Cool Head for Business

As a kampung boy, he would linger in his school's audio visual aids room just to enjoy the cool comfort of an air-conditioner.

Now, Mr Richard Goh, 42, is the founder and managing director of Mega-Tech Industries, a leading manufacturer and exporter of air-conditioners and consumer electrical appliances with a market presence in over 28 countries.

His childhood had honed his enterprising spirit and drive to succeed.

His father, the family's sole breadwinner, was a fruit and vegetable seller.

To earn extra money, the young Mr Goh would take fruit from his family's garden and sell it in neighbouring estates during the weekends and holidays.

"It trained me to have the guts to go out and peddle goods in public", he said.

With seven other siblings, he further eased his family's financial burden by securing bursaries for his entire primary and secondary school education.

Living without electricity and running water in the 1960s fuelled his interest in air-conditioning and refrigeration technology.

"I envied my classmates who owned refrigerators or air-conditioners, and dreamt of owning a refrigerated plant someday, so that the fruit I prepared each morning could remain fresh", he said.

After excelling in his O levels he pursued this interest at the Singapore Technical Institute (STI), obtaining an Industrial Technician's Certificate in Air-conditioning and Refrigeration Engineering.

During his national service, he pursued numerous management and marketing courses while working on getting a higher diploma from the City and Guild of London Institute and a mechanical engineering diploma from Singapore Polytechnic.

Ever enterprising, he sold insurance policies on a part-time basis and musical greeting cards during festive seasons.

His talent for spotting opportunities served him well in his career. After six years working as an R&D engineer for air-con manufacturer Ace-Daikin, Mr Goh decided to strike out on his own.

He started Mega-Tech Air-conditioning and Engineering in September 1991 with $10,000 of his personal savings, and three staff sharing a single telephone line and desk in a one-room office in Geylang.

Despite its small start, he had a big vision to establish Mega-Tech as a specialist in the air-conditioning and refrigeration field.

Mr Goh said: "Since there were numerous small-time contractors, I focused on the higher value industrial and commercial projects, which require more skill and design expertise."

To minimise costs, he used a core pool of contract labourers for labour-intensive jobs while retaining his own employees for more skilled tasks. In fact, his prudence ensured that Mega-Tech never ran into the red in its 12-year history.

In 1993, the company got its big break. By landing a technical collaboration with Funai Electric Company, a Japanese contract manufacturer, it could now penetrate the global market.

"Since I knew the A to Z of air-conditioners, I ventured that Mr T Funai, who had the capital and infrastructure, might be interested in my proposal to add air-conditioners to his range of consumer electrical products", Mr Goh said.

His proposal was accepted a year and numerous study missions later. Mr Goh stayed in Japan for six months to get the manufacturing plant near Osaka off the ground. In exchange for his expertise, the saavy negotiator secured the sole marketing rights to Funai's air-conditioners.

Spearheading the marketing drive, Mr Goh chose to focus on emerging and untried markets such as North Korea and Russia, to give the fledgling brand a competitive advantage.

He said "The Russian market alone was worth $175 million, so securing just 1 per cent would give us the critical mass we needed to be profitable."

Through shrewd market positioning and value-added features, the company succeeded in capturing a huge share of the market.

Mr Goh was also the first through the door in East Timor, supplying the electrical and air-conditioning systems for its airport and the United Nation's quarters.

Today, 95 per cent of Mega-Tech's revenue is generated from its overseas markets. Last year, it recorded a turnover of $35 million. Its distribution network in 28 countries includes joint ventures in China, Thailand, West Africa as well as branch offices and liaison offices in Europe, Japan and Dubai.

Mega-Tech has since won the Enterprise 50 award in 1999 and 2000, and was included in the SME 500 listing of Singapore's most powerful SMEs.

Mr Goh also received an honorary doctorate in business administration from the University of Hawaii in 2000.

To stay ahead of competition, Mr Goh continues to develop new products, such as air-conditioners that run on natural gas.

He is also researching how to revolutionise the technology that drives air-conditioners so that someday, cool air may be emitted from the metal backing of a picture on the wall.

Source: The Straits Times, 18 August 2003, Page L14.