Committed to making a difference, water industry veteran Tay Kiat Seng aims to be a driving force for positive change in the community.

“I live by the mantra ‘Success is not how high you have climbed, but how you make a positive difference to the world’”, said Tay, Executive Director and Chief Executive Officer of SGX-listed water treatment company Memiontec Holdings Ltd.

“The work we do at Memiontec lies at the core of human well-being. Without water, there can be no life. Water comprises up to 60% of the human body, and is involved in all body processes. At the same time, water is a critical and basic element of every industrial activity within our economies.”

A graduate from the University of Strathclyde in the UK with a Bachelor of Engineering in Mechanical Engineering degree, Tay has spent more than three decades of his career in the water treatment industry.

In 1992, he co-founded Memiontec with Soelistyo Dewi Soegiharto, a chemical engineering graduate from the University of New South Wales in Australia. Dewi also started the Group’s Indonesia operations in Jakarta in 2004. She later returned to Singapore to helm the Group’s operations in the city-state, and was subsequently appointed the Group’s Managing Director. 

The passion for the water industry shared by both founders eventually blossomed into love, and the couple got married a few years after Memiontec was established.

At the time, the adoption of membrane technology in water treatment was in its infancy. “I've been involved in membrane technology since I started my career, and could see that membrane processes are more superior, and can become a cost-effective method for water and wastewater treatment,” Tay recalled.

“We started our entrepreneurial journey with a tiny office and the laser-focus approach of developing cost-effective water treatment solutions using this technology.”

Memiontec began operations with an Engineering, Procurement and Construction (EPC) model, where it designed and supplied equipment for water technology. It also helped to run and maintain water treatment plants. As an early player in the market, this model initially helped Memiontec to expand organically.

“While the EPC business model served us well, I could see some weaknesses. Revenue levels fluctuated based on each project's start and completion dates, and as we went through the cycle of tendering for jobs and completing the projects secured, then the same cycle started all over again,” Tay noted.

Driven by a desire for greater growth and revenue stability, he decided to change Memiontec's operating focus to move up the value chain.

“Rather than doing only EPC work, I began exploring avenues for asset ownership of water treatment systems or facilities, where I could partner with project owners to co-own water treatment systems,” Tay said.

This meant Memiontec would go beyond designing and supplying technology, to also profiting from the sale of treated water. Each project would span up to 25 years, allowing the firm a steady flow of revenue throughout.

Breakthrough Growth with Innovation

But this transformation meant Memiontec needed to adjust its business strategy, market positioning and more importantly, change the mindset of its team.

“In business, we often see that growth will reach a glass ceiling if we do not think outside the box, or innovate and try new things. It's also human nature not to want to rock the boat when things are not broken,” Tay said.

“I’ve always been more of an optimist, and seen how fresh breakthroughs can lead to new growth avenues during my entrepreneurial journey.”

So, in 2016, Memiontec established a joint venture with a state-owned enterprise in Indonesia that led to its first asset ownership of water treatment systems or facilities in the country.

Since then, it has amassed a total of three asset ownership projects in Indonesia, which allows the Group to sell water for up to 25 years. This ensures steady recurring revenues, while providing clean water access to the communities it serves.

Two of such projects have started the supply and sale of water, while the third is under development, with the first phase expected to be operational in 2022, barring unforeseen circumstances.

“During my journey, I’ve learned that in whatever we do, there are bound to be problems and challenges. Instead of worrying about what we cannot control, let’s channel our energy and positivity to what we can create.”

Listed on SGX Catalist since March 2020, Memiontec is now a one-stop total solutions water treatment company, with over 20 years of experience in water and wastewater management services across Singapore, Indonesia and China.

Through the use of membrane, ion exchange, physical, chemical and biological processes and leveraging its in-house design, engineering, fabrication and assembly capabilities, Memiontec develops compact, cost-effective, and customised water and wastewater treatment solutions across the entire value chain in the water industry.

“Despite uncertainties and delays in water infrastructure projects due to the COVID-19 pandemic, we believe demand for clean water remains strong, driven by population and economic expansion, as well as accelerated efforts by governments to develop sustainable water supply and accessibility,” Tay noted.

“On top of demand for potable water, the water industry is also seeing a surge in demand for wastewater management and treatment solutions, due to growing industrialisation, as well as greater emphasis on environmental protection and ecological conservation.”

In Singapore, water demand is expected to almost double to 860 million gallons per day by 2060, from the current 430 million gallons per day, according to PUB data. To ensure that Singapore’s water needs are not solely dependent on rainfall, the government has announced plans to increase its water recycling and desalination capacity to meet the rising demand and supply up to 85% of its water needs in 2060.

In Indonesia, Southeast Asia’s most populous country with more than 270 million people, nearly one in two Indonesians lacks access to safe water, and over 70% of the population rely on potentially contaminated sources, World Bank data showed.

Accelerating Water Demand

“Nearly all countries in Southeast Asia experience water shortages, with little action taken to address it,” Tay said. “With increasing urbanisation, higher population growth and more industrial development, demand for water will continue to rise.”

As a result, Memiontec has seen more government agencies and business enterprises in Southeast Asia accelerating their water treatment plans.

“With a strong track record in the region, particularly Indonesia, we see more opportunities related to water treatment solutions - be it drinking water, wastewater treatment etc - where we’re able to provide one-stop water solutions on a cost-effective basis,” he added.

Apart from its day-to-day operations, Memiontec is equally focused on its Environmental, Social and Governance (ESG) goals.

The Group remains a strong believer in the principle that water must be carefully managed during every stage of the cycle - from extraction of water from various sources, and treatment of water to meet "fit-for-purpose specifications", to treated wastewater for re-use, and its eventual return to the environment.

“Hence, an important part of our strategy is to help our customers evaluate and identify the key issues of their water assets, and provide the best solutions that can maximise the usage of such assets in a sustainable manner,” he added.

“We often provide free consultations to government agencies in Asia, sharing our insights on innovative and best practices in water treatment solutions, so they can use this knowledge to further enhance their water infrastructure and systems.”

Not surprisingly, there’s much to keep this 59-year-old father of two awake into the wee hours.

“Operational issues keep me up because water treatment facilities generally run around the clock. There would be serious repercussions should operations at our water treatment facilities be disrupted,” he said.

“So, a big part of our work revolves around developing and fine-tuning fail-safe systems for our water solutions, coupled with the adoption of advanced instrumentation, control and automation.”

At the end of the day, Tay remains motivated by the positive impact that he can create in the lives of those around him.

“Seeing communities gain access to clean water sources through our total water solutions gives me the most inspiration and gratification. It also drives me to learn and implement new technological innovations in the water industry,” he said with a smile.

“We look forward to growing our presence in Asia, so we can empower communities and businesses with water treatment solutions that are sustainable and financially viable.”

Memiontec Holdings Ltd

Memiontec, a Singapore-based, one-stop total solutions water treatment company, has over 20 years of experience in water and wastewater management services across Singapore, Indonesia and China. The Group develops reliable, compact, cost-effective, innovative and space-efficient customised water and wastewater treatment solutions across the entire value chain in the water industry. It does this by using membrane technology, ion exchange, physical, chemical and biological processes, as well as leveraging its in-house design, engineering, fabrication and assembly capabilities, serving both municipalities and diverse industries in Asia.

The company website is: memiontec.com

Click here for the company's StockFacts page.

For the half year ended 30 June 2021 financial results, click here.

 

About kopi-C: the Company brew

Text: Jennifer Tan-Stanisic
Photo: Company file

kopi-C is a regular column on the SGX Research website that features C-level executives of leading companies listed on Singapore Exchange. These interviews are profiles of senior management aimed at helping investors better understand the individuals who run these corporations.

For previous editions of kopi-C: the Company brew, please click here.  

For more information, or if you would like your senior executives to be featured on SGX Market Dialogues, please send suggestions to jennifer.t@sgx.com.