KUALA LUMPUR: Kim Teck Cheong Consolidated Berhad (KTC) Executive Director, Executive Committee member of Federation of Public Listed Companies Berhad and Malaysia-China Chamber of Commerce (MCCC) Sabah President and Datuk Dexter Lau was invited to attend the “Listing Strategy Summit” where he shared his experiences and insights as a third-generation family business successor and his journey in leading the company towards listing and sustainable growth with entrepreneurs and business leaders from various sectors.
The summit was organised by the Federation of Public Listed Companies Berhad (FPLC) and officially opened by its President, Tan Sri Dato Sri Dr. Peter Sow Chin Chuan.
During the summit, Datuk Dexter Lau spoke at the “Family Succession, Sustaining Breakthrough Growth” session, sharing his 26 years of hands-on experience in managing a family business, covering his personal succession journey, family business continuity, the listing process, corporate governance and sustaining growth after listing.
From Lawyer to Third-Generation Successor: Finding His Own Direction
Reflecting on why he eventually left his legal career to join the family business, Datuk Dexter Lau shared that the decision was not an easy one to make at the beginning.
With a legal background and experience as a lawyer, he said his mother had initially hoped that he would continue practising law and pursue a professional career in an office, rather than joining the family’s traditional wholesale business.
He recalled that his family was initially reluctant about his decision to enter the family business, as the family had gone through disagreements and disputes over the years. These experiences also placed considerable pressure on him when he was deciding whether to become the third-generation successor.
Nevertheless, he eventually chose to join the family business and started by gaining an understanding of its operations from the ground up.
Datuk Dexter Lau believes that at every stage of one’s journey in a business, it is important to first do the present job well. Only after truly integrating into the business and understanding its operations can one gradually find one’s own direction.
“If you put your heart into it, stay humble and be very hands-on in what you do, I believe the direction will naturally find you.”
He stressed that entrepreneurs should not blindly follow market trends, nor should they decide whether to list or adopt a particular business model simply because of friends, the media or external influences. What matters most is to manage one’s business and life well and find one’s own direction.
Succession Is Not About a Single Element, but a Combination of “Ingredients”
On whether a family business should pass down equity, the business, management control or the values established by previous generations, Datuk Dexter Lau said these elements are, in fact, all essential.
Using the example of making bread, he explained that if one important “ingredient” is missing, the quality of the final product will inevitably be affected.
He shared that while drafting his own will, he also took time to reflect deeply on the issue of business succession. In his view, if the next generation inherits only equity but lacks management capabilities, resources or adequate support, they may not necessarily be able to manage the business effectively when faced with external competition and other challenges.
After 26 years of managing the family business and experiencing family disputes, disagreements and various challenges, he said he had come to realise that equity, management, the business itself and values must form a complete system in order to support long-term succession.
He also stressed that a business leader’s responsibilities extend beyond managing revenue and costs. They also include operations, the board of directors, delegation and authority, the succession process, government relations and the development of the next generation.
“People outside the family will always be watching whether the fourth generation can actually succeed the current generation.”
He said this is also part of the responsibility of a business leader — not only to manage the business today, but also to create the conditions for the next generation to take over and continue the journey.
Family Business Leaders Must First Have Their Own Convictions
For a business involving multiple family members, aligning perspectives and gaining the team’s acceptance of a leadership direction are also important challenges in family business succession.
Datuk Dexter Lau acknowledged that as a leader, one must first have one’s own convictions, rather than expecting every team member to immediately share exactly the same thinking.
He likened a leader to the person steering a ship, saying that the leader must first be clear about where the business is heading, before effectively deploying his or her philosophy and management approach throughout the organisation.
He said that if a team merely undergoes training and participates in various programmes without genuinely understanding the direction of the business, the resources invested may ultimately fail to generate the expected return.
Therefore, he stressed that leaders must remain firm about their direction while ensuring that the team understands and embraces the organisation’s core thinking. When a business makes a wrong decision, the leader must also be capable of navigating, adjusting and correcting its course.
From Traditional Family Business to Listed Company: Listing Was Not the Original Goal
On why KTC eventually decided to pursue a listing, Datuk Dexter Lau revealed that going public was not the goal he had originally set when he first entered the family business.
He explained that running a business is much like life, with different responsibilities and priorities at every stage. After joining the family business, his first priority was to integrate himself into the organisation and understand the business, before gradually finding his own direction.
