Business Times - 03 Jul 2009
Boustead CEO draws on his experience as serial entrepreneur
By CHEN HUIFEN
(SINGAPORE) If he had a young child who was a scholar, Boustead Singapore CEO Wong Fong Fui would encourage him or her to join public service or a government linked company (GLC), instead of striking out as an entrepreneur.
'Perhaps, one day, he or she can also be paid as much as $10-20 million per year as salary/bonus without taking any risk,' he told BT in an email interview. 'Why take a chance when you may lose everything (as) an entrepreneur?'
That may sound strange, coming from a serial entrepreneur and a corporate turnaround king. But it hints at the odds that individuals must overcome when they choose the entrepreneur's path.
Mr Wong himself had his fair share of hardships during his entrepreneurial journey. A chemical engineer by training, he started his first company offering engineering services to the oil and gas sectors in the 1970s. With $30,000 pooled between himself and three other partners, he set off for Indonesia, rather than start out in Singapore first 'because there was no market for me'.
'I couldn't afford to stay in a hotel so I rented a room with no aircon and no fan,' he added. 'And every night, I had to negotiate the mosquitoes but that was not a problem since I had plenty of practice as a rubber tapper when I was young.
'The challenge was huge and the door narrow. I knew there was a big market with Pertamina and very little competition. But even then, Pertamina was a huge organisation with over 100,000 staff. I had six months to size up which of those 100,000 staff was the decision maker. This is where EQ is important.'
According to Mr Wong, he made a breakthrough only when he was down to his last few hundred dollars. 'Thereafter, the rest was history and I made my first S$1 million there.'
The man went on to start new firms in trading, property and construction and is also one of the key Singaporean players in the set up of Myanmar Airlines International, subsequently taken over by the state government. He then spent what he calls the 'second half' of his career turning around loss-making listed companies, including Sunshine Allied, QAF, EasyCall and Boustead, thereby earning himself a reputation as the turnaround ace.
At QAF, for instance, he turned its Gardenia business from a $8 million bakery to a $200 million brand with leading market share in Singapore and Malaysia in seven years. More recently, at Boustead, the engineering firm has been posting record revenue and profit, hitting $517 million in revenue in FY2009, from $64 million in 1996 when Mr Wong first joined the firm.
'Although it may sound like I experienced only success, much of what you see was built on failures in some businesses which then gave me the necessary insight and taught me valuable lessons which were applied to my later businesses,' he said.
Among the key ingredients critical for becoming a successful entrepreneur is the possession of a set of skills, said Mr Wong. Because with skills relevant to the business type, one can increase the chances of success, even without money. And if one fails, there's always those skills to fall back on if one chooses to go back to being an employee.
A keynote speaker at next Friday's Bluesky Festival, Mr Wong will be sharing his experiences as an entrepreneur and manager. Although he finds the entrepreneurial spirit in Singapore growing, it is still lagging behind that in Hong Kong and Taiwan.
'If you look at those markets, they differ from Singapore in one key aspect: there are hardly any government-linked companies competing against private sector,' he said. 'This key difference means that for the past few decades, MNCs and GLCs have been tasked with driving the economies in Singapore. The market in Singapore was not as conducive as that of Hong Kong and Taiwan in building entrepreneurial spirit.
'In addition, the most critical factor in the entrepreneurial spirit is risk reward ratio, which is clearly low in comparison with Hong Kong and Taiwan. Who wants to be an entrepreneur if you, as a young and highly qualified graduate, can achieve wealth without taking any risk of your own money by working for the government? The government's policy of paying civil servants well has a negative impact on entrepreneurial spirit.'
He is of the view that Singapore will never be able to reach the same level of entrepreneurial spirit as that of Hong Kong or Taiwan, unless it restructures the reward system for risk takers. 'But then again, is their society better than ours, especially when you take into account the social order and justice, social harmony, etc?' he asked rhetorically.
The BlueSky Festival is an annual event organised by the Action Community for Entrepreneurship (ACE) and supported by SPRING Singapore. It is a platform for entrepreneurs to exchange ideas and share experiences. Mr Wong's speech will focus on building and re-inventing one's business model to tap on growth opportunities. For more information, go to www.blueskyfestival2009.sg.
Boustead CEO draws on his experience as serial entrepreneur
By CHEN HUIFEN
(SINGAPORE) If he had a young child who was a scholar, Boustead Singapore CEO Wong Fong Fui would encourage him or her to join public service or a government linked company (GLC), instead of striking out as an entrepreneur.
'Perhaps, one day, he or she can also be paid as much as $10-20 million per year as salary/bonus without taking any risk,' he told BT in an email interview. 'Why take a chance when you may lose everything (as) an entrepreneur?'
That may sound strange, coming from a serial entrepreneur and a corporate turnaround king. But it hints at the odds that individuals must overcome when they choose the entrepreneur's path.
Mr Wong himself had his fair share of hardships during his entrepreneurial journey. A chemical engineer by training, he started his first company offering engineering services to the oil and gas sectors in the 1970s. With $30,000 pooled between himself and three other partners, he set off for Indonesia, rather than start out in Singapore first 'because there was no market for me'.
'I couldn't afford to stay in a hotel so I rented a room with no aircon and no fan,' he added. 'And every night, I had to negotiate the mosquitoes but that was not a problem since I had plenty of practice as a rubber tapper when I was young.
'The challenge was huge and the door narrow. I knew there was a big market with Pertamina and very little competition. But even then, Pertamina was a huge organisation with over 100,000 staff. I had six months to size up which of those 100,000 staff was the decision maker. This is where EQ is important.'
According to Mr Wong, he made a breakthrough only when he was down to his last few hundred dollars. 'Thereafter, the rest was history and I made my first S$1 million there.'
The man went on to start new firms in trading, property and construction and is also one of the key Singaporean players in the set up of Myanmar Airlines International, subsequently taken over by the state government. He then spent what he calls the 'second half' of his career turning around loss-making listed companies, including Sunshine Allied, QAF, EasyCall and Boustead, thereby earning himself a reputation as the turnaround ace.
At QAF, for instance, he turned its Gardenia business from a $8 million bakery to a $200 million brand with leading market share in Singapore and Malaysia in seven years. More recently, at Boustead, the engineering firm has been posting record revenue and profit, hitting $517 million in revenue in FY2009, from $64 million in 1996 when Mr Wong first joined the firm.
'Although it may sound like I experienced only success, much of what you see was built on failures in some businesses which then gave me the necessary insight and taught me valuable lessons which were applied to my later businesses,' he said.
Among the key ingredients critical for becoming a successful entrepreneur is the possession of a set of skills, said Mr Wong. Because with skills relevant to the business type, one can increase the chances of success, even without money. And if one fails, there's always those skills to fall back on if one chooses to go back to being an employee.
A keynote speaker at next Friday's Bluesky Festival, Mr Wong will be sharing his experiences as an entrepreneur and manager. Although he finds the entrepreneurial spirit in Singapore growing, it is still lagging behind that in Hong Kong and Taiwan.
'If you look at those markets, they differ from Singapore in one key aspect: there are hardly any government-linked companies competing against private sector,' he said. 'This key difference means that for the past few decades, MNCs and GLCs have been tasked with driving the economies in Singapore. The market in Singapore was not as conducive as that of Hong Kong and Taiwan in building entrepreneurial spirit.
'In addition, the most critical factor in the entrepreneurial spirit is risk reward ratio, which is clearly low in comparison with Hong Kong and Taiwan. Who wants to be an entrepreneur if you, as a young and highly qualified graduate, can achieve wealth without taking any risk of your own money by working for the government? The government's policy of paying civil servants well has a negative impact on entrepreneurial spirit.'
He is of the view that Singapore will never be able to reach the same level of entrepreneurial spirit as that of Hong Kong or Taiwan, unless it restructures the reward system for risk takers. 'But then again, is their society better than ours, especially when you take into account the social order and justice, social harmony, etc?' he asked rhetorically.
The BlueSky Festival is an annual event organised by the Action Community for Entrepreneurship (ACE) and supported by SPRING Singapore. It is a platform for entrepreneurs to exchange ideas and share experiences. Mr Wong's speech will focus on building and re-inventing one's business model to tap on growth opportunities. For more information, go to www.blueskyfestival2009.sg.
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