by David E.
KOTA KINABALU: Oct 14, 2026: – Sabah-based businesses must focus on building solid, sustainable plans rather than chasing capital, according to Datuk Dexter Lau, Director of Kim Teck Cheong Consolidated Berhad.
Speaking at the Kembara Borneo 2026 event here today, Lau shared his experience of transforming a 90-year-old traditional family business into a regional player, crediting the rigorous demands of the capital market as a key driver of that success.
“When you have a plan, when you have a solid proposal, you don’t need to go after capital. Capital may potentially come after you because you become very noticeable,” he told an audience of entrepreneurs and business leaders at The Magellan Sutera Resort.
Lau was a panellist in a discussion titled “Building Sabah’s Next Growth Champions: Capital, Scale and Market Access,” alongside Datin Paduka Azalina Adham, Managing Director of the Securities Commission Malaysia (SC). The session was moderated by Tan Sri Andrew Sheng, a member of the Capital Market Advisory Committee (CMAC).
Reflecting on his company’s journey, Lau admitted that the transition from traditional bank financing to becoming a public listed company was a challenging one.
“The only thing that drives us really mad when we were transferring from a very traditional banking environment to a public listed company… is that they were trying their best to convince us to continue using the traditional financing way,” he said.
He explained that banks operate on a model of risk transfer, whereas the capital market is about risk sharing. This shift, he noted, required a fundamental change in mindset.
Lau, who is also on the board of the Federation of Public Business Companies, recounted his initial apprehension 12 years ago when he first had to deal with the SC.
“The last time I met all these SC people, it was so scary,” he said, drawing laughter from the crowd.
“I hated it so much 12 years ago and I still hate it now. But look at the expansion and the results of Kim Teck Cheong Consolidated Berhad today. It has shaped the leadership. It has shaped us to be stronger,” he added, noting that the company is now heading regional.
His advice to Sabah entrepreneurs is to first look inward and ensure their business is fundamentally attractive. He urged them not to blindly follow global icons like Elon Musk or Jeff Bezos, but to build a compelling story and a concrete plan.
“How do you formalise a plan is to keep yourself focused,” he said, adding that entrepreneurs must have a deep understanding of their revenue sources, expenses, financing costs, and competition.
He also stressed the importance of human resources, questioning if a company’s leadership and staff are prepared for the challenges of expansion.
“If you want to expand, are they going to still be with you? Investors will look at it as you have instability in resources and that will also impact [their decision],” he warned, explaining that instability in plans, operations, and resources will lead investors to give the company a lower valuation.
Echoing Lau’s sentiments, Datin Paduka Azalina highlighted the government’s efforts to bridge the capital gap for small and medium-sized enterprises (SMEs). She spoke about the Malaysian Co-Investment Fund (MySIF), which does a one-to-one match for funds raised by companies, and a similar programme by the Ministry of International Trade and Industry (MITI) that offers a two-to-one match for priority sectors like smart manufacturing.
“So, these are the two safe programmes that really, as business owners, please go and look and see whether this is something that suits you,” she advised.
She also mentioned the SC’s “Elevate” programme, a four-month capacity-building initiative designed to prepare business owners to pitch to investors and understand the requirements of the capital market, moving beyond traditional bank financing.
The panel was moderated by Tan Sri Andrew Sheng, who framed the discussion around the transition of SMEs from the local game to the national and regional stage. He noted that unlike traditional bank funding, which is about risk transfer, the capital market is about risk sharing, which requires a different level of transparency and preparedness.
In his closing remarks, Lau encouraged the Sabah business community to leverage the presence of the SC and other capital market players.
“My advice to you all is to use today to get to know them, because definitely… the growth of KTC today is actually a lot of training, a lot of pushing from the SC side in the early days,” he said.
“Please ask questions and please seek help. They are very friendly and they are willing to help you all to grow. This Kembara is all about scaling you guys up and getting you guys ready to withstand and defend against potential competitions which are coming ahead of you.”
– TV Sabah
