At the forefront of changing landscapes

12th Asian Regional Conference
5-6 August 2008
Kuala Lumpur Convention Centre, Kuala Lumpur

The CPA Australia Asian regional conference is an annual high-profile event, held on a rotational basis in Hong Kong, Singapore and Malaysia. The conference attracts speakers and delegates from China, Hong Kong, Singapore and Australia to share their experiences with each other.

In 2008, the CPA Australia Malaysia division is hosting the 12th Asian Regional Conference themed 'Changing landscapes: be in the forefront!'.

This conference will serve as a platform for business leaders, accountants and managers from the region to discuss the challenges facing today's constantly changing business and economic landscapes. Some of the highlights of the conference will be keynote speeches and workshops on a range of topics:

• changing landscapes in global business
• changing landscapes in how we live: doing CSR differently
• changing landscapes in human resources: turning your people into your competitive advantage
• changing landscapes in finance: Islamic banking vs conventional banking
• changing landscapes in the accounting profession

This conference is designed to stimulate thought leadership in many areas affecting accountants and business leaders today, equipping them with the necessary information to be at the forefront of our constantly changing environment. Register now with full payment to enjoy the early bird rate.

For further information contact the CPD department on +(603) 2698 8412.

The elective with global perspective

International business will be the new elective segment in the CPA Program, which resulted in this new segment. 

A recent survey of members suggested an additional elective in the area of international business.

Given that business is conducted in a global environment, the education and training business unit believes this segment will be of value and interest for all candidates irrespective of location. 

International Business will be available to all CPA Program candidates from semester 2 this year.

This segment will provide candidates with an understanding of the concepts, practice and real-world knowledge necessary to conduct business in an international environment.

The segment also considers the impact of forces that influence the global business environment. Modules (proposed content):

• module 1: tnternational business: the context
• module 2: global business environment
• module 3: managing across cultures
• module 4: principles of international business strategy
• module 5: international business strategy: market analysis
• module 6: conducting international business
• module 7: dealing with accounting issues in international business

The segment will draw on extensive case studies and articles. Candidates will access information in its original form via weblinks. This will develop their analytical and research skills.

The examination will be comprised entirely of multiple choice questions.

Islamic banking on the rise in Malaysia

Malaysia is in the process of introducing new programs to capitalise on the global growth of Islamic financing, Bank Negara governor Tan Sri Dr Zeti Akhtar Aziz has announced.

In her keynote address at the Nikkei Islamic finance symposium 2008 in Tokyo, Dr Zeti said this includes the issuance of new licences, and the allowance of greater foreign interest within domestic Islamic financial institutions.

According to The Star online, Dr Zeti also highlighted the fact that Islamic finance is among the fastest growing financial segments in the world, with an estimated annual growth of 20 per cent and total assets of more than US$1 trillion.

The number of Islamic financial institutions worldwide has increased to more than 300, spanning more than 75 countries both in Muslim and non-Muslim countries.

Bank Negara Malaysia has also established the International Shariah Research Academy for Islamic Finance (ISRA) to promote applied research in the area of Islamic finance.

ISRA will act as a repository of knowledge and undertake studies on contemporary issues in the Islamic financial industry.

It also aims to promote innovation and dynamism into new boundaries of Islamic finance through pioneering research and rigorous intellectual dialogue.

Investors advised to look further afield

In economics, as elsewhere, the only constant is change. By 2025 China is expected to overtake the US to become the world's biggest economy, according to a report by PricewaterhouseCoopers (PwC), The World in 2050: Beyond the BRIC.

By 2050, the report says, the emerging economies (China, India, Brazil, Russia, Mexico, Indonesia and Turkey) will be about 50 per cent larger than the current G7 (US, Japan, Germany, UK, France, Italy and Canada).

Vietnam's economy has the potential to grow at a rate of almost 10 per cent a year to around 70 per cent of the size of the UK's by 2050.

This is based on projections such as expected growth in new capital investment (less depreciation of existing capital), expansion of the labour force, expected education levels, and technological progress.

While India could grow to almost 90 per cent of the size of the US by 2050, the report says, investors also need to look further afield to countries such as Vietnam for future growth opportunities.

Indonesia's economy could grow from about 3-8 per cent of the size of the US economy to around 10-25 per cent by 2050, according to PwC, although it will remain significantly smaller than China and India because of its much smaller population.

The Phillipines and Bangladesh also have high growth capacity (7.2 and 7 per cent projected growth, respectively), based on the assumptions above, while Malaysia and Thailand's economies are estimated to grow at about 6 per cent.

Numbers too big to ignore the traditional image of an accountant was that of a serious (older) male going about his business. Times, however, are rapidly changing. Indeed, more women than men are signing up to be members of CPA Australia.

In 2007, 14,062 women enrolled to study the CPA Program compared with 10,150 men, a 16 per cent difference. These women have accredited degrees and are looking to expand their credentials by studying to become a CPA.

Women now account for 41 per cent of CPA Australia's 117,000-strong membership. Only 10 years ago women accounted for 29 per cent of the overall membership (87,000). 'Accounting is a great career in great demand,' CPA Australia president Alex Malley says.

'Businesses the world over simply cannot get enough accountants. Our members have highly transferable qualifications that give them skills for a variety of roles that include working in management, environmental accounting, investment banking and running their own business.

'These days men and women are looking for a career that offers a work / life balance, so they find the flexibility that accounting offers very attractive.

'And then there's the salary, many of those with a CPA qualification enjoy better wages than those who have just completed a degree.'

A recent survey by Graduate Careers Australia (GCA) found that students who had gone on to study postgraduate qualifications after their bachelor's degrees in Australia earned an average annual salary of $A60,000 in 2006, $A18,000 more than the median salary of those with a bachelor's degree.

New Malaysia and Hong Kong offices

We've alway said that CPA Australia is a dynamic organisation. And in the case of three of our Asian divisions, this is certainly the case. The Beijing, Malaysia (below, left) and Hong Kong offices (below, right) all recently moved to slick new premises.

The new offices have spacious member areas that offer handy facilities for visiting members. Check page 82 for the new office contact details.

Luxe life in China's sights

If there were any doubts about the scope of China's ambition and inexorable growth, recent statistics should lay them to rest.

China will become the biggest market for luxury goods by 2014, according to vice-minister of commerce, Yu Guangzhou, by that time consuming almost a quarter of the world's high-end products.

Rocketing domestic consumption, which has grown annually at 13.1 per cent over the past five years, has already turned China into the world's biggest market for mobile phones, tourism and broadband services.

By 2015, China's outbound travellers will total 100 million, the fourth-largest source of tourists in the world.

For the first time in seven years, domestic consumption accounted for a bigger slice of GDP growth than investment and exports in 2007. Per capita GDP reached US$2456.

However, consumption still took up less than 50 per cent of the GDP, 28 percentage points lower than the world average.

According to the World Bank, China is well placed to deal with any contained global slowdown during 2008 and beyond. In the case of a more pronounced global slowdown and impact on its economy, it says China is in a strong macroeconomic position to stimulate demand.

Source: Investopedia.com

Reference: May 2008, volume 78:04