Mr. Goh Toh Sim
Immediate Past President of Hainan Business Chamber
I joined the Hainan Business Chamber in Singapore as a professional with 30 years of experience in industrial park development, industrial real estate, residential real estate and real estate investment trust. I am neither a businessman nor an entrepreneur that has survived and thrived in a highly competitive business environment. As such, I truly admire many of our chamber members who are successful entrepreneurs, that have created flourishing businesses and contributed to our society. Many of our members are philanthropists who are active in giving back to the community.
Currently I manage a real estate investment trust (REIT) that oversees supply chain and logistics real estate assets in China. The REIT has a portfolio of eight assets in e-commerce warehousing and port logistics. With the growth of online sales, retail sales has gradually shifted from retail malls to e-commerce warehousing. Although this e-commerce phenomenon started many years ago with Amazon and Alibaba, the COVID-19 crisis has accelerated and elevated its importance. Digitalization have in fact drastically changed our way of life; the way we live, work and play! Today, we can hardly spend a day without our mobile phones and computers.
Overseeing a logistics REIT, I get to understand how the e-commerce process works. Within seconds of an order via the internet, the order is captured by the relevant warehouse and within minutes; the software system pinpoints the exact location of the product among thousands of items in the warehouse. The product is then selected, collected, packed and sent to the delivery companies for shipment. In China, an order is shipped and delivered within the same day or the next day. This is the result of fierce competition that pushes all parties to keep improving their systems and operations.
This is the reality today. In business, with rapid advances in technology and the constantly evolving environment and geopolitical situations, the threat of substitution of products and services displacing their own is ever present. Businesses cannot afford to be complacent and rest on their laurels. Instead, they must be sensitive and react quickly to market changes. Businesses that do not adapt to these changes will be sidelined, replaced or disappear from the market altogether.
Aside from managing a portfolio of assets, another aspect of a REIT is financial investment. As a publicly listed entity, we must observe and comply with the rules in the public market. With my background and experience in engineering and real estate, it has been an intensive learning experience but at the same time, a fulfilling and edifying journey. As the old Chinese proverb goes, “活到老,学到老 – Live Until You’re Old, Study Until You’re Old.”
Before managing the REIT, I had spent twenty three years in China. I observed first-hand, the mind-boggling rapid transformation of China in many aspects including its economy, culture and its people’s mindset. During the first ten years in China, I was involved in the development of the Suzhou Industrial Park (SIP). With strong support from both Singapore and China government, this project became a huge success despite the initial hiccups. The SIP received the award for “The Best Development in China” for many years consecutively. Our team put in much effort to develop the infrastructure and to market the project internationally to attract foreign investments. Innovative ideas, bi-lateral support from both governments and the benefit of Singapore’s experience with such projects; were the key success factors to making SIP a success story.
Upon Ieaving the SIP project, every city I visited had asked me to help re-create a duplicate of SIP in their city but due to the constantly changing business climate, it could not be done. Domestic investments from within China had increased and outpaced foreign investments in China. The important point I wish to emphasize, is that changing circumstances have great bearings on the business world. Businesses must understand and adapt to this fact or risk significant peril and losses.
While in Suzhou, I founded the Suzhou Singapore International School located in the SIP. It was a very gratifying experience managing an international school. We started with about 40 students by going from door to door and cold calling expatriates in Suzhou to send their children to the school. When I left SIP eight years later, the school was providing International Baccalaureate (IB) education to two thousand students hailing from many parts of the world.
We observe with amazement how fast the world has changed. When I was in China, attracting investments from USA was a top priority. As a result, many semiconductor companies from the US invested and set up factories in the SIP. The United States was one of the largest investors in China at that time. Many of the US companies in China earned more profits and outperformed their own companies in the US. Today, the Sino-US conflict is a major concern for the world. How this conflict pans out will have a significant impact on our future. So how do we navigate through these new geopolitical situations? In addition, the COVID-19 crisis has totally changed the perception of a business. Food and beverage outlets that provide delivery service are thriving while those that offer only dine-in have suffered. We will need to adapt to this crisis situation and seize any business opportunity that may arise. We must be fast, versatile and execute our strategies well to be successful.
As for our Hainanese business community here, many of our members have achieved success in their respective fields and industries. However, I wish to see even more successful Hainanese entrepreneurs and thriving businesses, adding onto the many success stories we have now. I look forward to see more young Hainanese with vision, courage and wisdom make an impact in the business world.
