Datuk Seri Nelson’s Kwok Teng Toong

Background Info

Who is Nelson Kwok Teng Toong

- Founder and Managing Director at Nelson’s franchise since January 1985 until now
which base at Kuala Lumpur, Malaysia
- Founded the Corn in Cup concept in the World
- 35 years in business since 1985
- Work at The IoT Solutions Sdn. Bhd.
- JCI Malaysia National President in 1992
- Honorary Consul of the Republic of Mozambique in Malaysia until now
- Board of Director at The Rotary Club in Kuala Lumpur.

Education

- Study in TARC Kuala Lumpur Malaysia

- Went school at Smjk Tsung Wah

Home Living

Kuala Lumpur, Malaysia as his current living and Petaling Jaya Malaysia as his hometown.
Vision and Mission

The idea of Nelson's began from a single corn kernel. From that idea, it became one
man's vision and mission:

- To be the country's leading corn franchiser.

- To contribute to the rising breed of entrepreneurs by providing an affordable business

opportunity.

Based on Nelson's vision and mission statement, the word CORN can be attributed as:

C = Creating a Lifestyle

O = Outstanding Products

R = Return of Investment

N = National Success
Datuk Seri Nelson Kwok Teng Toong Profile

Nelson Kwok is the Founder and Managing Director at Nelson's Franchise (M) Sdn.
Bhd. since 1985. Nelson is the first individual in the world to develop the corn in cup concept
popularizing the eating of corn from a cup instead of the conventional corn on cob in 1995.
Nelson’s franchisees operate over 800 outlets spread over Malaysia and 16 other overseas
countries. Transforming a sole proprietorship business into an SME, Nelson’s is a home-
grown Malaysian brand synonymous with its corn in cup and nutritious wholesome snack
foods.

Nelson is currently the President of the Malaysian Retailers Chain Association

actively leading its members to business missions overseas to encourage expansion of local
brands abroad. Dato’ has also been appointed the Honorary Consul to the Republic of
Mozambique in Malaysia.

Nelson also provides sound advice on his business experience and shares the story of
his success by participating as speaker and imparting his knowledge at seminars, workshops
and talks at various MRCA, SME, Matrade and other events organized by Trade, Agricultural
and Government Agencies.
Life Journey

Dato’ Nelson Kwok’s journey in life has underscored his philosophy that life is about
sharing. His cheerful smile lights up his sombre demeanour when he speaks about his
discovery on how people can enrich their life (and your coffers) by enriching others. The
CEO and founder of the company that still bears his name share his thoughts on the nature of
success and how to attain it.

He has not always styled himself as an entrepreneur. Upon graduation from Tuanku
Abdul Rahman (TAR) College, he has embarked on various jobs from working in sales in
food industry and banking to toy retailing. It was only during the mid-1980’s economic crisis
that he discovered the near-constant profitability of food products. Since then, he embraced
the food business and kept it going to a global concern.

His various experiences through working for others had contributed immeasurably to
shaping his perspective, guiding him to navigate the potential pitfalls of the business world
and prepared him to handle the challenges that came his way. However, this experience has
also taught him that working for others does not suits him.

Generosity of spirit is not just a say-so for Dato’ Nelson Kwok. This is the foundation
of his business practice and philanthropy pursuits. His personal motto in life is that a person
must always think about how to give back to society and contribute to the world, rather than
living for individual enjoyment alone. Every successful person has a responsibility to make
sure that the world becomes a better place and do their bit to make it happen.

Success is not a destination, but a journey for this humble man. Life is about changes
and the same goes for business. He does not believe in staying in your comfort zone, but to
evolve with the economic situation and being flexible. Therefore, he diversified his business
into agriculture and the supply chain, continuously working to make Nelson’s a globally
recognised brand.
 Dato’ Nelson Kwok’s secret to success is to cultivate positive values. He emphasised
the importance of sincerity and honest conduct in business, greased by goodwill engendered
by congenial personality and kindness. He urged for young entrepreneurs to not be afraid to
start small; they should learn the ropes and avoid letting failure defeat them. He believes that
humility leads a person to be more aware of their responsibility and have the patience to
persevere to attain success.

Dato’ Nelson Kwok believes that you can have it all; it’s a matter of maintaining the
right perspective and effort to enrich all facets of your life. Life must be balanced between
business and family; never sacrifice your personal life on the altar of success.
 Datuk Seri Kwok Teong Toong as speaker giving Entrepreneurial Talk

Nelson offers good advice and shares his success story as a speaker in his workshops,
workshops, and lectures at various MRCAs, universities, SME, Matrades and other events
organized by trade agencies, agriculture and government agencies.

The entrepreneurial talk also aimed to motivate students to discover the entrepreneur
within, to teach them about the characteristics and guidelines of being a good entrepreneur,
and to expose them to general perspectives and the outlook of global trends in business and
industry.

Datuk Seri Kwok emphasised on the importance of being a “SHARP” person, with
“S” representing service, smiles, sales, self-discipline and sincerity; “H” representing
honesty, hard work, harmony, humility, honour, helpfulness and health; “A” representing
active, alertness, action and awareness; “R” representing respect, responsibility, recognition
and righteousness; and finally “P” representing product knowledge, patience, proactivity,
passion, perseverance, positivity, praise, principle and punctuality.

Together with the “SHARP” acronymic qualities, Datuk Seri Kwok spoke of his
experiences on how these values have helped him and his business to be successful.
Achievement

Nelson also received the support and recognition of Malaysian leader’s former Prime
Minister Tun Dr. Mahathir Mohamad and Dato’ Seri Abdullah Ahmad Badawi for the
outstanding achievement of being one of Malaysia’s most successful home-grown franchises.

Awards

1997 – The Most Promising Franchisor

1998 – The Most Outstanding Home-Grown Franchisor

1998 – The Most Outstanding Franchisor

1999 – 2002 – Outstanding Franchisee Awards

1999 – Largest Corn in Cup Franchise Outlet by Malaysia Book of Records

2006 – Global Growth Awards (Platinum Award of Year)

2006 – The Brand Laureate – SMEs Chapter Award Excellent in the F&B category (corn &
snacks food)

2008 – Global Growth Award (Gold award)

2008 – Bronze Award for Industry Excellence for Franchisor 2008

2010 – Most Highest Sale for Square per Feet of the Year 2010 by KLIA

Halal Certificate by JAKIM

Overview of Nelson’s Franchise (m) Sdn. Bhd.

Nelson’s is a truly homegrown Malaysian brand that has gone global. Thirty-five
years of experience in sweetcorn has given the Nelson’s brand an edge in the corn and snack
food industry. There are now more than 80 outlets throughout Peninsular Malaysian Sabah
and Sarawak. Overseas, Nelson’s is present in more than 800 outlets in 16 countries and their
China operations are targeting the opening of 100 outlets by end 2012.

In they strive to provide their franchisees and customers with quality-controlled corn,
Nelson’s has pool of contracted farmers yielding their very own N28 specie of corn that
produces succulent kernels with a high sweetness level. Nelson’s HALAL and HACCP
certified processing plant in Chemor Perak ensures that the quality and sweetness of the
kernels are maintained through its stringent processes. Nelson’s integrated plan from farming,
processing to franchising the corn in cup and snack food concept has created vast
opportunities for entrepreneurs and a job market for many in Malaysia as well as
internationally.

Nelson’s outlets are highly sought after by shopping mall operators because of its
proven brand name with strong successes enjoyed by many franchisees, good training
provided and comprehensive operating procedures. Its affordable set up cost with good
returns in investment and attractively designed kiosks or premises attract instant attention in
public places.

The Nelson’s Group provides employment and have created economic activity for
farmers and workers in the country by providing them with a reliable source of income. The
yield from their harvests are purchased and processed by our own peeling center and
processing plant. Nelson’s franchise arm provides affordable franchise schemes for
Malaysian entrepreneurs to setup their own businesses.
History of Nelson’s Franchise

In 1985, our founder Nelson Kwok Teng Toong started with two outlets in PKNS
Shah Alam and Jaya Shopping Complex. He convinced the Ministry of Entrepreneur
Development that with the franchising his outlets; a Malaysian franchise with greater
potential for success would be established.

KTT Product Corporation Sdn Bhd was founded and has now grown to become
Nelson's Franchise (M) Sdn. Bhd, a thriving franchise network with hundreds of outlets
around the world in locations such as Turkey, China, Saudi Arabia, Kuwait, Indonesia,
Brunei.

Nelson’s Franchise (M) Sdn Bhd is one of Malaysia’s success stories. The company
was founded in the late 1980s, some years after a toy store owner, Nelson Kwok (now Datuk
Seri), made the seemingly innocuous decision to sell corn on the cob at his outlets.

Soon enough, it was all people wanted from him. So, the toy store owner went into
the snack food business instead. But Kwok made a simple but masterful tweak to the concept.
Instead of corn on the cob, he decided to have it packed, freshly steamed and buttered, in a
little cup. With that decision, he turned sweetcorn into a popular snack like popcorn and
potato crisps.

Today, Nelson’s is stable, well managed and more popular than ever. The Malaysian
snack food franchise enjoys not only an extensive international presence in Southeast Asia
but also in the Middle East. It has more than 80 locations nationwide and nearly 1,000 outlets
across 16 countries. This concept is incorporated into its tagline: ‘Wholesome Goodness on
The Go!’ which means:

- To educate and to provide consumers with a healthy, nutritious and hassle-free

alternative to eating corn.
 - To develop a new trend as well as to promote healthy eating habits among snack
lovers.

Nelson’s has significantly expanded its product range, from its pioneering “corn in a
cup” to healthy freeze-dried corn snacks, corn-flavoured ice cream and even corn milk. Even
more impressive is the fact that despite its global presence and frankly ubiquitous availability
of sweetcorn worldwide, the company has steadfastly kept its production lines and farmlands
in Malaysia, creating thousands of jobs over the years.
Datuk Seri Nelson Kwok Teng Toong as Board of Director in The Rotary Club in Kuala
Lumpur

Datuk Seri Nelson Kwok Teng Toong has joined Rotary Club in Kuala Lumpur since
2014 until now. Datuk Seri Nelson is a president of RCKL for year 2018 and 2019, however
his term as President of RCKL DiRaja ending 30 th June 2019 time flies so fast as he said and
it is time to reflect with past months of activities and how the club’s performance. With team
work and commitment, judging from the dinner turnout and response, all are happy with the
rotary year 2018 and 2019 awards winning, membership target achieved, financial healthy,
high project turnout and participation sign of success.

Rotary is a worldwide organization of business and professional leaders that provides

humanitarian service, encourages high ethical standards in all vocations, and helps build
goodwill and peace in the world. Approximately 1.2 million Rotarians belong to more than
32,000 clubs in more than 200 countries and geographical areas.

Rotary club membership represents a cross-section of the community's business and

professional men and women. The world's Rotary clubs meet weekly and are non-political,
nonreligious, and open to all cultures, races, and creeds.

The main objective of Rotary is service - in the community, in the workplace, and
throughout the world. Rotarians develop community service projects that address many of
today's most critical issues, such as children at risk, poverty and hunger, the environment,
illiteracy, and violence. They also support programs for youth, educational opportunities and
international exchanges for students, teachers, and other professionals, and vocational and
career development. The Rotary motto is Service Above Self.

Although Rotary clubs develop autonomous service programmes, all Rotarians

worldwide are united in a campaign for the global eradication of polio. In the 1980s,
Rotarians raised US$240 million to immunize the children of the world; by 2005, Rotary's
centenary year and the target date for the certification of a polio-free world, the Polio Plus
programme will have contributed US$500 million to this cause. In addition, Rotary has
provided an army of volunteers to promote and assist at national immunization days in polio-
endemic countries around the world.

To date, 2 billion children have been immunised, 5 million have been spared
disability, and over 250,000 deaths from polio have been prevented. In November 2007,
Rotary International was awarded a US$ 100 million grant by the Bill & Melinda Gates
Foundation to help the fight of polio eradication.

The Rotary Foundation of Rotary International is a not-for-profit corporation that

promotes world understanding through international humanitarian service programs and
educational and cultural exchanges. It is supported solely by voluntary contributions from
Rotarians and others who share its vision of a better world. Since 1947, the Foundation has
awarded more than US$1.1 billion in humanitarian and educational grants, which are initiated
and administered by local Rotary clubs and districts.
 Challenges in his Business

General manager Datuk Eric Tai, the man behind Nelson’s push into the global
markets. An accountant by training, he invested in the company 12 years ago and has not
looked back since. So, how does a company go from corn on the cob to be a global master
franchisor? According to Tai, it is by taking a very measured and conservative approach to
doing business overseas. But first and foremost is getting the expansion model right.

They decided to adopted a master franchising model, simply because it puts no

pressure on them as the brand owner to raise capital to penetrate foreign markets. When
international applicants approach them, besides, they offer them a master franchise
agreement, assuming of course that they fulfil certain criteria.

He adds that local partners in foreign markets tend to have better access to capital and
on-the-ground business networks, in addition to key insights into local regulations and
customs. And understanding local customs can make all the difference between success and
failure, he points out.

Tai and managing director ran into a challenge many years ago when they entered the
Saudi Arabian market. Back then, there were significant tensions between Saudi and the US,
and they were in trouble because our brand sounded so American. So, for this market, they
had to changed our brand name to N&A instead.

This decision has paid off as Saudi Arabia remains one of the company’s most stable
international markets. But choosing a master franchising model is a risky proposition, mainly
because brand owners cannot exert direct control over international franchisees. So, while
good partners beget good business, bad partners could bring the entire brand to its knees.
 One key risk factor in the master franchising model is the master franchisee failing to
manage its finances. This leads to a host of problems, especially not being able to afford to
buy raw ingredients from the brand owner.

A short-term fix would be for the brand owner to extend a line of credit to the master
franchisee, in the hope that the latter gets itself back into the black without an interruption in
supply. But throwing good money after bad catches up, and this was something Tai was
determined to avoid.

Ever the astute numbers man, he wove risk management features into the master
franchisee contract. Tai once said, structuring the master franchisee agreement is crucial. So,
even before the franchisee can take delivery of the goods, it has to pay a 50% deposit upfront.
Then, just as the orders are about to ship out, it pays the arrears. Thus, the risk of bad orders
is quite minimal.

The strategy appears to have worked well. Out of all our international master
franchisees, only two needed us to provide them with a credit line. Everyone else kept their
expenses in check,” he says.

The beauty of setting strict terms in the master franchisee agreement is that only
serious companies apply to carry the brand in their respective countries. But this is not to say
Nelson’s has not chosen poorly before.

Tai said that they gave the franchise in the Philippines to a friend. But the business
there was run very poorly.

The master franchisee rented spaces and hired staff but failed to keep track of his
stock. As a result, on various occasions, he would only put in orders for new stock when he
had run out completely. Nelson’s had no choice but to get out.
How Datuk Seri face his failure as big trouble in ‘little’ China

Tai and managing director Kwok were seduced by the multimillion-dollar allure of
the burgeoning Chinese market. Once the world’s production line, China’s newly affluent
middle class has turned the country into one of the world’s most important consumer
markets.

But Nelson’s first attempt at penetrating the Chinese market was an outright and
expensive failure. Years ago, they tried to venture into China by ourselves. They committed a
lot of capital and even set up an office there in the hope of getting a franchise off the ground.

But one thing Tai and Datuk Seri Nelson never expected was that local regulations
and requirements changed all the time. It was difficult for them to manage the business
effectively. It came to the point where they were suffering losses nearly every month.

Eventually, they could no longer bear the losses and had to bite the bullet. They had to
close the office and exited China. They then took about three years to recover from the
experience, at which point a China-based company approached us to take our brand there
once more.

This time around, however, they were a lot smarter and more cautious about moving
into China. They relied on what had always worked for us. Tai and Datuk Seri Nelson
appointed a master franchisee to expand the brand, as opposed to them making expensive
investments in a market we did not fully understand.

Things in China are finally shaping up, but Tai admits that keeping the master
franchisee there grounded is an ongoing challenge. The master franchisee they appointed is
good, but he can be too ambitious at times. He entered into an agreement with another party
to expand the brand in China by adding hundreds of new stores.

So, what did Tai do to keep things on an even keel? He said that he made sure the
master franchisee hired someone with an accounting background, who spoke good English
and with whom him could work well. He got this person to draw up a monthly report card on
the finances and cash flow, and he would receive this report card at the end of each month.
Attachment
References

i. www.mfa.org.my

ii. https://www.facebook.com/datonelson.kwokjp/photos_albums

iii. https://slideplayer.com/slide/12480873/

iv. http://www.matrade.gov.my/en/31-malaysian-exporters/going-global-exporters-success-
stories/2017-nelsons-franchise-m-sdn-bhd

v. https://www.crunchbase.com/person/nelson-kwok#section-overview

vi. https://prezi.com/qhyp7tuzfald/nelsons-franchise-m-sdn-bhd/

vii. https://ifranchisemalaysia.com/nelsons-franchise-business-opportunity.html

viii. https://nelsonsfranchise.storehub.me/

ix. http://www.rotarykldiraja.org/Members.php

x. https://www.marketscreener.com/news/Dato-Seri-Ivan-Teh-awarded-Rotary-Club-s-Paul-
Harris-Fellow--29698575/