How an ‘accidental businesswoman’ transformed one of Singapore’s oldest companies

Summary

In this interview, Christine Tan speaks with Chew Gek Khim, the leader of Straits Trading, one of Singapore's oldest companies. Since taking over in 2008, Khim has transformed the tin smelting business into a real estate and hospitality giant. The company's most ambitious project, Straits City, is set to redefine Penang's landscape. Khim discusses her vision for the project, its alignment with Penang's Vision 2030, and her strategy to build a property ecosystem, drawing parallels with Blackstone. She also addresses the future of the tin smelting business and her approach to leadership and succession planning.

Takeaways

• 🏢 Chew Gek Khim has been leading Straits Trading since 2008, transforming it from a tin smelting business to a significant player in real estate and hospitality.
• 🌟 The company's most ambitious project to date is Straits City, a 40-acre integrated development in Penang, Malaysia, worth around 614 million US dollars.
• 🔍 Straits City is expected to be a game changer for Penang, offering an alternative CBD and addressing the congestion on Penang Island.
• 🏗️ The development aligns with the State government’s Vision 2030 plan and is part of a broader strategy to revitalize the region.
• 🚀 Chew Gek Khim envisions Straits Trading becoming a property ecosystem similar to Blackstone, with a diverse range of real estate investments and services.
• 💡 The company is focusing on repurposing old buildings and adapting to the changing nature of work and the needs of an aging population.
• 🌱 Despite its historical roots in tin smelting, Straits Trading is looking to the future, with plans to decommission the old smelter and redevelop the land.
• 💼 Chew Gek Khim's leadership style is characterized by respect, integrity, fairness, and practicality, with a focus on conscientiousness and results.
• 🏆 Recognized as one of Asia's most powerful businesswomen, Chew advises women to define success on their own terms and not based on external definitions.
• 📈 The ultimate ambition for Straits Trading is to build stable, sustainable businesses that provide returns and are trustworthy for investment.

Q & A

Who is Chew Gek Khim and what is her role at Straits Trading?

Chew Gek Khim is the chairman of Straits Trading, leading the company since 2008 after her family's investment company, Tecity Group, took control following a public bidding war.

What significant transformation has Chew Gek Khim led at Straits Trading?

Chew Gek Khim has transformed Straits Trading from a tin legacy smelting business founded in 1887 to focusing more on becoming a major player in real estate and hospitality.

What is Straits City and how does it align with Penang's development plans?

Straits City is an ambitious integrated development project in the Malaysian state of Penang, worth around 614 million US dollars, and it aligns with the State government’s Vision 2030 plan for the region.

How does Chew Gek Khim view the impact of Straits City on Penang and Straits Trading?

Chew Gek Khim sees Straits City as a significant development for Penang, transforming an area that was once considered less prosperous. However, she does not view it as a game changer for the entirety of Straits Trading, but rather for its development arm due to the scale of the project.

What is Chew Gek Khim's vision for the completed Straits City project?

Her vision for the completed Straits City project by 2038 is for it to become an alternative Central Business District (CBD) to alleviate congestion on Penang Island, which is a UNESCO World Heritage site with restrictions on development.

How does Chew Gek Khim's late grandfather, Tan Chin Tuan, influence her business decisions?

Tan Chin Tuan's influence is seen in Chew Gek Khim's commitment to transforming Straits Trading and her approach to developing properties that are relevant and beneficial to the community, as well as her determination to honor his wish to save one of the companies he built.

What is the current status of the tin smelting business within Straits Trading, and does Chew Gek Khim plan to keep it?

Chew Gek Khim has seen a turnaround in Malaysian Smelting due to less competition, increased demand for tin in batteries for electric vehicles and electronics, improved smelting technology, and the decommissioning of the old smelter. She is confident in her decision to keep it, despite previous offers to sell.

What are the potential risks or 'surprises' that Chew Gek Khim anticipates for the Straits City project?

Chew Gek Khim mentions potential risks such as external circumstances like the U.S.-China conflict, possible real wars, changes in supply chains, and financial instability including currency fluctuations and interest rate changes.

How does Chew Gek Khim describe her management style and leadership approach?

Chew Gek Khim describes her management style as practical, fair, and based on common sense. She values respect, integrity, and conscientiousness in her staff and admits to being impatient but tries to be patient and diplomatic in her dealings.

What advice does Chew Gek Khim have for women aspiring to be successful in business?

Chew Gek Khim advises women to first define what success means to them, whether it involves work-life balance, family roles, or personal dreams, and then to pursue that vision without being constrained by external definitions of success.

What is Chew Gek Khim's ultimate ambition for Straits Trading as it approaches its 137th year?

Chew Gek Khim's ultimate ambition for Straits Trading is to build stable, sustainable businesses that provide returns and are trustworthy and investible for the public.