HOUSEHOLD brand Hai-O is known for its traditional herbal and pharmaceutical products, some of which are quite bitter.
Behind the scenes, Hai-O Enterprise Bhd managing director Tan Kai Hee, 75, is undisputedly someone who knows the meaning of “bitterness” and can take it too, following the age-old Chinese maxim: “Bitter medicine cures sickness (Kukou liangyao)”, which can also be translated to “Tougher challenges yield sweeter success”.
Detained under the ISA for eight years when he was in his 20s for defending his socialist beliefs, Tan has experienced grief and desperation behind bars.
In his 30s, he considered himself lucky when he was employed as a lorry driver after being jobless for a long time. But the hardship and bitterness that he lived through all those years only fuelled his determination to succeed in life.
That road to success began when he and his comrades founded Hai-O Enterprise Bhd in 1975. Since then, the multi-level marketing (MLM) company has been a major supporter of the New Economy Policy, turning out more than 100,000 distributors including 257 Crown Diamond Managers (CDMs).
In 1996, it was the first traditional healthcare company to be listed on the Second Board of Bursa Malaysia, and was transferred to the Main Board the following year.
When it was first set up, it only had RM168,000 but this year alone it has made RM435mil in revenue, RM61mil more than the preceding year.
But the company had to confront various challenges along the way. One intimidating challenge that Tan took was to introduce Chinese products into the bumiputra market.
It started as a social effort initiated by the Chinese and Malay business chambers to introduce their products across the racial divide.
The daring venture resulted not only in the snowballing of profits but also created batches of bumiputra millionaires and, ultimately, promoted racial integration.
Today, about 95% of Hai-O’s MLM distributors are bumiputra, a feature that’s both intriguing and inspiring in the Malaysian business community.
“It has been difficult, no doubt,” said Tan during an interview with The Star recently at Wisma Hai-O in Klang. “Had I not made twists and turns when treading this long road, I could have earned a lot more money.”
Tan recalled the most bitter chapter in his company’s history that turned out to be a blessing in disguise as it left him with a pool of truly loyal bumiputra distributors.
It happened in 1997 during the economic crisis when his company was on the verge of collapse.
In the midst of struggling to survive, his closest partner dropped a bombshell – he wanted to sell off his shares!
“I could have sold my shares, too. I could even make some money but if I did that, more than 3,000 shareholders would be affected while 500-odd employees would lose their jobs,” he said.
Instead, he bought over the partner’s shares at an exorbitant price and landed himself deeply in debt.
The following years were tough, forcing the company to move its operations from the prime location in Kuala Lumpur’s Bukit Bintang to Klang. A lot of the Chinese distributors left, but most of the bumiputras stayed on.
“Mereka memang mengenang budi (They really remember one’s kindness),” Tan said thankfully, adding that he would not have survived the crisis without them and the internal administration.
The management and bumiputra distributors formed a bond that steered the company through the hardship.
The management took over some of the distributors’ debts, including car instalments amounting to RM9,000 per month.
On their part, the distributors became more dynamic, achieving new heights in the sales of Hai-O products, especially herbal remedy Beijing BaiFengWan, the lingerie line Premium Beautiful and the water filter Bio Aura.
The strong bond also led to the bumiputra distributors addressing Tan as ayahanda (father).
According to Shamsudin Said, 49, Tan single-handedly changed the lifestyle and mindset of many bumiputras, especially those from the lower income group.
“I am orang susah (a poor person who has to work hard). I was from the rural area, not well educated and had only been a low-ranking civil servant all this while but this Chinese company showed me my potential.
“Tan gives orang susah the chance to become successful. Yet he is ever so gentle, humble and respectful. I still remember how I cried when I reached Korea during our incentive trip. I never dreamed I could be there,” he said.
Tan’s efforts to develop an entrepreneurial community that transcends race stems from a deep friendship with his many Malay buddies, including the late national poet laureate Datuk Usman Awang.
Tan has infused his socialist thinking into the capitalist model.
“Respect every person, be fair, rational, socially responsible and follow the right path. In business, this is not an easy task as you’re making yourself vulnerable to tricksters and cheats. But I believe, eventually, the good will prevail,” he said.
A top distributor, Safiah Yosop, 40, said: “I hope bumiputras can be more open-minded and venture into business even though it is not a tradition among us.
Bumiputras have always chosen to work for others not knowing that they too can make it big, like our Chinese friends.”
Safiah and her husband Jamsari Moktar, formerly a history lecturer, have achieved CDM status and potentially earn a six figure-income per month.
The couple also turned eight of their family members into CDMs.
Respect and appreciation form the foundation of the company’s success. Tan celebrates Chinese New Year and Raya Aidilfiltri with his distributors, whom he calls business partners.
The company spent RM2.4mil this year to send over 400 high scorers for Umrah, and on other incentive trips to countries like Turkey, Japan and China.
They have also established a foundation to help those in need.
“I love the values held by the people in Hai-O. Tan has my deepest respect. He is low-profile, understanding and treats every person the same,” said Samiah Parman, 48, another top distributor. She and her husband Madon Buyong have 145 CDMs in their downlines.
“I like the nature of the bumiputra. My childhood friends in Kluang were mostly Malays. They are friendly, dynamic and hardworking, warm-hearted, helpful and closely knit. These traits can be a great force for success in business,” Tan said.
The two taglines, “Hai-O, My Choice For Life” and “Sense Of Belonging”, were chosen by the bumiputra distributors.
“Whether I make money or not, I am already a contented man, having earned these two distinctions,” Tan said.
He is also happy that he helped to foster closer ties between China and Malaysia.
“China will continue to grow. Chinese herbal and pharmaceutical products will always remain Hai-O’s core business,” said Tan, who also founded the Malaysia-China Friendship Association.
Retirement is a distant possibility even though he had said he would do so 10 years ago.
“I may retire at 80, or maybe not. It has become habitual for me to be here. Some friends even predicted that I might die in my office,” he said with a laugh.
“People born in our era usually have a calling to create history, to do something for society. At my age, I may not have the stamina to be aggressive but the passion is still burning in me after all these years,” he added.
Tan and his wife Siow Eng, 74, who was also detained under the ISA for fighting the same cause, have three children and six grandchildren.
