NT man Sakib Awan given key East Timor business role

A Darwin businessman has been given a key diplomatic role in East Timor. Read what it is.

The federal government’s appointment of long-time Territory businessman Sakib Awan to a crucial regional trade post aligns with an ambitious strategy to enhance Australia’s regional influence through stronger business ties.

Sakib Awan was appointed Australian Business Champion in East Timor, one of 10 prominent national business leaders appointed to champion business development with each Association of South East Asian Nations, with a longer term view of tripling regional trade by 2040.

His appointment was announced at the ASEAN-Australia Relations summit in Melbourne this March, celebrating 50 years of Australia’s ties with ASEAN and marking a significant step towards deepening these relationships.

Sakib Awan shaking hands with East Timorese prime minister Xanana Gusmao as president Jose Ramos-Horta looks on.

Mr Awan has been trading with the tiny country for 22 years and makes a strong case for how East Timor, which is still one of the world’s smallest economies, could become a great place to do business.

Highlighting the bureaucratic hurdles, he said while it took days to register a business in Australia, the process could take months in East Timor, potentially discouraging investors accustomed to more efficient systems.

“Yes, there are problems, but none of these are insurmountable,” he said.

“Timor comes with opportunities. Challenges discourage people, but our expectations of East Timor are way too high. They’ve only been independent for 22 years.”

A large, cost-effective workforce is one of a number of advantages of doing business in East Timor.

While emphasising the importance of fair pay aligned with output, he noted that the significantly lower labour costs could offer start-ups a substantial boost.

“The workforce, when trained, is motivated, inspired, resourceful, and tenacious,” he said.

“Respectful salaries are crucial for maintaining productivity,” he said.

“Something you pay $1000 for here, in East Timor you pay $100-plus to produce, another $100 each way north and south freight, and you have the same job done for a third of the cost.

Sakib Awan in 1988 during his Sheraton Hotel days.

“Smart operators could bring goods directly to Darwin or ship to the rest of Australia.”

East Timor’s manufacturing sector is still in its infancy, highlighting the need for imports. “They don’t even make their own nails,” he said, emphasising the vast opportunities for businesses willing to invest in the country.

His company, East Timor Trading (ETT), founded after East Timorese independence in 2002, has grown to become the nation’s largest distributor of fast-moving consumer goods (FMCG) and hospitality brands.

ETT’s retail arm services 2200 outlets across 13 districts and operates Burger King, Gloria Jeans coffee franchises, and Cheers! Bottle Shops.

The company’s property arm is developing East Timor’s most modern international-standard business industrial zone, comprising 15,000 square metres of industrial, warehousing, cold storage, processing rooms and office space in the first phase.

Mr Awan’s background in international hotels, including roles at Islamabad’s Holiday Inn, Sydney’s Menzies Holiday Inn, and Darwin’s Sheraton, were a solid foundation for future business ventures.

He founded Transglobal Marketing in 1991 before establishing ETT in 2002.

Since 2012, ETT has contributed A$105 million in taxes to East Timor’s economy and aims to help create jobs for 1 per cent of the country’s population.

Among the 10 champions are notable figures like Macquarie Bank CEO Shemara Wikramanayake (Philippines), Western Sydney University Chancellor Jennifer Westacott (Indonesia), and ANZ Chief Executive Shane Elliott (Singapore).

“With a focus on each of the 10 Southeast Asian countries, these champions bring to the table a wealth of leadership expertise, a deep understanding of local business dynamics, and extensive commercial experience,” Mr Awan said.