Challenges for the CPA in the 21 st Century

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

2. Agenda • About JobStreet.com • JobStreet.com statistics • Current developments/ trends • Evolving role of finance & accountants • Important skill sets • What’s in demand and alternative careers • Salary report

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

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

5. Total Accounting/Finance Related Positions @ 10/06/08

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

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

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

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

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

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

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

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

14. Jobs posted by specialization (Jan-Dec 2007)

15. Growth in accounting & finance related jobs 257 % increase

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

17. Globalisation – how does it impact us? • 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 value-add & productivity • Culture and language barriers

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

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

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

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

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

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

24. Expectations on the modern CPA • 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

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

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

27. What you can deliberately do… • 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

28. Accountants in demand • 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

29. Alternative career paths… • 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

30. Salary report – explanatory note Project Manager

31. Estimated Salary Range (in Malaysia) Accountant

32. Estimated Salary Range (in Malaysia) Senior Accounts Executive Audit Assistant

33. Estimated Salary Range (in Malaysia) Finance Manager Finance Executive

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

35. Search jobs smartly…

36. This is how companies see you…

37. Employers filter candidates…

38. Thank you & All the best in your career journey