Formality makes Lee Weng Seong, the recently appointed chairman and CEO of Philips group of companies in Malaysia, uncomfortable. “Please, call me ‘Weng Seong’,” he says when I address him as “Mr Lee”.

Putting everyone who meets him at ease is important to Lee who describes his management style as highly people-oriented. “I have an open-door policy in my office and do my best to walk through the office once a day. Rather than summoning employees up to meet me, I prefer to go to them,” he says.

This people-centred attitude has defined and shaped his first few months on the job. Since his appointment last November, the first Malaysian CEO of Philips Malaysia, which has been in this country for over 60 years, has taken pains to meet and build rapport with all the company’s stakeholders. “My first step in my new role was to go out and establish linkages and relationships with key business partners. Although my previous appointment as Asean regional director for Philips Healthcare based in Singapore has made me familiar with the healthcare industry, I have had limited exposure to the other two key businesses — lighting and lifestyle. It’s been an eye-opening experience,” says Lee.

Stepping into the shoes of his predecessor Raj Kumar, who retired last October, has been a challenge for the 55-year-old Lee who believes that he cannot ride on the relationships built for Philips by the affable Kumar. “Customers buy from people, not the company. If they know, like and trust the person and the brand, they will buy. But they need to be sure they are buying from someone they can trust. Our partners need to be comfortable — so I immediately went out to engage and meet with them. It’s working, I’m gaining trust and building relationships,” adds Lee.

An electrical and electronics engineer by training, Lee went on to complete an MBA from the National University of Singapore in the late 1990s as he was “more interested in people than machines”. He first joined Philips Singapore in 1984 as a marketing manager for the telecom and data systems division, taking advantage of both his people skills and technical background. “Since then, I have never returned to a purely technical role,” he says.

In 1992, Philips divested itself of various businesses, including the telecom and data systems division which was sold to Digital Equipment Singapore Pte Ltd. Lee followed the business and was responsible for the proposal, delivery and implementation of large systems integration projects in the retail banking and financial industry. His entry into the healthcare industry came in 1994 when he accepted an offer from Philips to join their medical systems division (now known as Philips Healthcare) in Singapore. Since then, he has gone on to leadership positions in marketing and sales for the Asean countries (Singapore, Brunei, Indonesia, Philippines, Vietnam, Cambodia, and Laos) and Pakistan. He is credited with growing Philips Healthcare’s business in these countries by over 400% in the last eight years.

Now back in Malaysia after 14 years in Singapore as Asean regional director for Philips Healthcare, Lee has taken immediate steps to reacquaint himself with the government and consumer markets. “The government is a very important stakeholder. One of the things I’ve done is to create a government relations role. I will also be fully involved, but I think it is important to have someone who is responsible for all engagements with the government,” says Lee.

For the consumer lifestyle division, Lee’s approach has been direct and simple. “I walk around the malls to see how our products are displayed and sold, I give feedback on what I like, and what I think needs improving.”

After his first few months on the job, Lee feels ready to steer the company through the current economic downturn. “It is a challenge, but it represents opportunities and new approaches. It is a time for Philips Malaysia to make investments in the right areas, and to build for the future,” he says.

Lee explains that the approach to take is not one of “cutting back” but of prudent investments and scaling down of size and expenditure. “When it comes to advertising and marketing, some areas need reconsidering. But if the promotion makes sense in terms of aims, and returns on investment, we will go ahead, but perhaps on a smaller scale.”

Two things he will not compromise on are Philips’ corporate social responsibility (CSR) commitments, and its environmental conservation targets. “CSR and the environment are social investments that contribute to the sustainability of our business. It’s not a luxury. For us, it is a must. It is important for the company’s survival,” he says emphatically.

Lee describes with enthusiasm his support for Philips’ environmental commitments outlined in their 2006 EcoVision4 programme. One of the programme’s targets is to slash Philips’ energy expenditure by a quarter of the 2006 level, by the year 2012. The company also aims to double total revenue from products ranked as “green products” to 30%. “A ‘green product’ is a non-toxic, non-hazardous product designed to be energy-efficient, with reduced packaging and made mostly from recyclable materials,” explains Lee.

He also plans to grow all sectors of the company which already leads the market in lighting. Philips is also one of the leaders in healthcare and is competitively placed in the consumer lifestyle division in Malaysia. Lee acknowledges that his targets for this year are “ambitious”. But while he recognises that the going will be tough, he remains confident. 

“There are many external forces beyond our control that challenge us at present. But our strong competitive positions across the vast majority of our businesses, and our healthy balance sheet will allow Philips Malaysia to make the most of the upturn when it comes. Our long-term goals remain unchanged, while our shorter-term focus will be to deliver to Malaysian consumers meaningful products that improve their lifestyles but with more value for their ringgit,” he says.

Overall, Lee remains optimistic about Philips’ prospects in Malaysia. “I will build on the strong foundation left for me by my predecessor. There is room for growth as I feel we are still under-represented in the country,” he says. “When I move on, it is my responsibility to leave the company in a stronger position than when I started.”

This article appeared in Manager@Work, the monthly management pullout of The Edge Malaysia, Issue 747, March 23-29, 2009.