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20th November, 2008
KUALA LUMPUR: Do not cut resources which are vital for the long-term competitiveness of organisations in this time of crisis, said Deputy Prime Minister Datuk Seri Najib Tun Razak.
Najib, who is also the Finance Minister, said the typical reaction among companies is more often than not to cut costs, especially manpower costs.
“To some extent this is inevitable. In any organisation there is always some fat which needs to be trimmed,” he said.
However, Najib said experience had shown that it was difficult to rebuild skilled resources when the economy rebounded.
“Thus in implementing any cost-trimming exercise, it is important to be very diligent and selective so as to be ready when the economy turns around,” he said in his opening address at the Chief Financial Officers (CFOs) Conference 2008 read by Second Finance Minister Tan Sri Nor Mohamed Yakcop.
The two-day conference which ends Thursday is jointly organised by the Federation of Public Listed Companies Bhd and Malaysian Institute of Corporate Governance.
Themed “The Evolving Role and Challenges for the Modern CFO in Implementing an Effective Finance Function during Uncertain Times”, the conference was attended by about 100 CFOs.
Najib, who is in Peru leading Malaysian delegation for Asia-Pacific Economic Cooperation (APEC) meeting, said times of crisis also presented opportunities for organisations.
He said companies must have a long-term view and continue to invest to ensure their sustainable competitivenes and to continue looking at viable investment and business opportunities.
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