Asean MRA a boon for accountancy

Johan told StarBiz that Malaysia was already a

KUALA LUMPUR: Malaysia stands to benefit from the recently signed Asean mutual recognition arrangement (MRA) on accountancy services, given the country’s huge pool of talents and cost competitiveness.

“I believe we are at the right place, at the right time, although our cost may not be the cheapest but certainly more competitive than Singapore,” said Malaysian Institute of Accountants (MIA) president Datuk Johan Idris.

“Our talent pool is really good,” he said.

The MRA, which was signed in November 2014, enables accountants with the right skills, qualification and work experience to be eligible to work in any of the Asean Economic Community (AEC) member countries.

However, Johan told StarBiz that Malaysia was already a “net exporter” of accountants.

He added that the country should produce more accountants and broaden the talent base. “We should focus on building careers and develop qualified accountants so they can help propel the country, moving forward,” he said.

The MRA has already set up a committee to look and develop key performance indicators to enhance mobility of accountancy.

He added that the MRA hinges on the AEC reducing trade barriers, increasing collaboration, reducing competition and opening more access towards flow of goods and people.

“This is going to create better career opportunities and better development. It is believed that by 2050, the GDP of AEC will reach a critical level of about US$4 trillion to US$5 trillion. Right now, it is hovering at around US$2.3 trillion.

“It is something that is worth looking at but the AEC has its implementation issues because of the different countries, different rules, languages and culture,” said Johan.

He added that there should not be any concern about the movement of Malaysians to other Asean countries, as they could help bring investments back into the country.

However, language remained as one one of the biggest issues among local accountants, he added.

“The emphasis on English is so important because English is the language of business. If you don’t master it, no matter how good you are, nobody can relate to you and you aren’t able to articulate your views,” said Johan.

There are now 31,000 accountants registered with MIA and of those, 19,000 are qualified accountants. The balance are accounting degree holders. Also, there are 120 qualified foreign accountants that are registered with MIA.

Meanwhile, Johan said about 5,000 to 6,000 qualified local accountants were not registered with the MIA.