Teh proves dreams come true as he built a banking legacy

Public Bank is the largest non-government linked bank by assets and second in terms of market capitalisation. Teh founded the bank in August 1966 with the aim of building an organisation that could withstand the test of time. The 88-year-old patriarch says this National Day is a good time for Malaysians to reflect on the true meaning of unity.

As far as banking goes, Public Bank Bhd is in a class of its own. Few banking institutions in the region can boast a record of over five decades of unbroken profitability, even during all the financial crises.

The main mover in many of the bank’s achievements is undoubtedly its chairman Tan Sri Teh Hong Piow, no matter how much the patriarch directs the spotlight elsewhere.

The 88-year-old founded the bank in August 1966 and led it with a unique style of doing business that leaned on conservatism.

“I’ll be the first to admit that Public Bank is not sassy, but then, I do not think that being just sassy is a priority in banking. What is important is being able to always stay ahead of the curve and stay on the ball with industry challenges, opportunities and trends,” Teh tells The Star.

The veteran banker spent most of his working life overseeing the progress of Public Bank, which is now the largest non-government linked bank by assets and second biggest by market capitalisation after rival Malayan Banking Bhd.

Today, the octogenarian can surely look back at the beginning of Public Bank and feel fulfilled.

“When I founded the bank 52 years ago, it was clear in my mind that it should be an organisation that could withstand the test of time.

“Today, like a proud parent, I take pride in being able to say that Public Bank has been profitable from the first years of its business and remained profitable since.

“Seeing the bank grow in stature through the years has spurred me on to reach the many milestones we have achieved,” he says.

Teh’s journey is one that gives credence to the belief that Malaysia is the land of opportunity if one is willing to put in honest and hard work.

“I have always believed that given equal opportunity, everyone and everything can blossom,” says the banker, who did not have a silver spoon start to life and had to care for his family from a young age.

“Based on this philosophy, I felt the urge to provide for the banking needs of people from all walks of life.

“But while carrying out the business of business, it is also important that we keep a hard head and soft heart.

“My track record shows that through the many financial crises, I held on to my team,” says the banker.

Teh got his early exposure in banking with Singapore’s OCBC Bank in the early 1950s.

He caught the eye of the late Tan Sri Khoo Teck Puat, the well-known businessman who set up Malayan Banking in 1960.

Khoo handpicked Teh to join him and this saw the young Teh uprooting himself to Kuala Lumpur.

Coming to Malaysia, Teh saw a huge potential in the “unbanked” masses and an opportunity to fill the need for another homegrown bank in a landscape dominated by foreign banks.

After only six years at Malayan Banking, Teh got his wish to strike out on his own with the reluctant blessings of his mentor Khoo, taking with him a handful of staff members including Tan Sri Tay Ah Lek, who is Public Bank’s managing director/chief executive officer.

Growing up the hard way also shaped Teh’s perspective on life.

“I have had my fair share of challenges. But rather than looking at them as problems, I have learnt that one must look them in the eye.

“We should never see failure as failure but as a learning experience and an opportunity to practise our techniques and perfect our performance. Setbacks should be bridges to be crossed to reach our goals, not barricades to keep us from them,” he says.

One of the things Teh took great pains to nurture is a culture of esprit de corps and a sense of ownership in whatever one undertook.

According to him, the ability to bring a vision to life is what separates “the dreamers from the entrepreneurs.”

“I take great comfort in the fact that Public Bank is unique in our corporate culture and committed workforce ... something that cannot be replicated. It is this tightly woven web of dedication based on the sharing of my vision that has enabled us to put the map of Malaysia firmly in the Indochina region.

“No one can prepare you for starting a business from the ground up, especially in banking.

“Nurturing it is harder, while running it is the hardest as we are dealing with the most precious of all commodities – money, which translates to life savings and hard-earned rewards,” he says.

Given the nature of dealing in money and credit, he says banks must never lose sight of some basic principles, namely integrity, prudence, compliance and controls.

He points back to those principles when asked what advice he would give young entrepreneurs today.

“They need to have a deeper purpose beyond the sheer mechanics of operating a business.

“In any business, there should be no compromise on integrity and honesty as the success of any business depends on public confidence and trust,” he says.

At the same time, entrepreneurs also need to challenge themselves.

“Challenges keep entrepreneurs nimble and on their toes. If we are constantly looking for the next challenge, we will be prepared for what comes our way. I believe that being challenged in life is inevitable; being defeated is optional.”

Another attribute many successful entrepreneurs have is the ability to adapt.

And as this year’s National Day celebration takes on a new meaning following a change in government for the first time since the country’s independence in 1957, a shift in the political and economic landscapes is inevitable.

However, Teh is confident that the changes towards better governance and accountability will be positive for the country.

“Building a conducive environment for business with people-friendly policies and the rule of law would enable banks to flourish further. The push for governance will lead to increased competitiveness and in turn profitability.”

On a more personal note, he feels it is a good time for Malaysians to reflect on the true meaning of unity by cherishing the special gift of diversity and leveraging on each other’s strengths to carry on working together harmoniously.

“A society with different ethnicities, cultures and religions is what makes up the Malaysia I know and love.

“Overall, I wish for Malaysia to continue blossoming as a united, democratic and economically just nation with a liberated, tolerant and progressive society backed by moral and ethical values while creating a niche for ourselves in the future era of increasing technology, modernisation and globalisation.”

As for Public Bank, Teh says the bank remains a strong supporter of the nation’s development.

“We will continue to bolster the economy and do our bit for the nation,” he concludes.

 

More stories: Star Special - National Day 2018