FOR THE PAST 13 years since 1997, Mr Kuah Kok Kim has been executive chairman of MTQ Corporation. He was appointed to the additional role of CEO in 2002.
Yesterday, MTQ announced that the 64-year-old would relinquish his CEO responsibility to another board member – Kuah Boon Wee, 43, his son – from July 1.
Kuah junior, who has been a MTQ board member since 2006, is currently with PSA International as its CEO for Middle East and South Asia.
The senior Kuah will continue to be chairman of mainboard-listed MTQ, a leading regional engineering specialist in the fabrication, repair and maintenance of oilfield equipment.
His continued guidance will enable MTQ to navigate through a major phase of growth.
It is in the midst of constructing operational facilities in Bahrain for US$20 million, which will more than double the size of the Group's business.
On top of that, MTQ (www.mtq.com.sg) has recently clinched the coveted distributorship of Bosch car products for the aftermarket in Australia.
The senior Kuah, who owns a 25.5% stake in MTQ, said, “MTQ has successfully transformed itself into an internationally credible oilfield engineering services provider having a diversified business model and is now positioning itself for the next growth phase.
"This management change, which is part of its succession planning process, value-adds a younger leader who is able to commit to take MTQ through the next growth phase, which includes organic growth and ventures overseas.”
His son has been a key member of the PSA senior management team for the past 6 years, initially as Group Chief Financial Officer, and thereafter as CEO – South East Asia Region. His most recent appointment was CEO – Middle East and South Asia.
Under his watch as CEO – South East Asia Region - Singapore was the world’s busiest container port for 5 consecutive years. On top of that, he oversaw the start up of SP-PSA in Vung Tau, Vietnam.
Prior to joining PSA, Mr Kuah Boon Wee was the Chief Financial Officer for Singapore Technologies Engineering, a major listed company on the Singapore Stock Exchange.
He has a Mechanical Engineering degree and is a qualified Chartered Accountant.
The incoming CEO said: “Having joined the Board of MTQ since 2006, I am delighted and honoured to have the opportunity to take on a more active management role as the Group CEO. MTQ is a quality company with an excellent business model and is primed for growth. I look forward to being able to drive the future growth of the Group.”
Father's struggle at the top in crisis year 1997
WHILE KUAH JUNIOR smoothly transitions to the helm of MTQ, his father's own assumption of the executive chairman's post in 1997 was the result of a management shake-up.
As the senior Kuah recounted to me over dinner at Tower Club sometime last year, he had sold off his marine transportation business to Pan Electric in the 1980s in exchange mainly for Pan Electric shares, and became one of its biggest shareholders.
With money he derived from subsequently selling a lot of Pan El shares before the stock crashed, he invested in businesses in the late 1980s and in the 1990s.
He even managed a business in Australia for two years.
Then he came to know of Metalock, and decided to buy shares of the listed company which is the predecessor of MTQ Corporation.
"The more shares I bought, the more the price fell," he recalled with a chuckle. In time, he owned such a big stake that he was invited to be a board member.
Once inside, he identified some fundamental changes to the business to increase its profitability. His ideas were badly received, though. He decided to garner shareholder support and install a new slate of independent directors.
The then chairman fought back and lost.
That was in 1997, in the midst of the Asian financial crisis when Metalock faced financial challenges too as the oil industry reeled from a collapse of the price of oil to US$10.
Mr Kuah's entry into the company could not have been more intense.
Fast forward to FY09 (ending March 09), and MTQ is in good shape with revenue of $89.9 million and net profit of $11 million - despite the horrific global financial crisis of 2008/09.
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