Fast-track growth

Malaysian Business,  Jul 1, 2008  by Yvonne Chong

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MUTUAL TRUST AND CONFIDENCE among family members is of utmost important to determine the success of a family-run business, says Dr Zuhairah Ariff Abd. Ghadas from the Private Law Department, International Islamic University Malaysia.

Zuhairah was speaking on the topic `Ownership vs Expansion: The Conundrum in Family Business' at the East Asia SME Convention held last month in Kuala Lumpur.

`Disputes, whether personal or business, between the members of a business entity - even when they are all family - may result in the death of the family business. It does not matter if the business is expanding and doing well,' she says, adding that sometimes, the business has to be folded or some of the members have to sell out of the business in order to save family relations.

The two-day seminar, themed `Strategic Partnership: Regional Links, Global Reach', featured nine speakers, each an expert in his/ her own field, sharing their knowledge and experiences to a crowd of 600 participants. Foreign participants came from as far as the Middle East.

The event was held in conjunction with Smidex 2008, the 11th Annual Exhibition organised by the Small and Medium Industries Development Corporation (Smidec).

One theme that resonated throughout the conference was that the future of small and medium size enterprises (SMEs) rests on innovation and strategic alliances, be they regional or global.

Alex Counts, president of the Grameen Foundation, US, kicked off the first session, `Challenges for SMEs in the 21st Century'. He explained how Grameen built a thriving business out of `seemingly hopeless cases' in his presentation `Small Loans, Big Dreams'.

`By combining the power of microfinance, technology and innovative solutions, Grameen has been empowering the world's poorest people to pull themselves from poverty since 1997,' Counts says.

Microfinance is defined as very small, unsecured loans typically under US$200. Grameen has proven that microfinancing is a successful business strategy with an amazing 95%-99% repayment, way better than credit cards and student loans.

Following that, Jeong-Oung Jekarl, Chairman of the Korea M&A Association, shared extensively on the experiences of Korean firms in merger and acquisitions (M&A) activities.

The second session of the seminar focused on the topic of `Reaching out Regionally Through Strategic Partnership'.

The three speakers - Professor Kenji Matsuoka from the Economics Department of the Ryukoku University, Japan; Tom C. Banguis Jr, Past President of the Philippines Marketing Association; and Professor Dr Birasak Varasundharosoth, the Advisor to the Director-General, Office of SME Promotion, Thailand - all stressed the vital role of strong branding, innovation and networking for competitiveness in the borderless business world.

The third and final session, focusing on the topic of `Fast Track to Global Reach' generated the most interaction from participants. Chaired by the Deputy CEO (Promotions), Wong Lain Sum, of the Malaysia External Trade Development Corporation (Matrade), it was the best moderated session.

The presentation by the Chief Executive Officer of Air Asia X, Azran Osman-Rani, was short, entertaining and insightful - a prefect finale for the seminar. `Conventional wisdom is not always wise,' Azran said, as he shared Air Asia's experiences in creating new markets by challenging the status quo.

`You don't have to always look up to the big brands and follow them. Malaysian brands can go just as far. The only limit is ourselves,' he said. `Business is business, but you have to have fun. Let loose. Work hard, play harder.'

Azran received the most queries from the floor, albeit most of them were related to the delays often associated with Air Asia's services. Azran was a true professional in his responses. He said that Air Asia's delay had been significantly reduced and was now within the industry average, and added cheekily: `You pay three times as much for the services of another airline and you'll still get the same delay.'

The other two speakers - Richwell Trading Corp (Philippines), Managing Director Myrna T. Yao, and Nguyen Trong Hieu, Deputy Director General, Vietnam's Agency for SME Development, spoke on `Network Marketing: Formula for Global Reach' and `Internationalisation of SMEs', respectively.

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