Fizo’s sizzling burger biz

TV host and actor Fizo, who owns the successful Hot Burger franchise, says the secret to success is to embrace your weaknesses and turn them into strengths.
Actor-turned-entrepreneur Fizo Omar has proven to be an exceptional businessman, despite suffering a few setbacks early on in his entrepreneurial journey. He credits his success on a willingness to learn from his weaknesses and to turn them into strengths.
Today, Fizo is the proud owner of Hot Burger Malaysia Sdn Bhd, a burger stall franchise with 150 outlets all over Malaysia and whose trademark is its square patties. The 30-year-old has come a long way from his humble beginnings as a simple kampung boy who became a national footballer, then an actor, a TV host, a motivational speaker and a businessman.
“Instead of trying to hide your weaknesses, you have to embrace them and turn them into opportunities,” Fizo says.
“This is not difficult to do if you know how. First you have to identify your weakness. Just ask your friends, family members or colleagues. Only then can you improve on your weak points,” explains Fizo, who frequently gives talks on how to start a business from zero.
Fizo says he first tried his hands at doing business when he was barely 20, dabbling into all sorts of ventures from doing printing to organising events. But he was wet behind the ears and wasn’t terribly savvy. He was duped a couple of times in those early years. However, the bad experience did not dampen his enthusiasm for business.
“I was at the height of my popularity at the time but that episode was the darkest phase of my life. I was in deep trouble, heavily indebted and totally broke and facing public humiliation.
“Thank God for my mother who inspired me to bounce back. I started reinventing myself and learned to capitalise on my weaknesses. One of the basic things I learned about business is when it comes to money, it always pays to be careful. So I restructured my debts, limited my liability and talked to financial advisors,” says the former civil engineering graduate who is pursuing a master of business administration degree at UUM in September.
Fizo, whose real name is Wan Hafizol Wan Omar, was determined to put his life back together.
“It was a big lesson in humility. I took up a few financial management skills classes for my future business dealings. Then, I decided to start the Hot Burger Malaysia business in 2012 and invested about RM30,000 in it. It was a modest investment, and my aim was to reach out to young entrepreneurs who were keen to try out a new franchise.
“I got a team to work on the R&D and, at the same time, shop for the right type of bread, burger and sauce. Eventually, we sourced the bread from Johor Baharu, the sauce from Seremban and the burger patties from Cheras (KL).
“I started out with five Hot Burger stalls in Kota Bharu, Malacca, Johor Bharu, the Klang Valley and one in Setiawangsa, which were all fully operated by me,” recalls Fizo, who manages his finances with help from his two business partners, Asri Hamid and Rizal Musa, who invested RM200,000 into the company.
After a year, the business grew, and Hot Burger had 150 Hot Burger outlets all over the country. This led to Fizo opening five offices to handle the business. Today, he has 50 workers under his wings.
His Hot Burger concept was an instant hit because consumers like the concept of “street-priced burgers with five-star taste” and the variety of meats on offer. Apart from the usual chicken and beef patties, Hot Burger also sells ostrich, rabbit, mutton and venison.
According to Fizo, demand has been so good that almost half of the 150 franchisees has gone on to open several more hot burger stalls.
“I introduced a retaining fee where each franchisee buys the patties and the ingredients from me. In return, they get to keep whatever profit they make. I give them training, share with them the SOP, teach them the accounting system and monitor their progress until they can expand their businesses. I’m not only helping them to start a business, I also teach them to make more money so that they can be financially independent.
Each stall generates an income of between RM3,500 and RM4,500 on an average month. The best-selling stall is in Pasir Puteh, Kelantan. It is run by former actor Mat Sentul and rakes in between RM9,500 to RM11,000 a month since opening two years ago.
Fizo, ever the motivational speaker, says there is always an opportunity hiding inside a problem. With his burger business doing well, Fizo is now working on a new venture – the ABC (Ado Belako Corner) in Kota Baru, which gathers a variety of hawker stalls under the one roof.
“It all started with my wife, Mawar, who likes to go from stall to stall to savour her favourite foods every time we go back to Kelantan. I hit on this idea of inviting all her favourite stalls to do their businesses under one roof. This way, I’m giving the operators a business and, at the same time, I solve a problem for my wife,” says Fizo.
Fizo also has a specialised advertising business, which does product reviews and social media campaigns for companies. Among the campaigns he has handled are Youth Festival, I Am For You, Merdeka, BSN 40th Anniversary and Munchies.
“If you take any strength to an extreme, it will become a weakness. This happens when we are too committed or too focused on whatever we do. You can go far in your career and life if you have mastered this area, changing your weaknesses into your strength. Once you are able to do this, you can focus on bettering yourself,” concludes Fizo, who has been hosting TV9’s Nasi Lemak Kopi 0 morning show for the last four years.

Petronas’ new biz model

National oil company to make hard decisions to improve efficiency and reduce cost
PETALING JAYA: To tackle the fallout from the falling oil price that is now below US$30 per barrel, Petroliam Nasional Bhd (Petronas) is looking at a new business model to improve efficiency and reduce cost.
In a note to staff released late Monday evening, Petronas president and chief executive Datuk Wan Zulkiflee Wan Ariffin said the top management has made a strategic decision to begin a review of its business operating model for better efficiency in response to external environment.
“This review will result in a change to our existing organisation structure, the details of which I hope to be able to share with you in March. At this time, we have yet to determine how the review and structure change will affect our workforce,” he said in a note assuring the staff that all possible options would be looked at to ensure there was the right balance between the welfare of the employees and the best interest of the business.
Petronas hadstarted its cost cutting measures since the last quarter of 2014 when it became apparent that the price of oil will be on a long term decline. Last year it cut 30% in its capital expenditure (capex) and 20% off its operating expenditure (opex).
There are no figures as to what this amounted to but Petronas generally spends more than RM60bil per year for its capex.
Wan Zulkiflee said Petronas would be cutting up to RM50bil in capex and opex over the next four years and would defer some of its projects as it goes through yet another round of cost cutting.
The national oil company currently has some 51,000 employees and had previously said it remained committed to its capex of RM350bil over the next five years.
It has not been easy for Wan Zulkiflee who took up the top position in April last year replacing Tan Sri Shamsul Azhar Abbas as he has had to deal with a period of fast-falling oil prices. For instance earlier this month, Wan Zulkiflee told the press that crude prices could average US$$30 a barrel this year, just two months after the company was assuming an average price of US$48 a barrel.
In the memo, Wan Zulkiflee mentioned that it was time for some difficult and drastic decisions to be seriously considered. He has alluded that this included shedding manpower, which the company has already started with the cutting down on those who were on contract and not in criticial positions.
On the change in Petronas’ business operating model, the memo said that it had yet to determine how the review and structure change would affect its workforce.
Petronas which used to be the Government’s biggest source of revenue, has seen falling oil prices reduce its dividend payments to the Government over the last few years.
When it announced its third quarter results last Nov, Wan Zulkiflee had mentioned that Petronas would be cutting its commitments to government coffers to RM16bil next year, down 38% from RM26bil in 2015.
The lower oil prices has also forced the government to revise its Budget 2016 which was based on Brent Crude at US$48 per barrel. The revised Budget is to be announced next week.
Towards this end, the Minister in the Prime Minister’s Department Datuk Seri Abdul Wahid Omar clarified yesterday that next week’s recalibration of the Budget 2016 would incorporate measures that involve a higher optimisation of spending in view of the reduced revenue.
“We cannot simply use the term ‘austerity measures’, but what we are looking for is to optimise or stretch our spending. We are not cutting spending simply for the sake of cutting spending,” Abdul Wahid said.
“With lower expected oil revenue, we have to optimise our spending by focusing on projects with high economic impact,” he said during his keynote speech at Standard Chartered Bank Malaysia Bhd’s Global Research Briefing 2016 yesterday.
Wahid said only 14% of the Government’s revenue for 2016 was from oil-related revenue compared to 19.3% in 2015.
“The Government would continue to work on its fiscal consolidation measures to diversify government’s revenue,” he said.
Wahid said the Government would also be announcing the country’s targeted gross domestic product (GDP) growth for 2016 next week.
The Government has earlier targeted Malaysia’s economy to grow between 4%-5% for 2016.
“Overall, Malaysia’s is in a better position to ride through the global uncertainties,” he said, adding that the ringgit is currently trading below its fundamentals.
Petronas’ cost-cutting measures are nothing new considering oil majors around the globe have been slashing jobs and staying away from major investments as the price of crude continuously test new lows.
Companies like British Petroleum said it would cut 4,000 jobs, while Shell has announced 6,500 layoffs.
The global rout in oil prices is worsening especially with Iran’s oil sanctions being lifted on Sunday.
Market surveys have suggested that Iran could scale up production to 400,000 barrels per day by the end of 2016.

JCorp chief denies rumours Lim Kang Hoo owns KFC, QSR

PUTRAJAYA: Johor Corp (JCorp) has refuted claims that Iskandar Waterfront Holdings Sdn Bhd boss Tan Sri Lim Kang Hoo now owns KFC Holdings Bhd and QSR Brands Bhd following their recent privatisation by the state-linked firm.
“Those are just rumours,” JCorp president and chief executive Datuk Kamaruzzaman Abu Kassim said to a question from StarBiz, quashing allegations by several bloggers that Lim, who is embarking on an ambitious initial public offering of his waterfront assets in Johor slated for this year, had via a convoluted shareholding structure wrested control of the prized fast-food companies.
Some local blogs had speculated that the RM5bil takeover of KFC and QSR last year by a consortium comprising JCorp, private equity firm CVC Capital Partners and the Employees Provident Fund was aimed at putting them in the hands of Lim, even superimposing an image of the construction and property tycoon's face on KFC icon Colonel Sanders.
Kamaruzzaman also said JCorp had no plan to take its 59.6%-owned Kulim (M) Bhd private “at the moment”.
“But it depends on the circumstances. At the moment we don't see a need to take it private. All things considered, it (privatisation) should be driven by commercial reasons,” he told the media during the release of JCorp's 2012 financial results.
JCorp is Kulim's largest shareholder with 760.57 million shares, according to Bloomberg.
Kamaruzzaman, however, refused to say if there were more corporate exercises in the offing for JCorp.
“We don't line up assets for disposal,” he said, but added that the group would continue with its rationalisation.
For 2012, the Johor state investment company recorded a 60.7% rise in pre-tax profit to RM868mil from RM540mil a year earlier, while revenue was up 11.2% to RM5.64bil from RM5.07bil, boosted by top-line growth across all segments.
JCorp's results in fiscal 2011 were restated under accounting rules after its stake in New Britain Palm Oil Ltd was diluted to 48.7% last year from 50.4%, rendering the Papua New Guinea-based planter an associate.
If it had not restated the accounts, JCorp would have seen a 21.1% and 27.7% drop in pre-tax profit and revenue from RM1.1bil and RM7.8bil, respectively.
While lower crude palm oil (CPO) prices put a dent in its earnings, chief operating officer Zulkifli Ibrahim said this was offset by higher dividends from its investee companies and the property division, which did “extremely well”.
On its indebtedness, Kamaruzzaman said JCorp aimed to reduce its gearing to zero by 2022, in line with the maturity of its sukuk, adding that the firm would not be issuing another round of Islamic debt papers.
The group had some RM3.04bil in total borrowings at end-2012, down from RM3.57bil previously, against RM8bil in assets.
JCorp had last year issued RM3bil in sukuk wakalah to refinance RM3.2bil of debt that became due in July.
Kamaruzzaman also noted that JCorp, which obtains the bulk of its income from its plantation operations, expects the gap between soybean and CPO prices, about US$300 (RM930) per tonne currently, to narrow towards the end of 2013, with CPO trading in the range of RM2,700 to RM3,000.
Although he declined to reveal specific growth targets for 2013, Kamaruzzaman said the group would try to maintain last year's double-digit growth for its businesses, which include healthcare, plantation, quick-service restaurants, logistics, property, and hospitality.
Asked when KFC's operations in India will be profitable, Kamaruzzaman said a turnaround was expected in 2015-2016, by which time some 50 outlets would have been opened there.

Harmful substances of Qu Puteh's Product

PETALING JAYA: A product from popular cosmetics line Qu Puteh has been banned as it has been found to contain harmful substances, announced the Health Ministry.
The product is Qu Puteh Kosmetik Whitening Pro 9 cream.
In a statement Friday, Health director-general Datuk Dr Noor Hisham Abdullah said the Qu Puteh Whitening Pro 9 contains mercury, which isn't allowed to be used in a cosmetic product.
He said the ministry's National Pharmaceutical Control Bureau (BPFK) has found that the Qu Puteh Whitening Pro 9 to contain a "high level" of mercury, based on a sampling it did on the product.
Dr Noor Hisham also said that the bureau had received reports of adverse effects from users.
"Users had complained of ringing in the ears (tinnitus) and hair loss after using the Qu Puteh Whitening UV Pro 9 and Qu Puteh Whitening UV Block for less than three months.
"The users have recovered after they stopped using the products," he said.
Dr Noor Hisham explained that cosmetic products which are mixed with mercury were generally meant for skin whitening and anti-aging purposes.
"Cosmetic products which contain mercury are not permissible as they are hazardous to one's health as it could damage the kidneys and the nerve system.
"It could also disrupt the brain development of children or even unborn babies," he said.
He then pointed out that people around the user could also be exposed to the mercury, when the product is applied to the skin or inhaled.
In view of this, the ministry had cancelled the product notification of the Qu Puteh Whitening Pro 9 cream.
The companies selling the products have also been asked to cease all sale and stock activities and withdraw it from the market within 72 hours.
Those who fail to abide by the ruling can face a punishment of a fine not exceeding RM25,000 or three years' jail, or both.
The customers are encouraged to report to BPFK for adverse or side affects of any cosmetic products at 03-78018496/78835532.
The Health Ministry's announcement came following Brunei's Health Ministry's announcement that it had banned the two products.
The Brunei's Health Ministry said the products had been tested by the Drug Quality Control Section under the Department of Pharmaceutical Services.
The products are by Vida Beauty Sdn Bhd, owned by Datuk Seri Hasmiza Othman (pic), popularly known as Datuk Seri Vida.
She however could not be reached for comments.

Succesful of Datuk Aliff Syukri Kamarzaman

 Managing a business need not be a dry affair where entrepreneurs run the show with a stoic face and show emotion only when profit grows.
For D’Herbs Healthy Sdn Bhd founder Datuk Aliff Syukri Kamarzaman, his signature high-pitched voice and fancy adver­tising campaigns often set the public’s tongue wagging, for better or for worse. Regardless of how you feel about it, he knows that viral marketing is one of the best ways to ensure his health and beauty products do well in the market.
“Malaysians love people who are out of the ordinary and they want to be entertained. My advertisements were virally shared across social media as many people were curious about who I am and what I was trying to sell,” explains the Pahang-born entrepreneur.
In 2013, 28-year-old Aliff burst into the local media scene with appearances in television talk shows, newspaper and magazine articles, and widely-shared online videos. He was often seen in his sequined suits, with bullet-train speech patterns and alongside his famous terlajak laris (overtly bestselling) tagline which made him a household name among middle-income Malaysians.
“My business was flatlining at that time and hiring a celebrity brand ambas­sador was out of the question as they charge high fees. I decided that in order for my brand to be known, there has to be a brand ambassador or a gimmick that is able to capture the attention of the market.”
Do not let the glitz fool you. Aliff, also widely known in the Malay-speaking community as abang terlajak laris, has been in business since 2007. Many will be surprised to know that this suave young man started out as a petty trader at the Shah Alam weekend pasar tani.

“I was actually operating without a licence back then and I remember the day when the local council raided my store and took away my tables and chairs. All my wares were strewn across the floor and it was really a heartbreaking moment for me.”
Expanding his business beyond petty trading was not a walk in the park either. Loan applications to banks were often rejected owing to his lack of credentials and guarantors. Despite such setback, he noticed demand for cheap beauty products was on the rise.
Aliff started selling such products, which grew in popularity. Daily sales grew from RM300 to RM6,000 in just months. It was in 2010 when he decided to start D’Herbs Healthy and explored the possibility of building his own brand.
“There’s always this stigma about a man selling health and beauty products targeted at women. An entertaining on-screen persona helped me to relate to the audience better.” Thanks to his newfound fame, D’Herbs chalked up a turnover of about RM60 mil last year, with up to 40% coming from online purchases.
On average, the group spends about RM13 mil annually on advertising and promotion (A&P). The brand aims to introduce a new product every three months and the unveiling is usually accompanied by a new television commercial. “Many of the commercials’ storyline is my own. Having the comedic factor in the advertisements makes them more memorable,” says Aliff.
Despite the brand’s heavy marketing efforts, it is said that the personal touch of the brand owner can make a difference. “This year, we are looking to organise road shows across Malaysia and Singa­pore to meet customers. The focus of the road tour is not limited to big cities but also [extends] to small towns and villages. People are more willing to try products when they see someone else using them or teaching them how to use them as they are less likely to believe in advertisements.”
Demand for D’Herbs products comes mostly from Peninsular Malaysia, Singapore and Brunei. Acceptance of the products in Sabah and Sarawak is low as Aliff says the market there prefers products from the Philippines owing to the lower prices.
Aliff thinks 2015 could be a slow year as the weakening ringgit and sluggish market sentiments could come into play. “These days, people are cutting back on non-essential items such as cosmetics. Should they want to spend, they would want a product that is affordable, of high quality, easy to use and effective.”
Malaysia’s cosmetics and toiletries industry is said to be worth some RM3.6 bil. International brands play a major role in the high-end market while local brands are favoured by the mass market. Aliff points out that keeping ahead of the volume game is important when market­ing to the mass market.
To achieve that, he floods the domestic market through his 12 own operated outlets and over 30,000 distrib­utors nationwide. D’Herbs currently has over 100 products ranging from health juices, cosmetics and skincare to lingerie and sanitary pads.