Professor Datuk Dr Paul Chan, at 82, carries the kind of wisdom that only decades of trailblazing and relentless curiosity can bring. In a room that feels more like a library than an office, shelves stacked with thousands of books, he shared his thoughts with Malaysia SME on the Malaysian SME ecosystem with a mix of authority and warmth. In 1986, Datuk Paul Chan and wife Datin Low Kam Yoke founded HELP University, a bold move when private higher education was almost unheard of in Malaysia. Their vision? To make world-class education accessible to all Malaysians and international students, bridging the gap between local dreams and global opportunities. Today, with the same visionary spirit, he turns his attention to the challenges and potential of Malaysian SMEs.
Key Takeaways
- Embrace innovation by challenging conventional thinking and focusing on transformative solutions that redefine industries, ensuring long-term relevance in a rapidly evolving world.
- Transition from founder-led systems to structured processes to professionalise operations, enabling scalability and sustainable growth beyond the founder’s direct involvement.
- Succession plans should be made early to address generational challenges, ensure business continuity by involving the next generation, and reduce dependency on the founder.
- Expand beyond local markets by adopting scalable models like franchising or B2B supply chains, tapping into regional and global opportunities for growth.
- Align business goals with personal values to create a meaningful legacy prioritising sustainability, community impact, and long-term purpose over short-term financial gains.
Embracing the Unimaginable SME
“Don’t talk rubbish,” Datuk Paul Chan chuckled, recalling how flying cars would’ve been dismissed as pure fantasy just a decade ago. “But look at us now—drones, helicopters, and tech that’s turning sci-fi into reality. The impossible is becoming possible because we finally dare to think beyond the usual limits.” As an economist, he admitted he was trained to find comfort in patterns and predictability. “But today? One minute, TikTok’s out; the next, it’s back in. Then we have DeepSeek. Change is happening at a speed I never imagined.”
He drew a simple analogy: “How do you make a horse run faster? You don’t. You invent the car.” For Datuk Paul Chan, true progress means stepping outside traditional boundaries. “If you’re unwilling to imagine the unimaginable, you’ll be left behind. It’s not about incremental improvements anymore—it’s about redefining what’s possible,” he remarked, cautioning that success, if accidental once upon a time, isn’t so anymore.
A Darwinian SME Reality
Datuk Paul Chan reminded that : “It’s Darwinian out there. Very few businesses survive beyond 100 years.” Malaysian SMEs, he explained, face a unique set of challenges. Many are family-run, which can be a source of pride and a barrier to growth. “Family businesses often struggle to let go of control. They’re reluctant to bring in outside leadership, limiting their potential.” He’s seen it repeatedly: founders who try to do everything—accounting, marketing, you name it—even as their company grows. “That’s a recipe for stagnation. You need systems, not just passion, to scale beyond the founder.”
“The old saying holds that a business rarely lasts beyond three generations. Kids often choose different paths, and the business is vulnerable without a clear succession plan.”
Datuk Paul Chan, Co-Founder, Chancellor and President of HELP University
And then there’s the generational challenge. “The old saying holds that a business rarely lasts beyond three generations. Kids often choose different paths, and the business is vulnerable without a clear succession plan.” External pressures add to the struggle. Rising operational costs, inflation, and workforce challenges weigh heavily on SMEs. “Many rely on migrant workers, which has its pros and cons.
But the real question he said is, “Are you investing in upskilling your workforce for the long term?” alluding to the complexity and contradictions that SMEs face. “SMEs are afraid of training for the competition, but if you don’t remunerate your workforce, your competition will; and worse still, don’t upskill and risk perishing.”
Stand Out SMEs
“Market forces,” Datuk Paul Chan declared, “They are the ultimate decider—whether a business thrives or dies.” He’s observed too many SMEs entering saturated markets without a clear differentiator. “You see copycat businesses everywhere, all offering the same thing. There’s no room for growth if you don’t stand out.” The solution? Think bigger. “To succeed, you have to think beyond Malaysia. It’s about scaling regionally or globally.”
“To succeed, you have to think beyond Malaysia. It’s about scaling regionally or globally.”
To illustrate, he pointed to franchising as a proven model. “It’s not just about the chicken. It’s about systematising operations and automating where possible. That’s what allows businesses to scale so rapidly.” However, many SMEs struggle to replicate that level of operational sophistication. “Traditional businesses rely on a personal touch at every level, which creates bottlenecks. Franchising, for example, solves that by creating systems that don’t require the founder to make every single decision.”
The Make-or-Break SME
Succession planning is another critical hurdle, especially for family-owned businesses. “Generational conflicts are complicated,” Datuk Paul Chan noted. “Kids have different aspirations, and extended family dynamics often influence sound business decisions.” Without a clear plan, a business can fail.
“You have to make the business last beyond the founder and develop built-in sustainability in its operations.”
The key is professionalisation. “You have to make the business last beyond the founder and develop built-in sustainability in its operations,” he said, citing the Initial Public Offering (IPO) route as an example. Even if only 10% of SMEs manage this transition, the impact on Malaysia’s economy would be enormous. The revenue growth and job creation are all within reach.”
The Heart of the SME Transformation
For Datuk Paul Chan, innovation isn’t just about improving the old—it’s about redefining the rules of the game. “True innovation addresses unmet needs and creates value in ways that change how we think and work.” He spoke about Shenzhen, China, as a model of what’s possible. “They’ve built entire ecosystems dedicated to collaboration and rapid prototyping. Malaysian SMEs can learn from that.”
“Build a better mousetrap and the world will beat a path to your door. We’re still waiting for that perfect trap!”
Innovation, he believes, is the key to breaking free from traditional constraints. “It’s about finding new ways to meet unmet needs, whether that’s through B2B supply chains, franchising, or tapping into larger markets,” he said, adding, “Build a better mousetrap and the world will beat a path to your door. We’re still waiting for that perfect trap!”
The Future of Malaysian SMEs
Looking ahead, Datuk Paul Chan emphasised the need for adaptability, professionalisation, and strategic foresight. “Growth isn’t just about scaling up anymore—it’s about building resilience and sustainability.” Entrepreneurs, he said, must align their business goals with their personal values and life aspirations.
“The future belongs to those who are willing to imagine the unimaginable and then go out and create it,” he added. For Malaysian SMEs, the journey from survival to success won’t be easy, but the potential for transformation is immense. “It’s about challenging your mindset, embracing innovation, and investing in strategic growth. The rewards—both personal and professional—are worth it.”
Balancing SME Ambition with Personal Values
For Datuk Paul Chan, entrepreneurship is more than just a path to financial success. “It’s a deeply personal journey. I often ask myself: What legacy do I want to leave? Is it about creating wealth, or is it about contributing to society and making a difference?” This question, he believes, forces entrepreneurs to reevaluate their priorities as their businesses grow.
“True success is creating something that sustains you and enriches the lives of those around you. It’s about aligning your business practices with your values and ensuring your creation serves a greater purpose.”
“In the end, it’s not just about what you build, but why you build it,” he reflected. “True success is creating something that sustains you and enriches the lives of those around you. It’s about aligning your business practices with your values and ensuring your creation serves a greater purpose.” For Datuk Paul Chan, entrepreneurship isn’t a race to the top—it’s a journey of passion, vision, and purpose. For many Malaysian SMEs, he opined, that journey is just beginning.
