Expert Series Talk Accountants of the Future Challenges

Expert Series Talk: Accountants of the Future Challenges for the st CPA in the 21 Century Presented by Jason Ling CPA (Aust), CA(M), B Comm 12 June 2008

Agenda About Job. Street. com n Job. Street. com statistics n Current developments/ trends n Evolving role of finance & accountants n Important skill sets n What’s in demand alternative careers n Salary report n

Brief intro of Job. Street. com n Malaysia’s No. 1 online recruitment website n Improving people’s lives through a better career n Operations in Malaysia, Singapore, Philippines, India, Indonesia, Japan & Bangladesh n Over 25, 000 companies in Malaysia use Job. Street. com to hire n Even accountants found their jobs on Job. Street. com!

Job. Street. com statistics n About 16, 000 jobs available on Job. Street. com MY site n About 2, 400 jobs in audit/taxation, general/cost accounting, finance/investment & banking/financial as of today n There approximately 350, 000 jobseekers registered on Job. Street. com who majored in commerce, finance, accountancy, business studies and management. This accounts for about 31% of our database.

Total Accounting/Finance Related Positions @ 10/06/08 Malaysia & Overseas General/Cost accounting 1468 Banking/Financial 445 Audit & Taxation 349 Finance/Investment 203 Total 2465

Malaysia - Top 5 States Hiring General/Cost Accounting Related Positions n n n Selangor (550) Kuala Lumpur (426) Johor (119) Penang (75) Melaka (25)

Malaysia - Top 5 States Hiring Banking/Financial Related Positions n n n Kuala Lumpur (234) Selangor (106) Johor (44) Penang (38) Sabah (32)

Malaysia - Top 5 States Hiring Audit &Taxation Related Positions n n n Kuala Lumpur (110) Selangor (91) Johor (89) Penang (29) Kedah (8)

Malaysia - Top 5 States Hiring Finance/Investment Related Positions n n n Kuala Lumpur (92) Selangor (54) Penang (21) Johor, Kedah, Melaka, Negeri Sembilan (5) Labuan (4)

Overseas – Countries Hiring Malaysians for General/Cost Accounting Related Positions n n n Singapore (178) Thailand Vietnam China Hong Kong n India Indonesia Philippines n Other locations (25) n n

Overseas – Countries Hiring Malaysians for Banking/Financial Related Positions n n Singapore (19) Other Locations (22)

Overseas – Countries Hiring Malaysians for Audit & Taxation Related Positions n n n n Singapore (58) China Hong Kong India Indonesia Vietnam Other Locations (3)

Overseas – Countries Hiring Malaysians for Finance/Investment Related Positions n n n Singapore (37) China (5) Other Locations

Jobs posted by specialization (Jan. Dec 2007)

Growth in accounting & finance related jobs 257 % increase

Developments / Trends n Globalisation n Economic growth e. g. China boom n Inflationary cost pressures n Increasing complexity in regulations and financial disclosure e. g. fair value accounting n Shortage of experienced accountants globally n Outsourcing/ offshoring

Globalisation – how does it impact us? n n n n We’re no longer insulated from global events Need to be familiar with rules and regulations outside Malaysia Increased governance See big picture e. g. tax planning Our systems need to be compliant with those of our trading partners Increased emphasis on cost reduction and higher valueadd & productivity Culture and language barriers

Factors contributing to demand for experienced accountants n Economic boom in China, India, Middle East n New rules/requirements e. g. SOX n Shared services and outsourcing/ business process outsourcing n More alternative career paths for accounting graduates n Retirement of baby boomers

Offshoring/ SSC/ BPO n Offshoring – relocation of certain business functions/processes from one country to a lower cost country e. g. relocate manufacturing base to China n BPO – outsourcing business functions to a third party e. g. Nike outsourcing manufacturing to subcontractors, call centres in Philippines n SSC – centralization of in-house processes in one facility n Shell, Stan Chart, HSBC, IBM, DHL have set up SSCs in Malaysia n Objective of lowering cost, removing duplication, improving efficiency, moving towards higher value-add n How does that impact us as accountants?

The accountant’s role is evolving n Previously, technical based, number crunching, report churning, information gatekeepers n Offshoring/outsourcing/centralisation of transactional processing n Increased in business demands, globalisation etc requires business intelligence n Changes in organisational structures n Accountants need to be BUSINESS PARTNERS

Change in emphasis Before Now & Future Technical Strategic, analytical Specialised Multi dimensional Financial Business acumen Routine Non-routine Hindsight & foresight

The new finance model Business insight/ analysis Business planning Budgets and forecasts Customer profitability Business partner Brand/ marketing effectiveness Costing/ management Procurement Tax planning Treasury Risk management Internal audit Finance specialists Shared services Payroll GL accounting AR/ AP Accounts Source: In the Black, Dec 2006

Why accountants as business partners? n Easier for accountants to update skills from provider to facilitator of information n Reliance on financial information will remain important n Understands control mechanisms and processes n Always seen as an objective authority. Hence, credibility established

Expectations on the modern CPA n n n n Strong business skills Technical prowess Strategic advice Leadership skills Strong interpersonal & communication skills Understand business operations See the big picture Able to wear many hats

Hard skills to have/ develop Source: In the Black, Dec 2006

And very importantly, soft skills Source: In the Black, Dec 2006

What you can deliberately do… n n n n n Expand your exposure in the organization Plan your career wisely Set objectives and timelines Obtain the necessary accreditation Read read and read Keep abreast of developments Develop soft skills Complement accountancy with additional qualifications e. g. FPM, CFA, IIA, MIT etc Obtain overseas experience Manage projects

Accountants in demand n n n n Compliance, risk management experience International tax expertise Experiences with regional roles Strong interpersonal skills, negotiators Bi-lingual Willing to relocate Strong business acumen M&A experience

Alternative career paths… n n n Fund management/ equity analyst Financial journalists Market regulators and authorities Financial planners Financial & ERP software consultants Forensic auditors Sales – wealth management products Investor relations Personal assistants to CEOs, MDs Business development Education – lecturing, technical dept

Project Manager Salary report – explanatory note Position Level Senior Manager Years of Experience >10 years Manager 5 – 10 years Senior Executive 3 – 5 years Junior Executive 1 – 3 years Fresh Graduate 0 – 1 year Salary Range Percentile Min 25 Average 50 Max 75

Estimated Salary Range (in Malaysia) Accountant Position Level Availabilit y Min (RM)* Average (RM)* Max (RM)* Senior Manager 12 5, 390. 00 6, 500. 00 8, 000. 00 Manager 83 4, 400. 00 4, 800. 00 5, 700. 00 Senior Executive 134 3, 200. 00 3, 800. 00 4, 500. 00 Junior Executive 64 1, 500. 00 2, 100. 00 2, 770. 00 Fresh/Entry Level 7 800. 00 1, 000. 00 1, 550. 00

Estimated Salary Range (in Malaysia) Audit Assistant Position Level Availability Min (RM)* Average (RM)* Max (RM)* Senior Executive 134 3, 200. 00 3, 800. 00 4, 500. 00 Junior Executive 64 1, 500. 00 2, 100. 00 2, 770. 00 Fresh/Entry Level 7 800. 00 1, 000. 00 1, 550. 00 Senior Accounts Executive Position Level Availability Senior Executive 449 Min (RM)* Average (RM)* Max (RM)* 2, 600. 00 3, 100. 00 3, 500. 00

Estimated Salary Range (in Malaysia) Finance Executive Position Level Availability Min (RM)* Average (RM)* Max (RM)* Senior Executive 627 2, 500. 00 2, 903. 00 2, 550. 00 Junior Executive 977 1, 900. 00 2, 203. 00 2, 500. 00 Fresh / Entry Level 57 1, 500. 00 1, 800. 00 2, 000. 00 Finance Manager Position Level Availability Min (RM)* Average (RM)* Max (RM)* Senior Manager 95 6, 000. 00 7, 500. 00 9, 000. 00 Manager 433 4, 500. 00 5, 600. 00 7, 000. 00

Some tips and advice n Personalise your CV n Highlight exposure to multiple areas of finance & accounting n Avoid copying lengthy common job descriptions n Highlight leadership experiences n Use relevant keywords esp. in the online recruitment era e. g. IPO, tax incentives etc. n Mention experiences with various software and systems n Always include a job application letter n Demonstrate soft skill development and experiences n Avoid frequent job hopping n Act with integrity, apply wisely & show up for interviews

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