Koperasi Usaha Bersatu Malaysia Berhad (KUB) was set up on 11th May 1977 by Prime Minister Tun Hussein Onn to provide a base for Malay participation in business. KUB is 29. 62% – owned by Umno – linked company, Gaya Edisi Sdn Bhd while Minister of Finance owns about 22. 55% which means that KUB is also a government – linked company (GLC). Over a decade, KUB Malaysia Berhad has continued to make losses since 1997. The company has been undergoing of corporate restructuring and rationalization exercises. Datuk Mohd Nazar Samad, a man on a mission is the third person roped in to turn KUB around.
Mohd Nazar 51, joined KUB on March 1, 2007 as an Executive Director. He was a banker for 13 years. He joined with a Cold Storage Malaysia Bhd in 1992 as its head of corporate affairs. In 1996, he joined management consulting firm Krystar Management Sdn Bhd which established the Eraman duty free outlets for Malaysia Airport Bhd. Between 1998 and 2002, Nazar was chief executive of Buildmax Ltd, a building materials manufacturing business listed on the Johannesburg Stock Exchange in South Africa. Although, he was never been in public service, he has lots of experience in both financial services and general management.
With energetic and expertise Nazar has confidence and determined to take the loss-making GLC back to profitability in the current financial year. He has created a change in KUB with the restructuring and sale of assets to bring back KUB. Although many people said that nobody would be able to turn around KUB, he took the challenge and wanted to prove that they were all wrong. He brought KUB slowly moving out from a project – based business into a commercial or consumer – based businesses which provide sustainable earnings.
To do this, he has laid down a business plan that streamlining under three core areas: Information and communications technology (ICT), property, engineering and construction (PEC) and food related businesses. KUB was once announced plans to sell off A&W, their fast food chain restaurant because of loss – making from day one. When Nazar came on board, he lobbied to retain A&W and took a year to convince A&W owner Yum! Brands Inc that KUB was the right partner. It was very tough to reverse the board decision to sell off A&W businesses but they need sustainable income.
He made refurbishment and relocation for A&W. Up to June 30, it has seen a 20% growth in revenue compared with year 2008. A&W now has 60 outlets which are 30 and Malaysia and 30 in Thailand Going forward, with his leadership skills, Nazar is very clear what he wants to do. It’s an ongoing rationalization but at least the core direction is fixed. Under the ICT business Nazar now focuses on hardware and software, managed security services and supports the telecommunications business of Telekom Malaysia Bhd.
In its last financial year, the ICT dvision has recorded an increase in sales and rental of electronic imaging products and has completed a major portion of the RM 73. 9 million worth of pilot projects for RTM. Nazar also divert the focus in monitoring the development of its liquefied petroleum gas (LPG) activities into number two business although previously it was a core business. He says that the prices are very uncertain and controlled by government. He is confident that all the measures will help the group achieve its target to return to black in the medium to long – term.
While focusing on the domestic front, KUB will also look at opportunities abroad and is exploring West Asia for mega projects. With the charismatic associated, Mohd Nazar, able to influence others because of his inspirational qualities. Everybody is working very hard to ensure profit for the company. Morale is high and we are moving forward. We can see that KUB never reported a profit in the past 11 years since its corporation. This is the challenge for Nazar and his staffs. For the talent he has shown and the responsibilities he has carried, Mohd Nazar was selected to receive the Asia Pacific Entrepreneurship Awards (APEA) 2009.
He was responsible for the company’s meaningful net profit of RM36. 91 million in 2008. KUB listed in 1997, now KUB declared a six percent dividend to all shareholders, the first in 12 years. Mohd Nazar’s skillful of restructuring of the company’s business to concentrate on three core sectors of information and communication technology, properties, engineering and construction and food related industries contributed to the encouraging profits and helped maintain the company’s position. Mohd Nazar is the man who had succeeded where others had failed to put KUB on the profitability path.