HAI-O Enterprise Bhd founder and managing director Tan Kai Hee has never feared courting any kind of controversy and is capable of capturing the limelight frequently-at least in the Chinese media.
The self-confessed fighter always makes sure he wins the media war, regardless of whether it is on a political, social or business issue.
From a fiery leader of the now-defunct Labour Party in the 1960s and famous political detainee in the 1970s to current “socialist” businessman and restless leader of Chinese associations, the media-savvy Tan has been able to grab headlines in the media over the past 50 years.
During dull periods, he would be seen launching Hai-O products imported from China, entertaining Chinese officials, hosting Malaysia-commenting on various issues-even on women’s issues.
Hence, it came as no surprise when he kick started a campaign against the board of directors of Unico Holdings Bhd in September for tabling a capital-reduction resolution that he alleges would benefit five key directors most.
The paradox is that Tan was a board member when the disputed resolution was discussed earlier and he let the resolution pass at board level. And now the very people he is hitting out at were once his fellow leaders in the Chinese guilds and chambers of commerce in the 1980s and 1990s.
“Yes, they are all my friends, but if they do something that is not fair to minority shareholders, I will not hesitate to take them on,” said Tan, still a firebrand, in a recent interview with The Malaysian Reserve.
“All through my life, it is a struggle. From young, I have given myself a mission to champion for the oppressed, and expose the ugly. I will expose anyone who hurts the interests of the people,” he added with a firm tone.
Tan, 70, has obviously won the Unico battle and emerged a “hero” for the helpless minority in Unico Holdings Bhd.
The month-long media war he had waged, in the form of frequent news conferences and RM70,000 full-page “facts-and-data” advertisements, forced key directors of Unico to agree to alter the resolution after mediation by Tan Sri William Cheng, the president of the Associated Chinese Chamber of Commerce and Industry of Malaysia.
But Tan had to pay a price for his actions. He has lost many friends of standing in the community. He was ousted from the Unico board at the last annual general meeting, resulting in what he said was “a loss of face”.
However, this setback is minor compared to his eight years of detention from 1965 to 1973. Tan was 28 and assistant secretary-general of the Labour Party when he was arrested under the Internal Security Act (ISA).
While many ex-prisoners have been silenced by the ISA detention and sunk into oblivion, Tan has showed his irrepressible fighting spirit and optimism.
After failing to find a stable job for two years upon his release, he organised 80 ex-comrades to venture into the China trade by setting up Hai-O, or ‘seagull’ in Mandarin, in 1975. Tan borrowed RM5,000 from his former employer to start Hai-O with an initial capital of RM168,000.
“I was pampered by t he government for eight years, not having to pay for accommodation and three meals, hence I had no skill,” Tan said, with a wry humour.” As we were all branded as communists, we could not find jobs because nobody dared to hire us.”
He selected seagull to symbolise that Hai-O would soar high and look afar. Since 1975, he has been the main policy- and decision-maker of Hai-O.
The timing was good as Malaysia had just established relations with China in 1975. It also helped because Tan’s parents and siblings were in China.
But the main asset of this Johor-born gentleman was his oratory and mass-organisation skills acquired during his youth. His strong press ties and frequent advertising of Hai-O products also won the hearts of the Chinese media.
However, building up Hai-O has not been smooth-sailing. Thirty founders soon disagreed with Tan’s management style and abandoned Hai-O’s shares, which were mainly absorbed by Tan.
Then came unexpected failure in joint ventures in China despite the “quanxi” (ties) Tan had built up with Chinese officials. The other major failure was the setting up of Malaysia-China Commerce Centre in UE3.
But marketing Chinese liquor and tea, traditional medicine and healthcare products through the nationwide Hai-O network has been a roaring success. In the early days, local Chinese supported the outlets out of sympathy for ex-detainees, but today it is out of trust for the Hai-O brand.
In recent years, Tan has scored a huge success in winning over the trust of bumiputras. Many Malayshave joined Hai-O’s aggressive multi-level marketing (MLM). Malays now form the majority of the active members of the MLM division, which accounted for half of Hai-O’s revenue of RM189 million for the year ended April 2007, which saw net profit improving by RM11.34 million to RM22.11 million.
Despite having only eight years of formal education in Chinese school in Johor, Tan has an excellent command of Mandarin and Malay. He can also converse in English. His language ability, coupled with his quick smile and strong social skills, enables him to mix well with Chinese and Malays.
“Hai-O has nurtured at least 100 bumiputras to become millionaires. They have worked very hard, one couple even earned total commissions of RM2.5 million last year. Malay involvement is a milestone. Our next quantum leap will depend to Indonesia,” Tan said, adding about 90% of the MLM products are sold to the bumiputra community.
His efforts in the last three years to nurture Malay entrepreneurs did not go unnoticed. On Aug 27 this year Prime Minister Datuk Seri Abdullah Ahmad Badawi presented him with “The Development and Stabilisation of Network business” award for “promoting and developing business partnership between bumiputra and non-bumiputra companies”.
Hai-O, once viewed as a “China-man” company, has from May 2007 gone into the radar screen of several research houses. Reasons for recommending a “buy” on Hai-O are, its joint venture with Golden Hope, strong and vibrant management team and earnings outlook.
Tan attributed the modernisation of Hai-O to the involvement of his son Keng Kang and daughter Keng Song. His son had attended Beijing University while his daughter is a graduate from the University of Western Australia.
“Their involvement at board level has brought new management ideas. In the past, we ventured into China based on sentiment, but today it is done only after a plan,” he said.
He added that his son started Malysia’s first Pu-er tea warehouse after studies showed that Malaysia’s climate is best suited to storing this type of tea which quality and aroma improve with time. Due to the demand for aged Pu-er tea, Hai-O recently started the world’s first Pu-er investment fund.
Tan, who loves talking and being in the limelight, is still as colourful as he ever was.
Always mindful of his ideology, he has injected some elements of socialism into Hai-O—at least on its dividend policy. “Socialism emphasises fair distribution. We have been distributing half of Hai-O’s net profit to shareholders. I have always been a socialist,” declared Tan.
Like it or not, Tan will be around foe many years to come. The 70-year old is not about to call it quits in social activities or in the company. In fact, he intends to raise his family stake in the company to 30% from the current 20%.
“I want to live and be active until 120. With modern medical science and healthcare products, 70-year-olds are no longer a rare breed. Everyone should strive to live beyond 100,” he said, with a wide smile.