FIFTY years ago, he was a child with a milk bottle in his mouth, clad in shorts, bustling around the office of the family’s old home.
Today, not only has he inherited his father’s business, as the group’s chief executive and managing director, Datuk Seri Michael Tio also led PKT Logistics Group to achieve a remarkable annual revenue of over RM1bil, cementing his status as a legend in Malaysia’s logistics industry.
As the group marks its golden jubilee milestone this year, Tio shared the journey of the group’s evolution from a home office in Klang to a logistics giant in Malaysia with over 800 guests at its gala dinner.
Among the special guests were Penang Yang di-Pertua Negeri Tun Ahmad Fuzi Abdul Razak and his wife Toh Puan Khadijah Mohd Nor.
During the celebration, which was themed “Maritime Night”, Tio announced a donation of up to RM2mil in scholarships from Yayasan PKT to seven higher learning institutions to study at Peninsula College, as the group’s corporate social responsibility (CSR) in education initiative.
Beneficiaries under the PKT Excellence Academic Scholarship programme include Politeknik Sultan Haji Ahmad Shah, Politeknik Nilai, Politeknik Sultan Mizan Zainal Abidin, Politeknik Kota Kinabalu, Politeknik Seberang Perai, Politeknik Balik Pulau and Kolej Komuniti Kuala Langat.
During his address at the gala dinner, Tio revealed that the group had weathered several crises in the past.
They navigated through transformations by establishing a clear vision, fostering a culture of excellence and innovation, and focusing on corporate social responsibility and on environmental, social and governance (ESG).
To date, the group has emerged as a leader in the domestic logistics industry. However, Tio harbours ambitious dreams, aiming to triple the group’s annual revenue to RM3bil by 2030.
He firmly believes in his motto of “dream of it, talk about it, plan for it, work on it and get it”, of which all visions can become reality.
To attain this goal, Tio employs disruptive business approaches, utilising the Quintuple Helix model as a novel framework, which collaborates universities, government and communities to create sustainable business models that benefit both society and the environment.
Corporate responsibility
Under PKT’s CSR in education, Peninsula College’s state-of-the-art campuses across Malaysia feature the bespoke “Campus-In-Industry” concept tailored to address the contemporary educational landscape by integrating real-world practical experiences imparting essential skills for success in a corporate environment.
In addition, CSR initiatives such as Anak Belajar Ibu Bekerja (ABIB), Jom! Bekerja Sambil Belajar (JBSB) and Jom Bersara Sambil Sambilan (JBSS), as well as the Smart Trucker programme are designed to help the surrounding community to earn a living.
He cited the Smart Trucker programme as an example, illustrating how the group is breaking the tradition of encouraging women to become truck drivers, allowing more women to demonstrate their capabilities in this male-dominated industry.
“Corporate social responsibility is not about how you spend your profits; it’s about how responsibly you make your profits,” he emphasised.
He stressed that the group never takes its corporate social responsibility lightly, nor is it merely a show.
Regarding the company’s greatest asset—its employees—he insists on taking good care of them to benefit the community as a whole while emphasising a Happy Working Culture.
In addition to modest financial rewards, the group offers its employees annual overseas trips as incentives.
Apart from Antarctica, the group’s top management has nearly circled the globe under the management retreat programme.
Tio jokingly remarked, “Looks like we’ll have to circle the world again.”
If anyone were to presume such perks are exclusive to only a select few high-ranking executives, they are in for a surprise.
The group’s mid-level and junior managers have the opportunity to enjoy these benefits.
Tio personally oversees and plans every aspect of the annual management retreats, including destinations, accommodations and transportation.
The group states that maintaining employees’ physical and workplace well-being is essential to prevent them from bringing stress home and disrupting family harmony. That’s why Tio insists that CSR must begin internally.
He stressed that “if you work for PKT, your health will improve”.
To promote employee health, he spared no expense in constructing employee gyms.
The group’s signature health programmes encourage weight loss among employees such as Gymax Idol whereby yearly one winner will win a paid holiday trip that comes with pocket money, Gym A Day Off (GADO) where employees get a day off for every 12 times they clock-in hours at the group’s in-house gym within a month and Management Weight Loss challenge where employees who achieve successful weight loss are rewarded with an overseas trip for four persons to any Asean country.
Additionally, last year, the group implemented a new policy allowing every employee to enjoy a day off on their birthday.
Net zero adherence
The group is also committed to achieving net zero carbon emissions by 2039 through five green action plans (GAPs).
These GAPS include adopting leaner and more efficient methods, eliminating all forms of resource wastage and ensuring that all warehouses under the group are Green Building Index (GBI) Gold Certified.
Moreover, the group is actively transitioning company trucks and cars from traditional fuel to electric vehicles to reduce air pollution.
Notably, for every tree cut down to build warehouses, the group will plant three new trees in its place.
The group also operates a paper recycling programme where for every kilogramme of paper used, 3kg of paper are recycled.
From forest conservation to curbing environmental pollution, the group is furthering its commitment to sustainable practices.
In December 2023, the group made headlines as Malaysia’s first company to sign and join the Climate Pledge, initiated by Amazon and Global Optimism.
The pledge is a commitment to reach net zero carbon by 2040–10 years ahead of the Paris Agreement.
The Malaysia Book of Records certificates were presented to three of of the group’s customers at the gala dinner, witnessed by Ahmad Fuzi and Tio.
The recipients included Malaysia’s largest local coffee chain ZUS Coffee, the top seller of frozen yoghurt within a year Llao Llao and popular fried chicken joint selling the most Korean-style chicken wings in a single day Kyochon.
That evening, the group also honoured business partners, customers, government agencies and academic representatives with specially crafted gold plaques commemorating the company’s 50th anniversary, expressing gratitude for their unwavering support and encouragement over the years.
Acknowledgements of success
Bermaz Auto Bhd Executive Chairman, Tan Sri Ben Yeoh, found himself deeply moved following his attendance at PKT Logistics Group’s 50th anniversary gala dinner.
As he reflected on the evening, several key impressions resonated with him.
Yeoh was struck by the company’s remarkable evolution, transitioning from its modest beginnings to becoming a leader in the industry, especially excelling in the automotive industry logistics.
Moreover, he was impressed by the group’s robust culture of social responsibility, evident through the comprehensive human resource development programmes.
This unwavering commitment to nurture the employees and cultivating a positive work environment said volumes about the group’s core values and principles.
Additionally, Yeoh acknowledged the group’s dedication to ESG practices, particularly in addressing environmental concerns and prioritising employee well-being.
Under Tio’s leadership, PKT has emerged as a driving force in ensuring the competitiveness and sustainability of Malaysia’s logistics industry, remarked Yeoh.
“They also establish colleges and universities focusing on the logistics industry and practical internships in line with industry requirements,” he said this during a later interview.
“Their colleges and university have professional accreditation for the purpose of industry recognition.”
Overall, Yeoh found the group’s journey inspiring and expressed his confidence in its continued growth, especially through embracing technological advancements such as the Internet of Things, artificial intelligence and modern solutions.
He found PKT’s innovative culture and steadfast determination to lead the industry both impressive and uplifting, underscoring the company’s potential for even greater success in the future.
Mitsui OSK Lines, Ltd executive officer Norio Abe expressed his honour in witnessing a company that cherishes its past while ambitiously setting its sights on the future. For him, the group not only showcased an extraordinary journey but also exemplified its growth and resilience over the years.
“The company’s dedication to its employees, shareholders, and the community is palpable, with its strongest commitment lying in sustainability and green logistics,” emphasised Abe.
He highlighted the inspiring nature of the group’s innovative and forward-thinking approach, especially considering its contributions to innovation and sustainable development.
Abe believes that PKT has a bright future ahead and will continue to lead Malaysia’s logistics industry.
He viewed the gala dinner as more than just an enlightening experience and hoped that the group would continue to push boundaries and uphold its values.
“I encourage them to embrace change, foster a culture of continuous learning and make a positive impact on society.”
Enduring partnerships
Daiso Malaysia managing director Masatsugu Furuichi expressed his delight after attending the gala dinner, stating his excitement at the opportunity for Daiso to collaborate with PKT and create history together.
He described the event as a fantastic celebration where he not only learnt about the group’s developmental history but also gained a deeper understanding of its core values.
Furuichi also remarked that he was impressed by the various forms of support and encouragement provided by the group in human resources management.
“As business partners, we are very happy to be able to make history together,” he stressed.
TalentCorp CEO Thomas Mathew shared his reflections on attending the group’s 50th anniversary Gala Dinner.
He was impressed by the company’s commitment to prioritising employee well-being, emphasising its innovative strategies for fostering a healthy work environment and work-life balance.
“The gala dinner highlighted PKT’s strong sense of unity and its holistic approach to employee satisfaction,” remarked Mathew.
He praised the company’s efforts to go beyond traditional workplace practices, recognising the importance of employee well-being in driving long-term success.
Lastly, he extended his congratulations and best wishes to the group for the next 50 years, encapsulating his admiration and support for the company’s dedication to its employees’ welfare.
Additionally, ZUS Coffee chief operations officer Venon Tian, which boasts the most coffee chain stores in Malaysia, admitted that the gala dinner not only showcased the group’s outstanding organisational performance but also highlighted its reputation as a reliable partner.
He emphasised that choosing PKT among numerous companies was primarily due to its willingness to collaborate in realising ZUS Coffee’s vision of becoming the “national coffee”.
For him, the partnership between the group and his company reflects a commitment to growth and excellence within the business community.
As one of the key suppliers to the group, Profound Axis Private Limited director Ng Tiam Joo described the gala dinner as an inspirational experience, as the group showcased an outstanding journey towards achieving world-class milestones.
He noted that PKT has become a symbolic pioneer, leading the way in sustainable services to meet global economic demands while ensuring future environmental growth.
He expressed optimism about the company’s future with the group and looks forward to the group’s development in “ecological consciousness” services.
These services aim to provide innovative and sustainable designs, promote well-being while establishing closer ties with the surrounding environment and fully embodies the spirit of corporate social responsibility.
In addition to congratulations, Ng also expressed the company’s eagerness to embark on the journey towards an “ecological consciousness” lifestyle together with the group.
Supporting further education
Polytechnic and Community Colleges Education Department (JPPKK) director-general Dr Mohd Zahari Ismail highlighted the significance of the group’s sponsorship of students from vocational colleges and community colleges through scholarships.
He emphasised that these scholarships, which benefit nearly 80% of students from B40 low-income families, are a rare form of reward that reflects the group’s stability and reputation as an ethical employer.
Zahari noted that the group’s implementation of various corporate social responsibility programmes has led to rapid growth in conjunction with the community.
He believes this effort serves as a model for other industries, as it not only reduces unemployment rates but also enhances community income.
He also believes that under the visionary leadership of Tio, PKT will continue to prosper.
Furthermore, Zahari views the group’s provision of up to RM2mil in scholarships to students from vocational and community colleges as recognition of the Department of Polytechnic Education and Community Colleges (JPPKK)’s commitment to industry-driven vocational education.
Universiti Malaysia Kelantan Research and Innovation deputy vice chancellor Prof Dr Arham Abdullah regarded the group’s scholarships as a reflection of Tio’s unique qualities.
He noted that these scholarships, which include special monthly allowances and no contractual obligations upon graduation, enable students to pursue their desired careers.
For Arham, awarding scholarships not only demonstrates social responsibility but also enhances the image and reputation of Peninsula College.
He concluded that scholarships and monthly allowances greatly benefit students by alleviating financial burdens and acknowledging their outstanding performance.