Tomei MD: Building on a Business is More Difficult
Filed Under (Business News) by Webmaster on 23-02-2009
Tagged Under : family business, gold, jewellery, Ng Yih Pyng, Tomei
Below is an interview by The Star with Tomei MD, Ng Yih Pyng, about his family run business.
IT is often said that building on a business is more difficult than starting a new one and this was the case for Ng Yih Pyng when he took over his family-owned Tomei Gold & Jewellery (M) Sdn Bhd.
A finance graduate who also holds a MBA from Iowa State University, Ng found it tough stepping into his father Tan Sri Ng Teck Fong’s shoes initially as the business was already doing well.
Now group managing director of listed Tomei Consolidated Bhd, Ng said running a gold and jewellery business is not all glitter and glamour but involves a lot of hard work.
Ng Yih Pyng showing some of the latest product designs
“There are a lot of challenges in taking over a business that is already running well but starting a new business is also difficult to a certain degree.
“However, I do not know how difficult it is (to start a new business) because I have not started a business myself,” he said laughingly.
Ng, 38, said he did not believe in dramatic changes in the working environment. Therefore, when he took over, he retained the way the business was run under his father’s stewardship.
“I understand people do not like dramatic changes when a new boss takes over so I just retained the business as it was then. But I slowly brought in my own vision and practices,” he added.
“We also sent our staff for training and started to build up the team. This business is not just about me. It is about the team,” said Ng, who believes in empowering his staff.
The third of four children, Ng decided to join the family business long ago out of a love for the business and a deep sense of responsibility.
The Ng siblings used to follow their father to work and each developed great interest in gems and gold, and eventually a place in the business.
There is no sibling rivalry as they are highly supportive of each other and the extended family of 18 often gets together to celebrate birthdays, anniversaries and festive occasions.
Recalling his first day at work in 1991, Ng said: “I reached Kuala Lumpur around 2am from the US after finishing my studies and went to work at 7am!”
To get a better grasp of the business, he worked in every department, rising from director to MD in 2003, then group MD in 2006.
Although he has run the group for more than he decade now, Ng still refers to his father for guidance and pointers from time to time. He is still practising what his father taught him – never rush to grow the business but grow it in a steady manner.
“We are very careful in our ventures as we believe in having sustained growth, even if the growth rate is a bit smaller,” Ng stressed.
Tomei is one of the major local jewellers and has a retail network of more than 55 outlets under the Tomei Gold & Jewellery, My Diamond, T.H Jewelry and Le Lumiere brands.
The group also has five outlets in Vietnam and six in China.
Ng said Tomei, founded by his father in 1968, celebrated its 40th anniversary last year after surviving two economic crises and was still going strong.
He said the group would weather the current economic crisis and hoped to maintain its turnover and achieve a slight growth in net profit this year.
For the year ended Dec 31, 2007, Tomei made a net profit of RM12.6mil on revenue of RM223.8mil. For the nine months ended Sept 30, it recorded a net profit of RM14.7mil against RM8.7mil in the previous corresponding period.
“We are not so badly affected by the economic crisis possibility due to the festive season. Typically, sales booms during the second half of the year,” Ng said, adding that gold remained a good investment option.
Ng said Malaysia was still cushioned from the global crisis but getting Malaysians to spend was difficult.
“We are also competing for the consumer ringgit with other stores,” he added.
“We had already planned our cash-flow last year when the crisis started in the US so that the group can ride through the crisis,” he said.
Going forward, Tomei will open more retail outlets and improve its information technology system. The group has budgeted RM10mil for capital expenditure this year.
To a question, Ng said: “As a retailer, I cannot be sitting around doing nothing. When there is a crisis, there is an opportunity and the fittest survives.
“It is good to be conservative but if we do not do anything, people might forget us. Either we grow or we stop operation.”
“A lot of people are talking about cutting cost and retrenchment of late. Personally, I think retrenchment is quite demoralising for the staff,” Ng said.
He pointed out that Tomei had embarked on group-wide cost-saving initiatives before the crisis started.
Also top on Ng’s agenda this year is paring down the group’s gearing which is close to one time.
“To some our gearing is relatively low, but to us it’s very high. In fact, it is the highest in our history. We have to do something about it,” he said.
A very hands-on person, Ng was seen serving customers at a Tomei outlet on Chinese New Year’s eve.
He said he would go to all departments to help and accept criticism from his employees.
“I do not think I am a difficult boss. I do not believe in too decentralised management. It is not because I like to mirco-manage my staff but I like to equip them with the necessary skills,” he said.
He describes himself as a workaholic. “If I am not in the office, I will be in one of the outlets,” Ng said.
It helps that his wife, Chong Chow Mooi, understands his passion for the business as she is also a Tomei director.
Nonetheless, the young entrepreneur makes it a point to spend time with her and their three daughters, whom he sometimes brings to work. The family goes for a holiday together at least once a year.
As the second-generation owner of Tomei, Ng hopes the business will continue to thrive in the years ahead.
“We are here for the long term. We hope to grow Tomei for the next 100 years.”
