Straight-Talking Transit Manager Stays on Track
Singapore's Saw Brings Perspective Of a Retailer to SMRT
January 14, 2008
SMRT Corp.'s chief executive, Saw Phaik Hwa, is well known in Singapore for her bold retort to the government's overtures for the island republic's two rail operators to merge: "Make me an offer I can't refuse," she said.
The straight-talking Ms. Saw makes no secret of her belief that SMRT, which has contracts from the government to operate the two largest of Singapore's Mass Rapid Transit lines, should be the sole rail operator. And while she believes that SMRT can also run the system's third, and smallest, mass-transit line better than rival SBS Transit Ltd. now does, she wasn't willing to consider buying the rail line four years ago, which then was losing about S$20 million, or about US$14 million, a year.
That was barely a year after Ms. Saw took over the helm as SMRT Corp.'s first woman leader and first chief executive from a private-sector background in December 2002. Previous chief executives of the mass-transit operator, which has been listed on the Singapore Exchange since 2000, were men who had trooped in from the military or public service.
Ms. Saw, 52 years old, spent her career in retail. A graduate of the National University of Singapore with a degree in biochemistry, she started with department-store operator Metro Group and spent more than 20 years at DFS Venture Singapore Pte., working her way up to become its first Asian and female regional president.
She has tapped her sales background to add retail space at SMRT's 51 rapid-transit stations. Rental income from retail outlets at the stations rose 13% to S$9.8 million in the fiscal second quarter ended in September, adding to a 5.2% year-over-year increase in total revenue, to S$197.3 million, for the quarter.
However, the issue of a merger still looms. In April, ComfortDelGro Corp., a Singapore-based global passenger land-transport company and SBS Transit's parent, proposed that the government restructure Singapore's public-transport industry, either by merging the two operators or having one run the buses and the other the trains. Should that happen, Ms. Saw would be no stranger to the upheaval that every merger or acquisition entails; one of her first tasks as SMRT chief executive was to oversee the integration of bus operator TIBS Holdings after the companies merged in 2001.
Tor Ching Li interviewed Ms. Saw, a Kuala Lumpur-born, Singapore permanent resident, at her office.
WSJ: What was your first job and what was the biggest lesson you learned from it?
Ms. Saw: I started work as a department manager at Metro in Lucky Plaza. We were the first batch of graduates the company hired as managers, so the people we had to manage had 20 to 30 years' retail experience. But I quickly realized that most of the things you need to know as a manager don't take 20 to 30 years to pick up. So I learned that you need not be overawed by other people with more experience. Of course, a degree of continuity is needed. If you don't have the "buy-in" of the people who work with you, you will fail -- because they will make sure you do.
WSJ: Who gave you the best business advice?
Ms. Saw: No one person can give you the best advice, since the business world is highly complex. Of course it's good to listen to advice, but not necessarily to always take heed, for the simple reason that different people do things differently, and events take place under different circumstances. As long as decisions are made in the company's best interest, then you should be fine. You will never be absolutely right, but at least you will be more right than wrong.
WSJ: Do you find it challenging to manage a publicly listed company that operates a public service?
Ms. Saw: Unlike running DFS, where all you have to worry about is the bottom line, here you also have to think about what is best for the country and the people. First you have to believe in what you are doing, which is clearly stated in our business mission, vision and core values: "Moving People, Enhancing Lives." Then, we believe in giving back to society, not just in monetary terms to charity, but also by giving time to our chosen causes, which are the young, the elderly and for health. For example, we use our network of train stations and trains for an annual blood donation drive for the Red Cross. Over the years, we've managed to cultivate the spirit of volunteerism in our staff.
WSJ: Was it difficult coming into a company that had usually been run by men from a military background?
Ms. Saw: In all my jobs, I've always either been the first Asian, or the first woman, or both. Of course, in my first year here I had to do some housekeeping, after the merger of SMRT with TIBS Holdings in 2001. I felt it was very important to have a common mission and vision. So, we gathered about 300 executives and asked them to brainstorm what they felt was our corporate identity. We then shared the first cut, which was "Connecting People, Enhancing Lives" with more of our staff, who felt that "moving" described what we did better than "connecting," so that's what we have now. And our staff embraces our mission and vision because they created it.
WSJ: What's the one thing you wish every new hire knew?
Ms. Saw: That we don't owe them a living, and that every job shouldn't be confined to the job description. You should just do what you have to do, or should be done. At the end of the day, ask yourself if you have made a positive difference. If you have, then you have earned an honest day's salary. We've started leadership-training sessions at every level for our staff, because people have to make important decisions every day, and if bad decisions are made, then things will turn out a mess. I've personally conducted around 30 three-hour sessions for batches of 15 executives at a time, to stretch their minds and encourage more risk-taking, as well to help them understand themselves better.
WSJ: What are the three most important attributes of a good manager?
Ms. Saw: First, realize that managing is not just about yourself. Your colleagues must want you to lead, and have faith in you, and you have to show them that they can be just as good. Second, is to think critically and analytically, so as to be able to take calculated risks based on statistics. Last, a good manager must be able to effect change. If things just stay the same, you are not managing.