World Science Publishing Company Chairman Dr. K.K. Phua concurs with this evaluation. However, he also thinks that, doing business in China, having only the risk-taking spirit is insufficient. China's business environment and system is not too easy to understand. "If you are not familiar with the environment and system of the place, even if you have the risk-taking spirit, it will be useless," says Dr. Phua.
Relationships formed long ago Establishes today's foundation
Dr. K.K. Phua stepped into China 11 years ago. He has frequent contacts with the academic circles there. He has maintained close relationships with several of China's famous universities such as Beijing University, Qinghua University, and so on. This establishes the foundations of his future cooperations with these universities.
"When many people still did not recognize the potential of the Chinese market, we have already established the friendship with some of China's universities. This is why our Chinese partners still maintain good relationship with us, which let us do our business more smoothly."
Continuing from 2000, the World Scientific Publishing Company has once again the honor to receive "50 Outstanding Enterprises Award". Founded in 1981, the company now has six subsidiary companies worldwide. At present, the company annually publishes 400 kinds of new books, their contents cover basic science, technology, medicine, life science, trade and management. At the same time, the company also publishes 70 many kinds of specialized professional publications.
As a result of China's restrictions on the foreign publication industry, World Scientific cannot set up a publishing company in China. However, amongst the books published by the company, many authors are from China. Moreover, the company also publishes papers and theses for some key universities in Beijing. In addition, World Scientific also once assisted the Beijing Qinghua University Publishing House to train their talent; to date, three groups of personnel benefited from this training.
Along with China's gradual opening, this company and their Chinese partners' cooperation will expand in scope to the education and the training consultation service. The company recently has already established a subsidiary in Shanghai, in preparation to cooperate with a local financial consultation service company to develop related finance training and consultation service.
Talking about the recent trend of Singaporeans investing in China, Dr. Phua thinks that most Singaporeans investing in China harbor the "noisy crowd of bees" psychology. If considered from a modern scientific viewpoint, the advantage of the Singapore merchant in China "is not too much;" therefore, if the Singapore merchant wants establish a base in China, he has to deepen his understanding of China's society, economics, and all other quarters.
Some people said this some time ago: Do not assume that if you can say several Chinese sentences, you can eat in China! Although this saying has a little truth, Dr. Phua has his different view: The ability to speak Chinese is the basic condition for survival in China; at least there is no question with communication with the Chinese; you know what others are saying, and others also know what you are saying.
Perhaps because he is engaged in the culture-related industry, Dr. K.K.Phua repeatedly emphasizes the need to be a merchant who has culture, as opposed to merchant who is vulgar. Therefore, he hopes the Singaporean merchant is "haoshue" (diligent), and not "haolian" (show-off).
Praises Li Ka Shing, Sim Wong Woo as merchants with culture
In his mind, Hong Kong's rich and powerful Li Ka Shing is merchant who is diligent in learning. Although his formal education is not high, but he actually unceasingly learns by himself to become a merchant with culture.
Amongst the local entrepreneurs, Dr. Phua most appreciates Creative Technology Group's Chairman Sim Wong Woo. He thinks this young entrepreneur has the enterprising spirit. Although Sim's enterprise is successful, he maintains the low key. He is a "merchant with culture".
He said a successful merchant should have "haoshue" (diligence), culture, and knowledge. But in Singapore, many merchants are very easy infected by the "haolian" (show-off) problem.
Regarding the government encouraging Singaporeans to start an undertaking to China, to seek the business opportunity, Dr. Phua thinks that the government's positive policy truly gives the Singapore merchant many conveniences, but the question is whether Singapore's young people meet the requirements to start an undertaking to China?
Cannot invest in China purely by western market theory
Singapore's small- and medium-scale entreprises lack the specialized knowledge, but have the start-up experience. The Singapore young people have the specialized knowledge, but lack the start-up experience. Dr. Phua thinks that the challenge is how to let the Singapore small- and medium-scale enterprises and the young people complement each other by combining start-up experience and specialized knowledge, to enter China in a planned manner, and not hold a "looks for opportunity" point of view to enter.
"Before entering the Chinese market, the detailed market analysis and research work cannot be abbreviated, because the Chinese investment environment is not the same as the west. One cannot invest China by pure western market theory or economic structure understanding."
He gives an example: "You cannot think because Shaoxing presently has no large-scale supermarket and thus can set up one there; theoretically, such an idea is correct, but, in a different society like China, you must consider the local human affairs question, understands the place's leader's opinion and so on."
Therefore, he believes that to set up a base in China, one must first know China, only then one can coordinate the Chinese demand. "Self-renewal, self-study" is the condition that the Singapore merchant must have.
Dr. Phua mentioned letting his company go public some time ago. But he now indicates that he is not anxious to let the company go on the market. He thinks this kind of independent family enterprise is also good. Mrs Phua is the company's managing director. Their son assists assist the company in business development. The company up to at the end of this March has turnover of 30,000,000 US dollars. The anticipated growth this year in turnover may reach 10%.