We were involved in numerous nation-building engagements in FY18 and FY19 where we had the opportunity to solve complex problems and influence societal agenda.
MFRS 9
The International Financial Reporting Standard (IFRS) 9 is a new international accounting standard that addresses the accounting of financial instruments. This standard was introduced following the global financial crisis in 2008 and intended to provide a better measurement of financial instruments and their impact on the financial results and position of companies.
IFRS 9 which is also known as the Malaysian Financial Reporting Standards (MFRS) 9 in Malaysia is a very complex standard and has far-reaching implications. The implementation of MFRS 9 affected the credit assessment and pricing for mortgage loans, car loans and credit card debts. It was critical that our clients are able to implement MFRS 9 without significant disruption to the market and consumers.
While the PwC global network was focused on developing IFRS 9 solution tools for international banks, the same tools could not be applied to our clients who are in the emerging markets. Working with other PwC offices in the region, we developed our own solution sets that could be used by banks in emerging markets, including Malaysia.
Given the success of the development, the solutions tools that we had developed were amongst the few recommended by the global PwC network for emerging markets. We were also designated as the emerging market hub for this subject, helping our neighbouring countries with technical know-how and supporting the implementation of IFRS in their territories as well.
Locally, as a result of our work, PwC Malaysia helped approximately 80% of all Malaysian banks with the implementation of MFRS 9.
Promoting national unity through education
Promoting national unity through education was made a key objective of the National Education Framework and ‘Unity and National Identity' was emphasised in the Malaysian Education Blueprint 2013 - 2025.
In line with this, the Ministry of Education's Education Performance and Delivery Unit (PADU) engaged PwC Malaysia in February 2018 to review the implementation of the existing framework of Education Unity Policies and Programmes and the impact that it was having within the public school system across Malaysia.
Our engagement covered two aspects:
- Assess the implementation effectiveness of the Education Unity Policies and Programmes and impact on achieving the desired unity behavioural attributes as defined by the Ministry of Education. This assessment was conducted through a survey of teachers and students and focus group discussions in 242 schools nationwide.
- Conceptualise the idea of national unity and identify key issues and drivers within the education system that affects unity. These were identified through extensive research, review of Independent Organisation Unity Surveys and interviews with ministry officials, prominent national figures and academicians. Among those interviewed were the late Tan Sri Khoo Kay Kim (Malaysian historian), Tan Sri Dr. Omar Abdul Rahman (former national science advisor), and Tan Sri Dr. Asiah Abu Samah (first and only female Director General, Ministry of Education). Following this, we conducted a subjective review of the Education Unity Policy to assess if it sufficiently addressed the unity issues and drivers that were identified.
At the end of the engagement, PwC proposed a number of amendments to the current Unity Policy Framework, including introducing the unity concepts of diversity, inclusiveness and equality into the Framework and recommendations to spread awareness and increase participation among students, teachers, as well as the broader community.
These recommendations have been presented to Ministry officials and are being discussed and deliberated for potential future implementation.
Technical Vocational Education & Training
The Government of Malaysia recognises that in order to fulfill the aspiration of being an advanced economy and an inclusive nation, it will need to help build its people's skills. One of the cornerstones of this aspiration is the availability of quality graduates in the technical and vocational field. The current Technical Vocational Education & Training (TVET) ecosystem in Malaysia faces critical challenges which impact the delivery of programmes and subsequently, the quality of students and their industry-readiness.
Hence, we were appointed by the Institute of Labour Market Information and Analysis, Ministry of Human Resources (MOHR) in 2018 to develop a blueprint for TVET in Malaysia. This engagement is our second TVET project. Our first was with the Economics Planning Unit in 2016 to deliver a report on Demand and Supply of Human Capital Requirements of TVET.
The blueprint aspires to enable TVET to create life-long learners driving the needs of a high-income economy. Our seven-month long engagement involved multiple stakeholders across the three pillars of Government, industry players and TVET institutions across the nation. Based on our assessment and guided by good practices across various PwC network firms, we developed a blueprint which impacted the following areas:
Governance of TVET to ensure it is robust and effective
Operating model across various Ministries and institutions to drive efficiency
Improving quality of learning by ensuring higher involvement of industry players
Learning pathways to promote higher academic education for TVET graduates
Funding model which is self-sustainable
Channels to improve TVET students' work esteem
Currently MOHR and the related Ministries are involved in implementing some of these recommendations. Once implemented, our recommendations will not only impact nearly 150,000 graduates yearly but will enable industry players to fulfill the requiremens of high-value jobs.
Yayasan Peneraju Pendidikan Bumiputera
Yayasan Peneraju Pendidikan Bumiputera (YP) is an agency under the Ministry of Economic Affairs that supports socio-economic intervention aiming to provide opportunities for deserving students and young adults to pursue quality education, undergo skills-training or complete their professional certifications, so that they may achieve their highest potential.
In February 2018, PwC Malaysia was engaged to review YP’s current strategy (Roadmap to 2020) and develop a new strategic roadmap (i.e. "Reimagining YP" Beyond 2020 Roadmap) with the objective to strengthen the agency’s internal and external position to be effective and relevant post-2020.
This 6-month long engagement includes identifying future high-income sectors, employment trends and opportunities, initiatives in the education and workforce landscape, and areas of opportunity for YP to continue to operate efficiently and play an impactful role in nation-building.
We assisted YP in shaping their aspiration, focus and target areas beyond 2020. The outcome of this is a new strategy and way forward for YP; which includes:
A new operating model based on YP’s new direction
Options for sustainable financial sources
Roadmap and prioritised implementation plan
Through the new strategy, YP aims to spearhead national initiatives and programmes that focus on education and workforce talent development by coordinating efforts with multiple organisations and other agencies within this space.
Cancer Research Malaysia
In June 2017, we completed a pro-bono review of governance at Cancer Research Malaysia (CRM), a Malaysian non-profit research organisation. CRM, established as a company limited by guarantee in 2000, has been an audit client since its inception. The Board proactively sought a review of governance to put in place appropriate Board oversight practices and we were pleased that CRM adopted our recommendations in its entirety.
In December 2018, CRM approached PwC again to conduct an independent review to obtain further insight into areas of priority highlighted by the Board of Trustees. This followed an internal Board evaluation exercise conducted by CRM based on our recommendations in 2017. We ran interview sessions with each Board member and summarised their feedback into a report. The report focused on three key priorities - areas for growth for CRM, sustainability and public awareness of CRM.
Malaysia Digital Economy Corporation (MDEC) Titan Reverse Immersion programme
The PwC-MDEC Immersion Programme aims to provide a platform for leaders to immerse, exchange ideas and discover how to operate effectively in the new digital economy. The 6-month leadership development programme pairs a PwC Partner with a start-up CEO/leader (Emerging Titan). The programme was launched in April 2019. The three start-ups were Supahands, Dropee and Involve Asia.
The three pairs met regularly to exchange experiences, ideas and learn from each other. The engagements include office or town-hall visits and coffee chats. The startups were also invited to Building Trust Awards ceremony. PwC Partners also shared insights into the startups' business priorities and concerns. One of the startups were quick to act on the knowledge exchange, and have even adopted some of PwC's flex initiatives.
The next touch point would be a PwC subject matter expert-sharing session based on key topics/areas highlighted before ending the programme with a reflection and wrap-up session.
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