The economic recovery from the pandemic has taken longer than expected. Yet, deserving entrepreneurs have shown how they have seized the opportunities to thrive
The pandemic has been more protracted than envisaged, pushing back broadbased recovery that many are looking forward to. Certain businesses have really ticked up, but others are still languishing whereas are just hanging on. “We are seeing a K-shaped recovery,” says Max Loh, Ernst & Young’s (EY) managing partner for Singapore and Brunei.
For example, pharmaceutical companies are “very strong” while consumer technology’s doing very well. The automotive industries, at varying stages of shifting to electric vehicles, are meeting the transformation challenges head on. Others, such as those in oil and gas, are compelled by growing environment, social and governance (ESG) awareness to “reshape” whereas those in hospitality need are challenged.
As a professional services firm, Loh believes he and his colleagues at EY are well positioned to help clients deal with several big themes, regardless of which industries they are from. Going digital and making better use of technology is one. “Companies need to transform, to grow, and embrace technology to create different business models,” he says.
Amid this shift, companies are expected to play bigger roles in promoting sustainability practices. There is a growing list of regulators requiring companies under their jurisdiction to do sustainability reporting. Firms such as EY are naturally roped in and instead of just verifying key sustainability, EY wants to add value by advising clients by for example, how to transition to net-zero. And for the clients, they need the right talent to help implement the changes, and helping them acquire new skills is also something EY is able to offer.
“There’s the strategy transformation piece, there’s a digital and technological embracing piece, there’s a talent piece, a sustainability and resilience piece. There are many things that EY does,” says Loh.
If need be, EY itself can be used as an example of what can be done. For years, the firm has made sure it is both sustainable and resilient. EY has practiced flexi-working since 2013 so when the pandemic struck, the firm did not need to change the way it operates “massively,” he adds.
The pandemic has the effect of reinforcing how EY is relevant, and what it as a professional services firm can offer clients. “It depends on which stage and how they’re affected. We’ve been able to also pivot and come up with different solutions for clients. So that’s the good thing,” Loh explains.
Poster boys
The pandemic has gone on for nearly two years. Regardless of the shape of the recovery, Loh is cheered by the sight of entrepreneurs who — instead of wallowing in this crisis — are energised and taking to steps to identify and make the best of the situation. They do so by pivoting and transforming while demonstrating plenty of resilience and grit. “There are still lots of opportunities and entrepreneurs are seeing that space and going after it,” he says.
However, Loh recognises that not all entrepreneurs are able to pull ahead and do well. There is also the wariness that is starting to affect more people trying to cope with the pandemic in their own ways. This has led to growing awareness and discussions on topics such as mental health — something not typically on a business’ agenda in the pre-pandemic years.
Still, he sees some optimism. Thanks partly to pent-up demand, countries are starting to open up, airports starting to get busy and takeoffs and landings happen more frequently and people and not just cargo are cocooned inside.
The environment is tough but Loh is also cheered by the success of entrepreneurs here — particularly if they are associated with EY. Dr Shi Xu, executive chairman of Nanofilm Technologies International, was overall winner for 2017. Last year, the latter took his company public and hit a multi-billion valuation.
Loh agrees that the ecosystem could do with more poster boys like Shi. Referring to this year’s finalists, Loh notes with quiet satisfaction that this is a “very promising” cohort. The category winners will go on to compete for the EY Entrepreneur Of The Year title, and then represent Singapore at the global EY award, now in its 20th edition.
They are Aaron Tan, founder and CEO of online car platform Carro, who is named EY Entrepreneur Of The Year for Digital Automotive Solutions, Goldbell Financial Services CEO Alex Chua, who is named EY Entrepreneur Of The Year — Financial Services and Jackson Aw, founder and CEO of Mighty Jaxx, who is named EY Entrepreneur Of The Year — Collectibles and Lifestyle Products. Meanwhile, the three men behind Singapore-headquartered molecular diagnostic company MiRXES — namely co-founder and CEO Dr Zhou Lihan, co-founder and chief technology officer Dr Zou Ruiyang and chief investment officer Isaac Ho — are joint winners of the EY Entrepreneur Of The Year — Biotechnology title. Finally, there is Walter de Oude, founder and deputy chairman of Singlife, who is named the winner of the EY Entrepreneur Of The Year — Digital Insurance Solutions.
Enhancing the ecosystem
Loh says these finalists are already on their way building very significant and impactful businesses, and for those that need to raise, have attracted some serious money. However, he also offers a reality check for start-up founders with the ambition to make it big in their respective industries. “We celebrate successes, but let’s not forget the failures. If they don’t make it — not for the wrong reasons like governance or whatever reasons — but because the business is like that, then we should just move on. That’s how ecosystem is built up.”
For every success story the way Nanofilm is in Singapore, there are those that choose not to reinforce their presence here with a listing on the Singapore Exchange (SGX). Laurent Junique of Teledirect was another finalist, from 2018. In October this year, the company, which has been renamed as TDCX, raised around US$350 million ($478 million) via a listing on the New York Stock Exchange. It now commands a market capitalisation of around US$3.5 billion. “Of course, as Singaporeans, we really encourage companies to list on the home exchanges. But we’re a globalised world, so people can choose. It is the same when foreign companies list on the SGX, then the other side feels bad,” says Loh when asked about TDCX’s choice of listing venue.
The larger point to remember, Loh says, is that the environment can be competitive. “It is our responsibility to make sure our capital markets ecosystem really supports the listing of what we call home grown companies that we don’t want to lose.” In September, after several years of ground work, Temasek Holdings, SGX, the Monetary Authority of Singapore and EDBI came together and introduced a suite of funding options meant to help companies grow and eventually list here. SGX has also introduced a rather accessible special purpose acquisition companies (Spacs) listing framework.
‘Let 100 flowers bloom’
says there is all this support, including schemes to help defray some of the listing expenses. “I think the things are in place, but the key ingredient is still the companies, okay? And how they feel is the attractiveness of the exchange, to give them the value, liquidity, opportunities to raise further funding. Even though you’re good, the problem is, because it’s competition, if other people are deemed to be better, I might still go there.”
While the ecosystem can be well-equipped to help, Loh says that at the end of the day, the companies must show promise and be viable. The funds are not just going to dish out money just because the company has “an idea”. Clearly, it boils down to the individual entrepreneurs who founded and are leading these companies, to prove their mettle.
This year’s finalists are all relatively young men and the companies they have founded and run tend to be skewed more towards the tech-heavy types, be it as services they sell or the platforms they operate on. In contrast, previous winners and finalists were running relatively traditional business such as the 2016 winner of David Low of the Futuristic Group, which specialises in installing fittings for retailers.
asked if it was a deliberate decision to choose winners fitting this profile, Loh says that is not the case. “This is our 20th year; and this is the new economy, so I don’t think there’s a concerted effort to focus on the younger people. Its par for the course for everyone to compete, and be named the winners. But the reality is that the opportunities lie in the tech, digital and the new business model.”
stressing that he is not naming any of the finalists specifically, he says they stand out because they are breaking ground in their own way. For example, Carro’s Tan is using online platforms to serve its customers more efficiently. Meanwhile, Aw of Mighty Jaxx — which sells collectable figurines — can venture into digital characters that will fit in with the concept of “Metaverse”, recently popularised by Facebook’s Mark Zuckerberg.
Loh finds the potential new business ventures, new possibilities that these entrepreneurs are poised to capture, an “exciting” thought. “It creates so many opportunities for them to be able to bring value to the table.”
But just like in a traditional economy, venturing in a digital world does not mean a better chance of success. “Not all of them will succeed as always, but I think it’s fine. It’s fantastic. Let 100 flowers bloom,” he adds.
Photo of Max Loh by Albert Chua of The Edge Singapore
