Name Shah Zain | ||
Session 3 Scomi's Mumbai Monorail Experience by En Shah Hakim Zain (CEO of Scomi Group) Part 3
Shah Hakim @ Shahzanim bin Zain is chief executive officer and controlling shareholder of the Malaysian public company Scomi Group Bhd.
Contents
Background, early corporate years
Shah Hakim was born in 1965 in the Malaysian state of Penang. He is the son-in-law of Salleh Abas, a former head of the Malaysian judiciary. He is close associate and former school mate of Kamaluddin Abdullah, a businessman who is the son of former Malaysian Prime Minister Abdullah Ahmad Badawi
Shah and Kamaluddin own a majority stake in Scomi Group through two investment companies. It is a working relationship that has remained constant throughout the existence of the company.
Shah Hakim started his career as an auditor with Ernst & Young and was subsequently promoted as Consulting Manager, responsible for servicing large corporations. He went on to be appointed as Executive Director of a regional packaging manufacturer in 1992, with direct operational responsibility.
Scomi
Shah Hakim is the Chief Executive Officer/ Non-Independent Executive Director of the Scomi group of companies and was appointed to the Board on 3 March 2003. In 2000, together with Kamaluddin Abdullah, his schoolmate and long-time friend, he took control of Scomi via a holding company named Kaspadu Sdn Bhd. He currently sits on the Board of Sapura Industrial Berhad, Scomi Marine Bhd, Scomi Engineering Bhd and KMCOB Capital Berhad.
Scomi Group Bhd which is listed on the main board of Bursa Malaysia Securities Berhad, and its Group of companies are involved in three core businesses: Oilfield Services; Public Transportation; and Marine Services. The Group offers Drilling Fluids (DF) & related engineering services, Drilling Waste Management (DWM) solutions, distribution of oilfield products and services, marine vessel services, machine shop services, transport engineering solutions involving special purpose vehicles, rail wagons, monorail vehicles and buses, supply of industrial and production chemicals and carbon dioxide (CO2) separation. With presence at 68 locations in 33 countries, the Scomi Group has almost 50 years of experience in the industry servicing numerous local and multinational customers.
Operating style
Shah Hakim Zain believes in rapid growth, and his management style empowers individuals to enable that growth. He is also not averse to inorganic growth, and Scomi's entry into the arena of monorails, following the acquisition of a coach-building company, is testimony to that.
Shah Hakim is not a CEO who seeks the limelight beyond that necessitated by business. He has kept a low profile. Having long been the face of Scomi, in 2009, Shah Hakim decided to take a step back, choosing instead to push the respective presidents of the various units to the fore front. Shah still retains close watch on proceedings, without hampering his management team. This strategy has paid rich dividends in markets like India, where Scomi won several contracts.
Shah Hakim believes in progress, and the role of companies to drive a nations's development. "If you cannot imagine where we will be in the next 50 years, one thing that is certain is that we cannot continue to do the same things in the same manner today if we want to stay relevant. Therefore, it is important for us to have a clear vision of where we want to be 50 years on and to implement strategies and stay the course, no matter what. In fact, we have the potential to leapfrog over other countries by being a technology and knowledge leader, not just in product technology but also in process technology. To do so, we will have to invest in technology and knowledge ownership, and with the right combination of foresight and vision, eventually emerge as a true and effective global country in 50 years time."
Controversies
Scomi has been accused of getting contracts because the former PM's son is a shareholder. However, the fact that the company generates 85% of its revenues overseas disputes this charge.
Another controversy involves BSA Tahir, arms dealer, who once held equity in Scomi, and had smuggled uranium enriching equipment to Libya, using Scomi facilities to develop a part of his technology. This led to investigation of Scomi. The Malaysian government investigated this thoroughly, and the Inspector General of Police concluded in a statement that Shah Hakim and other Scomi officials were not aware and not responsible for any wrongdoing.
From the New York Times: "Investigators say Mr. Tahir put together a deal two years ago for a Malaysian company, Scomi Precision Engineering, to make nuclear-centrifuge parts for Libya, apparently without telling the company where the parts were going, according to company officials and corporate documents. The deal was exposed last October when a ship destined for Libya, the BBC China, was seized in the Mediterranean."
Scomi's position of innocence is well documented, and the company has maintained this position since 2004.
Subsequently, following US Govt sanctions on Shah Hakim, he has fought to clear his name in that country, and succeeded in 2011. The sanctions were lifted by the US State department on Monday, 18 July, and the news was covered in Malaysian papers. Shah issued a statement as well saying, "In reference to the lifting of the sanctions imposed, I am grateful to all who have helped, guided and supportedScomi Group and I for the past few years, in particular to the Government of Malaysia and all the agencies. I would like to express my gratitude to the State of Department, United States of America for their assistance and for the lifting of the sanctions"