Speaking to FMT, Firdaos said there were many qualified Malays, including Umno members, who could lead GLCs, but the question was whether these Malays were available or whether they would want to join a GLC.
Firdaos was commenting on the speech by a Wanita delegate to the Umno general assembly who had asked why non-Malays were given top positions in some government-linked companies (GLC). She demanded that all GLCs be helmed by Malays because “GLCs belong to us”.
“If you want to have quotas it’s fine but it must be compensated by the right talent. Quotas are there to allow companies to pick and choose but you don’t want to choose a leader with an incomplete skill set,” said Firdaos, who is a Fellow in Economics at the Institute of Strategic and International Studies Malaysia (Isis).
“It is harder to fish with a small net. If you don’t have the right talent to fill these quotas then it may be ineffective, and as a result, the profitability of the company will be affected.”
Firdaos said: “Whether such a proposal conforms to our nation’s long-term economic aspirations is an area of debate.”
He added that GLCs themselves needed to decide if they wanted to operate like government agencies or companies which made profit for their shareholders.
“If they want to make profit, then they should prioritise finding the best talent instead of having quotas.”
Meanwhile, veteran economist Yeah Kim Leng said racial quotas were not feasible for modern day businesses, noting that even in highly nationalistic societies, companies were hiring people of different races and nationalities.
“Even in Japan, automotive giants are looking to hire the best talent from around the world,” he said, citing the case of Nissan chief Carlos Ghosn, who is now set to take over as Mitsubishi chairman.
“When we are looking for the best leaders to run a company, we should not restrict our search based on race, religion or nationality.”
The professor of economics at Sunway University Business School said when the best person was chosen for the job, everyone benefited.
“The company benefits, the employees benefit, and when the company grows, more job opportunities are created.”
Earlier this week Bagan Wanita Umno delegate Hamidah Arshad questioned why a Chinese had been appointed CEO and general manager of SP Setia Bhd.
She said when top positions in a GLC were filled by other races, it affected the opportunities for Malay contractors, consultants and lawyers.
“GLCs belong to us, but why are we giving them (top positions) away to other races? Who will help our own race? Whose fault is this? It’s ours,” she was quoted as saying at the Umno general assembly.