“Some people call it luck, some call it fortune, some call it change. I would say it’s the external environment; I think that’s a big part of the success of any business,” says Chew Gek Khim, executive chairman and CEO of Tecity Group.
As CEO, Chew leads the three different arms of the group. She is the executive chairman of both public-listed Straits Trading and Tecity Family Office and also the deputy chairman of the philanthropy-driven Tan Chin Tuan Foundation. Tan was Chew’s grandfather and the former chairman of Oversea-Chinese Banking Corporation (OCBC). Chew joined the company in 1987, which was led by her grandfather at the time.
While she says the late Tan rarely sat her down to give her formal lessons when she was younger, his tutelage was given through advice during day-to-day operations. “He used to say things like: don’t be afraid to fail; as long as it doesn’t kill you, it’s okay. I think that implied that I shouldn’t be afraid to try and that I needed a degree of courage.”
“One famous saying was diamonds don’t pay dividends. I think he was trying to say that collectibles do not generate returns. That’s not to say that it’s bad, but it’s a different type of investment that you shouldn’t be too focused on being showy,” adds Chew.
Before Straits Trading became an investment firm with stakes in real estate and hospitality within the Asia-Pacific region, the business was previously rooted in traditional industries such as rubber and tin. However, Chew says that the values with which the late Tan founded the company continued to be its guiding principles despite its evolution.
She says: “Legacy plays a big role in terms of values. What do I stand for? What am I continuing? Who do I honour? It all revolves around values. We don’t have to be welded to a way of doing things or a particular business. I don’t feel obliged to do things in a specific way. But keeping to the importance of the same values is what motivates me.”
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One way Chew has adhered to her grandfather’s founding principles is through the Tan Chin Tuan Foundation. Originally established in the 1970s to care for the less fortunate in Singapore, the foundation’s structure has changed today while keeping its original identity of fulfilling social needs.
She explains: “One of the things we did was in the early 2000s, where we tried to create a business model of accountability when non-profits asked us for donations. We made sure that they told us what their target and plan were and what they hoped to achieve. Initially, it didn’t go down well, but after a year or two, people were quite pleased because once they could articulate their goals and show for it, it created a virtuous circle.”
This nuanced view of adapting to modern times also informs how Chew sees Tecity’s next generation of leaders. While she acknowledges that the next generation may approach leadership differently, her focus is on preparing the business for a stable future and finding the right successor, whether from within or outside the family.
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Chew is also quick to note that while certain leadership skills are timeless, the ability to adapt is paramount in today’s environment. “I think the ability to lead with the clarity of thought requires the ability to execute, and execution entails the ability to manage or lead people. This includes making tough decisions that are sometimes not pleasant. When you want to get something done, you must be able to harness all your resources and understand that you will use all you can to achieve your goals.”
“It’s about cutting loss, and you can’t be too emotional or sentimental about it, nor can you be too stubborn and say that I was right and keep fighting against it. The wisdom is knowing when to cut loss because sometimes in life, you require a degree of persistence, but sometimes you need to say, enough is enough,” adds Chew.
She adds that flexibility and adaptability are especially important today because of the quickly shifting nature of global dynamics. “I think the best person for the job is someone who can navigate and handle different situations. If they’re from within the family, the dynamics may be different, and if they’re not from the family, then the chemistry will be different.”
Despite adopting an evolving view of leadership, the group chairman insists that some traditional work habits should be maintained. One such example is her belief that a permanent work-from-home arrangement is ultimately detrimental to understanding a workplace and that coming into the office should still be practised.
She adds that young professionals today have, at times, become complacent, believing that work from home is justified as long as assigned tasks are fulfilled by their given datelines.
She cautions: “My reply is to be very careful because if I’m going to assess you like that, you will have to compete with young professionals from Bangladesh, China, India, the Philippines and Vietnam. I don’t see their faces; I only see a piece of work. And if you are just a piece of work, then I won’t appreciate the rest of you.”
Balancing family and business
Managing a family business has its unique challenges. For Chew, working with her siblings is like any other professional relationship, but with the added understanding that family bonds do not necessarily imply harmony in business. “We’re not so close that we read each other’s minds,” she says, reflecting on her practical approach.
Chew adds: “But it’s convenient if your shareholders are family with the same value system, you don’t have one fellow chasing short-term profits and another chasing long-term profits. It’s also helpful in that most family enterprises look longer term. So if you look at the statistics, family businesses tend to do better over the long term.”
She says the inconvenience in a family business occurs if multiple members make decisions based on emotions.
“It’s easier to make logical, rational decisions with no emotion attached. You have to look at your choices and see if the pros outweigh the cons.”
With this successful balance of pragmatism and relationships, Tecity Group has been named the winner of this year’s EY-Bank of Singapore Family Enterprise Award of Excellence. Tecity was selected by knowledge partners, Business Families Institute @ Singapore Management University (BFI @ SMU) and the INSEAD Wendel International Centre for Family Enterprise.
Chew says although she was slightly surprised at achieving the award, she was delighted for Tecity Group to be acknowledged. “It’s not about the immediate or the short-term; it’s about a family enterprise, about families, and the things they embark on. It’s a nice feeling when that journey is recognised.”
Beyond managing a family business’s dynamics, there is also the challenge of building a company culture. In this aspect, Chew finds her solution in ensuring shared values and keeping her staff satisfied.
She explains: “When you have shared values, you create certain actions, which then, in turn, create a culture. I’ve never set out to consciously create a culture. The other question is: How do you keep people? It’s very basic; I believe people must be happy.”
“People need to earn enough to be happy. Next, you need to work in an environment where you like your work and where you can get along with your colleagues. I always tell people that it is a good job if you like 80% of your work and you hate 20%. But if you like 20% and hate 80%, then perhaps you should start looking elsewhere,” says Chew, laughing.
Looking back, she continues that one of the biggest lessons learnt over the years is the importance of people skills, especially in managing younger professionals. “One of your biggest disadvantages is not knowing how to deal with different people,” she reflects. This insight, Chew says, comes only with experience and the ability to navigate the complexities of human relationships, which is a skill that can’t be learned in school but is developed over time through both successes and failures.
