Q&A with Chuan Seng Lee of the Southeast Asia Beachhead

After graduating with a Bachelor of Engineering (Electrical) from the University of Auckland, Chuan Seng worked on engineering projects in New Zealand, the Philippines, Singapore and Indonesia.

In 1989 he was appointed Director of Beca Carter Hollings and Ferner (Southeast Asia) Pte Ltd, with responsibility for various projects in Singapore, Malaysia, Indonesia and Myanmar. In that role he grew the Beca Group’s business into these countries as well as China.

He is currently Chairman of Beca Asia Holdings Pte Ltd and Beca Carter Hollings & Ferner (Southeast Asia) Pte Ltd and Executive Director of Beca Group Ltd, New Zealand. Chuan Seng is also a Member, Fellow or Chairman of a number of professional industry bodies and committees.

Why should New Zealand exporters look to expand into Southeast Asia?

The region is very vibrant with economies in almost all markets growing between five and ten percent annually - so you can grow a lot faster than you can in New Zealand.

The markets are also very close to each other - if there are issues in one you can easily go to another. Firms who use Singapore as a launching pad for export into the region could also be eligible for a whole raft of government grants and incentives, including tax breaks.

What are some of the challenges of doing business in this region?

New Zealand exporters are competing with the strongest firms from North America, Europe and Australia. Introductions are important; otherwise you won’t get a foot in the door. Kiwi companies need to find ways to leverage ourselves up, and the Beachhead can give access to networks and open doors at a senior level.

Also, while a fast rising tide means a company can grow faster, it also means you must be strong or you’ll drown. That’s why companies in the Beachhead are filtered to ensure that they are both committed and capable of succeeding.

Different countries have different rules and regulations and it’s necessary to seek advice on that. Languages, cultures and the racial mix across different markets is also a big challenge for New Zealanders. You have to over-communicate – listen, speak, then repeat and paraphrase.

What do you have to get right to succeed in Southeast Asia?

You must have a product or service that is differentiated in some way – better, more efficient or user friendly, and have clear objectives of why you want to export – it might be access to a bigger market; to mitigate downturns in New Zealand; to keep specialised staff fully occupied.

Be prepared to persevere. A lot of clients [in Southeast Asia] have suffered from previous experience where overseas companies come in, work a short while, then when things go wrong pull out, leaving clients in the lurch. It can take six to 18 months of regular meetings before you land a substantial order. The challenge then is to make sure you have the capacity to deliver.