Building billions with $3.40

Global vision: Tiong hopes his food products and ships will be seen in all corners of the globe.

Sarawak’s tycoon Datuk Tiong Su Kouk learned from a young age that wealth and success comes only from tried and tested hard work.

AT his gala birthday party on Sept 27 in Sibu, Sarawak’s tycoon Datuk Tiong Su Kouk was inundated with loud praises and exclusive gifts from business partners, Chinese associations and relatives from near and afar.

But the well-crafted gift of “Three dollar notes and 40 cent coins” from Tiong’s 2,000 ­employees in his listed company CCK Consolidated Holdings Bhd was the one which stood out among the glittering jewellery, bright Chinese paintings and flattering messages.

The four rusty copper coins and three one dollar notes bearing Queen Elizabeth II’s portrait, which were legal tender in 1950s British-ruled Sarawak, symbolise the beginning of Tiong’s rags-to-riches story.

The astute businessman is known in Sibu to have built up his huge business empire from a mere $3.40 at the tender age of 14.

Tiong, 73, is one of the top five tycoons in Sibu, which is famous for “nurturing” Malaysia’s top timber businessmen of the Foo Chow clan. The clan’s ancestors braved rough seas to land in Sibu to open up virgin jungles in 1901.

But unlike other tycoons, this Foo Chow who loves to sing the Mandarin song Unity is Strength at gatherings, began his career at a wet market selling fish and prawns.

The National Hawkers Association of Malaysia, which took pride of its own fellow hawker’s success and generous donations, has crowned Tiong “The Father of Hawkers”.

“I came from a family of nine siblings. We struggled with the meagre income from my father’s fish stall. So, when he was offered a manager’s job elsewhere, he told me to take over his stall and passed me $3.40 in a sachet,” says Tiong at Sibu’s CCK headquarters, which houses a large photo gallery of his achievements in the past 50 years.

Humble beginnings: The four rusty copper coins and three one dollar notes bearing Queen Elizabeth II’s portrait, which were legal tender in 1950s British-ruled Sarawak, symbolise the beginning of Tiong’s rags-to-riches story.

“I was a bit bitter then. Why choose me among nine and make me stop schooling at 14? Perhaps it was because I was a fast and hardy rubber tapper (from age eight to 14). But looking back, it was a blessing in disguise. I am the ­greatest achiever in amassing wealth. I might not be where I am today without making a sacrifice early,” adds Tiong in Mandarin, at a three-hour interview with the Sunday Star..

After netting success in fish trading, Tiong went into the frozen seafood business at the age of 27. His seafood products are still a common sight in the market and supermarket till today..

Ten years ago, he ventured into the poultry industry and prawn farming. His food products have entered other areas in South-East Asia, China, Australia, even Europe and the United States..

Apart from the food business, grouped under CCK listed in Bursa Malaysia, Tiong ventured into boat-building some 40 years ago under the name Nam Cheong. Today, this Singapore-listed company is a leading global marine player and Malaysia’s largest builder of offshore support vessels (OSV)..

Under his privately held S.K. Tiong Group of Companies, Tiong has a hand in housing and commercial property developments worth over RM2bil in the country. This group is also an agent for national car Proton and various brands of beverages in Sibu..

Recollecting his early days, Tiong said he used his “two hands and brains” to do business. He was perhaps the first fishmonger to “customise” service for his customers to suit their needs. This was perhaps why within a short time, the young fishmonger became the biggest seafood trader..

Remembering his roots: Tiong giving donations in Minchiang, Fuzhou, where his ancestors came from, in 1986.

With success came recognition. For the past 20 years, Tiong has been an active community leader, holding top posts in many associations. He headed the Sarawak Chinese Chamber of Commerce and was deputy president of the Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM). He was also a member of the Government’s special economic consultative council when Tun Dr Mahathir Mohamad was prime minister.

Tiong, known for his business acumen, is seen as a good boss. He showed compassion to his staff who did not have a roof over their head in Sibu, and sold them houses at cost price. His name also appears in many charitable bodies.

Tiong was conferred the Panglima Jasa Negara, with the title “Datuk”, by the King in 2001.

The friendly and unassuming businessman, who describes himself as “happy as an angel”, shares his success recipe and life philosophies. Below are the excerpts:

How did you break away from the wet market?

I worked very hard, 16 hours a day for 12 years in the wet market. So when a foreigner recently asked me which university I graduated from, I said: “Market University.”

In the market, I customised my service. When someone wanted to cook curry fish for a family of four, I would pack the right type of fish for her. When I delivered the fish to her home, it came with curry powder and vegetables.

But as fresh seafood gets stale fast, this trade could only expand to a limit. So I went to Japan to learn the food freezing technology. I started the first frozen seafood outlet in Sibu at 27. It was tough selling. People said frozen foods were stones, not edible. For three months, there was no business. To win customers over, I gave them (the food) for free. I said: “If edible, come and buy. If not, you can forget me.” After that, there were no more issues with frozen food.

Please talk about your food ­business and CCK.

My food products are sold in Malaysia, Australia, Hong Kong, Europe and the US, among others, via more than 70 retail outlets. My target is to have at least 100 outlets. I am also importing food products.

In terms of food processing, I have two factories in Indonesia and a chicken meat processing plant. I have a large prawn farm in East Malaysia and we export frozen prawns and related products.

Birthday joy: Tiong with his wife at his birthday celebration in Sibu on Sept 27.

The current slowdown has affected our business slightly, but not much, as food is a necessity. The share price of CCK at around 75 sen/unit is low but as the company is solid, I am not concerned. I don’t buy or sell CCK shares.

(CCK posted a net profit of RM5.75mil and revenue of RM245.53mil in the first half of ­calendar year 2015. Its net asset per share stood at RM1 as at end-June 2015).

How is Nam Cheong Ltd doing?

Orders for shipbuilding have been hit by the plunge in crude oil price.

Some customers have delayed their buy orders but none have cancelled their orders. During this period, we have to be understanding towards our customers. Due to bad market conditions, we may hold back any expansion plan.

However, I believe 2016 will be a better year for Nam Cheong, as the market is likely to improve in the first half of 2016.

(Nam Cheong posted revenue of RM518.9mil and net profit of RM49.8mil in the first half of this year.)

Please tell us more about your property investments.

I have never encountered any major failure in my property investments in my buy-low sell-high strategy. Currently, I have housing and property development projects in the peninsula and Sabah and Sarawak.

During 1997/98 Asian financial crisis and 2008 slowdown, I picked up cheap deals. When I could make reasonable gains, I let go. Before the current down cycle struck, I had sold a property project in Iskandar Malaysia. I am holding back on my hotel project in Danga Bay, Johor Baru.

Fruit of his labour: Tiong and his family are all smiles at his home in Sibu.

But my commercial projects in Kuching, Kota Kinabalu, Miri and Johor Baru will go on because there is still demand.

I think property prices have not hit bottom yet. We may see the bottom in one to two years.

I have plans to list my property business. We need to face pressure in order to progress and work efficiently. When we list our entity, the management will be centralised, we will have to be more disciplined, transparent and accountable.

Like in the case of Nam Cheong, we had to comply with rules on corporate governance. I am proud that Nam Cheong won the The Most Trans­parent Company award (in foreign listing) in 2013.

What is the recipe for your ­success? Did ­connections and ­politics play a part?

I work very hard. I am sincere and trustworthy. Hence, professional bankers trust me and give me financial support. As a businessman, I have also shown that I am sharp, able to make the right decision and act fast.

As a boss, I am lucky to have the strong support of my staff. They treat the company like their family. Every year, they celebrate my birthday. I am very touched by their gesture. I remember during the anti-Chinese riots in Indonesia in 1998, the staff there put up a 24-hour vigil to protect the factory.

I daresay my business has largely depended on our own hard work – not politics, though I have friends who are influential politicians.

For chicken farming, you have to start work at midnight. And in shipbuilding, it is work 24 hours. You have to follow the rules of work, not politics. Businessmen cannot rely on political support too much. It is too risky to do so.

And as a person with little formal education, how do I overcome obstacles? I hire the right people to help me. Some are experts with doctorate degrees. Their advice help turn me into an expert like them. With these people around, I have become a Zhuge Liang (the legendary genius and military strategist who masterminded the rise of Shu Kingdom in the Romance of Three Kingdoms).

What are your greatest ­achievements in life and business?

In life, my greatest achievement is having my family living harmoniously together. I enjoy reunions with my siblings and friends.

In community service, I am proud that I was the first Foo Chow in the world to become president of the Foo Chow associations at the local, national and world levels simultaneously. I am also proud that I spearheaded the construction of the World Fuzhou Heritage Gallery in Sibu. It is the first such gallery outside China and it houses antiques and exhibits depicting the history of the Foo Chow in Sibu, their early hardship, customs and culture.

In business, I am glad to have two listed companies and see my staff working happily. A few years back, when I moved house and offered to sell my old house to any staff without a house, there was no taker. Every­body has a house. That was one of the happiest moments in my life and also my pride.

Since 1986, I have donated millions to help the financially backward Foo Chows in China. This was the wish of my late father.

Is there any advice you wish to give to young entrepreneurs?

There is no golden advice. Just do it. Build your brand name. Don’t be afraid of failure. As the Chinese saying goes, failure is the mother of success. Once you earn the first pot of gold, the next is easy to come by.

Who will be the ­successor to your ­business empire?

Whoever has the most wisdom and best performance will take over the lead role. Although as a Chinese, I am inclined to follow the Chinese custom and tradition of handing over the baton to the ­eldest son, this may not necessarily be the case. It’s all based on merit.

I have three sons and a daughter. My sons, as well as my son-in-law, are in CCK and Nam Cheong taking up important positions. They will be judged by their performance. But they should know that whoever takes over the leadership, he will have to face the greatest pressure and responsibility while enjoying the most prestige and happiness.

As a successful ­businessman at 73, what else would you want to do?

I still have to do some work for ­society. I am doing a lot of charities. About 19 years ago, I set up a RM10mil foundation to help schools, poor students and the under-privileged. I plan to give out more as helping people makes me happy. But business-wise, I still have a vision. I like to look out at the world from my Singapore office. I hope one day my food products and ships will be seen in all corners of the globe.

BY HO WAH FOON

The best leaders are learners

One year ago, at a youth camp, a student who had been put in charge of his group confided in me that leading his team members wasn’t going as well as he had thought it would. “I’m just not cut out to be a leader,” he said, as he related to me what he thought a leader should have, which he didn’t: humour, confidence, wisdom and courage.

My reply to him, as one still understanding the ropes of what it truly means to lead was, “all these can be learnt, if you put your heart to it”.

It is said that there are approximately 50,000 books on leadership that are published annually – and this number may well be a conservative estimate – but if there is one indication that there is no final “destination” in this journey of becoming a leader, it is the countless number of resources that teach us how to better develop our awareness and management of ourselves and others.

Leadership is a relational endeavour; one cannot claim to be a leader without being able to inspire an action or a reaction in others. And because relationships are complex, one can only lead to the extent that he or she learns.

On the surface, it is painfully obvious that learning is imperative for any human enterprise – but I’d argue that in the long run, learning qualifies you to lead more than anything else (beyond promotions, positions, placement and power).

Here are three reasons why:

1 Learning equalises the years

How often have you heard the Chinese adage (often spoken by the elderly to the young), “I eat more salt than you eat rice”?

What is it about being “older” that makes one a wiser and better decision-maker? I’m convinced that the difference is not a matter of “years”, but a matter of “experience”.

We learn from our experiences, and our past outcomes that resulted in both positive and negative actions inform us as we negotiate between present choices.

But if experiences make us wiser, how do we attain more “experience”? Is “experience” purely a byproduct of the passing years, or can we, in the words of Sir Isaac Newton, see further into the future “by standing on the shoulders of giants”?

When we capitalise on the learnings and lessons of others and apply them in our lives, we are able to short-circuit the common bind of “years equals to experience” and accelerate our growth without wasting the time others have wasted.

Great leaders often ask themselves, “How can I avoid making the same mistakes, or how can I replicate others’ successes and take them further?”

2 Learning keeps you humble

Learning and humility feed off each other. On the other hand, the antithesis of humility, which is pride, has the sinister ability to deceive anyone into believing that he or she has “arrived”, that there is no need to adapt or change further, because he or she is superior and above reproach.

In contrast, great leaders are often the most humble people who are secure in themselves and do not see the need to put others down to elevate themselves.

John F. Kennedy once said “Leadership and learning are indispensable to each other”.

Interestingly, most US Presidents were avid readers who invested much of their time in learning, despite their busy schedules.

It is said that Theodore Roosevelt read two books a day, while Abraham Lincoln, who had only one year of formal education, attributed his successful political career to his habit of reading.

A strong learning posture allows you to see from different perspectives, live in the experiences of others, and most importantly, empathise with other points-of-view.

It is only when a person is an avid learner that he or she is continually challenged in his or her current views, and thus able to grow in convictions. It is only when a cup is empty, that it can be filled.

Maintaining humility allows us to be intellectually curious – and curiosity always precedes discovery and creativity.

3 Learning enables you to give

Somewhere during my college years, an epiphany occurred to me: How much can I learn and grow, if I were to dedicate all my transit and waiting moments to learning something new?

In my frustration of waiting and chasing for buses to get to college, I found a treasure chest.

I had realised that an average Kuala Lumpur/Klang Valley resident would spend approximately 10 to 15 hours per week travelling, either by inching through heavy traffic or waiting at bus stops and light rail transit (LRT) stations, and what a waste of time it would be if all that time was given to staring into space or letting one’s thoughts run idle.

I then made a concrete decision to listen to podcasts, audio books (when I would be driving) or to read (when I was waiting for the bus or LRT), in order to redeem that precious time.

I have since listened to over 700 hours of podcasts on topics related to public speaking, general knowledge, story-telling, leadership, faith and personal development.

My greatest learning moments are no longer in the classroom, but in my car, when I am alone and can learn something new.

During the course of the last two years, as a teacher in a high-needs school and a church leader, these moments of learning and reflection allowed me to pass on what I learnt to my students and congregation.

Those opportunities gave me great pleasure, as I was communicating to others what I had learnt and internalised for myself. I never felt “burnt out” because the stream of learning was always flowing.

Leadership may have many faces, but all leaders have the same outstretched hand of giving. And we can only give from what we have learnt. The good news is that leadership can be learnt – if we put our hearts to it.

Contributed by Abel Cheah

Abel Cheah is associate manager in the Talent Acquisition team at Teach For Malaysia. He believes that leadership is something that is nurtured and cultivated. If you are interested in listening to podcasts, he highly recommends Umano (an app that narrates articles). He believes that the best leaders are great lovers of learning. You can get in touch with him at editor@leaderonomics.com

Setting the right CEO for Malaysia Airlines (MAS)

Essentially, there is little time to shape up MAS before its competitors eat into its share of business. Khazanah should cast its net wider beyond the GLC fraternity and also look globally.

Don't compromise on setting things right for MAS. The airline needs a true blue aviation expert as new CEO

MALAYSIA Airlines (MAS) needs a true blue aviation expert as its new chief executive officer (CEO), and that is something Khazanah Nasional Bhd has to come to terms with.

The time to test the waters by hiring non-airline experts is over.

MAS is like an injured entity that needs to be operated on fast.

The national carrier needs a leader who knows the trade given the complexities of the airline business – someone who can differentiate between a full-service airline and low-cost operation.

The person must not be cajoled into believing that selling seats at the expense of yields is the best business strategy, and at the same time get the workforce to rally behind him to achieve success.

This is critical if Khazanah wants to see returns from its RM6bil investment that will go into saving MAS.

Bear in mind that Khazanah has not recovered the RM7bil investment it had already poured into the airline.

No doubt Khazanah does not want to set a new record for investing RM13bil in MAS without getting anything in return.

To recap, Khazanah had announced a 12-point plan to revive MAS. It will take it private, delist it, transfer the airline into a new company and relist it later.

It will cut 6,000 jobs, focus on regional profitable routes, and hopefully pay market prices for supplies.

To do all that and return to profit in 2017, it needs a new man at the top, someone with impeccable abilities and knowledge of the industry. The obvious choice will be someone from within the company, if there is one.

It will be hard to believe that Khazanah cannot find one person to run the show from the nearly 20,000 employees in MAS.

If that is the case, either the airline’s succession planning is non-existent or absolutely hopeless.

Airlines will normally employ from within the company or from other airlines to fill the top post.

In the case of Singapore Airlines (SIA), it has often been a home-grown candidate that has worked for 20 to 30 years with the airline.

MAS and SIA were formed from the same parent company decades ago.

SIA has become one of the best airlines globally although it grapples to keep its feet on the ground.

The current SIA CEO Goh Choon Phong came on board in 1990, worked 20 years, and became CEO in 2010.

His predecessor, Chew Choon Seng, joined SIA in 1972, and after 31 years became the CEO.

Chew took over from Malaysia-born Dr Cheong Choong Kong. Cheong was a mathematics lecturer in Universiti Malaya before he joined SIA in 1974.

After 29 years with the SIA, he was appointed CEO.

Unlike MAS, SIA has an unbroken record of profitability even through turbulent economic times.

Qantas head Alan Joyce is also a true aviation man, after his stints at Jetstar, Ansett Australia and Aer Lingus.

If no one from MAS can fit the bill, then obviously Khazanah will have to search from within the government-linked company (GLC) fraternity.

But should Khazanah make that compromise again?

Khazanah is said to be talking to several local and foreign candidates. Datuk Seri Shazally Ramly’s name has been mentioned several times although no deal has been hammered out yet.

Essentially, there is little time to shape up MAS before its competitors eat into its share of business. Khazanah should cast its net wider beyond the GLC fraternity and also look globally.

If Maxis Bhd can have Morten Lundal in its payroll, surely MAS can find someone prominent in the airline industry as its CEO, as long as it is willing to make that compromise.

Rob Fyfe, the former Air New Zealand CEO, is someone who has a proven track record in the aviation industry as are some people in SIA and even Cathay Pacific.

Khazanah must get the most capable talent to help MAS recover and for the agency to recoup its investments. Hopefully this will be the last revamp for MAS as nobody can stomach yet another restructuring three years down the road.

Contributed by BK Sidhu Reflections, The Star/Asia News Network

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Lots of public funds will be spent to make things right at MAS, and it will start with the RM1.4bil takeover of the airline.

THE events of MH370 and MH17 have soured the operations of Malaysia Airlines (MAS), where the extent of the damage from these events on its financials will be more accurately shown when the airline reports its quarterly figures next week.

While these tragedies have led to MAS’ major shareholder, Khazanah Nasional Bhd, offering to not only take the company private but also undertake what appears to be an exhaustive overhaul of the airline’s operations, the problems at MAS have been simmering for a long time now.

The airline has been losing money for some time, and previous turnaround plans, in hindsight, were akin to applying bandages when major surgery was needed. Previous turnaround plans might have just delayed what needs to be done now.

But all gloves are off with the upcoming overhaul when it comes to salvaging MAS. Political will appears to be there, judging from comments made by the Prime Minister and the airline will undergo a big transformation on how it operates.

Lots of public funds will be spent to make things right at MAS, and it will start with the RM1.4bil takeover of the airline. The overhaul of MAS should be more than just cosmetic or quick fixes.

While the airline’s revenue will surely slump, MAS also has to deal with its cost. As it stands, experts have pointed out that the size of its cost structure is one that supports a far larger network than what MAS currently operates.

Tackling costs won’t be easy also, given that it is a government-linked company (GLC) with social obligations. In fact, MAS, like its other GLC brethren, has commitments that most private companies just don’t have.

Will the overhaul of MAS take into account just how far it needs to go to remove a certain portion of such obligations, and if it is happening in MAS, are other GLCs too shouldering the same kind of burden as MAS is?

It has been long suspected that the airline has been losing lots of money due to leakages and some have even alluded to political interests having their fingers in the pie.

Khazanah should undertake a thorough review of the supply chain, and conduct forensic accounting if needed to ensure corruption is weeded out of the company. MAS needs to make sure that the services and supplies bought are at market rates and of a fair value.

For Khazanah, it needs to revisit its GLC transformation programme and see whether it has been as effective as what the market expected it to be. There has been a series of colourful books and manuals issued, and among them, the red book. Just how far have the initiatives of the red book, which deal with procurement, been successful in reducing costs?

But the need to ensure support for its social obligations can be tough on a GLC. For one, if the contracts given or services and goods acquired are inflated beyond an acceptable amount, then it will just balloon cost. Social obligations that relate to the need for support to help companies grow in scale is understandable, but not handouts.

Even Petroliam Nasional Bhd president and chief executive officer Tan Sri Shamsul Azhar Abbas has inferred that there is pressure from Government interference and the need to back vendors that charge quite a bit above market prices.

If such pressure is existent in the national oil company that is different from other GLCs, then one can hypothesise that such pressure is prevalent among GLCs.

There needs to be a balance between social obligations and market value. GLCs cannot go on supporting programmes at inflated costs if the companies they are supporting have not shown improvements or are detrimental to their own well-being. This is because doing so will have a telling effect on the performance of the companies.

Should its costs become inflated as a result of such support, then there could be implications on the performance of the GLCs. For one, investors will make that distinction and attach a lower market multiple for GLC companies compared with its private-sector peers. Some will say that it is already being seen in some GLCs.


By: JAGDEV SINGH SIDHU The Star/Asia News Network

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Malaysia paying the price for flight MH370 !

Flight MH370: Paying The Price Of 6 Decades Of Nepotism, Racism, Rampant Corruption And Incompetence

On January 23, 2008 a very peculiar thing happened. Commercial airspace at one of the world's busiest airports was shut down for over 50 minutes. On that day, an aircraft without an approved flight plan entered Singapore's airspace. Immediately, the Republic of Singapore Air Force dispatched a pair of F-16D fighter jets to intercept the aircraft and escorted it to land at Singapore Changi Airport. Upon landing, airport police immediately surrounded the plane.

"At 6.42pm (2142 AEDT), two Republic of Singapore Air Force (RSAF) F-16 fighters were scrambled to intercept a civilian aircraft, a Cessna 208, which was heading towards Singapore airspace without an approved flight plan,'' the ministry's director of public affairs, Colonel Darius Lim, said in a statement. "The aircraft was escorted to land at Singapore Changi Airport."

The above incident highlights the standard operating protocol an Air Force, Civil Aviation Authority and Local Police Force needs to follow in the event of an unidentified aircraft entering it's airspace without an approved flight plan.

However amidst this hoo-ha, there was one small detail worth noting. The plane took off from Koh Samui, Thailand. And running the full length between Thailand and Singapore is the land mass of Peninsular Malaysia.

In essence, this means that the Department of Civil Aviation of Malaysia and the Royal Malaysian Air Force had allowed an unknown aircraft to invade over 131 thousand square km of sovereign Malaysian territory and despite this occurring over a period of 3 hours, did not lift a finger to respond.

This incident highlighted a huge security flaw in Malaysia's Air Defence umbrella. One that if it had patched during any of the subsequent 6 years that followed, would have prevented a bigger tragedy that came with greater embarrassment, scrutiny and loss.

6 years later on 8 March 2014, Malaysian Airlines flight MH370 departed Kuala Lumpur International Airport for Beijing. It never landed at its intended destination. Instead, less than an hour after take-off, the transponder was turned off and 3 sets of military radars tracked the plane flying past Penang and across the breadth of Malaysia from the Gulf of Thailand towards the Indian Ocean.

Unlike the Cessna airplane in the earlier example which was intercepted by the RSAF, 3 sets of people manning Malaysia's military radars never sounded any alarms. The RMAF never dispatched any fighter jets on standby and the Department of Civil Aviation of Malaysia never shut down Malaysian airspace when a rogue plane very much larger than a Cessna aircraft flew across it's airspace.

Suffice to say, had the Department of Civil Aviation of Malaysia or the RMAF been doing their job properly as exemplified by the example given above, we would not have gone 9 days and counting into a search for a missing and possibly hijacked plane.

Investigators may have recently concluded that the plane had its transponders deliberately turned off and its flight plan deliberately altered but it is the greater observing public who have the biggest conclusion of all; that Malaysian leadership is sorely incompetent when it comes to handling a crisis. In this respect, Malaysia has much to learn from its Southern neighbour. Had the supposed hijackers targeted a plane flying through a more efficient jurisdiction, the outcome would have been very different today.

 Posted by Dian Malaysia Flip Flop

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Time to change!

.

LADIES and gentlemen, we are now moments away from 2014. If you are an employee, most of you will be looking forward to this time of the year as it may mean year-end holidays and bonuses.

Some of you may also be busy making your New Year resolutions. But if you are a business owner, you may be busy coming up with your business plan for next year.

Planning for the year ahead requires a bit of both reflecting on the past and looking forward to the future. Apart from my own annual business plan, as a marketing consultant, I also help some of my clients come up with their marketing plans for the year ahead, or elements of the plan.

The first order of the day is to narrow down the objectives and then come up with goals and plans to achieve those goals.

Naturally, the goals and objectives are always positive and geared towards growth. But any marketer or business owner will tell you, the marketing plan is always one of the plans that are changed the most throughout the year. Depending on what the company is offering and which market they operate in, for some companies, the marketing plan can be so fluid and dynamic that it can be changed as frequently as once a month or week.

Marketers have it tough and I often tell people who aspire to be marketing managers or want to be hired as one that if you are the type of person who likes routine work or following a set of rules, you are not suitable to be a marketer. People who are successful marketers are not just required to be able to change quickly when it comes to their marketing activities but also know how to run faster than the pack. Basically you cannot provide strategic marketing direction without knowing what is ahead or at least having the foresight to understand what will take place.

But change is something not everyone can embrace with open arms, especially for entrepreneurs. It always feels safe to stick to the same business model or plan every year. They think that as long as that plan is not “killing” the business, why not? For example, I am always amazed by one of my friends who is still using a very old handphone (I think it is eight years old) while I have already changed three phones in the span of that period.

He can afford a new one, but stubbornly refuses to get one. Two years ago, his nephew had enough of his stubbornness and bought him a touchscreen smartphone. When I met this friend again recently, I saw he was still using the old phone. I asked about the new phone and he said it was sitting in his drawer as he found it just too troublesome to transfer all his contact details from the old phone to the new one. He was comfortable with the functions of the old one and did not feel like learning the functions of the new phone.

He does not realise just how much he is missing out on.

While there are few people like my friend, I think sometimes entrepreneurs can be like that when it comes to things they need to change in their business. It could be a non-performing employee whom they know they should have let go a long time ago, but just did not want to for fear of rocking the boat.

So they end up paying for non-performance year in and year out, to the detriment of the business.

It could be products they need to retire from their offerings or offices or outlets they need to relocate. It could also be about learning new things or new technology and starting from zero again.

All are hard and uncomfortable decisions especially when change is involved. Change is risky and can be a scary path, but if deep down we know and realise that the change will bring about something better, then we should not be afraid to change. Now is the time.

Contributed by Jeanisha Wan

Jeanisha doesn’t like last minute changes, but equates the need to change with water that needs to be constantly flowing to be fresh. She is more fearful of having her business end up like the water in the Dead Sea. Talk to her at talk2jeanisha@gmail.com. Happy New Year!

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Five steps to business success for 2014

Preparations: A well-crafted business plan is like a roadmap for the year.

 How to develop a business plan for the new year

Here we are at the end of another year. For many business owners, it’s the right time to map out a strategic plan for next year. A well-crafted business plan is your roadmap to success and an easy way to stay on task for future growth, projected income and increased profits. Take one or two days now to develop a plan and you will save time, energy and maybe even a few dollars. Here’s how to develop a business plan for 2014 in five easy steps.

Set projected income

The very first thing you need to do when creating a business plan for the year ahead is to decide how much you plan on earning and what specifically you are looking to achieve. Setting these goals is only the first step, because outlining your plan for future months describes how you will get there and is the true blueprint for success.

Reflect on your current business models and income sources to help you determine your ideal income. If you’re having difficulty, evaluate these factors:

• ·Do you need to identify a different profile that can spend more?
• ·Would including a recurring element to your business increase profit?
• ·Should your pricing be re-evaluated?
• ·How is your marketing plan? How can you expand it to achieve more?

Set incremental goals 

The key to success in creating a business plan is detail and consistency. And every goal needs to be broken down into smaller tasks and objectives to ensure you are reaching your target audience and you have a plan for how to obtain your new income level.

Even the best plan is useless without milestones and success at reaching large goals comes from knowing how to create smaller, more attainable objectives. Simplify your income goals by this equation: Income per client x number of clients x frequency of clients = income. Clearly defined and manageable objectives- six months, monthly and weekly- will give you the momentum you need to reach difficult milestones while keeping a larger goal in view. Besides, this process gives you a bird’s eye view of exactly what income level needs to be reached within a certain time frame to stay on track for success.

Map out marketing

After determining what your income stream should be, it’s time to create a formula for acquiring the clients. The most effective way to reach a target audience and the only way to secure new customers is through marketing. After all, if no one knows you exist, no one will buy your products or services.

Take a long hard look at your current marketing activities and decide which strategies are effective and can be reused, even expanded, and which should be discarded. The right marketing can bring a steady stream of new clients, as well as build brand loyalty and solidify trust with existing customers.

Here are the most effective and commonly used platforms for acquiring new clients. Make sure to allocate sufficient time and budget for each:

• ·Strategic Print Advertisement (Appear in front of your ideal prospects)
• ·Online Marketing Strategies (Content to educate and entice)
• ·Media Recognition (Position yourself as the expert authority)
• ·Social Media (Facebook, Twitter, LinkedIn, Google+)
• ·Networking and collaborations

Develop your team

Now that you have clearly defined, obtainable goals and a strategic marketing plan, it’s time to start thinking about how you are going to make it happen. It’s nearly impossible to achieve all of your goals by yourself and the best plans are always complemented by a strong team. Decide who you need and how they will help you achieve your milestones within your deadline.

Virtual teams are always an option, and can execute elements of your business plan simultaneously. On the other hand, you can also evaluate a current team or bring in someone new to free up time for you to execute growth campaigns.

Evaluate expenses 

Unfortunately, like everything in life — business costs money. However, by carefully evaluating all of your marketing activity and tracking return on investment stringently, you’ll have a better idea of where the money is going and how best it should be spent. Many business owners make the mistake of looking exclusively at gross profits, neglecting net profits. Make certain to record everything and be very clear about profits before taking on any new activities. This disciplined approach will help ensure that your ideal income is indeed profits.

Crafting an effective business plan is easy with a few good tips and the right information. By defining incremental goals, developing a marketing strategy, building your team and keeping an eye on expenses, you will be more than ready to charge into 2014 with spirited enthusiasm as you watch your business transform.

Contributed by Pam Siew

> Pam Siow is the founder of ThinkSpace. A renowned business coach within the region, Pam helps hundreds of business owners and corporations gain true success and profits with her knowledge and real-world experience. Find out more at ThinkSpace.com.my/ Internetbizownersclub.comnow.

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Transforming the company into a heavyweight, sharing his love

Tee (left) and Ooi chatting with Mazlin.

Transforming Daya into a heavyweight

Contributed by Tee Lin Say

YOU have to meet Daya Materials Bhd executive vice-chairman Datuk Mazlin Junid in person to understand why he appeals to people at large.

The first thing you notice is how witty and direct he is. So, no superficial talk on “how your day was” or whether “the coffee tastes okay”.

Mazlin tells you things as it is, so don’t ask if you aren’t prepared. That, however, is his charm. What you see is really what you get.

Physically, Mazlin is good looking. Despite the Prada loafers and 7 for all mankind jeans, there is an almost Neanderthal-like quality about him. In the band of brotherhood, Mazlin’s more of your Vin Diesel than an Orlando Bloom.

He has two great goals in life now. The first is a vision to transform Daya into a heavyweight. He’s aiming for the company to join the billion dollar club over the next three years. (For the nine months to Sept 30, 2013, Daya’s revenue jumped 110% to RM373mil in revenue and net profit increased 26.74% to RM18.9mil)

The other, is to look like his idol, Australian actor Hugh Jackman.

He loves the pain that comes with pushing himself to extremes. Dumb bells are his favourite toys. Why, he even celebrated his birthday in the gym with his gym mates.

“I am 52 now. I have done it all. The cars, the yacht, you name it. What turns me on now is winning contracts for Daya,” says Mazlin resolutely.

“At the end of the day, a company needs to deliver. We are very focused on creating value and growing the company over the long term. I have huge responsibility to my staff and the people who gave us contracts. We have to deliver based on my vision for the company, Daya is still undervalued, “says Mazlin.

“You must always take responsibility. It’s not about following your emotions. Whether it’s to your family, the people you work for, your client, or someone you dislike, take responsibility,” he says.

He adds that with Daya Offshore Construction Sdn Bhd (DOC) going out there to secure contracts from Norway, Daya is in fact going against the grain of typical Malaysian oil and gas companies.

When asked what Malaysia’s problems are, he responds: “If there is a hard truth Malaysian companies must learn, it is to stop the habit of political patronage,”

Not surprising, Daya has been one of Bursa Malaysia’s outperformers this year. On a year-to-date basis, the stock is up 116% to 41 sen as of Thursday.

While Daya started off in 1994 as a specialised polymer company, it has since expanded substantially into the oil and gas (O&G) business. Daya was initially more focused on the downstream O&G segment, where it was already established as a leader particularly in chemical services. It chugged along, growing organically until this year, which was clearly the inflection point for Daya.

This started with the formation of DOC last September, of which Mazlin appointed Mark Midgley CEO.

Almost immediately DOC began delivering results.

The arrival of vessels Siem Daya 1 and Siem Daya 2 literally created waves. DOC secured two major contracts in less than six months from Norwegian firm Technip Norge AS for charter and subsea contracts worth RM440mil and RM100mil-RM176mil respectively.

The latest research house to give its mark of approval to Daya’s efforts is RHB Research, which has a 48-sen target price. DOC is already contributing almost 50% to Daya’s topline.

“Suddenly Nathan (Daya’s MD Nathan Tham) was busy answering calls from some 40 fund managers. People wanted our shares and started saying Daya was the smallest O&G stock and with the most growth. I guess this is what happens when earnings have been growing organically over the last five years,” laughs Mazlin.

Sharing his love

Contributed by Xandria Ooi

FASCINATION is what I’m feeling when talking to Datuk Mazlin Junid, a man who doesn’t mince his words, yet laughs so often you know he doesn’t take himself seriously.

Work, however, is a different matter.

When you’re a business leader, he says, you don’t have to be liked. “If you want to be popular, you can’t get things done.”

We’re sitting in the quiet guest lounge of Daya Materials and Mazlin is extremely casual and candid. It feels like a chat, not an interview.

He explains to me how he doesn’t hesitate to fire people, even at the directorial level, because they either weren’t performing or did something that conflicted with the interests of the company.

“And he could be a friend,” he says matter-of-factly. “Friendship is secondary, the company always comes first. All that matters is our bottom line.”

I can’t let it go, not quite believing that a man as affable as he is, truly doesn’t care what his employees think of him. Don’t people who like and respect their bosses look forward to going to work and having the motivation to work harder?

“Well, I like them to like their jobs.”

Would you be okay if your successor in the future is a woman?

“Oh certainly, I’m not gender specific. I’d like to have more female board members but right now, there’s only a few. Malaysia’s industry has always been a bit chauvinistic with few women leaders, except maybe banking.”

He mentions Bank Negara governor Tan Sri Dr Zeti Akhtar Aziz as a woman he feels is a brilliant leader, alongside Tan Sri Rafidah Aziz and Datuk Farah Khan.

“Women,” he says, “are more passionate. There are very few female business leaders who can be as cold-hearted as men. People like me, I’m very cold-hearted.”

In what way? “Well, when I take more than one wife, for example, I’m very cold-hearted about it.”

But that’s not business, I protest, laughing.

But since he brings up his wives, I assume I’ve just been given permission to delve into the topic of his rather large family, with four wives and now three, after a recent divorce.

People ask him, all the time, why he chose to have so many wives.

“And I tell them ... because I could. Although now, I wish I hadn’t.”

Why? I’m fascinated. This is, by far, one of the most interesting conversations I’ve had about relationships.

He makes a noise, somewhere between a grunt and a sigh. “The amount of stress and management! Obviously, all these things that happened, nothing was planned.”

I raise my eyebrows. What do you mean, nothing was planned? When you propose to a woman, isn’t it planned? I point out.

He counters that it wasn’t his lifelong ambition to get married multiple times. “Sometimes it was done on a spur of a moment”.

Are you the kind of man who gets swept away by love and that’s why you propose to women on impulse?

“That’s a good question,” he muses. “Somebody asked if I know what love means. Until today, I can’t figure it out – what love for a wife is all about. Responsibility, somehow, is stacked right at the top for me.

Running one household is hardly easy, but to run four (now three) at a time, takes some mighty management skills. Mazlin has it down to a workable, practical schedule that he says keeps everyone happy.

As he explains it, “Relationships are just like work. I use my work practices at home. There are tasks to be done and I implement the same regime for every household.”

I listen wide-eyed as he elaborates, describing how he sometimes repeats the same holiday three times with his different wives.

“No, my wives don’t mix,” he volunteers the information, knowing what I am about to ask just from the look on my face.

Surely there’s bound to be jealousy?

“They’re not jealous of each other, but they’re jealous of other women!” he declares and I am reminded of how he can now marry another.

“Somebody asked me if I’m on a fleet renewal programme,” he jokes. “But no, I have my hands full right now.”

Doing good well - there's greater impact in helping through informed giving

TWO weeks ago, I was on a flight back from Singapore. One of the newspapers had a poignant picture of a young boy in tears. I could practically feel him staring at me.

He had been rescued from a saree embroidery factory in Kathmandu. Child labour in the Kathmandu Valley is extensive and there are up to 80 such factories which employ more than 500 children, mostly below the age of 14, to make those sarees. And the sad part of the story is that many do not want to be rescued.

The Kathmandu operation was timed to coincide with World Against Child Labour Day which was on June 12. According to the International Labour Organisation, hundreds of millions of girls and boys throughout the world are involved in work that deprives them from receiving adequate education, health, leisure and basic freedoms.

More than half of these children are exposed to abuse because they work in hazardous environments where slavery, forced labour, illicit activities such as drug trafficking and prostitution, and armed conflict are common.

The plight of these children weighed heavy on my mind on this short flight back.

The following week, I was on the road listening to the radio and I learnt that World Refugees Day was on June 20. It is estimated that more than 45 million people worldwide have fled their homes due to conflict, persecution and other abuses.

In Malaysia, there are over 100,000 registered refugees in Kuala Lumpur alone, and one can imagine the actual figures nationwide, especially those not registered.

In looking at the two big issues here, we may wonder what we can do to make a difference in the lives of so many people.

Certainly there are many communities who will benefit from our giving and volunteer efforts – the aged, homeless, abused children and women, addicts, the poor,disabled, orphans, victims of human trafficking, etc to name a few. Then there are the sporadic needs in times of natural disasters.

And this is where the work of NGOs is significant. Many NGOs come about in response to a specific need and are small and limited in their operations. But there are an estimated 20,000 NGOs that operate globally because the causes they fight for transcend national borders.

And for the work they do, they need support. Some of these NGOs have a strong global presence and are able to draw funds and resources from many sources.

An executive from a large company once asked me what worthwhile organisation or group his company can contribute to.

I pointed them to a community in need of help for social change. They are children in estates who need assistance to enable them to stay in school. I told him that it would be better for him to visit the community in a somewhat remote area and understand their situation and needs.

The legwork proved to be a deterrent and so the company chose a children’s home in the Klang Valley instead. It was easier to arrange and provided ample photo opportunities for the company’s magazine.

There are many us who are willing to give and contribute. However, our giving can go further when it is done right.

For a start, we should go beyond being compassionate and generous, and instead be prepared to do due diligence to determine the deserving causes. This is called “informed giving” and it requires us to hold the organisation accountable so that the funds given are effectively used. It is not just giving, but following up for accountability and performance.

Sometimes it might be better to channel the funds raised to a reputable foundation to be administered instead of making the contributions direct. When I made this suggestion at a recent fundraising discussion, it was met with some laughter. Why would you give money to another organisation which already has so much money?

I know of trustees in a charitable foundation who diligently visit the communities they support. They want to see for themselves how the money is spent, whether the classroom has been built, and how the children who received financial aid were doing.

Just as the executive could not find the time to check out the community I recommended, many of us also do not have the time to do follow-up and accountability.

So we should consider those organisations which take the work of giving seriously. They are the ones that are managed professionally, with full transparency and accountability.

Companies and individuals can partner with such organisations which are more efficient and have a proven track record in helping others.

This is the reason why Warren Buffett gives such generous amounts to the Bill and Melinda Gates Foundation to pass on to the right people. Buffet knows that he should just continue to do what he does best, which is to make a lot of money, rather than rolling up his sleeves to manage the giving directly.

There are many practices in companies which can be applied to social work to transform lives.

Like businesses, charitable organisations need the best leaders and people to execute the programmes.

Many of the issues faced are complex. We need to understand the issues and provide insights on the right solutions to address the root causes of the problems.

Which is why simply doing good is not enough. We need to move to “doing good well”.

TAKE ON CHANGE By JOAN HOI

● Joan is inspired and influenced by the book, Doing Good Well. What does (and does not) make sense in the non-profit world by Willie Cheng.

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About Doing Good Well 

 The way we see the world can change the world. In this book, Willie Cheng frames and explains the nonprofit world while providing fresh insights as to where and why it works - or not.

He covers a spectrum of nonprofit paradigms including:

•	The structure of the marketplace - challenging whether a “marketplace” truly exists.

•	Concepts of nonprofit management - disputing why charities must follow corporate mantras of growth and reserves accumulation.

•	Philanthropy and volunteerism - questioning the motivations of givers.

•	New social models of social enterprises, social entrepreneurship and venture philanthropy - seeking to explain why these may not have worked as intended.

•	Nonprofit quirks - showing how the rules can result in the extension of the rich/poor divide into the charity world and make fundraising inefficient through an efficiency ratio.

In describing his ideas through an easy writing style and hearty anecdotes, Cheng engages and provokes the reader with a strategic review of the status quo as well as the enormous potential in the nonprofit world. After all, as Cheng describes it, charity is no longer simply about “Just Doing Good” but “Doing Good Well.”