“My children can start their own business as they have already done. We need to have a clear distinction between listed entities and private entities,” says Tan. “This may also include having a family constitution that defines commitment to the group, so we select only the best for the job.”
He also says that he desires to deal with charity work, noting that he was a giant supporter of the Tzu Chi Foundation (a global humanitarian organization) and would really like to devote more time to it.
“The best decision I made in my life was to become vegetarian after the meeting [Tzu Chi Foundation founder] Master Cheng Yen. I feel physically healthier, mentally more alert and spiritually richer.”
Tan admits he announced his retirement in 2012 when he celebrated his sixtieth birthday, which included stepping down as chairman, only to return as executive chairman in 2017.
“There has been a big difference since then. I’m 69 now and next year I’ll be 70. I think that’s enough. I have been working since I was 17, when I first joined the bank as a clerk, and I have been working non-stop for almost 52 years now,” he says, adding that although he has jet-black hair, it does not imply he wasn’t drained.
Tan says his values in life have also modified, he has grow to be a vegetarian and desires to depart a small footprint on the environment by not eating meat or increasing greenhouse gas emissions.
“I am also passionate about building affordable homes for Malaysians. Housing is a basic human need. This is essential for dignity, safety and social inclusion,” he says.
“Better Malaysia Foundation [formerly known as the Vincent Tan Foundation] over the past two years, it has assembled a “brain trust” of like-minded professionals to develop solutions to deal with the affordability gap facing B40 and B50 families.
“The private sector needs to be prepared to sell inexpensive houses in the worth range of 250,000 to 300,000 ringgit [US$60,000-US$72,000] for a 900 square feet apartment in various cities in Malaysia.
“Berjaya successfully designed and built two showrooms for this purpose: a 5-bedroom, 4-bathroom, 900-square-foot module and a 750-square-foot 4-bedroom, 3-bathroom module. You can watch it at Berjaya Times Square Complex.
“I hope to achieve the support of the federal government and key decision-makers. This is my passion now,” he says.
By order of Berjaya Corp:
INSTITUTIONALIZATION
I even have been an entrepreneur for several many years. The pandemic has been difficult for the group and for me personally; it is time to hire an external specialist who will manage the group and institutionalize the method.
An organization have to be created by collective individuals, not by me alone. A fresh pair of eyes may also profit firms. I used to be running an organization as an entrepreneur, now it was time for a manager to run the corporate.
STREAMLINE
We have a big selection of companies. Jalil will likely be tasked with identifying core and non-core assets and grouping the group into consumer verticals, consistent with our vision of a diversified consumer group.
We also need to introduce greater discipline in allocating capital between individual entities. Essentially, Berjaya Corp is a fund manager of assorted firms that can allocate capital and measure it based on ROE (Return on Equity). We have to make sure that the cash we spend brings the specified return.
INVESTMENT RELATIONSHIPS
Jalil will lead the IR effort with the investment community. We have to regain investors’ trust and introduce good corporate governance, in addition to show investors that we’re indeed a modified company and undergoing a metamorphosis phase.
Jalil is an authority on good corporate governance and transparency and we would really like to see this implemented at Berjaya Corp.
We will communicate our strategies externally to higher explain our business and strategy. Good communication is crucial today since it helps shape the mood of investors and society, which affects the share price.
EXCO
Now that Jalil is the group CEO, I would really like to deal with broader issues and relationship constructing. We have established an executive committee, or exco, which is able to consist of myself, deputy executive chairman Robin Tan and Jalil, who will likely be liable for the strategic affairs of the group.
Jalil will chair the management committees on all operational matters.
In addition, a Chief Executive Officer will likely be established in each operating company, chaired by Jalil, and comprised of key management from those firms. This is to make sure regular communication and supervision from headquarters.
TRANSFORMATION
We will move through this era of change slowly to make sure that we’re future-proofed against any external shocks. This implies that we must strike a balance between businesses with recurring and one-off revenues.
This means rethinking who we wish to be and what we wish to deal with. We are in a period of consolidation to higher leverage our assets and increase our worth. We won’t be acquiring any assets for now.
WHY JALIL?
I got to know Jalil for eight months, where he gave me sound advice on what Berjaya Corp should do so as to add value, improve corporate governance, reorganize the businesses and introduce a more stringent governance framework.
He had worked this fashion for 17 years in his previous positions and I used to be impressed. He was a fund manager, knows investor sentiment about Berjaya Corp, knows how you can allocate capital and has clear strategic pondering. Most importantly, we share the identical values in life, and he has demonstrated principles and integrity at the very best level.
We have to keep such talent in Malaysia and never lose it to other countries. Jalil had many offers abroad and was about to maneuver together with his family until I made him a suggestion to assist reorganize Berjaya Corp.
FOOTBALL MANAGEMENT
When I first met Jalil, we talked about football [laughs]. He spends his free time studying football clubs’ revenues and profits, including details of transfer fees. He is a Liverpool fan and naturally I own Cardiff FC and the Belgian club KV Kortrijk, the primary division team for which Malaysian footballer Luqman Hakim Shamsudin plays. We finally met and talked lots.
We needed to have over 20 meetings. I soon began to get to know him higher. I noticed that he has good ethics, and that may be very vital.
FAMILY INVOLVEMENT
I wish that no children can be involved within the mentioned enterprises and that they needs to be run by skilled managers. My children can start their very own business as they’ve already done. We have to have a transparent distinction between listed entities and personal entities.
I shared my wish with my family and so they accepted it well. They understood my intentions and what was best for them and Berjaya.
If any of them still wishes to be involved within the management of the listed group, this requires the consent of Jalil and the board of directors of the listed company.
GIVING WEALTH TO LOVE
I also promise that after I am now not around, I’ll donate half of my fortune to charity. Although there may be less of it now [laughs]. I’m a signatory of the Giving Pledge initiative began by Bill and Melinda Gates and Warren Buffett.
[In 2000,40 of America’s wealthiest people joined together in a commitment to give the majority of their wealth to address some of the society’s most pressing problems.]
I hope that wealthier Malaysians over the age of 70 will consider donating half of their wealth to assist the underprivileged and to charity, especially to assist people own inexpensive homes and live an honest life.
I believe it’s unwise to depart all of your wealth to your loved ones only when, in any case, the fabric wealth we’ve amassed is made possible by the support of Malaysians, government concessions and licenses, and other assistance from the various people we’ve met in our wealthy lifetime of accumulation.
I didn’t grow to be wealthy because I invented something. But I used to be lucky to get many opportunities similar to acquiring a franchise for McDonalds and Starbucks in Malaysia and likewise bought 7-Eleven at an excellent price from a Malaysian group. There are also other household brands similar to Cosway and Singer. Of course, we also obtained the license to launch Sports Toto.
It is correct that I give half of my wealth to the people and the country. This is a sensible and right decision.
