Re-invent, re-skill, re-adapt, says BNM Governor

Bank Negara Governor Datuk Muhammad Ibrahim at the press conference after presenting the Bank Negara Malaysia First 2017 GDP.

KUALA LUMPUR: A changing environment with new challenges requires a long-term strategy, says Datuk Muhammad bin Ibrahim, Governor of Bank Negara Malaysia.

In his speech at the National Public Sector Accountants Conference 2017, Muhammad spoke about integrity in the public sector as well as a willingness to "re-invent, re-skill and re-adapt" in order to be better prepared for the industries of the future. 

He argued for more flexible policy-making as policies need to be fine-tuned or changed where necessary in a fast-moving environment.

"This is not ‘policy flip-flopping’. Instead, policymakers should be bold enough to reverse or change policy direction if it is no longer serving the public interest effectively. The expectation is not for the public sector to be infallible, but for it be agile enough to respond calmly and assuredly to unintended outcomes," he said.

Ibrahim also emphasised that in addition to technical know-how, there is a need for better communication skills and the use of multiple communication platforms, including digital and online.

Many professions, including accounting, will face a dramatic shift in skill sets over the coming decade and public policy will likely "be overwhelmed by a sense of cynicism or pessimism". 

"This is where public sector accountants may offer a breakthrough by taking on a more strategic role," he added.

There should also be performance indicators that are identifiable, measurable and practical. "Our performance indicators should be defined by three key features: Long-term in outlook, integrated with overall strategic objectives and should also focus on impact of social outcomes," said Muhammad.

In doing so, the silo mentality must give way to cross collaboration. Performance measurement should go beyond budgetary considerations to take into account public satisfaction and post-completion financial sustainability.

Muhammad cited the concept of "integrated reporting", which covers a broad scope of factors connected to business activities,including greater consideration of social impact and value creation for the future.

"By identifying the inter-linkages between financial, environmental,social and corporate governance, we are better placed to adopt a more holistic and socially meaningful approach towards strategy development," he said.