On Your Own

The writer is an entrepreneur who hopes to share his experience and insights with readers who want to take that giant leap into business but are not sure if they should.

5/2018 – Fake startup entrepreneurs

TIME really flies. In the blink of an eye, my kids are all grown up. My two boys have started their journeys in career and in relationships. My little girl is graduating this July. Finally, my wife has grown accustomed to my rotund face and body even though it has taken her 30 years to do so.

Thirty years ago, we had fake Louis Vuitton bags made in Thailand and China. Now we have fake news made by almost anybody and everybody. There were laws against fake goods and now there are laws against fake news.

We could not tell the difference between the fake goods against the originals then, we are not able to differentiate between the real news and the fake news now.

Only the original experts could tell the difference then, now we have fake experts to spot the fakes from the originals. In the blink of an eye, real becomes fake and fake becomes real.

The powerless will soon be powerful again. Revenge turns to love, love turns to hate and now, hate is in the air. In the end, love will bring us together. Given time, all strained relationships will heal when the universe of power is balanced again.

Time will tell. Words are cheap, living cost is not. Promises made, memory fade. When in power, suffer the same fate. Time and time again, only the elite gain, the mass always suffer in pain. Sugar and spice, once in five years you can get rice. Missing in time, no one can tell, whether your rep is from heaven or hell. Once voted, only time will tell.

Time is money. Cash is king, votes will swing. Money can’t buy you love, everybody tells you so.

The Queen checkmates the King, money means nothing. People will love you, if you give up everything. Money, money, money, ABBA sings so funny. It is a rich man’s world, money rules the world.

If you think I am talking about politicians, it is just a figment of your imagination. Nothing could be more fake than that. I am describing the fake startup entrepreneur who over-promises his investors and his employees. Over time, you can tell whether he is genuine or a convincing fake.

A fake startup entrepreneur is as genuine as a business con man and I have seen many in my lifetime.

A con man tells one lie after another, covers up one hole with another bigger hole until he believes in his own lie. Now he believes he is speaking the truth and his subconscious is not able to differentiate the real from the fake or is it the fake from the real?

As seen in UK and US, some fake startup entrepreneurs are great con man spending investor’s money on a lavish lifestyle until they are caught.

Because of their ability to raise large sums of money, they genuinely believe their deception can continue forever. They have also corrupted their group of managers to participate in their scheme of deception. Cover-ups are normally done en mass at the top. The mass employees are the ones who suffers the consequences of a failed startup.

Genuine politicians have noble intentions. Eradicate poverty, selfless service to the community at large, raise the standard of living, institute good governance and save the world. But there are also fake politicians who are similar to fake startup entrepreneurs who are similar to genuine con men.

To all smart investors, it is advisable to identify these fake entrepreneurs early before you part with your hard earned money. Do not be taken by sugar-coated promises of rich returns because there aren’t any.

If the startup entrepreneur and his wife live a lavish lifestyle on other people’s money, he is no more a startup entrepreneur. He is a con man. And you deserve the entrepreneur you have invested in.

To all the young startup entrepreneurs, please treat investors’ money like your own. Be frugal and do not forget your original noble intention of serving the public good. Do not take lightly your responsibilities towards your employees for their rice bowl is in your hands. You should empower your people towards self sufficiency, meritocracy and performance driven goals.

To all the young politicians, stay true to your original noble intentions. Do not be corrupted by the system and older fake politicians.

Easy money is evil money. Once you succumbed to evil temptations, you are on the hell road of no return. You are our only hope. If the older politicians are fake, discard them and start your own revolution.

To all the genuine older politicians, since there aren’t any, no advice will be forthcoming. Let the young ones rule the world for a change. Sit back, relax and enjoy the rest of your life in comfort. You deserve it just as we deserve you.

Oh by the way, I just realised the general elections is around the corner. To all the voters, please vote wisely. Or you will live to regret in no time. Have a good time at the polls.

Published: https://www.thestar.com.my/business/business-news/2018/04/28/fake-startup-entrepreneurs

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4/2018 – Legacy issues in Chinese businesses

Saturday, 24 Mar 2018

SITTING at the Golfers Terrace outside the Main Lounge of Royal Selangor Golf Club (RSGC), one can get a spectacular view of the golf course. Amidst the tranquil ambience and scenic surroundings, one could hardly notice that just outside the gates of RSGC, the Tun Razak interchange is the most congested traffic road in Malaysia.

Celebrating its 125 years anniversary this year, RSGC is one of the oldest golf clubs in Asia, ranking alongside one golf club in India and one in Sri Lanka. All three golf clubs were built by the British where it was once a whites-only-club but since independence, the ownership and management of the clubs have been taken over by local residents.

Being a non-profit club, it is run strictly as a private member’s club, where members elect a committee among themselves to manage the affairs of the day. Club constitution and rules are strictly adhered to, hence the legacy of history is preserved and carried forward to the next generation of members.

Similarly, over the last 60 years or so, many successful Chinese emigrant businessmen in South-East Asia tend to pass their legacies and their businesses to their children. Many fathers distribute their shares in the companies to their sons only whereas the daughters will get cash and share of properties. Many a time, fathers will distribute equal shares to their sons in the name of fairplay not realising that such legacies could lead to potential conflicts that are difficult to mitigate.

I have a friend of some 30 years now having a problem with his brother over the ownership of the business that they have been managing together for the last 30 years. When their father passed away some years ago, he gave his two sons equal shares 50:50. Now that they can’t work together anymore, both brothers are in a deadlock as both refuse to sell their shares to each other. Their last resort will be to go to court for arbitration which will eventually lead to voluntary liquidation. In such cases, the court will appoint a liquidator to manage their company.

I have another friend who had a bigger legacy problem. Her grandfather gave equal shares to his four sons 25:25:25:25. After his passing, the third and fourth sons teamed up together to protest against the first and second son who were managing the family business. So it was a 50:50 deadlock situation and they decided to buy and sell the shareholdings among themselves. But they could not come to an agreement. In the midst of their disputes, the second son aligned with the third son whereas the first son aligned with the fourth. Again it is a 50:50 scenario.

So they went to court and a liquidator was appointed. More disputes followed as they could not come to a unanimous decision and they all did not agree with the way the liquidators worked. So for 25 years, their multiple lawyers and liquidators sued and counter sued and after wasting millions of ringgit in legal and liquidator fees, they manage to lift/suspend the liquidation order set by the courts.

So control of the family holding company finally came back to the family but the shareholdings among the four families remain the same, 25:25:25:25. Their only consolation is that the property assets (whatever is left) have appreciated many times in value.

My friend’s advice is not to go the legal and liquidator way unless you want to experience constant drain on your time and wallet. It is mentally too exhausting. Solve the family problems within. After all, you are still brothers in name and in blood.

After listening to both my friends’ sad stories, I might have to change my will. I have willed that upon my death, all the shares of my companies are to be divided and shared equally among my wife and three children which means 25:25:25:25. What will my children be like and how will they behave after they are married? What kind of influence will my daughter-in-law and son-in-law have over my children? Will my legacy decisions cause them distress in the future?

I will not have to worry about this problem if I am super rich like my namesake tycoon who has three wives and many children. I will assign one listed company to all the children of one wife and each child shall run his/her own company. Each child will have a little kingdom of their own to rule over. Success will be self achieved and failures will be self inflicted. Nobody blames nobody.

Sometimes, fathers have to make the tough decision of choosing one son from the brood to lead manage the family company. In the old days, fortune tends to favour the eldest son but successful entrepreneurs nowadays will choose the most capable of the sons or daughters to take the family into the next generation.

I have known of entrepreneurs who will give the majority shares to the chosen child so that he/she can manage the company effectively with trouble free opposition from his siblings.

It is not difficult to be fair when you distribute cash and properties but any decision on successor of holding companies should be based on merit and capabilities of the chosen child. It will be good if the shareholdings are structured accordingly to ease the smooth transfer of power to the next generation. A wise decision now will not cause legacy problems for the next generation.

Looks like I will have to will to my wife a bigger share so that the family company can proceed with a slight majority decision when necessary. A wise decision now will ensure that I will not get any WhatsApp messages from my wife while I am enjoying the tranquil ambience of a golf course during my afterlife.

Published: https://www.thestar.com.my/business/business-news/2018/03/24/legacy-issues-in-chinese-businesses/

3/2018 – Reunion in the Year of the Dog

MY Chinese New Year (CNY) celebration this year was no different from previous years. Same family reunion dinner on the eve of CNY, visits to the elders on the first day and for the following seven days, continuous lunch and dinner dates with families and friends.

The only difference was in the house decorations. The cute lovely Chinese chicken figurines were replaced by the cute lovely Chinese dog figurines. My dear wife had spent a good part of two weeks shopping for house decors and flowers to give our home a festive feel. She was also responsible for gathering both extended families for our reunion dinner.

Her good friend Thiat was extremely resourceful and managed to secure for me a copy of the elusive Robert Kuok Memoirs which I thoroughly enjoyed reading between heavy meals and many mandarin oranges. What stood out from his memoirs was how he worships his mother for her nurturing love and mentorship. If you had read Datuk Tan Chin Nam’s memoirs, he had a similar close relationship with his mother.

Both Robert and Chin Nam’s father emigrated from China in the early 1900s and became successful businessman in Malaya and Singapore. In that era, being successful and rich means they are entitled to having two or more wives. The responsibility of looking after the children rests with their respective wives and the fathers were generally poor parents to their children to the extent of neglect and instead were self-indulgent in the pleasures of life.

The Chinese emigrants to Malaya and Singapore brought with them their cultural beliefs and practices that has been passed on to present generations. The celebration of CNY started in ancient China more than 4,000 years ago. Legend has it that the first emperor of China, Emperor Huangdi invented the Chinese lunar calendar back in 2637 BC, more than 2000 years before the birth of Christianity and Islam. The Chinese lunar calendar is based on the exact astronomical observations of the longitude of the sun and the phases of the moon. How the 12 zodiac animals were picked is another mystical story.

Being Hokkien, my family (when my parents were still alive) celebrates the ninth day of Chinese New Year by offering thanks giving prayers to the Jade Emperor (Thien Kong) the Heaven God. This was based on the belief in history when the Hokkien people hid in a sugar plantation on the eigth and ninth day of the Chinese lunar new year to escape from a ruthless army and was thus saved by the Jade Emperor.

I remember my mother used to placed a table outside on the porch and offered thanks giving prayers and food to the moon/heaven on the eight night between 11pm and midnight. As a young boy, I would innocently ask my mother why she prayed to the moon when the Americans had landed on the moon and found no life forms there?

There are many beliefs and cultural practices to this present day based on historical events and mystical stories. Again legend has it that pork was widely consumed thousands of years ago in the Middle East and Europe until a swine fever epidemic struck the population and killed tens of thousands. To avoid the decimation of the army, instructions were given out to avoid eating pork as it was unclean.

As there were no cure and medical understanding of diseases at that time, the best action was to avoid consuming the main cause of the disease. Similar pandemonium happened when a rabies epidemic occurred. Dogs with rabies foam at the mouth and hence the people were advised to avoid dog saliva as it was unclean. Over the last few thousand years, many common sense solutions and practices for the early years have been passed on through the generations as cultural practices and in some cases as guidance in religious practices. These are snippets of wisdom from past history that has guided the human civilisation that is constantly evolving.

Many cultural practices are based on economic hardships and practical climate reasons. I remember accompanying my father back to his birthplace in Yongchun China in 1993. My cousin treated us to a dinner where all 10 dishes looked the same, braised in gravy and all tasted very salty. My cousin explained that during the Chinese revolution, there was food famine in the villages and they could only afford to cook one dish for lunch or dinner. So they throw everything into the pot and put a lot of soya sauce and salt.

The reason is each family member will only need to eat a piece of salted vegetable or meat accompanied by several mouthfuls of rice. Filling up the tummy was the priority. So over 30 years, their taste have changed to having salty foods.

The Koreans invented kimchi which is preserved cabbage as this was the only vegetable dish available during the harsh winter season. Large amount of kimchi was preserved in large earthen jars to last the whole winter. As there was no refrigeration in the early years, mankind store meat by smoking it so that it can be preserved and consumed over a period of time.

The Chinese have their preserved sausages (lup cheong) and salted ducks and the Italians have their racks of smoked ham and beef. Hence the practice of slicing pieces of meat off the rack when serving during a meal and the balance rack for following meals.

During festive seasons in Malaysia, most commercial entities jointly celebrate the festivities by running corporate advertising campaigns with relevant and appropriate gifts like ang pow packets. Who could forget the endearing Petronas festival TV commercials?

Yasmin Ahmad avoided religious and cultural sensitivities by focusing on ethnic family values like family reunions, filial peity and basic human kindness and love. Her little naughty act as a sign of friendship was in naming the orphan in one of the commercials after me. As an orphan, the boy had not experienced a family reunion before so Yasmin’s message to everyone was to be thankful that you have a lovely family to reunite with during such an auspicious festival.

To the young entrepreneurs, the recent faux paus in some of the advertisements are lessons to be learnt. Replacing the picture of a dog with either the cat or a cockerel in your advertisement might soothe the sensitivities of certain segments of society but it also causes discontentment among other people. It just makes no commercial sense.

If it was my company that placed such an advertisement, I would sack my marketing manager for wasting precious advertising budget on a campaign that delineates certain group of customers and for not knowing that such advertisements dilute my company brand image of which I have spent millions on advertising over the years. No commercial sense and no common sense.

I will also sack my not-so-clever advertising agency who thought they had such a clever idea. Any advertising campaign that does not contribute positive attributes to my brands means they do not have a clue on brand building and local cultures. I will advise them to watch the various telco and banking commercials that focus on positives like family values and heart warming reunion messages that resonates across all races and segments of society.

If you do not have a good advertisement, save your money rather than placing a bad advertisement that damages the brand.

With the upcoming general election, it is going to be silly advertising season again. My advice to the educated public is to ignore the politically motivated advertisements that tend to divide the harmonious fabric of our society. Have a good laugh at bigotry and hypocrisy.

In years time, I will be watching with interest the new corporate festival commercials and new ang pow packet designs. I am sure the next CNY reunion will be filled with laughter and lively discussions as we usher in the year of the zodiac swine.

Happy CNY to those who believe in the mystical folklore of Emperor Huangdi. May this zodiac year bring you a pack of prosperity and bark..ti..ful joy and laughter

Published: https://www.thestar.com.my/business/business-news/2018/02/24/reunion-in-the-year-of-the-dog/

2/2018 – Give Cuba a ‘cuba’, it’s well worth it

Cuba Cuba. In Malay language, it means trying trying, really trying, and if put in the form of a a question, it means would you like to try?

Cuba CUBA. Try Cuba, the country. Which I have just done.

CUBA cuba. Cuba, the country is really trying. While the younger generation are trying to get out of the communist/socialist state- controlled economic malaise, the older generation are reasonably happy that the state still provides 4kg of rice and 2kg of sugar (1kg white, 1kg brown) free on a monthly basis via redeemable coupons.

Lazaro Ricardo Gonzalez Ribeiro, our tour guide, majored in English literature at the University of Havana, which is the only university in Cuba but with many branch campuses across the island. Ricardo was named after Saint Lazarus, father Gonzalez and mother Ribeiro. Quite a mouthful so I called him Ronaldo instead. No, he is not the dark tall muscular Cuban man that the ladies are crazy about.

Ricardo is actually a nice, unassuming, helpful and eloquent man. Always philosophical about life, he is both pragmatic and hopeful.

He speaks perfect English and he studied Shakespeare, Caribbean and American literature.

Ricardo is extremely proud of the Cuban education system where it has produced the best medical students and the whole population receives a minimum of 12 years of education from kindergarten at age five right through to our equivalent Form 5. So they export doctors instead of maids.

The problem with Cuba is that is has very few industries and almost everyone works for the state or the state enterprise.

Its top exports are raw sugar, rolled tobacco – cigars, refined petroleum, hard liquor – rum and nickel mattes. Cuba imports most of its food, especially poultry and milk concentrates.

The country’s main foreign exchange earners are tourism and worker’s remittances from overseas.

Not to mention the population of over two million Cubans in Miami, Florida (which is just about 100 miles away by speedboat) who send money back to their families on a regular basis.

Compared to our population of 32 million (plus or minus a few million of legal and illegal naturalised immigrants), Cuba has a population of 11.6 million and it’s shrinking since there is a continuous exodus of emigrants from the country. In 2015, their total exports amount to only US$1.5bil which is puny compared to our Prime Minister Office’s budget of US$4bil alone.

There are two official currencies in Cuba – Cuban convertible Peso (CUC) and Cuban Peso (CUP). One CUC is equivalent to 25 CUP. One CUC is pegged against one US dollar but since the US has a continuous trade embargo on Cuba, you are advised to bring euros and sterling pounds as there is a 10% discount on US dollars.

My Maybank Visa credit cards could not be used and only CIMB MasterCard could function. We assumed Visa (via USA?) is barred and only Mastercard is allowed. No point talking about American Express Card.

There are also two economies in Cuba – actual and parallel economy.

The CUP economy and the CUC economy. CUP is a state-run economy, where salaries and cost of goods are kept artificially low whereas the CUC economy is reflective of the imported inflation on cost of living.

Since imports are five times more than their exports, the state uses the tourism (plus workers’ remittance) forex to finance the national trade deficit.

There are hardly any big entrepreneurs in Cuba. You are allowed to own a single business. Full stop. If you own a restaurant, you are not allowed to run another business, like own another pub.

The transition from a state-run economy to an entrepreneur-driven economy like China will be tough for the Castro dynasty to adopt. Opening up the economy has been slow and befuddling, maybe they should bring in some consultants and investors from China, their Communist compatriot.

Andreas Vogiatzakis, my travelling mate, was excited about the advertising and media space in Cuba.

Except for a few Che Guevara small billboards along some roads, he was already placing imaginary 20’ by 40’ billboards along certain vantage points in Havana city. Since the Internet is limited to hotels and certain homes, maybe our newspaper publishers might want to consider relocating their state of the art printing plants to Cuba.

Peter Tham, my other travelling mate, feels the country’s tourism industry has potential.

I think the agricultural industry is in need of poultry-breeding for import substitution of meats and milk. So much agri-based potential, like what Malaysia was 40 years ago.

The biggest obstacle to entrepreneurs is the state-run economy where the government wants to control everything. Rolled tobacco is probably the best run industry in Cuba.

The tobacco plantations are privately and state-run. Each plantation has to follow strict guidelines on what they can grow and how they should grow it.

For privately run plantations, they have to sell 90% of their tobacco leaves to the state enterprise who will then store and allocate to about 28 factories to produce cigars for all their Cuban brands.

Cuban factories export an estimated 100 million of their best cigars to the world market via state enterprise Habanos SA which has some foreign shareholders since its inception.

These foreign shareholders, like Imperial Tobacco from UK, its existing partner, offers supply chain and brand management expertise.

Local consumption of cheap cigars are three times the export quantities so the tobacco manufacturing industry has tremendous potential and offers much needed employment to the local population.

But entrepreneurial competitors from Nicaragua and Dominican Republic are catching up fast.

Fuelled by the needs of the US market, these two countries have been improving their quality by leaps and bounds over the years.

The premium pricing policy for Cuban cigars is actually very well managed and its main threats are from fake cigars and online sales.

The country’s potential growth will eventually come from the opening up of the US market.

But first the Cubans have to worry about Trump, who does not smoke cigars.

But his son-in-law does.

So maybe there’s hope for the Cuban people.

We really enjoyed our visit to Cuba. The people are genuinely nice, easy and laid-back. Just like us 40 years ago. Cuba CUBA. Viva Cuba!

Published: https://www.thestar.com.my/business/business-news/2018/02/03/give-cuba-a-cuba-its-well-worth-it/

1/2018 – Hope is eternal

Saturday, 27 Jan 2018

Every new year, we raise our hopes that this year will be a better year.

For our business, our health and our bonuses.

Parents hope that their children will continue to pass all their exams and have a trouble free year in school and at home.

For cancer patients, your whole life revolves around hope.

Hopefully, this chemo treatment will get rid of cancer once and for all, alternative non-chemo treatments might just work for you, change of diet might just cure you blah blah blah.

You feel hopeful when your cancer count is down after treatment or you fall into despair and a sense of hopelessness when your treatment does not work.

Always hoping for a new miracle drug or an alternative treatment that works, many new cancer patients dilly dally, wait and see, seek many medical opinions and still end up more confused than ever.

In the meantime, the cancer cells are growing and multiplying inside your body.

Uncertainty and indecision kills.

Whatever action that you have decided, just do it. Just remember you are dealing with a growing problem and time is of the essence.

Each cancer case is unique to the individual, different response to different drugs, different degree of aggressive cells, the permutations are just too many and complex to understand.

The oncologist practised learned guesswork daily and according to conventional wisdom, practice makes perfect, so treatment decisions become more accurate and predictable as the oncologist gain experience over the years.

I work well with my oncologist. She involves me in the guesswork and we hope together.

I have survived four full years since I was diagnosed with stage four colorectal cancer in 2014.

To celebrate, I just did two ablation procedures in London over the last two weeks, zapping three new active tumours in my liver and lung.

I have had a total of 17 ablation procedures done over the last four years. So who’s counting?

To continue with my celebration, I am now on the plane from Amsterdam to Havana with my three cigar buddies and the four of us are going to smoke ourselves silly with the best of the best cigars in the world.

Andreas V, the self proclaimed president of our Cigar Club is hopeful that Cuba will be what he has imagined as he is a big fan of the late President Fidel Castro.

He has been talking about this dream trip for the last four years. I hope he will not be disappointed.

My wife and daughter still frown upon my cigar-smoking and they are not convinced at all with my reasoning that at this stage of my cancer life, there is absolutely no difference that consumption of red meat, liquor and cigars will make any difference to my medical condition or cancer activities.

I hope that when I eventually go away, it will be with a smile on my face and a cigar in my hand. I am still figuring out on a continuous supply chain of cigars for my afterlife, if any.

Entrepreneurs are hopeful people.

Dreamers eventually turn into pragmatista.

The level of hopefulness will depend on the stage and type of their journey.

There are many startups which have not been able to raise any seed funds from family, friends or Venture Capital.

Hopes crushed before take-off.

Probably because the proposed business model was not viable and will never make any money.

It is important that young startups stay grounded and not raise your hopes too high just because you and your friends think you have a great idea.

The fallout rate is just too hopelessly high so do not add to this statistics.

Entrepreneurs who have survived the early years have now become more pragmatic than hopeful.

Their dreams and aspirations slightly altered now that they are facing the reality of survival and sustainability.

Each year, they have to look at specific strategies – hope to survive this year, maybe can make some money year, make or break year or looks like a bumper year ahead.

Faint hopes to fat hopes.

Life is tough.

Most entrepreneurs struggle for the best part of their life just to own a house, put food on the table for the family and hope to provide the best education for their children.

Only 10% of all entrepreneurs are reasonably successful, managing to build up a nest egg of investment portfolio to have a fairly comfortable retirement.

The 1% super high achievers that you read about every other day do not need to hope anymore. They have made it.

Everyday of our lives, we wake up in the morning and hope that we will have a good day ahead.

For terminally ill patients, they hope they will wake up the next morning.

For politicians, they hope that come election time, their constituents would have forgotten what they have promised them five years ago.

Appealing to nice natured Malaysians, politicians will ask for forgiveness once every five years and hope that a nice ang pow might just make you forget the pain they have caused. We hope they would just go away and never come back.

The elite politicians have lost touch with the hopes and aspirations of the people they serve.

Millions of citizens work hard daily to survive and feed their families. Life is hard enough without the need for this political push for racial divide and religious segregation.

Sometimes it seems like a hopeless irreversible slide into a dark pit. Is there hope?

Anyway, looks like all sales people have to reset their sales target to zero again. No worries, you have 12 months to make good what you have promised yourself and your company. Always hope for the best and may the bonuses be with you soon. And to my fellow cancer patients, stay hopeful and positive.

Stay strong!

Published: https://www.thestar.com.my/business/business-news/2018/01/27/hope-is-eternal/

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