A STUDY has found that Malaysia’s top 100 company boards have significant gender and age gaps, with directors lacking overseas career exposure.

Citing the recent survey that assessed 873 directorships of Malaysia’s largest companies based on market capitalisation on Bursa Malaysia, RHL Ventures Sdn Bhd said the board members are predominantly male, at 73%, while females only comprised 27%.

“The results also show that only 5% of directors are aged below 40, a significant 95% aged over 40, and most are in their 50s and 60s,” the local private investment firm said in a statement today.

RHL Ventures said the research, titled “Detailed Analysis on Malaysia’s Top 100 Companies Board Composition”, also found that most directors had experience working in government-linked companies and institutions, such as the Employees Provident Fund, Khazanah Nasional Bhd, Bank Negara Malaysia, Permodalan Nasional Bhd and the Petronas Group of Companies.

“Also, notably, most directors (74%) are currently serving on the boards of at least two companies, while 88% have served in their positions for at least two terms,” it said.

While most directors have experienced working in Malaysia’s top corporations, the company said 58% do not have overseas exposure in their career progression, while 42% had this experience as either an employee, a company board director or both.

It said overseas exposure was found in education, as many went to institutions such as Cambridge University and the University of London. 

“Another popular destination is Harvard University, with 73 attendees. However, most of them enrolled in management programmes instead of Bachelor’s or Master’s degree programmes.

“It should be noted that the most common educational background for the directors is the University of Malaya, with it accommodating 145 of the 873 directors assessed.” 

In terms of ethnic diversity, RHL Ventures said most directors comprised Malays and Chinese, followed by Indians and foreigners from countries such as Singapore, Japan and Australia.

However, balance between Malay and Chinese board members was exceptional, accounting for 41% and 42% of representation, respectively, it added.

RHL Ventures managing partner Raja Hamzah Abidin said Malaysian company boards remained highly conservative, with many preferring industry captains who have spent much of their career in the nation’s biggest corporations, which could explain low diversification.

“With the dawn of a new decade, this composition should open up to welcome leaders outside the conventional demographic.

“We need to see fresher ideas and perspectives injected into our nation’s top companies,” he said. – Bernama, January 10, 2020.