
Breaking Down The Power Distance Wall
IN Malaysia, power distance is a significant cultural factor that shapes many aspects of life, including workplace dynamics, leadership styles and financial confidence.
Malaysia has one of the highest power distance scores globally, with a score of 104 out of 120 on Hofstede’s Cultural Dimensions Index. This high score indicates a culture where hierarchical structures and authority are deeply ingrained, and where those in lower positions are less likely to question or challenge authority figures.
For Malaysian women, particularly in traditional corporate or male-dominated industries, high power distance can be an obstacle to financial confidence and independence. What are the strategies to help women break down these barriers?
Why it matters
Power distance reflects how much inequality in power and status people accept in relation-ships. especially at work.
In high power distance cultures, clear hierarchies exist, and authority figures hold more control, making it difficult for subordinates to express dissent or opinions openly.
In Malaysia, high power distance means:
Deference to authority: Employees. especially women, may feel uncomfortable challenging superiors or advocating for themselves, limiting growth opportunities. How many of us have issues trying to bring attention to mistakes made by our superiors and bosses? Gender dynamics: Male-dominated work cultures and steep hierarchies can make it harder for women to assert themselves, negotiate pay and access financial resources necessary for building wealth. This dynamic contributes to a culture where financial empowerment and career advancement can feel our of reach for many women. Research has shown that the gender pay gap persists in Malaysia, where women earned one-third less than men in 2023, with wider gaps in high power distance, male-dominated industries like construction and manufacturing.
Financial confidence
Gender bias and cultural conditioning: Women are more likely to experience workplace environments that emphasise hierarchy, respect for authority and a reluctance to challenge the status quo.
High power distance often exacerbates gender bias, with women being conditioned to avoid “unfeminine” assertiveness. How many women have been labelled “bitches” while the same assertiveness is seen as a positive in their male counterparts.
As a result, women tend to undervalue themselves and feel less confident about their worth and financial potential despite the stronger credentials that they may possess over their male colleagues.
Limited access to mentorship and networking: High power distance can limit women’s access to mentorship and professional networks that support career and financial growth. Although there are more than 30% women in the Top 100 companies in Bursa Malaysia, there is still a clear lack of women in leadership as can be seen in our ranking on many global gender gap indices.
There are many women net-works, including the 30% Club Chapter in Malaysia and Leadwomen, but access to senior mentors or networks remains elusive to most women.
Gender pay gap: Research has found that Malaysia’s gender pay gap vanes widely by industry, with gaps of over 30% in some sectors like manufacturing, which are highly hierarchical.
High power distance makes it harder for women to discuss and negotiate salaries. In such industries, the structural barriers further entrench wage disparities, limiting women’s ability to build long-term wealth and therefore making it less attractive for them to enter science and engineering sectors.
Empowering financial confidence
Building financial knowledge: Knowledge is power, especially in high power distance environments. Financial literacy can help women become more confident about making strategic financial decisions, even when workplace dynamics are restrictive.
Building awareness of budgeting, investing and wealth-building can help women take charge of their financial future.
Cultivating assertive communication skills: Assertive communication is crucial for women working in high power distance settings. Workshops on negotiation skills and confidence-building can empower women to request fair compensation, advocate for promotions and assert their financial value without overstepping perceived cultural boundaries.
External mentorship net-works: Leadwomen and Lean In Malaysia provide valuable resources for women, including mentorship, advice and support networks to bypass internal hierarchies and access the support they need to grow financially.
But again, we need women to take charge and seek these net-works. In my course of work, it is clear that the younger women are normalising nerworking. something the older generation is not as comfortable with.
Personal financial goals:
Setting specific financial goals gives women a focus beyond workplace challenges. In Malaysia, where workplace structures can be limiting, women can focus on personal milestones, such as building a retirement fund beyond Employees Provident Fund. purchasing property, or investing in education.
Inclusive policies: As Malaysia pushes for more inclusivity in the workplace, women can play a role by supporting policies that promote transparent pay structures, family-friendly policies and merit-based promotions. This will make women feel empowered to advocate for their worth and enhance their financial confidence.
Fostering low power distance
Financial institutions, employers and policymakers can play a significant role in closing the financial confidence gap by creating more inclusive environ ments. Transparent pay practices, financial literacy programmes and policies that reduce hierarchical barriers are essential.
I hope digital banks can make a significant contribution here.
Inclusive workplaces and transparent pay practices: increasingly, companies in Malaysia are committing to transparent pay structures, merit-based promotions and inclusive hiring practices. Such measures reduce the gender pay gap and allow women to confidently advocate for lair compensation without fear of reprisal. Financial empowerment and literacy programmes: Financial literacy programmes are essential to empower women. Local banks and organisations could offer women-focused workshops on investing, financial planning and wealth-building strategies.
Conclusion In Malaysia, power distance significantly affects women’s financial confidence as it creates environments where they often feel undervalued and restricted. However, by recognising and addressing these dynamics, women can begin to reclaim their financial power. Whether via education, networking. goal-setting or advocating for workplace inclusivity, they can actively build their financial confidence.
As more women break through these power barriers, they pave the way for greater financial equality, re-imagining what financial empowerment looks like in Malaysia.