Discover the insights of RSM’s Dato’ Robert Teo on overcoming financial challenges in Malaysia, navigating cross-border taxation, the role of international trade, and the power of technology and corporate social responsibility.

 

The quest for excellence in business management is an ongoing journey. Companies worldwide strive to find the perfect formula for success, and it often requires a combination of expertise, adaptability, and a global perspective.

Dato’ Robert Teo, a distinguished professional with over 40 years of experience, has been instrumental in guiding businesses towards excellence. As a judge in the Malaysia Management Excellence Awards, Dato’ Robert Teo brings a wealth of knowledge and wisdom to the table.

The RSM Malaysia Managing Partner's career in finance and business began in London, where he started his career with Turquand Barton Mayhew, which later merged with Ernst & Young. In 1978, he founded his own professional practice, RSM Malaysia PLT, a member firm of the RSM international network, ranking as the sixth-largest globally.

With a deep understanding of corporate taxation, audit assurance, and corporate restructuring, his expertise particularly shines in the property development and construction sectors, with a focus on tax planning/corporate restructuring.

Beyond his professional accomplishments, Dato’ Robert Teo is deeply engaged in various non-profit organisations and serves on the boards of several Chambers of Commerce. He's also a member of the National Council of the Confrerie de La Chaine des Rotisseurs. He is also a member of the Board of Trustees of the Malaysian Nature Society, one of the oldest not for profit non-governmental organisations in Malaysia.

In this article, we explore crucial topics such as cross-border taxation, long-term business success in Malaysia, and the role of international trade, amongst others.

Navigating the path to success in Malaysia

Businesses in Malaysia face unique financial management and succession planning challenges. Some of the financial hurdles include limited access to affordable capital, complex tax regulations, and currency exchange risks. Succession planning is meanwhile complicated by family dynamics, talent shortages, and cultural considerations. To succeed in the long term, businesses must address these challenges, adapt to external disruptions, and prioritise education and political stability.

Additionally, given the global business landscape, managing cross-border taxation and regulatory challenges is a critical aspect of success. “This requires a proactive and strategic approach in dealing with the pace and volume of tax changes in the tax landscape, whether globally or locally,” Dato’ Robert Teo said.

Amongst the strategies and best practices that he stressed to be effective for managing challenges was staying informed about tax developments and regulatory changes in all countries where a company operates. Additionally, companies must be able to develop comprehensive tax strategies that align with their business goals. “Constantly engage with your trusted tax advisors who have expertise in international tax planning, including the local expertise in tax and regulations in each country you operate in – they can provide you with valuable insights into specific requirements and help to navigate local complexities,” he added.

Compliance management, transfer pricing compliance, tax treaty applications, and optimising group or entity structures, and risk management are also vital components of effective global tax management.

The power of international trade, CSR, and technology

Dato’ Robert Teo underscored the pivotal role of international trade and collaboration in the growth of many large Malaysian businesses. With this, along with the rapid pace of technological advancements and the growth of new sectors, he noted that businesses in Malaysia should seek collaboration partners overseas to take advantage of emerging opportunities, fostering greater interconnectivity and cultural understanding.

Meanwhile, integrating philanthropy and corporate social responsibility (CSR) into financial strategies can enhance a company's reputation and financial performance. Dato’ Robert Teo suggested ways to achieve this.

According to Dato’ Robert Teo, companies must set clear goals that align with their values and for which they can allocate resources. They must also be involved, not just internally by encouraging staff engagement in volunteer programmes or charitable activities, but also by collaborating with industry, NGOs, and nonprofits that align with their values.

Dato’ Robert Teo further stressed the need to establish measurable KPIs for tracking impact and communicating CSR progress, as well as results. Moreover, he pointed out that sustainability and environmental initiatives can be implemented in supply chains and products, or by developing green products and services. Lastly, companies have to ensure ethical business practices such as ethical sourcing and labour practices.

In the digital age, technology plays a pivotal role in financial management and decision-making. These solutions help businesses meet compliance obligations and reduce human errors or data discrepancies, thereby optimising financial resource allocations and focusing on identifying growth and investment opportunities.

Dato’ Robert Teo recommended carefully selecting technology solutions that align with a company's needs before investing in one. Features, scalability, and vendor reputation are crucial considerations.

As a judge at the Malaysia Management Excellence Awards, Dato’ Robert Teo looks for specific qualities and achievements when evaluating organisations. These include financial performance, market position, customer satisfaction, innovation, talent and culture, corporate responsibility and sustainability, risk management, strategic planning and execution, partnerships and alliances, transparency and reporting, and a long-term vision.

Dato’ Robert Teo's insights on management best practices and strategies offer valuable guidance to businesses seeking excellence. By embracing these insights, businesses can navigate challenges, foster growth, and achieve long-term success.

This article was extracted from The Asian Business Review, published on 20 October 2023

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