How did you come to hold your current position?
For a young man whose ambition was to be an engineer, I have come a long way as an accountant. Despite my preference for all things technical and tinkering with my hands, I took my father’s advice and left for Australia to pursue a Business Administration degree, majoring in Accountancy at the Wollongong University in Sydney. While there, it became apparent to me that working in the banking industry would be my future calling as it was similar to the career path pursued by my elder brother. I joined Bank Rakyat in 1991 after completing my degree.
I started out as a Junior Executive in Muar, Johor, and honed my skills slowly and assuredly. As time went by, I was exposed to various divisions within the bank, including audit systems and management, accounts and budgetary controls, treasury, finance and banking operations. My rise within the rank and file included senior positions like General Manager of Finance, Head of Accounts and Information Management, Bank Secretary and Senior General Manager Banking Operations before being appointed as President and Managing Director in 2013.
What are the developments in Bank Rakyat that you are most excited about?
We registered MYR2.13 billion in profit before tax and zakat in 2013, the third year in a row the bank had recorded above RM2 billion in profit before tax and zakat. We recorded new levels in 2013 for assets, deposits, financing, Return On Shareholder’s Fund (ROSF) and gross impaired loans. The Asian Banker listed Bank Rakyat as the seventh largest and fifth most profitable bank in Malaysia. Our Return on Asset (ROA), at 2.55, is also the best in the industry and demonstrates our resilience and steady financial growth. We are the country’s second biggest Islamic bank as well as the 11th largest in the world. We’ve achieved this on the back of a very competitive business environment, slower economic growth, uncertain global economy and regulatory interventions to curb household debts. That we’ve been successful testifies to the effectiveness of key initiatives in diversifying revenue channels, enhancing risk management, inculcating a high performance culture, aggressive customer engagement and prudent financial management.
Tell us about Bank Rakyat’s recent achievements.
The last five years have been about sustaining growth and continuous transformation. We recorded significant improvement, thanks to strong leadership, dedicated staff, customer confidence, improvement in services and process, and increase in customer touch points. Among the key growth areas are in assets, which, at the end of 2013, exceeded MYR82billion, an increase of MYR32billion since 2009, and deposits and savings, which nearly doubled from MYR38.3billion in 2009 to MYR65.2billion in 2013. Shareholders’ funds also grew strongly in the same period, from MYR5.3billion to MYR11.3billion, while non-performing financing fell from four per cent to 2.2 per cent.
How has Bank Rakyat enhanced its competitiveness in the marketplace?
One of the key initiatives I implemented when I took over the helm at Bank Rakyat was to embark on a comprehensive and detailed transformation programme to ensure our continued success and sustainability. The programme, which runs to 2017, covers financial aspirations, market and customers, capacity and internal process enhancement, and human capital learning and growth. This three-phased strategic business plan consists of capacity enhancement and risk management; diversifying the bank’s portfolio and reducing dependence on singular product or segment; and sustaining growth.
What are some of the special initiatives that you introduced to Bank Rakyat?
As part of staff enhancement and performance improvement, I introduced the Enterprise Scorecard, a talent management review framework, as well as talent pools for leadership positions and subject matter experts. We also established Forum Inovasi as a way of inculcating an innovative culture among staff, encouraging them to share views and ideas that can help improve work processes.
We also sought to enhance customer engagement and improve service by, for example, introducing coin deposit machines and creating a Rakyat Mobile Sales Force, a dedicated sales team that seeks customers outside the bank. They are equipped with notebooks, broadband connection, MyKad readers and mobile printers, which allows them to complete transactions like personal loan applications and opening of accounts.
What is the one important thing that helps you stay on top of your game?
When a piece of paper is accidentally torn, it can be salvaged with, perhaps, a cell-tape on the damaged part. If no effort is taken to save the torn paper, however, it will remain a useless piece of torn paper. This philosophy can be applied to common, daily activities and this is how I motivate my people – challenging their mindset towards wanting to change for the better by making the effort to change.
What is a movie that, in your opinion, best serves as a lesson for a Managing Director?
I would say Titanic – it’s all about managing crises.
What are the secrets of a winning team in your business?
I subscribe to the concept of ‘thinking accountants’. I posit that the state-of-the-art systems available would take care of the accounting aspect of a management planning process. It is essential to incorporate analysis and strategy to be part of the planning process and this is where ‘thinking accountants’ are necessary to drive the process towards planning success.
What is the best advice you have ever received?
Success is about strong self-discipline, without which one is doomed to failure.
