Thursday, January 29, 2009

Trading - Pooled Capital

Last November, Dewan Perdagangan dan Perindustrian Aceh (The Acehnese Commercial and Industrial Chamber) was incorporated in Kuala Lumpur. Memberships are opened to acehnese traders all over the world. Friends asked me questions on ‘Acehnese Trading Traits’ …

My family has been in business since the establishment of Kingdom of Kedah (now Kedah). When Sultan Iskandar Muda established the acehnese regime during the height of Aceh Empire, we were allowed to control ‘Pekan Rabu’ or trading places which contributed to our economic supreme for hundreds of years. The fell of Aceh Empire however was a major turning point to our deterioration in trading.

When Tsunami 2004 hit Aceh, it ended the war. Suddenly, acehnese all over the world found ourselves saving money at tremendous rates we have never experienced before. We took advantage to start focusing on one thing we were so good at – running businesses.

Pooled Capital

On January 2005, my family (2,385 family members locally) started with 15 sundry shops. Today, we have more than 800 shops located from Muar, Johor down south to Lumut, Perak up north. Combining all acehnese trading families, today, there are more than 7,000 acehnese sundry shops all over the peninsular including two new untraditional areas – Kelantan and Terengganu.

Pooled Capital (also known as Kuutu) is a trading strategy. It has a 2,000 years history. Some say it originated from India but some say from China. It is quite major to the development of those 15 shops to more than 800 shops. Never mind the historical part, this is what it is all about …

Step 1 – Have a collective members … say 100 members.
Step 2 - Every member contributes a monthly amount … say RM 100 for the next 100 months.
Step 3 – Total monthly amount = Pooled Capital = RM 10,000.
Step 4 – Every month, the amount is given to a member as a starting capital to start running a business.
Step 5 – In 100 months, there shall be 100 businesses run by 100 members.

There are many advantages in applying Pooled Capital: Usury free, Family unity, A major motivating factor in running businesses etc etc etc.

…… Knowledge
…………..…… Trades

Celestial of Love

Song and Music by Azer Mantessa

Dedicated to Celestine.