15 minute read
Giving Back Value to the Government and the People of Malaysia
Rangkaian Hotel Seri Malaysia Sdn. Bhd. (popularly known as Seri Malaysia) started back in 1994 during the time when Tun Dr. Mahathir Mohamad was serving as Malaysia’s fourth Prime Minister to provide affordable choice of accommodation for Malaysians and opportunity for local entrepreneurs to participate in the growing hospitality industry. Beginning as a franchise, over the years, Seri Malaysia has expanded to 21 hotels. Its shareholders comprise Malaysia’s Ministry of Finance (MOF) and eight state governments; the latter provided the land, while the former pumped in the money.
According to Badrul Hassan Mohamed Kassim, Chairman of Seri Malaysia, the company has taken back 19 of the hotels from the franchisees and now run them directly, except for two that are still under franchise agreement. Once the agreement ends in late 2021, the company will take back the entire Seri Malaysia chain.
The purpose of Seri Malaysia taking back the hotels is to rebrand and reposition them. “This is part of our bigger agenda, which is to encourage more entrepreneurs to participate along the tourism value chain. Of late, we have been placed under the purview of the Ministry of Tourism, Arts and Culture (MOTAC), which we are closely working together to enhance the tourism industry in Malaysia,” mentions Badrul.
As part of the branding and repositioning effort, Seri Malaysia intends to work on a bigger business model. The basis will still be the same – hospitality – but the products and services will be enhanced.
“As a start, we are looking at ways to scale up the hospitality business along the tourism value chain, which means we are talking about charter flights, hotels, restaurants and events – these four areas within the tourism value chain intertwine with one another, which we can fully maximise to enhance participation among entrepreneurs and leverage on the synergy within the tourism business community and the states where our hotels are located. The fact that we have eight Malaysian states as shareholders, and all of these states have airports, is pivotal to receiving the charter flights,” Badrul elucidates.
Since the COVID-19 pandemic has beleaguered the travel and tourism industry, including the hospitality sector, Seri Malaysia’s branding and repositioning effort is becoming more crucial as the organisation takes a holistic approach to combat against the dwindling outlook. “As a catalyst to the tourism industry, Seri Malaysia offers its brand and resources to budget hotels, resthouses and homestays. We have recently completed a post-COVID-19 business plan for the hospitality and tourism players covering various products and services under the tourism value chain. We shall present our plans to various ministries such as MOF, MOTAC, Rural Development, Transport, and Health to ensure that we are synergising in the right direction with the needs of the country, in line with our motto ‘Sentiasa Bersama Rakyat Malaysia’ (‘Seri Malaysia Always Together with the People of Malaysia’),” he says.
Reaching out to target markets
As an accommodation provider, Seri Malaysia hotels receive both Malaysians and non-Malaysians, whereby the proportion of the latter group is increasing. Seri Malaysia is interested to tap and link up with these foreign tourists who go around the country to travel. “We can develop destination programme for them to explore the destinations where our hotels are based,” proposes Badrul.
Seri Malaysia caters to both business and leisure travellers since its hotels are mostly located in major towns like Bayan Baru, Kepala Batas, Alor Setar, Kuantan, Johor Bahru, Kuala Terengganu, and Rompin. All of these locations are in proximity to various districts and villages, which all possess their own distinct charms. Seri Malaysia is experimenting on a new approach, which is to partner with local communities wherever its hotels are located, as part of its rebranding exercise. “It is a new way of work, requiring us to change our paradigm. We plan to have tie-ups with rural communities wherever Seri Malaysia is present in by developing destination programmes to entice travellers to explore these communities,” Badrul explains.
To reach out to more audiences, especially the younger and up-and-coming generation, Hotel Seri Malaysia plans to work with Malaysia’s national broadcasting corporation Radio Televisyen Malaysia (RTM) on a television programme highlighting the local markets available around the country that are close to Seri Malaysia hotels as a way to sell the destinations. Through this way, viewers will be introduced to many parts of Malaysia, which even Malaysians themselves might not know. By watching the programme, Seri Malaysia hopes to inspire travellers to pack their bags, travel to the destinations of their choice and stay at Seri Malaysia hotels, which are known for their convenience, safety, and sufficient car parks.
“On the same note, Seri Malaysia is tying up with a big organisation to launch Karnival Seri Malaysia 2020 at all of our hotels. The carnival will showcase futsal and community games to be participated by Malaysians, including football tournament called Piala Seri Malaysia (Seri Malaysia Cup), inspired from the Malayan Estates Football Cup introduced by Sir Donald Macgillivray in 1955, an inter-estate football competition organised by the British planters who owned the rubber estates throughout Peninsular Malaysia, known that time as Malaya. We will work with MOTAC and our partners, Malaysian plantation companies such as FELDA, Tabung Haji Plantations and FELCRA, to participate in Piala Seri Malaysia and Karnival Seri Malaysia, which will run throughout 2020. We plan to work with the Football Association of Malaysia too since we are organising Piala Seri Malaysia. The football crowd is huge, so we can give them Seri Malaysia discount vouchers together with the tickets to watch football matches. Football fans can stay at our hotels every time they travel to catch those matches,” clarifies Badrul.
He adds that Seri Malaysia might incorporate the internationally renowned Hash House run into the carnival, considering it first originated in Malaysia in 1938 by a group of British and colonial officers, a heritage that could draw international interest and shore up the number of foreign tourists.
To promote Seri Malaysia internationally, the group will promote gastronomy because Malaysian food can easily be marketed overseas. The company has identified a few dishes that can be sold to the international market to create interest towards Malaysia.
Delivering value
In 2019, Rangkaian Hotel Seri Malaysia performed well after it has taken back most of the hotels. “We did creditably well in 2019 better than in 2018. The improvement is attributed to the increase in occupancy and sales of food and beverages, while maintaining costs to reduce the prices,” beams Badrul.
Though refurbishing the properties is not yet in the pipeline, Seri Malaysia ensures that all of its properties remain clean. “Refurbishment requires a lot of money. We have to be fair to our shareholders by not demanding that from them at the moment. Instead, we intend to give value to our shareholders by returning the money they have invested in Seri Malaysia. We as the caretaker and operator should maximise the value of the company so that we can give back to the government and to the people of Malaysia. It is high time that we as a group repay the government of Malaysia because it has never charged us a single sen, including rental. By giving back to the shareholders, we are also giving back to the government and people of Malaysia. As a result, both the people and government of Malaysia stand to gain,” Badrul asserts.
When it comes to finances, Badrul reveals that for Seri Malaysia, the largest cost is payroll. The company pays competitive salaries and put the staff through training programmes. In fact, Seri Malaysia is working with a group to offer complete on-the-job training to Malaysian citizens who fall under the B40 (bottom 40% household income) category at its hotels. “The bigger plan is that we are looking into ways for the B40 group to undergo in situ training in Langkawi and work with Langkawi Development Authority because we deem the island as a centre of excellence and a good training ground for learning the tourism business,” Badrul reveals.
He further stresses that costs need to be properly managed. As such, Seri Malaysia’s hotel managers are empowered to make decisions as part of the company’s decentralisation efforts. “These hotel managers are crucial. We want the hotels to be champions because they are the ones who are on the frontline,” admits Badrul.
Rebranding and repositioning Seri Malaysia
There is huge potential in terms of branding Seri Malaysia because the group carries the name ‘Malaysia’. “Seri Malaysia represents the quintessential Malaysian style, nature, personality, humility, and way of treating guests. It is indeed an honour to carry this Malaysian brand and we have to live up to it and sell it to the world. Seri Malaysia is indeed Malaysian in heart, mind and soul,” Badrul advocates.
“Malaysians are hospitable; that is our nature. Therefore, hospitality is one business that Malaysians should be confident of doing because we are humble, kind and want to please. Such characteristics are applied in Seri Malaysia hotels. That is why we have a new tagline: Seri Malaysia Sentiasa Bersama Rakyat Malaysia, Selesalah Bersama Kami (‘Seri Malaysia Always Together with the People of Malaysia, Stay Comfortable with Us’).
“To get the buy-in from our own people about rebranding and repositioning Seri Malaysia, it is easy to convince them when you deliver results. Initially, when I first presented to Seri Malaysia board of directors on the tourism value chain, the members were excited but they were also concerned on how to implement the plans because the results need to speak for themselves. I did what I think is right as long as it is within the laws, rules and regulations of the country and the company,” recalls Badrul.
So far, things are going to plan, but Badrul feels that there’s more that can be done. “When I spoke with the corporate team and the people at the hotels, we realise that the opportunity to grow is huge, therefore we can do more. Everybody in Seri Malaysia has taken up the challenge to think outside the box and think big. Success is a moving target – though we can say that we have done well, we can’t sit on our laurels. We aspire to continue delivering value, nurture more entrepreneurs, and work together with Malaysians, so that they will feel Seri Malaysia as theirs.
“We want Seri Malaysia to become the hotel for the people. We want every Malaysian to feel that Seri Malaysia is their hotel. Our rates are reasonable too. We want people to think that whenever it comes to weddings, parties, functions or seminars, they will have Seri Malaysia on top of their minds because we have the location, and we have the food. Seri Malaysia’s three-star hotels make their guests comfortable and fit to the Malaysian way of life,” Badrul enthuses.
In reaching out to the public, Seri Malaysia has been distributing discount vouchers to the Malaysian public. “We started the first phase of our rebranding and repositioning efforts by offering vouchers that offer discount at MYR68 each for those staying at Seri Malaysia hotels, plus another 20% discount on food. This is to tell Malaysians that we are here to offer affordable rates, inviting them to stay with us,” claims Badrul.
Besides, Seri Malaysia’s staff visits local hospitals to give out Seri Malaysia discount vouchers to all patients, who can extend those vouchers to their visiting friends and relatives. When visitors visit the hospitalised patients and receive these vouchers, they can stay at any Seri Malaysia hotel close to the hospital because it is understood that many visitors might face difficulties in securing inexpensive accommodation, particularly if they were from out of town.
On top of that, Seri Malaysia is also offering Seri Malaysia Privilege Cards, including discounts and special privileges, to the frontliners from the Ministry of Health, the police, the army and all parties involved in the fight against the COVID-19 pandemic to help propel the industry in a winwin manner with fellow Malaysians.
The second phase of rebranding and repositioning is to select entrepreneurs for Seri Malaysia to partner with. The company finds that the pool of local entrepreneurs can be enlarged by extending to the communities within the areas or districts where Seri Malaysia hotels are located. One way of implementing this is to invite those who can cook local specialties and signature dishes to utilise Seri Malaysia’s kitchens and sell their food to diners at the hotels.
In identifying those entrepreneurs, Seri Malaysia has signed up agreements with the Malaysian Muslim Chamber of Commerce and Dewan Usahawan Malaysia (Malaysia Entrepreneur’s Chamber) for their members to team up with or ride on Seri Malaysia’s network. Apart from that, Seri Malaysia is working with Yayasan Islam Pulau Pinang (Penang Islamic Foundation), which is currently building a shariah-compliant hospital, to offer food and beverages, including services like housekeeping, once the hospital is completed.
“After taking back the hotels, we are confident that we are on the right track. Hence, it is time to give back to the people of Malaysia and the entrepreneurs. Though we currently have 21 hotels, Seri Malaysia would like to increase the number by associating with 200 or 300 entrepreneurs. That is why we sign up with the Malaysian Muslim Chamber of Commerce, which have members who can sell their products and services through our hotels. We give them discount vouchers; when they sell their products, they can use our vouchers as incentive, which is a win-win situation. We also have come up with Elite Card to be given to all Malaysians. We are talking to various organisations, Malaysia Airlines included, so that we can extend the usage of Seri Malaysia card for other products and services,” claims Badrul.
To expand its business, Seri Malaysia plans to manage government resthouses, smaller inns, lodgings, and budget hotels that are being badly hit from intense competition, economic slowdown and COVID-19 fears. The company welcomes members of the Malaysian Budget Hotels Association to work on a deal with Seri Malaysia and find ways to help them make money, use the Seri Malaysia brand, and leverage on the company’s strength in information technology to market their properties. Considering many budget hotels do not provide food, they may source the food for their guests from Seri Malaysia’s kitchens. The company might even engage local unemployed youths who own motorbikes to deliver food and beverages prepared at Seri Malaysia’s kitchens to be sent to the partner budget hotels.
“Although the industry was down in 2019, Seri Malaysia went against all odds, which means we must have been doing something right. That is why we want to tie up with budget hotels because we know they are facing competition from Airbnb, Oyo and the likes. We welcome budget hotels to work with Seri Malaysia because we want to groom more Malaysians and grow from 21 hotels to 200 easily within a few months by opening up to Malaysian budget hotels, resthouses and smaller guesthouses. There is a lot that can be done to invigorate the tourism sector,” foresees Badrul. Interestingly, Seri Malaysia has also been talking to a few groups that run the Malaysian homestay programmes. “Seri Malaysia can inject a new lease of life to the homestay programmes, if any of them agrees to become a Seri Malaysia homestay. We are confident that we can make the homestays better by providing food and creating traditional wedding packages because we find that urban settlers who originate from the kampung miss its hygge and want to experience it again, especially when holding weddings and private functions. Ideally, the homestay that promotes weddings should not be far from a Seri Malaysia hotel – we can provide food, transport, and accommodation, on top of organising a beautiful Malay kampung wedding at the homestay, complete with marhaban, kompang and community participating; to us, this is what Malaysia represents,” Badrul fervently states.
He concurs that the homestay programme is ingenious and Malaysian in spirit, hence appropriate for Seri Malaysia to sell to the world. “We have spoken to organisations like PERDA, FELCRA, and the homestay association in Langkawi to implement the idea. We do welcome any homestay to work with us. The creation of the Seri Malaysia homestay is again part of the rebranding and repositioning exercise because it is in line with the Seri Malaysia brand,” chimes Badrul.
Hope for the future
Despite the challenging business environment, especially after the onslaught of COVID-19, Badrul Hassan hopes that in the next few years, Seri Malaysia is able to grow into a conglomerate, perhaps becoming Kumpulan Seri Malaysia (Seri Malaysia Group), and not simply remain as a network of hotels.
“Some activities that we find capable in boosting the Seri Malaysia brand include organising art and cultural events for locals to showcase their talents; working with media and broadcasters to increase brand visibility; developing rural destination tourism; supplying food to Keretapi Tanah Melayu (Malayan Railways Limited) while ensuring that the cafes and restaurants along the railway routes are revived and converted into Kafe Seri Malaysia; setting up bakeries and catering services; and recognising unsung Malaysian heroes or people who have contributed greatly to the Malaysian society for example teachers, administrators, village heads, imams, pastors and so forth. To that end, the blueprint and papers have been done, the agenda has been set, businesses have been identified, and all entrepreneurs are welcome to work with us,” assures Badrul.
Badrul strongly believes that Seri Malaysia has what it takes to become an iconic Malaysian brand. “Seri means beautiful and adding value, therefore we all have to live up to the word, which is part of the brand. It is my hope that Seri Malaysia hotels become lifestyle hubs where Malaysians converge, feel at home and express their talents. By doing so, Seri Malaysia is sure to achieve its national agenda, which is ultimately to benefit Malaysians,” he sums up at the end of the interview.
