Do things that make you happy

I envy our youngsters for having access to wealth of knowledge in just a few taps of the fingertips.

When I was a kid, around 10-11 years old, learning a new software (Photoshop 4.0/4.5 in this case, circa 1997-1999) means I had to open up a ~200 pages thick guide book, flip the pages and try to make sense of the written instructions. So much harder considering my command of English vocabulary was near non-existent back then. Naturally I also had a thick Oxford dictionary to help me out.

My vocabulary grew by leaps and bounds. Lasso, marquee, smudge, dodge, gradients… these words were foreign just a few months prior.

Just now I had trouble understanding commands on Figma (a vector-based collaborative design tool used by product managers & designers). A quick Google and verbatim use of the keywords, viola! – Got my answer in the first result, presented visually in an embedded Youtube video.

I envy you, youngsters.

Time flies, use your youthful energy to learn and explore things.

Take advantage of the easy access to knowledge.

Try everything that makes you happy.

Do some things that push you beyond your comfort.

Dont be scared to take some risk.

And lastly, be happy, for this is the only life we have.

Tempoyak hot sauce, anyone?

As Malaysia has reopened its borders, tourists are coming back in droves. On weekends, I like to drive them around and show what Malaysia has to offer, sharing our culinary delights away from the tourist traps, and promote other must-see places and must-eat foods beyond whats available in Kuala Lumpur.

I love doing this because it is a two-way exchange. One with me sharing what locals do, second with them sharing their wonderful observations of Malaysia. This is as much a learning experience for them as for me.

It is a delight, and in an age where everything seemingly on the decline, there are actually plenty of things that we Malaysians do right.

Last week I met Crissy, an American nurse and her husband, Alvin. They have been to South East Asia numerous times; Malaysia though has a place in their hearts as this is the 4th time coming here, now for 3 months.

I brought them to local kopitiams (Capitol in Bukit Bintang) where we had toasted bread with the customary hot coffee and soft-boiled eggs.

Seeing that the couple was rather adventurous food-wise, naturally I introduced the pièce de résistance of Malay cuisines, which is the Patin Tempoyak (which if you are not familiar, is a type of catfish cooked in fermented durian). Its thick in spice, hot, and worse, durian.

Crissy and Alvin were champs. They love it. The rich durian broth opens up a new sensation, a palate never thought possible in their American food lingo.

“Syed, I have a feeling if we turn this (tempoyak broth) into some kind of habanero sauce (hot sauce akin to Tabasco) for BBQ, Americans would love it.”, mutters Alvin.

Crissy & Alvin, wish you both a pleasant, fun & safe trip to Ipoh, Kota Bharu, Kuantan and Malacca.

🙂

Great success is built on failures. Embrace failures.

While our government’s effort to encourage entrepreneurship deserves an applause, it is when we look at the detail things start to falter.

Having experienced raising funds (grants, equity, mix of equity and debt) from government agencies and related entities (government-linked venture capitals), I came to the impression that raising capital from government-backed agencies (in Malaysia) is not conducive in getting more people to embrace entrepreneurship.

Entrepreneurs are resilient, we are quick to pivot, a master at finding opportunities and monetize it.

But this is not all.

Successful business ventures are often built upon numerous failures.

Failures serve as a great teaching, humbling moment for entrepreneurs to grow.

We grow from failures. We embrace the opportunity to learn, and do better.

In Malaysia, raising funds from government-backed agencies means you are not allowed in any manner to fail.

To make matters worse, getting funds from these agencies would require director’s guarantee and a plethora of other forms of obligations to the fund. In simple terms, if you fail = you are personally responsible to repay.

There is no room to allow a budding company to fail gracefully. In current funding environment, if you fail = you are on the hook for likely 5-10 years to pay back the fund.

There is no opportunity to take a step back and say “Hey, we have done our best. The market/timing/etc is simply against us. Let us close shop, and try out new ideas.”

In Malaysia, especially dealing with government-backed funds, one will have the impression that out of 100 companies receiving the fund, all 100 are expected to be successful.

This should not be the case. Nor expected to be the case.

High risk ideas are prone to failure. But if one takes off, the benefit to the economy significantly outweighs all the other unsuccessful ventures.

To spur the digital economy, our government need to realize that the funds allocated for startups need to have some leeway – an expectation that maybe only 1-2% of the companies will make it big. 10% will do ok, and the rest might falter.

Allow those that falter to stand up, recover and try out new enterprise.

Allow entrepreneurs to attempt wicked, high risk ideas.

Let them learn.

Let them attempt to do things differently.

Let them to also FAIL gracefully.

Do not make them pay (in literal and figurative manner of speaking) for the failure (except if there is a clear negligence or abuse of the funds).

A society that embraces failures is bound to discover greatness.

Electric Vehicle sales doubling every 18 months

“No question about it. Internal combustion engine (ICE) is done.”, said my confidante and mentor when I shared to him this graph.

The current sales trend of Electric Vehicles (EV) paints a clear picture: The volume of EV sales doubles every 18 months…

In 2016, British Petroleum (BP) expected 71 million EVs on the road by 2035. Latest sales data shows that we will reach that volume by 2025. Full decade ahead of schedule.

As the pace of energy transition hastens, so does the gap between countries/regions that adopt EVs early versus those who are laggards.

Early adopters are ahead of the curve; these countries/regions tend to gain experience and matures fast.

Top of my head the benefits are:

  1. Experimentation of public policies in balancing the interest of greener future against existing interests in fossil fuels (For example Norway)
  2. Introduction of new supporting services & business models around EVs; enabling budding entrepreneurs to try out new ideas. For example EV leasing to battery recycling to introduction of new digital services. Or perhaps someone would buy up all the parking spaces and convert them to EV charging space.
  3. Smoother transition when these countries/regions finally decide to cut off fossil fuel entirely (at least on the use of fossil fuel for personal mobility).
  4. It is smoother since they are at the forefront of EV adoptions, they have full control on the pace of change (for example, deciding on policy level how many EVs should be manufactured by certain year).
  5. Compare this to laggards (countries that adopt EVs late) – These laggards will be literally choked with old inefficient ICE cars > more dependence on fossil fuels > high susceptibility to global fuel fluctuations. Current Ukraine War has only sped up European Unions effort to ditch Russian oil.
  6. As global car manufacturers switch to EVs, one can expect countries/regions yet to adopt EVs to be the dumping ground of inefficient ICE cars. Again, the same cycle persists > more dependence on fossil fuels > spending more on healthcare and little control over public expenditure.

What are your thoughts? How can Malaysia transition to be an adopter of EV while balancing its interest in the lucrative oil resource?

Understanding the needs of EV-owners

Of all the EV-charger equipped petrol stations in Klang Valley, this BHP station in TTDI is the only one that makes sense. It is smack in the middle of business areas, making it easy for EV/PHEV owners to park, charge and continue their business nearby for one or two hours.

It is also in a sweet spot for my daily hike in Kiara Hill Trail nearby. I would typically hike at 6am and return at 8am (7-10km hike) to find the car fully charged; sufficient for one day of movement with no fuel used. Do this daily, at times I would only spend RM80/month for fuel. Thats 75% lesser than the average consumer fuel-spent.

The rest of EV-equipped petrol stations are not positioned optimally to meet the behaviour of EV owners. No one wants to wait at a petrol station for hours just to charge their car.

When EVs become commonplace, petrol stations that are centrally located to housing and business areas have the best chance of being converted to EV stations…

… provided power utility companies (TNB, SESB) do not disrupt energy delivery by equipping regular parking spots with EV chargers using power from light/electric poles first.

With EVs, energy delivery to power our mobility is now democratised and decentralised. There is no need for expensive petrol stations with its strict HSE policies to built, maintain & run; now everyone can juice up their EV cars at home or at the car parks.

Why are petrol stations in close proximity to one another?

Why are petrol stations in close proximity to one another?

As we had plenty of free time during last year’s lockdown period, we did a quick analysis of petrol station clustering in Malaysia. Methodology was simple; consider the stations are in a cluster if they are within 500 meters of each other. Data was scrapped from map providers.

We discovered that Shell and Petronas (the two largest O&G companies) is the most popular pair of petrol stations in close proximity with one another.

If you are at a Shell station, you will have a 30% chance of seeing a Petronas station. If you are at a Caltex station, there’s only 17% chance of seeing a Petronas station.

So why do competitors tend to cluster together?

Well this boils down a theory called Hotelling’s Model of Spatial Competition (Google it to find an excellent video on TedEd):

  • A commercial area with many competing businesses attracts more customers than an area with a single business.
  • If competing businesses are spread evenly across a large area, customers need to visit each business to get what they are searching for. This would be inconvenient to the customers because they may or may not find the item in the first one or two providers. The customer might even get frustrated/exhausted and decided not to purchase at all.
  • Having competing businesses in close proximity allows customers to ‘shop around’ and ensures customers will at least buy something.
  • Naturally new competing business will open nearby because the crowd is there. The business wont have to spend much for marketing for customer discovery because it could just ride on existing marketing and customer base of their competitors.

Now you would argue that this scenario is moot for petrol stations as they are selling regulated products (fuel price is capped). Well, do you know that petrol stations value foot-fall into their retail stores? This also explains why stations nowadays are mini-malls; they sell anything from chicken rice, to fast food and car wash.

So dont be mad on having competitors. They help the market to grow.

Internship

Two interns reported for duty today.

One is Zhen Yang, a UTAR student and an aspiring data scientist. Hailing from Ipoh, he rented a house near to our office for the next few months as he goes through our rather rigorous, industry-driven internship.

Zheng Yang will be looking at massive vehicle-sensor data available on the KATSANA Platform under the guidance of Engineering Head. We don’t allocate enough manpower to data science due to other priorities, thus having new talents in this area is very much welcomed.

Another intern is Aiman, a tall 18-year old post-high school student, whose drive and conviction to be a software engineer led me to write a rather popular LinkedIn post last week.

Aiman has no formal education in Software Engineering, yet has the drive to soak up knowledge that I haven’t seen in graduates much older than him. He made the calculated risky decision to let go of university education for a few years to be trained in an actual tech company much early on. This young man is brave.

This means we carry a huge responsibility to make sure they become good scientists & engineers. Beyond technical competency, we aim to imbue in them, good communication skills and managerial capabilities.

Wish us luck.

An electrified future is here.

Charging an electric/hybrid vehicle at a petrol station feels out of place.

In the past, refueling petrol at a gas station is an absolute necessity. There’s simply no other way to refuel except at petrol stations. Hence we plan travels for a brief pit stop to get juices for our cars, while some stop longer to buy drinks & food at the convenience store.

As such, gas stations are erected in high traffic areas; near intersections, in between two major locations, or on primary roads to cater to refueling needs. 

When EV (electric vehicle) becomes commonplace, will this behavior persist? In an electrified future, does the petrol station or dedicated charging stations with so many charging bays even relevant?

These are my hypotheses:

1. EV drivers will still drop by at petrol stations occasionally, at a much lower frequency than before.

2. Dedicated EV charging stations are only relevant for long-distance travel. Thus I pray that we will see more erected on major highways.

3. Similarly as EV becomes common, inner-city petrol stations slowly become irrelevant.

EV frees you from the need to refuel at petrol stations. It does not make sense to waste a few hours (or at least 30mins) waiting for the car to juice up at the petrol station. This inherently forces EV owners to change their behavior, with preference to recharge at the beginning of the trip, or at the end of it, seldom in between.

Which makes more sense? 

a- Spend the time waiting at a petrol station while the car is charging

b- Charge at your home, or your office, or at any road-side charging stations

The most logical & efficient step would be the ability for an EV owner to charge the car whenever the car is parked for hours. 

Power utility companies, those who own the light & electric poles stand to gain the most as we transition from ICE to EV. They already have the grid and the infrastructure. Now the likes of TNB, Sarawak Energy, and Sabah Electricity only need the technology, vision and boldness to hasten the EV revolution.

We are at the cusp of an EV revolution

Some will say EV has a long way to go before it reaches our shore. I beg to differ.

It only took ~10 years for cars to completely replace horse wagons in New York back in 1900.

A Model T, when it was introduced by Harrison Ford costed USD850, double the price of a horse wagon. A year later, the price dropped to USD609. By the year 1924, the price is now USD290.

Most car manufacturers have publicly shared their plans to be fully electric, with some already delivering competent, market-driven EVs.

  • Porsche Taycan, starts at USD150k (~RM725,000 sold by Porsche Malaysia). Already one of the most popular selling Porsches out there.
  • Volkwagen ID.3, starts at USD30k+ (Not yet in Malaysia, estimated at RM140,000), also one of the best selling new VWs with ID.4 coming up next.
  • Volvo XC40 Recharge, starts at USD55k+ (coming soon, estimated at at RM240,000), production already fully booked till the end of year.

Can’t wait.

Conviction to chart your own path in life.

Last week, I received a resume from a young man. Born in 2002, which means he has only recently exited high school. Kids his age will then enter colleges or universities.

He decided to go against the flow.

Instead of enrolling in universities to further his studies, he told me that gaining industry experience is better.

“Ive done my research. My role models adviced those keen on software engineering to soak up experience by joining a tech company. When it comes to software engineering, what universities teach is only 10-15% relevant.”

He then listed the names of star software engineers that my old brain has now forgotten.

He dressed impeccably for the first job interview in his life. Good manner, answers with clarity and was frank that our technology stack might be alien to him.

“Give me 3-4 days, I will learn this on YouTube.”

Simple answer that tells me a lot about a person.

In Katsana Holdings, we are used to having young talents joining us right after high school. They mostly help us with non-critical operations and will stick for a few months waiting for their college offers.

This young man is different. He is brave. He has conviction. He wants to play an integral part of our development team.

Young man, we shall grant you your wish.

Valuing the independence of thought

I have been trying my darndest to reduce exposure to Facebook. I’m doing this because I find myself slowly becoming part of an echo chamber.

If you have not known this by now, Facebook designs its algorithm to encourage higher engagement & higher retention on the platform. More time on Facebook = more eyeballs for its advertisements.

A direct result of this behavioral engineering is the polarisation of your news feed. You will likely be more engaged with those who share the same opinions, or on the other spectrum, you will be stalking those who don’t.

You will end up preaching to the choir and might start alienating others.

You will develop narcissistic tendencies. You are groomed to be one.

I feel that this is dangerous to my well-being.

We do not have to be reactive to every news or posting on the platform.

We should not need to have an opinion for everything.

I want to be free. To be able to understand different narratives, to be able to put myself in a different pair of shoes, and to be able to develop empathy.

Looking back, I have written and shared things in the past that I’m now regretting. I don’t want to delete those posts, for it was my past; they’ll serve as a reminder. If you were in any way feel slighted by me, I ask for your forgiveness.

Lets put effort into bringing knowledge and joy to people around us.

Love,
Fuqaha