theceomagazine.com | 143Chang had initially invested in the
Singapore-based company because the
industry it services was thriving. “I could see
that continuing for the next five to seven
years. If you invest in a growth industry, even
in the wrong company, you will not lose as
much as if you invest in a dying industry.”
When Chang originally stepped in to
helm the ship, it was matter of riding the
wave of a surging sector. However, the sector
later went into a major downturn.
Yet Chang was able to drive growth
that ran counter to broader trends. “My
training as a banker put me in good stead
to position the organisation in such a way
that we were ready to move to the next level.
It managed not only to survive, but also to
grow at 20 per cent every year, even during
the downturn, because of the foresight that
the industry was turning and that we needed
to do something.”
What he decided to do was to expand
the company downstream into the
petrochemical business, which offered greater
stability. Chang credits this diversification
and a number of well-chosen acquisitions for
the company achieving healthy compound
growth that bucked industry trends.
While an industry-wide slowdown
presented major obstacles, Chang describes
the global financial crisis as easily the biggest
challenge he has faced. He paints a vivid
picture of the economic carnage of 2008:
“At that point in time, the banks were
basically withdrawing all of their financial
lines. Nobody was willing to lend their
money. Everyone was so afraid and businesses
were suffering.”
Again, his experience and connections
from the world of banking proved crucial.
“My former colleagues and my employer
were there to support me so that I could
fulfil my contracts. We managed to turn it
around and, in fact, we doubled the sales that
year.” Crucially, Chang avoided the trap of
prioritising profits over cash flow, which
many companies would fall into. “Profits are
an illusion,” he explains. “Cash flow is
the most vital component.”
Chang says that a proactive approach,
financial prudency and the ability to look
forward are the best traits in business. “I
would say I’m prudent because of my past
training. I’m proactively involved in the
business at a strategic level, not at the ground- I leave that to my people. I look ahead to
the next three to five years to see what’s
going to happen and how to sustain
performance and profits. I don’t look at what
the business currently is and then just wait,
I look at what’s going to happen and react
now before it happens.”
He also subscribes to the idea that if
you find something you are passionate
about, it feels a lot less like a job.
This approach is certainly paying
dividends for Nordic Group Limited. Since
listing on the Singapore Stock Exchange
in 2010, the company’s market capital has
increased by more than 10 times – from
S$20 million to over S$200 million. Chang
adds that the target is to double that market
capital again within the next five years.
Chang concludes that it is imperative in
business to stay engaged and have a strong
understanding of what is happening in the
world. “By doing that, you keep yourself
ahead of your competitors so that you will
be fast enough to adapt and change. By
keeping abreast of global developments and
trends it actually sets your thinking ahead of
what you need to do now.”
“ It managed not just to
survive, but to grow ...
because of the foresight that
the industry was turning.”
Interview | INVEST