CEO Insights Magazine

The magnitude of the global IT equipment subscription market is flaring high, largely driven by the augmenting demand for flexible and cost-effective IT solutions, remote work, and the adoption of cloud computing. The market size is expected to hit $45 billion by 2032 if the reports are anything to go by. However, foreseeing the scope of such a market 25 years ago, when the IT revolution was just taxiing on the runway before its historical takeoff, is no easy feat. This priceless foresight became a game changer for Joshua Chin, the founder of IT equipment subscription services companies Smart Rental and Buynow, to savor the early mover advantage and build unmatched trust and legacy in the industry.

Today, a pioneer in the industry, Joshua is at the heart of Asia’s IT equipment subscription industry, making a difference in the sustainability matrix with his innovative business model and approach. Along with his business and life partner Kathleen Tham (Co-Founder & COO), Joshua pilots his ventures to help businesses and individuals transform, enabling them access to high-quality IT solutions. In other words, he effectively contributes to solving the e-waste crisis and digital divide by offering refurbished devices through flexible subscription plans, making technology accessible and affordable while reducing environmental impact. The keen focus on environmental stewardship and social impact sets the companies far from their competitors. Below is an excerpt from CEO Insights Asia's exclusive interview with Joshua.

You founded Smart Rental and Buynow in 1999. How has the journey been so far amid such an intense IT revolution?

We started this journey when computers began spreading like wildfire across the globe. Over the past 25 years, we've witnessed its remarkable evolution. From starting with minimal capital to growing organically over the years, our journey has been anything but easy, but we’ve successfully navigated two major recessions and overcome numerous setbacks. Reflecting on the key factors behind our success, I would say that our belief in the rising demand for computers, addressing e-waste, and the potential of the subscription model has been pivotal. Guided by a vision to make laptops accessible to everyone, we have been driving forward the subscription-based model since 2020, ensuring affordability and inclusivity for all.
 

In fact, during the challenging two pandemic-ridden years, 2020 and 2021, we launched two successful equity crowdfunding campaigns in Malaysia, raising several million dollars. I want to express my heartfelt gratitude to our investors for placing their confidence in our vision. I also sincerely thank our working partners, my co-founder, and our dedicated team, whose unwavering belief in this concept has been instrumental in bringing it to life.

One of the most significant challenges has also been transforming user perceptions and mindsets. It’s no secret that, traditionally, users prefer to purchase computers, but this approach blocks the development of a sustainable ecosystem and ultimately contributes to e-waste. Through our subscription-based ecosystem, we have been able to not only recycle products but also fulfill our Corporate Social Responsibility (CSR). Educating users about the benefits of this paradigm shift has been a significant hurdle.

Another key challenge has been managing the model's capital intensity. We introduced an innovative financial structure by creating a multimonth Operational Expenditure (OPEX) framework for users, but its execution requires substantial capital investment. These challenges have catalyzed our determination to refine the model and make sustainable computing accessible to all.

Beyond tackling challenges, tell us about the best practices contributing to success.

Our business thrives by integrating multiple best practices into our operations. First and foremost, we emphasize responsible sourcing, ensuring that we procure high-quality machines to meet our standards. Secondly, we leverage our proprietary refurbishing skill set to restore notebooks and IT equipment to mint conditions with precision and care. Third, we have built a strong Malaysian nationwide sales network, which forms the backbone of our operations. Fourth, this combines with our comprehensive nationwide support, ensuring that wherever our notebooks go, reliable assistance is always available. Lastly, we have developed a robust capital and credit algorithm to offer an easy ownership program, making it simpler for users to access our products without financial strain. These  practices collectively define our commitment to excellence and innovation.

You have always been known for your innovative approach. What are the different aspects of your innovation culture today?

The heart of our innovation culture is a simple yet effective organizational structure. As the CEO, I work closely with my wife, co-founder and Chief Operating Officer, Kathleen Tham. Together, we have built a team of eight to twelve department heads, most specialists taking on additional managerial responsibilities. Beyond the leadership team, we have diverse specialists, including support specialists, delivery specialists, technical specialists, and refurbishing specialists.

We firmly believe in recognizing the potential of every individual and fostering a culture of trust and collaboration. Our philosophy orbits implementing daily best practices and accumulating collective monthly efforts. To reward these efforts, we track performance daily and ensure monthly payouts through a unique, hybrid compensation model. This approach allows our team members to earn above market average, creating a dynamic and motivating environment. By combining this with our emphasis on innovation and accountability, we aim to cultivate a workplace that empowers individuals and drives excellence.

Tell us more about your leadership approach and the guiding principles or methodologies you follow. 

I deeply admire Dr Ichak Adizes' leadership methodology, particularly his insights from the book ‘Managing Corporate Lifecycles and Mastering Change’. His framework of four distinct personality types, namely Producer (P), Administrator (A), Entrepreneur (E), and Integrator (I), resonates strongly with me. I believe in embracing these  differences, even though departments aligned with these characteristics often face natural clashes due to their diverse roles. For instance, producers drive results, administrators manage structure, entrepreneurs innovate, and integrators unite teams. I also appreciate Dr Adizes' corporate bell curve concept, where the corporate lifecycle assigns each phase to a different leading role, reflecting the dynamic nature of organizational growth. This process mirrors team sports, where every individual plays a unique role, responding to various situations and challenges as they arise.

Another guiding force in my leadership approach is GP culture. By quantifying every action and output, we design personalized compensation plans that reward staff effectively. Finally, I strongly uphold flexibility within the organization. Recognizing that most people aspire to be their own boss, we actively encourage our staff to take on greater responsibilities and even initiate their own ventures within the company. This approach fosters innovation, empowerment, and a sense of ownership among our team members.

What would be your advice to budding leaders trying to build a subscription business in the tech domain?

Business is often like martial arts. Both require discipline, dedication, and a gradual progression of skill, you begin as a white belt and advance to becoming a black belt. Similarly, in business, you refine your skills, identifying your strengths and weaknesses. You can leverage your expertise in areas where you excel, while it's essential to seek support for areas that require improvement. Just as in martial arts, the journey in business is continuous, rewarding those who persist and adapt.

Give us a sneak peek into the future of Smart Rental and Buynow.

We are currently preparing for a NASDAQ listing, an exciting milestone for our company. Simultaneously, we are strategizing to expand across Southeast Asia through joint ventures. Our plans include establishing partnerships in neighboring countries such as Singapore, Cambodia, Indonesia, and Thailand. We aim to strengthen our presence in these markets by leveraging local collaborations. By the end of this year or early next year, we will likely initiate several new joint ventures, marking a significant step forward in our regional expansion efforts. 

Joshua Chin, Founder, Smart Rental & BuyNow

A leader with over 25 years of professional experience, Joshua is a pioneer of the IT equipment subscription industry and extremely passionate about building a sustainable IT realm. He started his entrepreneurial career in 1999 and tackled several challenges to grow his business across Asia. 

Hobbies: Exercise, Travel, Music,Movies, and Reading.
Favorite Books: Works by Anthony Robbins, and Robert Kiyosaki.
Favorite Travel Destinations: Thailand, Japan, and the US.

Awards and Recognition:
•Two-time Taekwondo WorldChampion
•SOBA and ESG Awards •Golden Bull Award — 2020
•Consumer Choice Award — 2021/2022
•Best Intelligent Award — 2022
•Malaysia Book of Records — 2022
•SME 100 Awards — 2023
•ESG Positive Impact Awards — Gold in Human Rights & Labor Standards Category — 2024
•Star Soba Outstanding Business Award (Best Brand and Best Green Initiative) — 2024