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PERANAN AGNSI AWAM & GLC DALAM MEWJUDKAN DAN MEMPERKASA USAHAWAN BARU YANG KOMPETEN DAN BERDAYA

SAING : SUATU GAGASAN DAN CABARAN MASA DEPAN

DATIN PADUKA SITI SA’DIAH SHEIKH BAKIRManaging Director

KPJ Healthcare Berhad

THE FOCUS

Role of Government Agencies and GLCs

There is definitely a relation between the role of government agencies & GLCs in

developing and strengthening the entrepreneurs, to achieve competency &

competitiveness in overcoming future challenges.

Developing and empowering the entreprenuers to spearhead and create wealth for the

country.

JOHOR CORPORATION GROUP : ROLE IN ENTREPRENEURIAL DEVELOPMENT

The involvement of Johor Corporation (JCorp) ~ an Amanah-Driven Statutory State

Agency ~ and its group of State GLCs in entrepreneurial development is part of its

institutional responsibility, to contribute towards Malaysia’s national policy agenda.

JCorp applies its ‘own unique development model’ to create and nurture

entrepreneurs from among its own internal team, known as “INTRAPRENEURS”.

ENTERPRENEURS - REVISIT DEFINITION

Entrepreneurs are ordinary people, using ordinary means to accomplish some very

extraordinary things.

Most real growth in all economies comes from younger, smaller, more

entrepreneurial companies.

Farrell (1993)

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Entrepreneurs create value by combining resources to exploit any opportunity.

Stevenson (1986)

ENTERPRENEURS - ROLE

“Entrepreneurs is all about delivering high performance, value creation and more

importantly, being resilient in facing challenges.

Malaysia will be able to manage and ride the effects

of current external volatilities by leveraging on our comparative advantages and our

strong fundamentals,”

YB Tan Sri Nor Mohamed YakcopSecond Finance Minister

7th Ernst & Young Entrepreneur of the Year AwardsQuoted in The Edge Daily

11 December 2008

ENTERPRENEURS : THE MUSLIM PERSPECTIVE

“9/10 of all wealth creation is through business”

“9/10 daripada rezeki berpunca dari perniagaan”

Hadith

“The critical role of Muslim entrepreneurs, business and corporate executives in

creating wealth to uplift the status of the ummah and generally contribute to greater

economic well-being for Malaysia has been long recognised, and must continue.”

‘Business As A Way of Life’Malaysian Islamic Chamber Of Commerce

ENTERPRENEURS VS. INTRAPRENEURS

Entrepreneur bears total financial risks of their investment BUT .... in reality, some

entrepreneurs have

a. limited / insufficient own funds; OR

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b. limited access to funds

There is an alternative for business-minded individuals to develop and drive a

business partly using funds of organisation / institution and become

INTRAPRENEURS, enabling them to focus on the business.

INTRAPRENEURS

An intraprenuer is a talented individual within a large organisation who takes direct

responsibility for turning an idea into a profitable finished product / services

through assertive risk-taking and innovation.

Intrapreneurs benefit from the organisation’s financial resources and other key

strengths….. Intrapreneurs in JCorp are supported by the Group’s financial &

institutional capabilities, assets, and organisational resources.

CULTIVATING ENTREPRENEURS ~ JCORP’S INTRAPRENEUR PROGRAMME

The concept of the “Intrapreneur Scheme” ~ introduced in June 1999, during the last

decade’s financial crisis ~ was the brainchild of YBhg Tan Sri Dato’ Muhammad Ali

Hashim, President & CEO of JCorp, a visionary and innovative leader.

JCorp’s INTRAPRENEUR Scheme is based on the corporate philosophy of

‘Community of Enterprises’ ~ i.e. building a profitable organisation that ADDS

VALUE and CREATES WEALTH through the sustained efforts of

INTRAPRENEURS

Main Principle :

Embrace & uphold JCorp’s corporate values and philosophies ~ building the

enterprises while generating business growth and shared wealth through the Business

Jihad principles of integrity, honesty, shared goals and community spirit, aiming for

higher causes.

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Objectives :

a) Develop a commercial and industrial Bumiputera community, within JCorp

b) Growing small companies with strong business potential into successful core

businesses, contributing to JCorp’s long term corporate performance

c) Creating opportunities for intrapreneurs to sharpen business and

entrepreneurial skills, including through the sharing of knowledge and

expertise

d) Realising JCorp's aspiration to become a community-based corporate trust

institution, with global presence

JCORP GROUP INTRAPRENEUR SCHEME

JCorp Intrapreneur Model : How it works

Intrapreneur companies grow around JCorp and its PLCs :

i. KPJ Healthcare Berhad

ii. Kulim (Malaysia) Berhad

iii. QSR Brands & KFC Holdings

iv. Sindora Berhad

v. Johor Land Berhad

vi. Damansara Realty Berhad, and others (current & future)

Strength : The JCorp Model enables Intrapreneurs to network & interact; AS

WELL AS leverage upon JCORP’s proven, cohesive & integrated structure

and system

CLASSIFICATIONS OF INTRAPRENUERS IN JCORP

1. Corporate Intrapreneur (Without Equity)

2. Intrapreneur Venture Under Sindora Berhad’

3. Corporatised Intrapreneur

4. Professional Intrapreneur

5. Social Intrapreneur (NGOs) – AMAL

6. Associate Intrapreneur

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7. Intrapreneur SMEs

1. CORPORATE INTRAPRENEURS :

• Has no equity holding : driven by CEOs & management team of KPJ Healthcare

Berhad, Kulim (Malaysia) Berhad, QSR/KFC, Sindora Berhad, etc.

• Also comprises all General Managers & above serving in either JCorp HQ, PLCs,

or companies – for guidance & monitoring

• Self-driven, grow business innovatively and act as catalysts; accountable for the

successful running & managing the business under their care, to become market

leaders

• Receives strong, continuous support from JCorp

i.e. benefit from Group’s experience, networking, support and sharing of

knowledge

JCorp’s Corporate Intrapreneurs : KPJ Healthcare Berhad (An Example)

• With 27 years’ experience, KPJ today is Malaysia’s largest private healthcare

services provider, with its core business being hospital management

• To date has 19 hospitals in Malaysia (with 5 being Accredited by MSQH, of

international standards), 3 in Indonesia, 2 in Saudi Arabia and 1 in Bangladesh

•Vision : The preferred provider in healthcare services

Mission: Deliver quality healthcare services to customers

Tagline : Care for Life

KPJ’S FIVE ACCREDITED HOSPITALS

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AWARDS RECEIVED BY KPJ in 2008

AWARDS RECEIVED BY KPJ in 2008

AWARD TITLE FROM RECEIVED

1.Excellence in the Healthcare Sector (Healthcare Services)

Technology Business Review

KPJ31/Oct/2008

2.StarBiz-ICR Malaysia Corp

Responsibility Awards (Marketplace Category)

Star Publications & ICR Malaysia

KPJ22/Aug/2008

3.The BrandLaureate Best

Brands AwardsThe BrandLaureate

KPJ1/July/2008

4.Frost & Sullivan (F&S) Best

Practices AwardsFrost & Sullivan

KPJ13/June/2008

2. INTRAPRENEUR VENTURE : SINDORA BERHAD

KPJ JOHOR SPECIALIST HOSPITAL

KPJ AMPANG PUTERI SPECIALIST HOSPITAL

KPJ IPOH SPECIALIST HOSPITAL

KPJ DAMANSARA SPECIALIST HOSPITAL

KPJ SELANGOR SPECIALIST HOSPITAL

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Sindora Berhad ~ TRANSFORMED as a Intrapreneur Venture company consisting

of successful intrapreneur companies with 75:25 or more equity holding; giving

intrapreneurs the needed support and required networking in order to continue

growing.

Companies under Sindora are :

a) Willis (Malaysia) : insurance broking

b) Epasa Shipping Agency : delivery & shipping; logistics

c) GranuLab (M) Sdn Bhd : sole licensee for GranuMasTM

(a new co. being nurtured ) synthetic bone graft material

d) Pro Office Solutions Sdn Bhd : data processing & bulk mailing services

Encompassing both internal Intrapreneurs from throughout JCorp Group as well as

external Intrapreneurs

JCORP’S INTRAPRENEUR CLASSIFICATION

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3. SME INTRAPRENEURS

directly under JCorp and its PLCs

Intrapreneurs can own up to a maximum 25% equity of the total paid up capital;

shares offered in 2 tranches :

1st tranche : offered upon the commencement of the intraprenuer

undertaking

2nd tranche : only on the condition that the company achieves between 25%

to 50% of its turnover from external sources within a 2-year period.

With the 75:25 equity ratio ~ maximum opportunity,

minimum risk

SMEs are nurtured to ensure their companies grow to become new Core

Businesses in JCorp, & ultimately become PLCs in the future.

Opportunities open to all staff members who are truly interested and have the

qualifications to run an intrapreneurial business.

YBHG DATO’ ABD HAK MD AMIN

MANAGING DIRECTORE.A. Technique (M) Sdn Bhd

Performance of E A Technique :Y2007 : Revenue RM63.3m, PBT RM17.3 mY2008 : Revenue RM80.6m, PBT RM11.6m (estimate 30 December 2008)

BUKHARI ABD. RAHMANMANAGING DIRECTOR,

Pro Office Solutions Sdn Bhd

Performance of Pro Office :Y2007 : Revenue 19.9 m, PBT RM 1.5mY2008 : Revenue 22.4m, PBT RM 1.9m (estimate 30 December 2008)

• E A Technique : shipping management company and logistic provider ~formerly an external entrepreneur

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The SME businesses have their own ‘mentors’ : they are developed, guided &

nurtured by PLCs in the JCorp Group e.g. KPJ Healthcare, Kulim etc.

To date, KPJ has had the experience of developing and nurturing three (3)

intrapreneurs since 2005 - to actively pursue local and international contracts

KPJ SME INTPRAPRENEURS

1. Healthcare Technical Services (HTS)

2. Teraju Farma

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3. FabriCare Laundry

KPJ Sme Intprapreneurs : Future

KPJ is also exploring niche market opportunities in other areas including

a. food services

b. ambulance services

c. home nursing

d. health tourism services

e. IT services

JCORP’S / PLCS SME INTRAPRENEURS

Some of the SME intrapreneurs also provide their services to KPJ, among them :

Metro Parking (M) Sdn Bhd : managing the parking

requirements of KPJ Hospitals (KV and Johor)

HC Duracleen Sdn Bhd : maintaining high standards of cleanliness in KPJ

Hospitals

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Teraju Fokus Sdn Bhd : provide security services to KPJ offices and

hospitals

SMEs providing services to KPJ (cont’d) :

Pro Corporate Management Services Sdn Bhd : handles KPJ’s company

registrar & shares transfer matters

Pro Office Solutions Sdn Bhd : handles KPJ bulk mailing

IPPJ Sdn. Bhd. : coordination of KPJ’s human capital training programmes

Rajaudang Trading Sdn Bhd : trading of food services

for KPJ hospitals

Tiram Travel Sdn Bhd : travel agency services

JCorp’s Other SMEs

• Aquapreneur / Rajaudang : prawn farming

• Pro Communication : advertising agency

• TMR Urusharta (M) Sdn Bhd : property and facilities mgmt

• Johor Skills Development : training and technical centre

Centre Sdn Bhd (PUSPATRI)

• Effective Corporate Resources : accounting services

• Sovereign Multimedia : IT services

• Excellent Relations

• JKING : sports apparel

• Syarikat Pengangkutan Maju : bus lines

• Capaian Aspirasi : JKhairat range of products

• Pro Biz Solution : business centre

Kulim SMEs

• Edaran Badang : supply of agriculture machinery

• M Perkasa Services : workshop for heavy vehicles

• JTP Trading : trading company for tropical fruits

• Renown Value : pineapple plantation

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• Akli Resources : training centre

QSR/KFC SMEs

• Tepak Marketing : tea packaging

• Rasamas restaurants : Ayamas restaurants (5 to date)

4. JCORP’S CORPORATISED INTRAPRENUERS :

Preparing future intrapreneurs for actual implementation ~ six to twelve months :

without equity prior to actual implementation.

Successful ventures are further nurtured for growth, e.g.

Bistari Young : Business Game ‘Catur Bistari’

DHealthcare Centre Sdn Bhd : Healthshop

The World of Secret Garden : Personal care products

Convenue Marketing Sdn Bhd : Event management

5. PROFESSIONAL INTRAPRENEURS :

Introduced in 2006, specifically for intrapreneurs who are able to offer

professional services to meet market requirements.

Intrapreneurs must have professional qualifications :

• Company secretaries of JCorp and PLCs

• Certified Auditors

• Legal Officers

Among ventures undertaken are the centralisation of Group Internal Audit (IA)

functions, risk management & company secretarial duties ~ will move to become

Professional Services Providers outside the Group

6. SOCIAL INTRAPRENEURS (AMAL) :

Since inception in 2006, intraprenuers manage charity organisations within JCorp

Group:

a. Kumpulan Waqaf An-Nur Berhad (KWANB)

b. Welfare NGOs (Darul Hanan Orphanages, Waqaf An-Nur Clinics)

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c. Religious NGOs (Mosques)

d. Sports NGOs

e. Certified Mutawwif

Facilitate KWANB’s charity programmes to benefit the underprivileged and the

needy

7. ASSOCIATE INTRAPRENEURS

Individuals who are our partners in achieving corporate targets & generation of

Group’s shared wealth and success

a. Specialist medical consultants in all KPJ hospitals

b. Franchisees e.g. under HC DURACLEAN

Success depends on excellent service extended to customers.

JCORP INTRAPRENEURSHIP MODEL : BENEFITS

a. Integrated network within JCorp Group that monitors, & provides guidelines for

new businesses ~ facilitates continued business growth

b. Returns of Investment strengthens both the intrapreneur & the JCorp Group,

simultaneously

c. to transform cost centers into profit centers ~ Intrapreneurs can ultimately

become core business and PLCs on their own once ready

d. Fills the gaps / vacum in JCorp Group’s succession plan i.e. the creation of

more business-savvy leaders for the future

e. ‘Semangat Jihad Business’ also places great importance on the serving the

community/ummah and national economy as a whole

TARGET

By 2020, JCorp Group to have 2,500 companies,many of whom will be

intrapreneurs emulating and multiplying the achievements of current successes

Based on Y2008 performance levels of Pro Office (1 intrapreneur) with a Turnover

of RM24 million, and Profit of RM1.9 million; By 2020, to achieve TURNOVER

AMOUNTING TO RM60 BILLION and PROFITS OF RM4.75 BILLION!

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CULTIVATING ENTREPRENEURS ~ JCORP’S INTRAPRENEURSHIP PROGRAMME

JCorp Intapreneurs benefit from the Group’s stability and experience

‘Because of the reputation that we have, it has opened the doors faster for many of

them (intrapreneurs). People are ready and more eager to do businesses with them

because of the corporate and institutional name behind them. And banks feel more

secure if you belong to a bigger group with brand and image. Therefore, it is our

duty to make sure nobody runs that brand value down'.

YBhg Tan Sri Dato’ Muhammad Ali HashimThe Intrapreneur Way

Malaysian Business, 1 Feb 2007RECOMMENDATIONS

Developing network : GLCs to facilitate the creation and development of

network of their entrepreneurs or intrapreneurs based on preferred models, to

fulfill commitment to National policy

Creating entraprenuers : continuously increasing the number of entraprenuers of

increasing diversified businesses (dapat tingkatkan jumlah ummah dalam bisnes

and jenis bisnes)

Maintaining ‘hand-holding’ for those entreprenuers that need guidance or they

can be moved and pushed to become PLCs themselves, once ready.

Greater branding & positioning initiatives : creating the right image is crucial

(though often overlooked); target must be to bring local brands to the wider

international level.

Participation of intrapreneur companies in cross-border collaborations and

partnerships : with greater exposure (e.g. through Trade Missions), local

intrapreneurs will be able to better adapt to and fulfill market requirements.

Continue and grow Business Jihad

Based on JCorp Model, with 50 GLCs growing 2,500 entrapreneurs similar to JCorp

assumption, by 2020 it is anticipated that :

- Revenue will be RM3,000 Billion

- PBT will be RM237.5 Billion