by SHAUQI WAHAB & VEISHNAWI NEHRU

THE corridors of power, once dominated by men, are undergoing a profound transformation as women increasingly ascend to positions of corporate and political influence, challenging long-standing norms and advocating for change.

Against this backdrop of progress, Malaysia stands as a beacon of hope, with 30.9% of women now sitting on the boards of the top 100 publicly listed companies (PLCs) in Bursa Malaysia.

Corporate Leadership and Gender Diversity in Malaysia

A Deloitte Global 2022 report stated that 33.5% of companies are run by women versus 19.4%by men, and according to the Women, Family and Community Development Ministry (KPWKM), companies with women CEOs have significantly more balanced boards than those run by men.

This is evidence that it is possible to bridge the gender gap and establish an environment of equity in the workplace with good governance, progressive measures and unbiased action.

“A diverse workforce helps define a positive cultural map of the organisation. A McKinsey study reveals that companies with the greatest number of women in top management had a 41% higher return on equity (ROE) than the average.

“This is because women bring different social skills and fresh perspectives to the table and hire diverse teams. They are putting in much more effort than men in similar positions in supporting the people on their teams,” KPWKM’s representative told The Malaysian Reserve (TMR).

Besides, KPWKM added that the policy of at least 30% women at the decision-making levels does promote gender equality.

“This encompasses the diversity, equity and inclusion (DEI) principles which are designed to evaluate workplace situations where discrimination takes place at each step, from hiring to re-skilling the workforce.

“More diversity in the boardroom means maximising talent and availing of more balanced and creative decision-making. This can only lead to a morestable, sustainable and profitable organisation,” the ministry explained. 

It said to increase women’s participation in the global economic system, they must be financially empowered, which is possible only through financial inclusion. 

KPWKM added that giving women access to financial services can have all-encompassing economic, organisational and societal benefits. 

“Moreover, having a greater representation of women can change the perception of them, instil trust in their ability to draw a growth trajectory and set higher benchmarks for them as well as for those around them. 

“More rural women are also involved in rural community leadership. Under the 12th Malaysia Plan (12MP), training development programmes will be strengthened to enhance the quality of women grassroots leaders,” KPWKM said. 

Global Perspective on Women in Leadership

Transitioning from Malaysia to the global stage, as of Jan 10, 2024, a United Nations’ report revealed that 28 women serve as heads of state and governments across 26 countries. 

This figure, while indicative of progress, underscores the persistent gap in gender parity at the highest echelons of power. 

Alarmingly, the report projects that at the current rate, achieving gender equality in these roles will take a staggering 130 years, a sobering statistic that demands urgent attention. 

Despite some headway, disparities persist in the distribution of leadership roles. 

Only 15 countries boast a woman as head of state, and 16 have a woman as head of government. 

The representation of women in Cabinet positions globally stands at 22.8%, with a mere 13 countries achieving gender parity or better in these crucial decision-making roles. 

The report sheds light on the portfolios predominantly held by women Cabinet ministers, emphasising areas such as women and gender equality, family and children affairs, social inclusion and development, social protection and social security, and indigenous and minority affairs. 

While commendable, this concentration underscores the persistent gender stereotypes that continue to influence the allocation of responsibilities within governments. 

In the realm of parliamentary representation, progress is evident but slow-moving. 

Women currently hold 26.5% of seats in single or lower houses, a marked increase from 11% in 1995. 

Yet, only six countries have achieved gender parity or improvement in their Parliaments, with an additional 23 countries reaching or surpassing the 40% mark. 

However, significant disparities persist, with 22 states still lagging with less than 10% female parliamentarians. 

Regionally, Latin America and the Caribbean lead in female parliamentary representation with 36%, followed by Europe and Northern America with 32%. 

Conversely, regions such as sub-Saharan Africa, Eastern and South-Eastern Asia, Oceania, Central and Southern Asia, Northern Africa and Western Asia trail behind, highlighting the need for concerted efforts to bridge these gaps. 

Beyond national politics, the report also examines women’s representation in local government bodies, where they constitute 35.5% of elected members globally. 

While some countries have achieved parity in local government, regional disparities persist, reflecting broader challenges in promoting gender equality across different levels of governance. 

Amid these global trends, regional variations offer insights into the complex interplay of cultural, social and political factors shaping women’s participation in leadership roles. 

While Europe maintains the highest number of countries led by women, regions such as Central and Southern Asia, and the Pacific Islands exhibit the lowest representation of women in ministerial positions, signalling the need for tailored interventions to address systemic barriers. 

Zooming In on Corporate Spheres

In examining corporate spheres, TMR procured data from two companies — Sime Darby Bhd and Malaysia Airports Holdings Bhd (MAHB). 

Sime Darby’s annual report 2023 has illuminated its steadfast commitment to fostering gender diversity within its workforce. 

The report offers a compelling narrative of progress, particularly in the realm of gender representation, as evidenced by the company’s initiatives and outcomes in 2023. 

A focal point of the report is the noticeable shift observed in gender demographics within Sime Darby’s workforce over the fiscal year of 2023. 

In this period, the company achieved a significant milestone, with 18% of its board members and 26% of its total workforce being female.

This remarkable advancement underscores Sime Darby’s dedication to creating an environment that embraces diversity and inclusivity. 

Meanwhile, MAHB emerges as a beacon of progress in championing gender equality within its ranks. 

The latest data from 2024 underscores MAHB’s unwavering commitment to fostering inclusive leadership, with a particular emphasis on empowering women across various echelons of the organisation. 

At the helm of corporate governance, MAHB sets a compelling example with women constituting 40% of its board of directors (BoDs). 

This significant representation not only reflects the company’s dedication to gender diversity but also highlights the invaluable perspectives that women bring to strategic decision-making processes. 

Moreover, within the senior management team, women continue to make notable strides, comprising 33.14% of the total. 

This achievement speaks volumes about MAHB’s proactive efforts to cultivate a leadership culture that is reflective of the diverse talent pool within the organisation. 

Zooming out to the broader workforce, the data paints a picture of progress and promise. 

Women account for 34.99% of MAHB’s total staff strength, a testament to the company’s ongoing initiatives aimed at creating an inclusive and equitable workplace environment. 

Impact of Gender Diversity Initiatives on Organisational Culture

Dr Sharmila Jayasingam from Universiti Malaya’s Department of Management and Marketing for the Business and Economics Faculty shared insights into the impacts of this achievement. 

She highlighted the noteworthy shift in corporate culture, particularly in the public sector, where the effects are more pronounced than in the private sector. 

“There has been a noticeable shift, with more qualified women breaking through the glass ceiling to ascend to top leadership roles, including CEO and president positions,” she told TMR. 

She added that companies such as Sime Darby, MAHB and CIMB Group Holdings Bhd are actively embracing the DEI principles. 

“This initiative fosters an organisational culture where varied perspectives are highly regarded during decision-making processes,” she noted. 

Sharmila pointed out that the increased presence of women in top management positively influences decision-making processes in both PLCs and government-linked companies (GLCs). 

“Women frequently possess unique experiences, backgrounds and viewpoints relative to their male counterparts,” she said, adding that the diversity of perspectives brought by women leaders has led to more innovative solutions and strategies. 

She highlighted a study that suggests that female directors act as effective agents in reducing the risk of financial distress in Malaysia, resulting in reinforcing managerial oversight and positively impacting decision-making processes. 

Companies achieving the 30% women in top management target have witnessed improvements in both hard and soft performance metrics. 

Sharmila said empirical evidence suggests a connection between increased female representation in senior management and higher shareholder returns. 

In addition to quantifiable outcomes like profit margins and shareholder returns, soft metrics such as corporate sustainability disclosures and workplace culture have also shown positive trends. 

“The relationship between boardroom gender diversity and corporate sustainability disclosures has strengthened following the enactment of the Malaysian code on corporate governance,” she commented. 

Despite the progress, questions remain about the motivation behind the increase in women in top management positions. 

“It is uncertain whether the shift is primarily due to the looming possibility of legislatively mandated quotas or a genuine recognition that augmenting the representation of women on boards yields positive financial outcomes,” she expressed. 

She highlighted the ongoing need for legislative and regulatory interventions to ensure genuine commitment to gender diversity requirements in corporate governance. 

Sharmila discussed prevalent strategies, including internal policies and initiatives like mentorship programmes and leadership development opportunities, adopted by companies to reach the 30% target. 

“Companies like CIMB and Sime Darby showcase a steadfast dedication to enhancing gender diversity within their top management structures. 

“Successful companies focus on creating a supportive and inclusive workplace culture, attracting and retaining top talent. 

“Initiatives such as flexible work arrangements and training programmes demonstrate a commitment to fostering diversity and inclusion within the corporate sector,” she emphasised. 

Sharmila also highlighted potential challenges in sustaining progress, including entrenched cultural norms and the need for ongoing regulatory interventions. 

She said progress in women’s leadership will remain dependent on regulatory intervention as long as societal expectations dictate traditional roles for women. 

WAO Advocacy 

Women’s Aid Organisation (WAO) recognises corporate Malaysia’s achievement in surpassing the 30% mark for women representation in top management roles. 

WAO partnerships officer Ranessa Theyakaraja said the 30% threshold is not the minimum level to strive towards and build upon. 

However, achieving true gender diversity in PLCs and GLCs requires a proactive approach. 

“It is not just about starting strong, it is about maintaining and building upon our successes. 

“KPWKM Minister Datuk Seri Nancy Shukri recently suggested setting a new target at 50% or higher, which should be the new standard. However, setting a number or quota is just the beginning and a temporary measure that should work in tandem with efforts to break the structural barriers and gender biases that exist in the workplace and the wider community,” she told TMR. 

Ranessa noted that the progress seen in the increased representation of women in leadership roles is noteworthy, indicating positive strides. 

However, it is crucial to recognise that achieving true gender equality in Malaysia remains a persistent challenge. 

“The current low labour force participation rate, as highlighted by the World Bank in 2023, is an untapped resource that needs attention. 

“Addressing this issue, along with other factors like accessible childcare, challenging gender norms, and closing the gender pay gap, is essential for genuine, long-lasting change. 

“While regulatory compliance and short-term measures may contribute, comprehensive and sustained efforts are necessary to overcome persistent challenges and foster authentic gender equality in Malaysian society,” she said. 

Ranessa explained that the Malaysian Gender Gap Index consistently ranks Malaysia among the bottom three globally in gender parity. 

In 2023, Malaysia ranked 102 out of 146 countries. In Asean, Malaysia ranked nine out of the 10 member states. 

The World Bank’s Women, Business and the Law 2023 (an index covering 190 economies and structured around the life cycle of a working woman across eight indicators) scores Malaysia 50 out of 100. 

This is lower than the regional average of 72.6 (the maximum score for East Asia and the Pacific is Hong Kong at 91.9). 

“The Convention on the Elimination of All Forms of Discrimination against Women (CEDAW) committee has expressed concern on Malaysia’s lack of progress on women’s 

rights and made concrete recommendations for change hence, we need to domesticate CEDAW to ensure non-discrimination in the country,” Ranessa stressed. 

Besides, Malaysia’s Department of Statistics (DoSM), which uses the World Economic Forum’s Global Gender Gap Index (GGGI) measurement criteria to identify the gap between women and men, placed Malaysia at 0.694/one. 

In the Malaysian Gender Index, a score with a value of one (100%) indicates the equality of women and men has been achieved. 

“When we compare ourselves to our neighbours, such as Singapore, with a female labour force participation rate of 63.2%, surpassing Malaysia’s rate at 52.7%, it becomes evident that addressing this disparity requires a comprehensive approach which tackles interconnected issues from legal protection to unpaid care work, gender-based discrimination, access to finance, social protection and harmful practices is crucial at a structural level,” Ranessa said. 

WAO has underscored the necessity of adopting a comprehensive strategy toward achieving gender diversity and promoting women’s leadership in decision-making roles. 

According to WAO, such an approach should encompass several key considerations to effectively address gender inequality. 

One of the primary focal points it highlighted is the importance of early intervention. 

Specifically, the organisation advocates for targeted interventions aimed at individuals between the ages of 18 and 25 to address the underlying roots of gender disparity and foster equal participation opportunities. 

Furthermore, WAO emphasised the significance of involving men in training initiatives designed to dismantle gender stereotypes and provide support for the advancement of women in various spheres. 

By nurturing and encouraging male allyship, WAO believed that progress towards gender equality could be significantly accelerated. 

In addition to individual-level interventions, WAO stressed the need for sustained collaboration and ongoing initiatives to facilitate continuous growth in gender diversity and women’s leadership. 

Ranessa said this includes promoting a deeper understanding of the root causes of inequality, such as the disproportionate burden of care often placed on women. 

“Moreover, we call upon organisations to conduct gender impact assessments and implement monitoring mechanisms for their policies to effectively address systemic barriers to gender equality. 

“It is also important to collaborate with corporations to establish safe spaces for women within the workplace,” she said. 

This includes initiatives aimed at preventing sexual harassment and gender-based violence, as well as implementing robust reporting mechanisms to ensure the safety and well-being of all employees. 

Ranessa also mentioned that WAO remains steadfast in its commitment to eradicating violence against women and girls, recognising it as a pivotal step towards advancing gender equality and fostering women’s leadership. 

“Violence against women strips them of agency and disempowers them. By eliminating such violence, women can reclaim control over their lives and choices, thereby enhancing their participation in various spheres, including leadership roles. 

“A society free from violence creates a safe and secure environment for all. When women feel safe, they are more likely to assert decision-making agency, pursue education, and seize career opportunities and leadership roles without fear or harassment,” she said, adding that safe spaces in the workplace foster confidence and ambition among women. 

Ranessa also commented that violence perpetuates harmful gender stereotypes. 

By combating violence, WAO challenges these stereotypes, fostering an environment that recognises women’s capabilities beyond traditional roles. 

This initiative helps dismantle barriers that hinder women’s progress toward leadership positions. 

“The elimination of violence contributes to the overall well-being of women. Physical and mental health is foundational for pursuing leadership roles. 

“A society prioritising women’s well-being ensures they can thrive personally and professionally,” she added. 

She said one of WAO’s significant achievements in line with these principles is its collaboration with the Anti-Sexual Harassment Bill Coalition in drafting and advocating for the Anti-Sexual Harassment Act 2022. 

This legislation protects 34.3 million Malaysians, including 16.25 million actively employed individuals. 

“To maximise its impact, ongoing awareness-raising programmes are imperative. 

“Educating both women and men about their rights enhances overall safety and well-being, creating an environment where women feel empowered to speak up. 

“This heightened awareness not only addresses workplace harassment but also fosters a higher participation rate of women in the workforce,” Ranessa said. 

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• This article first appeared in The Malaysian Reserve weekly print edition