From the ground up: Crowe Singapore's chief shares the ins and outs of business success

Kuang Hui Tan expects more assets and funds moving to Singapore with the new Variable Capital Companies.

It’s quite a daunting task to run an accounting firm from the ground up, but Kuang Hui Tan knows all too well what needs to be done. As Crowe Singapore’s Chief Executive and Managing Partner, he has seen how the landscape and client expectations have changed drastically throughout the years.

“Our clients’ needs have evolved—some have grown bigger and added new business lines. This is why we have moved beyond audit and other compliance work to a full-fledged end-to-end professional services firm, offering 15 different services,” he explained, noting that they’ve started providing private wealth advisory to high net worth clients about a year ago.

Despite the journey being an arduous one, Kuang Hui has led Crowe’s Singapore office for 17 years, comprising 12 partners and approximately 200 professionals. “There were early struggles but I am glad that all the six founding partners persevered. We think like entrepreneurs, run our own profit centres and contribute to Crowe’s growth as Asia’s fifth largest accounting network,” he says.

As the crisis exposes businesses’ strategic and operational weaknesses, Kuang Hui notes that a strong digital presence is no longer a “good to have” but an essential for business survival. “Reigniting the flow of commerce requires full business digitalisation, a strong real-time payments infrastructure and the ability to stay open for customers,” he adds.

Chosen as one of the judges for the SBR Awards, Kuang Hui graced us for a chance to discuss the opportunities for firms that have been pushed out of their comfort zones, the growing importance of decentralisation and why Singapore is still a safe harbour for talent, businesses and wealth amidst a downturn.

Which particular markets or sectors are your main focus? Can you share with us your work experience or any backstory that has contributed to your professional career?

Crowe’s strategy has always been to anticipate and grow with our clients. With the changing landscape over the years, our clients’ needs have evolved—some have grown bigger and added new business lines, while some have established a relationship with us and requested that we extend our advisory services. 

This is why we have moved beyond audit and other compliance work to a full-fledged end-to-end professional services firm, offering 15 different services—thanks to our wide practice areas that allow us to pull together different expertise. Today, we are one of the few firms in Singapore that provides fintech and digital advisory services, which we have built up a good portfolio. About a year ago, we also started providing private wealth advisory to high net worth clients. This list of services continues to grow. From this perspective, the firm does not focus on any markets or sectors. 

When the six founding partners started the firm some 17 years ago, the David and Goliath story resonated with us. Although we were relatively young, in our early 30s, we had a clear vision of serving listcos, MNCs and financial institutions. We thought to ourselves: we have the energy, the relevant working experience, the exposure, the relevant skills, the perspectives and the network. With grit and determination, we could create a brand name of our own. 

Looking back, the journey has not been easy. There were the early struggles but I am glad that all the six founding partners persevered. We think like entrepreneurs, run our own profit centres and contribute to Crowe’s growth as Asia’s fifth largest accounting network.

What can SMEs and other homegrown businesses learn from the crisis? For those who have been badly hit, what do owners need to consider on the road to recovery?

Disruption, reinvention, blockchain adoption, artificial intelligence and digital transformation have been the buzzwords in recent years. We know they are important but how many businesses have looked at them with urgency prior to COVID-19? Organisations were not moving fast enough in their transformation to be ready for the new digital age. Those that have been taking their time to reinvent themselves—either due to a lack of resources or know-hows—are now caught off-guard by COVID-19, which has exposed their strategic and operational weaknesses. 

As governments around the world re-start their economies, businesses have to adapt to the new normal amid prolonged social distancing measures—a strong digital presence is no longer a “good to have” but an essential for business survival. Reigniting the flow of commerce requires full business digitalisation, a strong real-time payments infrastructure and the ability to stay open for customers.

The road to recovery requires all levers to be pulled. For business owners, this means bringing all stakeholders, including customers, vendors and consumers, into the digital realm. Tap the support provided by the ecosystems—from the available schemes and resources, to partnerships with government agencies, banks, peers and service providers to accelerate the pace of innovation. With a collaborative mindset, businesses can only emerge stronger together.

What is your take on Singapore companies internationalising? Are there still opportunities in this COVID-19 economy? 

The resultant effect of COVID-19 is that it has pushed businesses out of their comfort zone. It has accelerated the speed in which SMEs are building up their e-commerce capabilities and establishing an omni-channel sales strategy. What this means is that the digital economy is set to take off in a bigger way. Sales will no longer be confined to just Singapore or the home country. A greater runway has been laid for businesses to reach out to their target audience around the world.

Companies expanding overseas can navigate the challenges more efficiently by tapping the support provided by the government and various trade associations. Initiatives like Grow Digital, Market Readiness Assistance, Global Ready Talent Programme and GlobalConnect@SBF to help businesses in their internalisation journey.

I am also hopeful that the pandemic, which took the world by surprise, will create a vibrant ecosystem for technopreneurship—one that will generate more success stories of innovative Singapore companies going global.

On a related note, COVID-19 has put the spotlight on the growing importance of decentralisation. This is different from a centralised business model which has a single point of control. We know that the more centralised an organisation is, the lower its immunity to disruption and, thus, the higher the chance of being made redundant one day. In contrast, a decentralised business model across markets and functions forces employees to take ownership, think out-of-the-box, and bring issues like sustainability and contingency planning to the fore. Arguably, this will enhance the readiness to manage crises.

MTI reported that investments have already exceeded the full-year target in the first four months. What’s your take on inbound investments going forward?

These investments, which were secured despite the ongoing crisis, reflect two things. Firstly, it underscores the confidence that global investors and businesses have in Singapore. The trust factor is high, and we have a good infrastructure that supports Singapore’s aspiration as an innovation hub for value-added functions such as biotech, medtech and fintech. 

Secondly, it shows that we have reached a stage where investors no longer choose Singapore just because of our tax regime. Other considerations like our pro-business policies, intellectual property protections and a safe harbour for talent and businesses make Singapore a natural choice.

Beyond the R&D and technology sectors, there are also opportunities for Singapore to establish the city-state as a global centre for wealth management. With the launch of Variable Capital Companies (VCC) in January this year, we can expect to see more assets and fund operations moving to Singapore.