Ban Seng Lee Industries Sdn Bhd was established in 1978 to meet the growing demands for metal components from Japanese companies. Their first client was Matsushita Air-conditioner and they gradually expanded to include audio, automotive, computer, camcorder and various home appliances. Today, their clients come from the electrical, automotive, industrial, data storage, agricultural, construction, furniture, and office equipment sectors. Their next target sector will be semiconductor segment. As part of their growth, Unique Forging & Components was established in 1989 to spearhead forging operations while Crestronics (M) was incepted in 1999 to cover PCB assembly operations. All these manufacturing companies were parked under BSL Corporation Berhad, which listed on Bursa Malaysia in 2005. Post listing, BSL Corporation Berhad established a joint venture in tube manufacturing under Hongze Yiyang Steel Tube Co. and a solar-related business under BSL Eco Energy Sdn Bhd. BSL engages in the stamping and manufacturing of precision metal parts and the fabrication of tools and dies. It also offers metal components and assembly services for various products including audio and audio mechanism, LED TVs and other consumer electronic products.
Getting to know Richard Ngiam
Richard Ngiam is the adopted son of BSL’s founder, Ngiam Tong Kwan. Richard started his career in 1993 as the factory manager of Unique,
a subsidiary of BSL. In 1995, he was transferred to BSL Industries as the operations manager. In 1998, a year after he completed his ISO 9000
lead assessor training, Richard led BSL Industries to ISO 9002 certification. He was promoted to general manager in 2000 and currently serves as the managing director of BSL Industries and the CEO of BSL Corporation Berhad. “I had wanted to work elsewhere for a few years but I always knew I’d be back in the family business one day. However, my father had advised me not to waste time outside but to start immediately at his company,” says Richard. He was also appointed to the Board of BSL Corporation Berhad on 28 April 2005. He is responsible for the day-to-day operations of the Group, business development and the implementation of corporate strategies.
Richard recounts, “For the first three years, we only we had one customer Panasonic, which used to be called Matsushita. We wanted to be resilient and so, we diversified into air-conditioners, VCR camcorders and televisions. Malaysia was the biggest producer of VCR camcorders in the world in the late 80s and 90s. We were really good at it and did quite well. We also did computer components and were involved in the automotive industry.” “Besides diversifying our customers and products into different segments, we also shifted our focus from Japanese customers to Korean and European customers. It was part of our strategy to explore new market segments which are more profitable and have a better future. With over forty odd years of business experience, we have been through all kinds of crisis but we have learnt to be resilient.” “We have also gone through many technological advancements and changes. Our business was initially dependent on VCR, but that soon changed to the CD player, VCD, DVD and Blu-ray. We were able to adapt to all these technological changes because we were prepared and will continue to be so moving forward.” Richard shares.
The journey towards contract manufacturing
On the company’s future business plans, Richard says: “It’s to our advantage that we are moving from a component-based manufacturer to contract manufacturing. We’ve made a lot of improvements to serve various industries over the years. Therefore, we understand the importance of component quality to the final product. If the quality is not up to par, the final product assembly will be affected and efficiency will be decreased as the component needs to be reworked.” “As we transition to contract manufacturing, we are able to adapt well as we’ve been in the component industry for ages. Some clients are using our contract manufacturing services to complete their products and we manage everything for them. Whatever we can produce in-house, we will do so as the processes are already in place and that gives us the competitive edge. We are also reaching out to new customers because in the current market, most people know us as a component or service provider. Not many know us as a finished goods or contract manufacturer but this is what we want to be. This is our direction,” adds Richard.
As BSL gains traction in contract manufacturing, a successful transition would signify their biggest achievement to date. “We have all the necessary ingredients to be successful in contract manufacturing but we just lack exposure in this field. We have done very well so far but it’s time to take it to the next level,” says Richard. Richard also observed that most multinationals outsource their manufacturing segment due to cost factors and BSL’s new strategy seeks to tap into these business opportunities.
Up close with Ngiam Tong Kwan
The senior Ngiam began his career as an apprentice tool maker in 1966 at Perusahaan Winco Sdn Bhd. Five years later, he was promoted to production supervisor where he supervised employees in the production department and was involved in production and material planning. He was later promoted to Sales Manager. In 1978, he ventured out on his own to set up Ban Seng Lee Industries Sdn Bhd and guided it through steady growth over the years. He is also the director and co-founder of Unique Forging & Components Sdn Bhd and Crestronics (M) Sdn Bhd. He was appointed to the Board of BSL Corporation Bhd on 28 April 2005.
Ngiam always knew that he would be a businessman. When he was ready to take the plunge, he approached a Japanese client of his employer and proposed to start a business with client’s support. The idea was well received as there was already a foundation of trust based on Ngiam’s track record. “Nowadays, I depend on my children as I want them to take care of the company. But I do still come to the office as I enjoy my work,” says Ngiam. Looking back, Ngiam says: “I have a worker who was with me for forty years, right from the very first factory until BSL became a public-listed company. And what a journey it was! Hard work and commitment are keys to success for me. I was aware of my own weaknesses as I was formally educated until Standard Six. We are where we are today because of hard work and this is why our clients trust us. Through our business relationship with Matsushita, we were introduced to many other Japanese clients.”
The heart of BSL
BSL’s contract manufacturing model consists of utilising in-house produced components, purchased components and/or consigned components to assemble the end product, followed by packing, warehousing and delivery. The company is equally adept at both high volume and high mix low volume (HMLV) manufacturing. Their engineering team liaises with the client on product requirements, obtains product and process approvals and certifications, including the set-up of the final assembly line.
BSL offers 3 core processes for metal fabrication works:
- Low volume – sheet metal (laser cutting, turret punching and CNC bending)
- Mid volume – metal stamping (progressive, robot and manual stamping)
- High volume – roll forming processes
These processes are supported by many inhouse secondary processes such as powder coat, silk screen, tapping, rivet, welding, hairline, CNC machining, sub-assembly, etc. BSL also owns eight lines of Surface Mount Technology (SMT) machines, fifteen units of AV, RH and JVK insertion machines and eight Manual Insertion lines. All the SMT lines are equipped with Automated Optical Inspection machines.
