Leading Entrepreneurs and How They Succeed

Entreprise 50

• Publisher: WSPC
• Year: 2016
• eBook ISBN: 9789813140721
• Topic: Business
• Subtopic: Business General
• Index: Business

In Singapore, SMEs are a vital part of the economy, yet little is known of the many leaders whose vision, acumen and hard work have such a far reaching impact.

In Leading Entrepreneurs and How They Succeed, several entrepreneurs, well recognised in their respective industries, provide a unique perspective on their business journeys — the trials, tribulations and best practices that have contributed to their climb to the top. With several awards to their names, these successful business owners, proud members of the Enterprise 50 (E50) Association, share valuable insights and personal experiences about what success means to them.

Contents:

• Acknowledgements
• Foreword
• Introduction
• AllAlloy
• Asia Polyurethane Manufacturing Pte Ltd
• BD Cranetech
• Bengawan Solo
• Borden Company Pte Ltd
• Capita Pte Ltd
• Car Times Auto Pte Ltd
• Cyclect Group
• Ensure Engineering Pte Ltd
• EPChem International Pte Ltd
• Excel Precast Pte Ltd
• Feinmetall Singapore Pte Ltd
• Franklin Offshore Holdings Pte Ltd
• Gain City Best-Electric Pte Ltd
• Golden Bridge Foods Manufacturing Pte Ltd
• Greenpac (Singapore) Pte Ltd
• Indoguna (Singapore) Pte ltd
• Jason Marine Group Ltd
• Jason Parquet Specialist (S) Pte Ltd
• JEP Precision Engineeri
• JP Nelson Equipment Pte Ltd
• Koufu Pte Ltd
• Money World Asia Pte Ltd
• Nordic Flow Control Pte Ltd
• OKH Global Pte Ltd
• Oilfield Supplies & Services Pte Ltd
• Pollisium Engineering Pte Ltd
• Rotating Offshore Solutions Pte Ltd
• Ryobi Kiso Holdings Ltd
• Serial System Ltd
• Silver Bullion Pte Ltd
• Sing Lun Holdings
• SLP International Property Consultants Pte Ltd
• Spectra Innovations Pte Ltd
• Sunray Woodcraft Construction Pte Ltd
• Supreme Components International Pte Ltd
• Tat Hong Holdings Ltd
• Tee Yih Jia Group
• Trans Eurokars Pte Ltd
• Transworld Group Singapore
• ValueMax Group Ltd
• Viking Offshore & Marine Ltd
• Wanin Industries Pte Ltd
• XMH Holdings Ltd
• Zero Spot Laundry Service Pte Ltd
• KPMG

Readership: General Public; for readers interested in the heart, work ethics and pedagogy of Singapore's top SMEs and their founding entrepreneurs.
SG50;E50;50 for 50;Leading Entrepreneurs;Singapore;Business;Companies;Corporate Social Responsibility;Charity;Giving Back to Society;Entrepreneurship;Business Leaders;Singapore's Economic Future

Company Profile

XMH Holdings Ltd started as a small machinery repair and maintenance shop in Kitchener Road in 1955. With a history of over 50 years, the Group is now a reputable and trusted name as a diesel engine, propulsion and power generating solutions provider to a diverse customer base in the marine and industrial sectors across Asia. Over the years, the Group has expanded its primary product offerings to include reputable brands for which it has acquired distributorship, agency and dealership rights. The Group continued to advance, scaling up the value-chain with the introduction of “AceGen”, its in-house range of power generating sets, and “XMH IPS”, a one-stop integrated solution for vessel owners who require diesel engine (or electricity) driven propeller-based propulsion systems.

Moreover, XMH completed two acquisitions in recent years. The first is of Mech-Power Generator Pte Ltd (“MPG”) in September 2013, a leading manufacturer of diesel powered generator sets and the second is Z-Power Automation Pte Ltd (“ZPA”) in March 2015, a company which specialises in integrated marine automation products.

With the acquisitions, the Group’s business activities can be broadly categorised into (i) distribution and provision of value-added products and services; (ii) after-sales services, trading and others; and (iii) assembly and installation of standby generator sets and provision of related services. The Group’s marine products are marketed to shipyards, vessel owners and dealers whilst its industrial products are distributed to hotel proprietors, building owners and main contractors for a wide range of applications.

Setbacks and Recovery

It has to be the financial crisis in 1997. The market saw massive swings in exchange rates and interest rates, leading clients to withdraw their orders, causing a spike in the company’s inventory. As clients stopped paying, XMH was struggling to meet the payment obligations to suppliers and banks. It was like the entire business operations and financial systems had stopped.

CEO Mr Tan Tin Yeow learnt a few profound lessons through this. Firstly, never give up; you have to be persistent and positive. There is no hardship that one cannot overcome, and one must always believe things will get better. Secondly, always work hard and be vigilant. Grasp the opportunities before others and swiftly capitalise on them. Lastly, always be prepared and have the risk management systems in place. Never assume that everything will remain constant and never underestimate any potential threats as it could very well unravel into huge problems.

Advice to Budding Entrepreneurs

There are no shortcuts to becoming a successful entrepreneur. An entrepreneur is commonly seen as an innovator and generator of new ideas and business processes. Being an entrepreneur and leader, you must be willing to take risks, exercise initiative, and take advantage of market opportunities by innovating new or improving existing products.

Must-Have Qualities of Successful Entrepreneurs

•Perseverance and Passion

•Effectiveness and Efficiency

•Vision

Turning Point

The quest to be global and the attainment of exclusive distributor rights from various principals, especially with Mitsubishi Heavy Industries Pte Ltd (“MHI”), formerly known as Mitsubishi Heavy Industries Engine System Asia Pte Ltd (“MHIESA”), for a range of Mitsubishi engines.

Through expansions, XMH also explored new revenue streams to increase market share and entered countries like Indonesia, Malaysia, Vietnam, China. These efforts led to the exclusive and non-exclusive distributorship rights of a wide product range of reputable brands in the region.

Since then, XMH Holdings Ltd continued to expand and became a publicly listed company. The listing has given us the opportunity to expand rapidly through acquisitions and joint ventures which have strengthened capabilities and our presence in the region.

Significant Milestones

It all started in the 1960s when our founder, Mr Tan Tum Beng started to buy used industrial diesel engines and machinery from suppliers in the United Kingdom through commissioned agents for resale. He would also modify such industrial diesel engines for customers in the timber industry. This was the beginning of a journey towards diversification to not only providing maintenance and repair services, but also the sale and modification of engines.

First Milestone

The first milestone in developing the business was when he saw the potential in used industrial and marine diesel engines and related machinery manufactured in Japan. These were more competitively priced than those manufactured in the United Kingdom and they were gaining popularity in Singapore and Malaysia back then. In 1981, the business expanded to include the sale of used industrial and marine diesel engines and related machinery from Japan. This expansion allowed the business to grow into one of the leading suppliers of used industrial and marine diesel engines and related machinery manufactured in Japan.

We continued to source and grow our quantity of purchases and range of products to suit the growing needs of clients. Staying relevant to market needs, we revised the business strategy to focus on securing distributorship, agency or dealership rights for new industrial and marine diesel engines, power generating sets and their respective genuine spare parts. Over the years, the Group has been recognised by MHI as the largest worldwide distributor for marine diesel engines for nine consecutive years since 2005.

Second Milestone

In the 2000s, the second milestone marked the continuation of XMH’s tradition of innovation as we made our initial foray into the OEM business, developing and marketing a range of power generating sets under our in-house brand, “e-Gen”, now renamed “AceGen”. The “AceGen” power generating sets offer models with standardised features and models with customisable features to cater to the specifications of customers.

Third Milestone

The third milestone was XMH’s listing on the SGX. The listing provided a platform for higher growth through capital funding for mergers and acquisitions. It helped to achieve rapid growth through acquisitions of companies that provided synergistic value such as Mech-Power Generator Pte Ltd (“MPG”) and Z-Power Automation Pte Ltd (“ZPA”). It also allowed us to acquire a new building at Tuas Crescent, where we are able to house the business under one roof and give ourselves the ability to develop marinised engines in-house.

The Next 50 Years

No one can say they know for sure exactly what is going to happen 50 years down the road, so I hesitate to predict what the market environment will be like that far down.

However, as XMH has done over the last 60 years of its history, I anticipate that the company will continue to reinvent itself to stay relevant and successful. Through a culture of strong learning and collaboration, we have holistic staff growth and continuity of knowledge. We have a dedicated and experienced management team who have over 20 years of knowledge in the product and industry, business networking and management capabilities. It provides them with the ability to identify market trends and viable business opportunities, and stay ahead of the curve.

Already, we are looking at developing our own marinised engines in-house and further expanding our presence in Vietnam and Indonesia. This is a big step for XMH as it opens up our capabilities and streamlines costs.

Industry Trends in the Next 50 Years

The offshore and marine industry is not in the best position currently, but this is just part of a global cycle. Overall, the current downtrend is due to the uncertainty of oil prices and the slowing global economic growth. In the next 50 years, there will definitely be another slowdown or boom; upswings and downturns are inevitable.

At XMH, we have experienced our fair share of economic growth and decline, being in the industry for 60 years. What we can do is try to pre-empt and improve ourselves through identifying opportunities and capitalising on them. Looking to the future, we see a couple of trends that could represent key opportunities.

The trend of larger vessels means larger engines. The need for greener and more efficient engines coupled with increased regulations call for better quality engines, which we are no stranger to. Also, the developments in technology and its support requirements are leading to a rise in global need for data centres. Rampant growth of technological advances in this day and age calls for an increase in centres to store all the information. Data centres require power to cool the equipment and backup generators to maintain stable power should the power fail. Singapore in particular, with its key location and infrastructure, has been known to be a key country in the region to play a part as a home for data centres.

In addition to this, governments in the region, for example Indonesia and Vietnam, have announced initiatives to improve their infrastructure, to increase the defence of territorial waters and to enlarge their fishing fleets. These improvements will require engines and generators, be it in buildings or in ships. This could work in our favour and we can expect a steady influx of orders.

Major Contributions to the Economy

The business has contributed to the economy through global recognition, provision of products and services, and sparking innovation.

Through our strong performance, XMH has gained recognition from international brands. This attracts the attention of other brands to Singapore, especially if they are looking to Singapore as a hub to springboard themselves into the region.

The services and products XMH offer have given both local as well as international companies exposure to better quality engines and generators. This aids them in building a strong business and thus a stronger economy for us all.

We also continuously innovate. Therefore, with a culture of innovation, we feel we have pushed others to propel themselves to greater heights.

Representing Singapore Internationally

From a Singaporean startup back in the 1950s, XMH has come a long way to become the largest worldwide distributor for a globally recognised brand. We are known in the international community as a business that provides quality support, services and products. We have acquired distribution rights from many other well-known brands over the years as we prove our perseverance and dedication when an opportunity presents itself.

Singapore has enabled XMH to place itself on the world stage as we were contracted to support our world renowned airport, Changi Airport in building its Terminal 4 extension.

In the region, many clients know that XMH provides quality services and they always come back because they get products that are efficient and lasting, reflecting the “Singapore Standard”.

Major Influence and Inspiration

A major influence and inspiration to me is my father. He was originally from Southern China. He neither went to school nor had any skills. While he lived a hard life in the early days, he endeavoured to improve the family’s lives through hard work. He was a man of honesty and great trust, a fast learner with a unique acumen of the economy and of business related matters.

The company encountered a lot of difficul...

Table of contents

• Cover
• Halftitle
• Title
• Copyright
• Contents
• Acknowledgements
• Foreword
• Introduction
• AllAlloy
• Asia Polyurethane Manufacturing Pte Ltd
• BD Cranetech
• Bengawan Solo
• Borden Company Pte Ltd
• Capita Pte Ltd
• Car Times Auto Pte Ltd
• Cyclect Group
• Ensure Engineering Pte Ltd
• EPChem International Pte Ltd
• Excel Precast Pte Ltd
• Feinmetall Singapore Pte Ltd
• Franklin Offshore Holdings Pte Ltd
• Gain City Best-Electric Pte Ltd
• Golden Bridge Foods Manufacturing Pte Ltd
• Greenpac (S) Pte Ltd
• Indoguna (Singapore) Pte ltd
• Jason Marine Group Ltd
• Jason Parquet Specialist (S) Pte Ltd
• JEP Precision Engineering
• JP Nelson Equipment Pte Ltd
• Koufu Pte Ltd
• Money World Asia Pte Ltd
• Nordic Flow Control Pte Ltd
• OKH Global Pte Ltd
• Oilfield Supplies & Services Pte Ltd
• Pollisium Engineering Pte Ltd
• Rotating Offshore Solutions Pte Ltd
• Ryobi Kiso Holdings Ltd
• Serial System Ltd
• Silver Bullion Pte Ltd
• Sing Lun Holdings
• SLP International Property Consultants Pte Ltd
• Spectra Innovations Pte Ltd
• Sunray Woodcraft Construction Pte Ltd
• Supreme Components International Pte Ltd
• Tat Hong Holdings Ltd
• Tee Yih Jia Group
• Trans Eurokars Pte Ltd
• Transworld Group Singapore
• ValueMax Group Ltd
• Viking Offshore & Marine Ltd
• Wanin Industries Pte Ltd
• XMH Holdings Ltd
• Zero Spot Laundry Service Pte Ltd
• KPMG