'Capacity to diversify a measure of success'

BUSINESS success cannot only be determined by looking at profits. The capacity of a business to sustain and diversify is also a contributing factor which cannot be ignored.

This notion is held dearly by the chairman of Koperasi Rimbun Berhad (KOPRI), Dato Paduka Seri Hj Abd Rahman Hj Awang Besar, who believes that the important ingredient of the cooperative's long-running success is its ability to accept new ideas and criticisms.

KOPRI's board of directors would sit together for a meeting every a month and discuss new ideas and review operations.

"We discuss, we accept constructive criticism as it will give us ideas on how to improve. So we are all open to this," says Dato Hj Abd Rahman.

"We have been together for 16 years, that's why we're strong."

Formed in 1997, the cooperative was founded by a group of retired senior Royal Brunei Police Force (RBPF) officers who collectively boast more than 40 years of experience in the security sector.

As of today, there are a total of 16 holding and working directors at KOPRI.

The vast experience in the field of security was the principal reason as to why the cooperative's first and core business today is the provision of security services at private and commercial premises nationwide.

"We were thinking of starting a small business. Several options were discussed as we talked about (business) opportunities and available funds," says Dato Hj Abd Rahman.

"So we decided that our immediate business would be to supply security services since we are well-versed in the sector," he adds.

When the cooperative began operations, it did not have an office but was given a free office space above a restaurant in Kampung Mata Mata, Gadong, by an old friend, he says.

"So we paid him $250 as free token for the next two years," says Dato Hj Abd Rahman.

KOPRI Security Services is one of the investment arms of KOPRI, which began operations in 1998 after gaining approval from the Royal Brunei Police Force (RBPF).

Services include the stationing of security guards at housing estates, supermarkets, schools, shops, industrial sites, worksites and buildings.

It also conducts crowd control and traffic at weddings, football matches, meetings and events.

Between 1997 and 2001, KOPRI Security Services operated with just 24 personnel stationed across 20 locations in the Brunei-Muara District.

"Today we have more than 320 personnel and are operating in Brunei-Muara, Belait and Tutong," says Dato Hj Abd Rahman.

"Our aim is to give employment to the locals as there are a lot of them who are unemployed. We feel that it is our prerogative to do so."

Over 90 per cent of the cooperative's security personnel are local.

"At the moment, we try to focus on giving job opportunities to the locals (as security guards). If the need arises, for other expertise, then we'll consider foreign manpower," he says.

Being the pioneer business to supply security services, the cooperative faces stiffer competition today compared to a decade ago with the emergence of competing security companies in the country.

"We never had any difficulties in finding business before but now as there are more companies doing so, it's getting more competitive especially with everybody offering cheaper rates," says Dato Hj Abd Rahman.

He says that it is getting impossible to bring down rates while maintaining the salaries of its personnel.

"We cannot go lower anymore, we need to pay our people. We don't want to give cheap rates and end up not being able to pay our guards.

"So we focus on quality and minimal profit to run the cooperative," he says.

Speaking of quality, the chairman points out that all security personnel have been screened and assured of clean criminal records as part of strict conditions required for applicants to be on-duty guards.

"We are very serious in this business. There is no hanky-panky. Whoever is deemed incapable of executing their jobs with discipline and responsibility, then we will let them go," says Dato Hj Abd Rahman.

"No smoking while on duty. If found working under the influence of alcohol and drugs, it's a very serious offence and we will dismiss them right away."

"We have people going around to ensure the security standard is maintained," he adds.

In line with the government's call for cooperatives to diversify rather than rely on one business alone, Dato Hj Abd Rahman says the cooperative is actively diversifying its portfolio.

KOPRI had already, in 2007, established its own private company, Kopri Travel and Tour Agencies Sdn Bhd (Kotta), making it the first cooperative to enter the travel sector.

It also recently began a domestic courier service and has also publicly announced its intention to operate a five-star hotel in two years.

The Brunei Times