Singapore, May 2003

Singapore Enterprises in China
Informatics Holdings Ltd: A Success Story in China

Demand and Opportunity
China is currently the “hottest” marketplace on the map. Many listed companies are talking about their China plans and China penetration strategies. And, having the largest share of the China business, is local education provider, Informatics Holdings Ltd –a very exceptional case – from other market perspectives and the way of setting up of its business – not only because it is a service business. There are strong goals (and visions) for the China market, and much hard work (and sweat) has gone into this.

No set targets for China
Back in 1992 and 1993, Informatics set foot in China. In 1993, Informatics set up its first centre in Shanghai, China. To date, through franchising, partnerships, joint ventures, and setting up of its own subsidiaries, Informatics has about 35 centres throughout China in provinces like Chengdu, Xian, Chong Qing, Wuhan, Xiamen, Tianjin, Nanjing, Kunming, etc… In Shanghai alone, Informatics has established 7 education centres

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Said Mr Ong Boon Kheng, CEO of Informatics Group: “We do not set a target number for China. The factors affecting success in the China market are just too numerous – partners, talent, resource, and even luck, etc… You need the “right time, right location and the right people.”

Through franchising, the company has grown and expanded into 44 countries, with over 548 education and training centres throughout the world, out of which 35 (or not more than 10%) are in China.

This reflects the global roadmap of Informatics, but for each region Mr Ong revealed: “We are not talking about conquering any region. China is certainly an important market for us, and it is indeed a good opportunity to develop and grow the China market right now. Obviously, everyone knows that. For example, China entering WTO, and hosting the 2008 Olympics, etc… the China government has openly encouraged and supported its citizens to learn English. Even taxi drivers are encouraged to take up English.

“To us, these developments has created the demand for a pool of technically competent professionals in the China marketplace, and this demand has created the opportunity for us.” But, he added: “China is not our only biggest market, and does not warrant us to allocate half of our resources into the country. Being a sincere management professional, it is also not correct to admit this.”

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He continued: “If the China business needs more resources, and if it benefits us to put in more, then we will go ahead.”

Although there was no discussion on targets (numbers), Mr Ong Boon Kheng did talk about the things that Informatics “will” and “will not” ; do.

Courses conducted only in English

He revealed: “We only conduct lessons in English – it is not why we choose to do this, but this is how we want to position ourselves in the market. We conduct classes in English all over the world because we provide international services.”

Even in China, a predominantly Chinese-speaking market, should this not bean exception? He also revealed: “We did think of conducting our classes in Chinese before, but realized that the market needs an English-medium class.

“Furthermore, China’s famous universities, including Beijing University, Qing Hua, Fudan, Jiaotong and Sifang Universities – they can provide a Chinese-medium technical subject.”
This is not a comparison of the merits of an English or a Chinese medium mode of education. He felt that: “We cannot compare apples with oranges. Education is a choice. Why is it that some students who are qualified to attend NUS, yet are sent to pursue an overseas degree by their parents? Because education is a choice based on one’s needs – not on whether the course is good or bad. And choice is often influenced by the cost.”

There are things which Informatics never considered. Said Mr Ong: “We never thought of going into other businesses. We are very focused. We are not a crazy company and we are not crazy people.”

This is one of Informatics’ philosophy. He pointed out: “We are very clear about ‘who we are’ and ‘what we do’, that is, we are in the lifelong learning services business – we provide lifelong learning services.”
On the other hand, the reporter noted that Informatics in Shanghai is operated as subsidiaries of the company, but this is not the case in other parts of China. Why?

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This is because in the 90s, when Informatics first stepped foot into China, the first centre was established in Shanghai. Mr Ong revealed that at that time, no one understood what franchising was, and there was virtually no market for franchising. Hence Informatics had to “do it on its own”.

In addition, he pointed out, while Singapore is a “model” for Informatics, the company has made Shanghai a ‘model’ for China, to facilitate the development of its franchise business. Our China partner went to Shanghai to check out and evaluate the place and reverted that the capital required is lower than in Singapore.

Another point worth noting is that the Informatics education centres in Shanghai, emphasizes heavily on using English as a medium of instruction in classes, even for technical classes. This is not only practical but has also helped achieve an important chapter – Informatics has, not too long ago, successfully signed an agreement with Beijing University to jointly offer English Language courses at the University. Proud of this tie-up, Mr Ong felt that this is one of Informatics’ most worthy achievements in China. He expressed: “ We are very happy and proud to be able to work with Beijing University. Beijing University is China’s No.1 University – they don’t sign agreements with just anyone.”

Informatics may not be the world’s only school providing English-instructed classes, however, this seems to be the key factor for success. And, in Mr Ong’s words, Informatics is one of the “early players in China”.

As to whether there will be more such collaborations with prominent Universities in the future, Mr Ong replied: “This will all depend on the opportunities along the way.”

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