Family values

Dominic Loh’s subject for his dissertation – family ties in South-East Asia – was well-chosen. As the third-generation CEO of Sew Cheong Corporation, a Malaysia-based pharmaceutical wholesaler and importer, it is a topic in which he is well-versed.

His father, Desmond, remains the hands-on Chair with the company, while his grandfather – Desmond’s father – is the company’s Founder, having established the business at the tail end of 1945.

It is this family unit and the bond it creates that has given rise to the longevity of Sew Cheong Corporation and, importantly, its enduring relationship with customers, according to Dominic.

“I did my dissertation on family ties, with a focus on South-East Asia, and what I believe about family ties is that people share the same core values,” he tells The CEO Magazine.

“This is something that we feel, our suppliers feel and our customers feel. The whole is greater than the sum of the parts.

“There is a real bond between us, and that plays such an important role. Most of our customers have been with us since my grandfather’s time. We have a closeness, and that allows us to have transparent discussions and provide honest and constructive feedback. Family-run businesses are workable in 2024, and many are doing very well based on these values.”

Trust and honor

Naturally, the business has evolved over eight decades in the pharmaceutical world. For example, having previously been known as a wholesaler, it has now become a trading house, focusing on the sale of exclusive over-the-counter products. Yet in fundamental ways, Sew Cheong Corporation has remained the same.

For Desmond, who took the reins from his father in 1994, listening to his son is music to his ears. Far more than simply passing on the business to Dominic, he has passed on the same ethos and philosophy that were instilled in him by his father.

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“I would like to emphasize the point Dominic has made. The company is going into the third generation, and all the good things done by my father are continuing,” Desmond says.

“During the early days, my father built trust between the company and suppliers and customers, and that continues today. We have relationships in Malaysia and Singapore that have lasted 50 or 60 years. We are still doing business with them and are on very good terms.

“My father taught me one simple philosophy, and that is to be a trusted person. Honor what you have said and honor what you have promised. If you do that, if you are trustworthy, you will never go wrong.”

Not that Sew Cheong Corporation is stuck in the past. Far from it. Under Dominic’s watch, the Ipoh-based trading house is looking to the future, embracing opportunities that can be offered by organizations such as the Malaysian International Chamber of Commerce and Industry (MICCI), which it has recently joined.

Desmond is already Vice Chair of the Perak Chinese Chamber of Commerce and Industry. Dominic believes joining the MICCI will further accelerate Sew Cheong Corporation’s ambitions to play a greater role in “giving back to society” and furthering the wider business community in Malaysia.

That plays into its overall plans to step up its environmental, social and governance strategy, he adds, revealing that it already supports local schools and non-government organizations.

Opportunities for growth

Turning to the dynamics of the market, Dominic says the company adopts VUCA – volatility, uncertainty, complexity and ambiguity – as a “framework to change”.

“Of course there are challenges. For example, it’s hard to predict market trends and consumer buying patterns, and the Malaysian Government no longer subsidizes diesel, so our transport charges will increase,” he explains. “But you must look for opportunities. When you’ve reached the brick wall, you must find a way to cross that wall.”

Among those opportunities is the high regard in which Malaysian over-the-counter (OTC) medicinal products are held by neighboring countries. In keeping with its quest to support the local industry, Sew Cheong Corporation plays an instrumental role in exporting Malaysian non-prescription OTC products across the region.

“Countries in East Asia tend to look up to Malaysian OTC products. They are highly regarded because the government and the health authority are very strict on quality and the manufacturing process,” Dominic reveals.

As the conversation with father and son draws to a close, Desmond returns to the theme of family and the importance of tradition. But with so many years of experience behind him and having learned so much from his own father, he is acutely aware of the need to move with the times.

“It’s important to adopt the modern way,” he reflects. “That means looking for new ideas. Times are changing. We need to follow market trends.

“But I hope my son, the younger generation, continues our traditional style because that will make things even better.”