'Arrest, arrest, arrest' won't fix trust deficit, says governance advocate

New Straits Times

15-07-2025

PUTRAJAYA: Managing public expectations is crucial for leaders and organisations seeking to rebuild trust, especially in today's highly scrutinised environment, says Media Prima Bhd independent non-executive director Datuk Shireen Ann Zahrah Muhiudeen.
Speaking at the 2025 International Conference on Governance and Integrity today, Shireen said that while enforcement and reform efforts are necessary, the way those efforts are communicated to the public is just as important.
"The first thing that always comes to mind when there's a trust deficit is the need to manage expectations. For example, what you often see in the media is 'arrest, arrest, arrest'.
"People on the street think these people are definitely going to jail.
"The possible outcomes must be presented and communicated. There are many levels that need to happen before a decision is finalised."
"When people are given context and clarity, it aligns with what they expect, and that's how you start building trust," she said during a panel discussion on institutional trust and leadership.
The one-day conference was organised by the Prime Minister's Department Legal Affairs Division.
Shireen added that a three-pronged approach involving enforcement, preventive management, and community education is essential in tackling integrity issues.
"Community education is key — that's how you shift perceptions. But what's also missing is mutual respect. There needs to be respect between the civil service and the political echelons for the system to work."
Shireen was referring to Hong Kong's ethical governance model– one that successfully restored public trust.
"In Hong Kong, the stock market has recovered significantly thanks to their reforms in ethical governance.
"Creating trust in government entities is a long road for any community."
She also cited South Korea as a model, noting its aggressive approach in restoring trust and investor confidence, especially in navigating issues related to family-run conglomerates.
South Korea recently changed its Commercial Act to improve corporate governance and rebuild public trust.
The new law makes company board members more responsible for protecting minority shareholders, not just big family owners.
This move, Shireen explained, is meant to fix the problem known as the "Korea discount".
"They've been able to deal with their trust deficit. I admire how bold they are in pushing reforms and attracting capital."
Also on the panel was Vienna University of Economics Professor of Sustainability and Business Milda Zilinskaite, who said psychology plays a vital role in identifying effective leadership, particularly in times of crisis.
"In a crisis, you need leaders who are effective — not just dominant or outspoken.
"Introverts often make excellent leaders but are overlooked because they don't 'emerge' in the usual way.
"We need to value qualities like active listening, collaborative thinking, and a shared leadership approach, especially in flatter or more hierarchical organisations where speaking up is often discouraged."
Petronas Dagangan Bhd Head of Compliance and Planning Strategy Hafiz Bakri also joined the session.
The conference brought together policymakers, corporate leaders, and governance experts to explore strategies for strengthening integrity and good governance.