What??! 30% Women Representation in Board Level!!!

I saw this piece of news on TMI, I thought it is a joke. Putrajaya stipulate that 30% of board members must be female in five years time. 

I have mentioned my view on this topic before and I thought it was never going to happen. Unfortunately, somehow, Putrajaya make it compulsory for 30% female board representation. I have nothing against female but this is one bad idea. 

Most activists justified more female board representation on the basis of research showing that companies that have more female board members outperform those that do not. However, the reason that these companies outperform the rest is their culture of meritocracy which resulted in those who are the best in their job rise up the ranks. So, anyone, regardless of gender can make it to the top. Without changing the culture in the companies, companies will not suddenly become better just because there are some females on the board level. 

One more concern I have would be, in order to accommodate this rule, companies may expand the board size just to fulfill the quota. So, shareholders will pay more money in the form of directors fees without any increase in benefits. Worst still, I think some family-run firm will bring in their wives to join the board, further diluting the perceived independence in the board.

Another concern would be, are there enough female talents to fill the quota. Not that female are stupid, it is just that, up to 20-30 years ago, household with two working parents may still be uncommon. So, do we have enough of experienced talent pool to filled all these board positions? Would it create the situation where unqualified female is selected to the board? Would it create a situation whereby female board members fees is inflated because good female board members are so limited? I do not think this sort of regulation actually exists in both HK and Singapore, countries that have an earlier history of and higher female participation in the workforce. So, the question of talent pool need to be seriously considered.

One clear winner in this regulation would be women of accounting and financial background with ten plus years experience. The government had just created a gold mine for them.

P.S.: This is probably an attempt to win the female votes. Just like the affordable housing in Sungai Besi that are targeted at youths. I thought giving priority to youths without actually focusing those that really in need of a house like adults in the late thirties and early fourties with kids is a terrible idea, this female board representation thingy may be just as bad. They will just do all sort of crap to win votes.