THE economy may be heading into a storm, but for chairman of Super Steel Ang De Yu, lean times can present golden opportunities.
His confidence springs perhaps from the strong performance his company has enjoyed. Starting out in 2005 with 30 customers who were mainly based in Singapore, the company now has more than 400 customers, from Vietnam to Dubai and Sri Lanka.
Importing from countries such as Europe, Russia and South Korea, it sells over 2,500 steel products for both local and overseas shipbuilding, oil rig and construction industries.
Along with more customers came higher revenues. The firm's turnover rose from $24.6 million in 2005 to $67.4 million last year, and is projected to nearly double to $130 million this year.
Yet when he first started the company, banks were reluctant to lend him money. A bank manager who had faith in his ability to deliver, however, backed him.
'Whatever I say, I will deliver,' says Mr Ang, speaking in Mandarin. 'No matter how tough it gets, as long as I have promised something, I will do it.'
The bank manager's actions paved the way for him, and to this day he remains grateful.
'Banks are the lifeblood of businessmen,' he says.
That is why earning their trust by ensuring that loans are paid is important. Borrowing from a Chinese saying, he says: 'If you borrow and return, it's not hard to borrow again.'
The reputation he has is not something built up overnight. It was instead accrued slowly over the 23 years that he has been in the industry.
Armed with only 'O' Levels, he started out as a delivery boy in a family-owned steel business in 1980. In a bid to improve himself, he took a course in business management at the Singapore Institute of Management. He worked in the day and studied at night.
'It was very difficult then,' he says. 'But as a young man, you're not scared of anything.'
This humble beginning allows him to empathise with the needs of his employees.
'I treat my employees as my brothers and sisters,' he says. 'I want my employees to have a sense of belonging, and when they feel that, they are willing to work hard for you.'
None of the employees that he has hired has left the company, he adds.
Having committed employees goes towards retaining customers. When customers call, they are attended to immediately rather than getting passed around, he says.
'You don't give your customers a chance to look for other companies, because once they do that, they'll forget about you.'
Other than providing reliable service, Mr Ang ensures that the customers always have access to stocks, which explains his wide inventory of over 2,500 products.
'People have asked me why I want to maintain my stock during the current financial crisis,' he says.
'You can't place the order only when there is no more stock, because it takes two months for the products to reach the customer from the factory in the country of production,' he explains.
'In a business, your best capital is in your stock, your employees and your customers.'
Going forward, it is this capital that he intends to build on.
The company is planning to boost its Internet presence in order to communicate more easily with its overseas partners. In addition, it will also be importing products of an even higher quality so that it can supply large construction projects.
However, Mr Ang is careful not to over-reach. 'When I do business, I know my limits,' he says. 'You should not over-estimate and expand beyond your means.'
'It's also cheaper to expand when times are bad,' he adds.
This philosophy has put him in good stead during the current turmoil. He predicts that the economic downturn will last till the later half of next year, and is determined to make use of the opportunities it presents.
'It'll be a good time to look for the gold among the trash then,' he says, with a laugh.
This article was first published in The Business Times on 24 November 2008.
