Pioneer. Trailblazer. Grandmother of eleven. Tan Sri Dr Rafiah Salim has had many accolades attached to her name, including a position in the United Nations. But she herself will tell you she is particularly proud of her nine-year tenure as Director and Chairman of Allianz Malaysia Berhad (Allianz Malaysia), where she has always stressed to her board the importance of integrity.
This seems like an important lesson to hold on to as the Allianz Malaysia management team undergoes a transition and she prepares to retire. We ask her about her hopes for the team and the company moving forward.
The Edge: For the first time in its history,Allianz Malaysia has an all-Malaysian leadership team. What do you think of this milestone?
Rafiah Salim: I am very proud of that fact. However, what we need to remember with Allianz Malaysia is that the most important thing is performance. We appoint the best person for the job. Fortunately, Allianz also trains our people to be the best.
After a number of years, they have found that the best people to do the job in Malaysia are the Malaysians, who are also amazing performers. I don’t believe that the multinationals must, or should, appoint Malaysians, they should appoint the best. We hope that the multinationals train Malaysians to be the best.
The Malaysians that we have appointed, they have a fantastic track record in terms of performance. They are trusted, they are respected.
For their part, what can multinational companies (MNCs) do in order to help train and elevate a local leadership team?
I was with Nestlé, the training there was also very good but, some of the MNCs, they do have a policy that their nationals should be leading the companies. What would happen is, the good multinationals, they send out Malaysians into the world, to work and lead in some of the other countries. So it depends really on the policy. But with Allianz, it is just performance.
Also with Malaysia, there is the advantage of putting in the locals because of cultural idiosyncrasies. The Malaysian who is appointed must also be sensitive with regards to the culture of the company, so that is why the training in Allianz, they train them in Munich [Germany], so you can understand the corporate culture fully. So, by the time they are appointed as a leader, they are aware and fully absorbed into the culture of the company, but they are, of course, masters of the local culture.
However, a company’s culture is also of great importance, especially when it comes to MNCs. What is the advice you give to management if they have to deal with orders from the mother ship that they know won’t work in a local setting?
It happens to us every now and then. But as I said, the culture of respect is important. In Allianz Malaysia, I was able to get back to the regional office and explain to them why some things cannot work. Something that is brought from the headquarters.
Fortunately, all this time because of the respect and trust, we were able to adapt and adopt. There was a lot of adapting so that we can meet with the local requirements, so that is important. That is what I was saying, the respect for each other becomes very important, otherwise you must be in a situation where you say ‘I beg to differ’, and explain why you differ, and explain with good evidence.
They will listen, because they are professional people. Especially with Allianz Malaysia, which delivers to them a good performance, good dividends every year. Of course, they will not disrupt us and create problems to the bottom line. It is all about performance, if you don’t perform, susah lah.
Do you feel that a more effective leadership team is one that comprises entirely locals, or of different nationalities?
Of course, if one appoints a local who has not had international exposure, there would be that limitation. However, as I said, the training in Allianz involves that exposure. The fact is that a good relationship matters between the Malaysian entity with the head office. I see very little disadvantage, if the locals are properly trained and you make sure when you look at their CV that they have had enough exposure. Then you will not have that issue. I can’t see much disadvantage.
In fact, if you bring in a multinational that is not fully exposed to the Malaysian culture, you can have a problem. We have had — not in Allianz — some other companies have had multinationals coming in for a short while and then leave because they are not able to fit in. So there is also that risk.
What are the main initiatives that you hope the new management team will hold close in their agenda?
Education. Educating the public, especially the bumiputera, because of the lack of knowledge in understanding the importance of insurance. In Allianz Malaysia, we have always tried to drive this but efforts must continue. We are hoping to be able to set up our foundation, and we hope that through the foundation and working with NGOs, we should be able to bring the knowledge of insurance to schools. Early intervention is always good.
It is so critical, because as it is now, we all realise and we do know, a lot of Malaysians do not prepare for protection in their old age.
The current leadership team will consist of Sean Wang and Charles Ong at the helm. You have worked with both gentlemen in the past, so what do you feel are their strengths?
I believe the two of them are good for the organisation because they are so different. Sean is very outgoing, gung-ho and outspoken. He is a real action man. Whereas, Charles will think hard before he says anything. A very cautious guy. So they complement each other.
A good leader always looks for someone different from them. You should not get someone who mirrors you.
They don’t always agree but they are respectful of each other.
You also recently announced that you intend to retire and your successor is to be Zakri Mohd Khir. What is your advice to him in stepping into your substantial shoes?
He is highly respected within the organisation. When he comes in, he is a known commodity where Allianz Malaysia staff is concerned. Never mind Munich and Singapore. He has run the business successfully so there is no learning curve. So he has got that advantage, and because he was there in Sean’s position, he will be able to see immediately if there is any help needed. He will be very proactive.
I am excited to see the three of them lead Allianz Malaysia into its next chapter.
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