3 reasons why ECS Holdings' CEO shift will be easy breezy

Mr Ong Weh Hiam will be new CEO.

According to OCBC, ECS Holdings (ECS) announced a couple of key management changes over the weekend, with the most notable being the appointment of Mr. Ong Wei Hiam as new CEO from 1 Jan 2013.

This comes after current CEO Mr. Narong Intanate announced his intention to retire and step down from the role on 31 Dec 2012 when his employment contract expires.

We expect the leadership transition at ECS to be smooth with minimal disruption given the following reasons: 1) Mr. Ong is already an Executive Director at ECS, 2) currently holds the CFO role at VST Holdings (which he will retain) which is the HKSE-listed parent company of ECS (89.5% equity stake) and is also in the same distribution industry, 3) Mr. Intanate will continue to serve on the ECS board as Non-Executive Director and hence ECS will still be able to tap on his experience
and expertise.

Meanwhile, Mr. Tay Eng Hoe, a founding director, former CEO and current Non-Executive Chairman of ECS, will become Executive Chairman for a year (subject to
renewal on a yearly basis), effective 1 Jan 2013.