from communication platforms like Microsoft Teams to innovative artificial intelligence (AI) applications, like Otter.ai and ChatGPT are becoming integral to internal processes and product delivery. The Malaysian landscape, characterised by its unique blend of cultures, demands a nuanced approach. Here at The University of Manchester, our collaboration with local partners like the Perdana Leadership Foundation underscores the importance of tailoring strategies to align with the distinct demands of Malaysia. The maturity of the market, variations in the prioritisation of environmental, social, and governance (ESG) strategies, and the delicate dance between tradition and innovation all contribute to the multifaceted nature of leadership in the Malaysian digital age. Fostering a Culture of Innovation Leaders in the region are now charged with fostering cultures of innovation where risk-taking is not just tolerated but actively encouraged. A compelling case study from an Indonesian bank exemplifies a groundbreaking approach – setting targets for the number of failed innovations for their newly formed innovation division. This unique strategy underscores the importance of embracing failure as an inherent part of the innovation journey, promoting a mindset shift crucial for navigating the evolving digital landscape. In the Malaysian context, innovation takes on a broader scope. The focus extends beyond technological innovation to encompass the integration of traditional values seamlessly. This is why our programmes at The University of Manchester explore how AI technology can enhance, rather than replace, traditional practices. The goal is to provide people with more time for higher-value work, aligning with their cultural values and fostering innovation. Multi-specialist Leadership in a Dynamic Work Environment The era of leaders specialising in one domain is fading in Malaysia. The post-pandemic career trajectory involves navigating through multiple roles across diverse areas. This demands leaders to be multi-specialists, not only in digital technologies but also in finance, stakeholder management, strategy, and beyond. The call for continuous upskilling echoes the need for leaders to stay agile in a landscape where change is constant. In Malaysia’s cultural diversity, recognising the significance of the country’s cultural heritage becomes a cornerstone of leadership. Our emphasis on social and community engagement goes beyond business, working with a diverse range of stakeholder groups to understand their perspectives, values, and needs. Balancing tradition with innovation is a challenge we acknowledge, striving to merge technology with traditional wisdom through education programs that align with Malaysia’s cultural heritage. Adapting Leadership to Hybrid Work Environments Remote work has become the norm in Malaysia, necessitating a recalibration of leadership styles. The traditional office environment, conducive to organic learning and team dynamics, is being replaced by intentional touchpoints, personal development plans, and deliberate planned team interactions. This hybrid leadership approach ensures leaders can understand team dynamics and individual motivations in an era where physical proximity is no longer guaranteed. The challenge lies in understanding the nuances of leading in a hybrid environment in Malaysia. The shift towards flexible working arrangements demands a reassessment of well-being strategies. Leaders are leveraging technology not only for skill development but also to address stress management and mental health support. Recognising the impact of constant connectivity, organisations are implementing clear well-being strategies to ensure employees have the time and support needed to thrive without burnout. A Global Mindset for Global Success In an interconnected world, leaders in Malaysia must possess a global mindset. While technology facilitates global reach, success in one market doesn’t guarantee success in another. Understanding and adapting to the diversity in markets, cultures, and norms is paramount. The ability to navigate this complexity defines leaders who can steer their organisations toward success in an increasingly globalised business landscape. Our collaboration with the Perdana Leadership Foundation is a testament to this approach. By working with an organisation deeply rooted in Malaysia’s leadership legacy, we not only gain insights into the country’s development journey but also create a joint product that fuses innovation with leadership cultures. This synergy exemplifies our commitment to navigating the delicate balance between digital technology, sustainability, Malaysia’s rich leadership heritage, and her growth potential. The post-pandemic era has accelerated the evolution of leadership skills in Malaysia, demanding a delicate balance between technological prowess and humanistic approaches. Malaysian organisations are witnessing a paradigm shift in leadership—one that embraces digital transformation, encourages innovation, and understands the nuances of diverse global markets. As leaders chart their course in this dynamic landscape, the ability to integrate digital technology with sustainability and human-centric values emerges as the cornerstone of success. In steering organisations through unprecedented change, these leaders are not just adapting to the new normal; they are defining it. Alliance Manchester Business School executive director of client relations Stuart Wells.