Malaysian entrepreneur turns waste to wealth

Malaysian entrepreneur turns waste to wealth

Jason Cheah, Asia News Network/The Star

Originally from Kampar, Perak, Olivia Lum worked her way
though college and earned a Bachelor of Science degree from the
National University of Singapore. Shortly after graduation she
accepted a job with a multinational corporation in Singapore.

Lum, the chief executive officer of Hyflux, a groundbreaking
water treatment company in Singapore, which she founded 15 years
ago.

With her keen business acumen and fierce determination to
succeed, she took a big risk in 1989, quitting her job and
setting up Hydrochem (now known as Hyflux), a water treatment
company that now provides a wide range of services across Asia.

Such determination has been with Lum since was brought up by
her foster grandmother in Kampar after she was orphaned at a
young age.

"Even though she was a very nice lady, she could not direct me
in anyway in my future and education. The only people whom I
could look up to were my teachers and school principal during
that time," Lum said during an interview from Singapore.

"So whatever they said, I took them literally as the ultimate
advice that I should follow."

But what was her approach when she first began with HydroChem
all those years ago?

"I always wanted to do business, even when I was very young.
When I was working with the multinational corporation, I worked
as a chemist. Even though I enjoyed my work, I suppose my passion
was still for business. My dream was to become a businesswoman."

Lum arrived in Singapore after she completed her Lower
Certificate of Education in 1978.

"When I got my results, my principal thought that I should
explore better opportunities in big cities like Kuala Lumpur or
Singapore. So he encouraged me to leave my hometown, which is a
very small town with very little opportunity.

"Of course being a chemist at the time, I was also involved in
wastewater treatment for that company. I asked myself that if a
rich company like that had to struggle to overcome the wastewater
treatment problems, what about all other industries in this
region that are not so rich and which could not afford
sophisticated treatment?

"And I'm sure that there will be a lot of waste dispatched to
the natural resources. So I told myself this must be a sunrise
business and I want to get into it.

"During that time a lot of small industries were being set up
like summer textile companies, fruit companies and chemical
industries around this region. They did not have as much
resources to treat their wastewater, so they discharge tons of
wastewater. I could foresee that one day, people would have no
more fresh water to drink, so I decided to start an environmental
business, particularly on water."

When Lum started her company in Singapore in 1989, not many
potential customers recognised it because it had no brand name.

"I had to go to Johor Baru and Indonesia to sell my products
before going further abroad. It was only in 1992, when I was
beginning to make some money, that I thought that maybe this part
of the world market is too small; I must find a bigger market. I
went to China and set up my company there in 1993."

But what was it like for Lum in those days trying to build the
company from scratch? How, for instance, did she overcome
potential obstacles and convince people to help and invest with
her?

"It was tough, initially, especially. People did not believe
me because I did not have a very impressive business proposal.
When the banks did not want to lend me any money, I had to sell
my car and house in order to start the business. I started the
business with S$20,000 (about US$12,500)."

Today, the company is well and on track.

"The time has passed by very quickly. Looking back, although
the journey has been tough, it was enjoyable because at every
hurdle I was always looking for ways of overcoming them."

Lum still has very clear plans for the future.

"I suppose we can always look at the macro-economy.
Environmental problems are getting worse. As I had seen it 13
years ago, many rivers are being polluted, particularly in China
and a lot of people are suffering from drinking contaminated
water.

"So looking at the macroeconomy, there is still a lot of
potential for a company like ours. There is always a big demand
and the demand is not going to reduce, it is only going to
increase. So I believe as long as we keep focusing on steady
growth, we should be able to reach a higher level."