 |
| Tan Sri Loh Boon Siew (founder of Boon Siew Sdn Bhd) worked his way up from a mechanic to a motor tycoon as Malaysia's distributor of Honda motorcycles and cars. Here he is with Honda Motor Co Ltd, Japan, founder Soichiro Honda. |
BOON SIEW’S LEGACY LIVES ON
Stories by: Ho
Wah Foon
SundayStar/14 August 2016/Focus
Together in marriage and business: Oriental Holdings Bhd and Boon Siew Sdn Bhd
group managing director Datuk Robert Wong Lum Kong beat two other suitors to win
the hand of Datin Loh Ean.
By the early 1990's, this China-born immigrant who came with nothing but his bare hands had already accumulated vast stretches of land in Penang and close to 50% of Langkawi, in addition to the famous Honda motor sales business, plastics making, assembly of motor vehicles, motor parts manufacturing, plantation, hotel and resorts, as well as property development.
THE family of the late Tan Sri Loh Boon
Siew - the richest man in Penang during his lifetime - has been shrouded in
mystery for decades, with the unexplained death of a key family member and
wild speculations on the size of their wealth.
So you can imagine the surprise when two
family members recently decided to lift the veil of silence, albeit partially.
For years, except for the 1965-listed
company Oriental Holdings Bhd that has to regularly report its business
dealings and financial results to the stock exchange, not much is known about
this illustrious family, their life and their other business activities.
The death of Loh Kah Kheng, the younger of
the two sons of Boon Siew, designated to be successor of his vast business
empire, grabbed headlines in 1987 when he died mysteriously at his bungalow
after experiencing marital problems. In 1999, tragedy struck again. This time,
it saw Kah Kheng’s son fall from a condominium in Penang after visiting a
girlfriend. Police had classified his demise as “sudden death”.
Hit by the untimely demise of his dearest
son, the devastated Boon Siew became reclusive for some time. But Penangnites
still respected this self-made tycoon - mainly for his business acumen and the
many charities he had donated to. Today, many can still recall the financial
aid they had received from him.
The blow from his son’s death, however,
did not deter the shrewd billionaire from identifying the right person to help
him manage and expand his business empire.
By the early 1990's, this China-born
immigrant who came with nothing but his bare hands had already accumulated vast
stretches of land in Penang and close to 50% of Langkawi, in addition to the
famous Honda motor sales business, plastics making, assembly of motor
vehicles, motor parts manufacturing, plantation, hotel and resorts, as well as
property development.
For the new captain of the group, Boon
Siew saw the right candidate in a non-blood related “outsider” - Datuk Robert
Wong Lum Kong.
This decision in 1987 was made despite the
fact that Boon Siew still had another adult son and four adult daughters.
But Wong was no stranger to the family and
the business world. The soft-spoken and warm Australian- trained accountant is
the husband of Loh’s eldest daughter Ean.
“One
of the best and most important decisions made by Tan Sri Loh was to appoint
Robert Wong to run Oriental Holdings and take charge of its motor division. He
is now one of the most highly-regarded automotive sector managers in the
country,” opines Ian Yoong, a former investment banker.
Under Wong’s stewardship, Oriental
Holdings saw its revenue surge to RM4.38bil in 2015 from under RMlbil in 1987.
Pre-tax profit rose more than three folds to RM359mil. For 11 consecutive
years, Honda was the number one seller in the local market, overtaking Toyota.
Besides the motor trade, Wong had to
oversee the group’s other businesses in hotel and resorts, plantation and
construction machinery - both local and international. Employees hired
directly and indirectly by the Loh family total to some 10,000 now.
“We
have preferred to stay low-profiled but friends have been persuading me, at 76
now, to tell the world the good deeds we have done and what we have achieved,”
says Wong in a two-hour interview with Sunday
Star.
Accompanied
by his wife Ean at this rare media interview, Wong adds: “Even though Tan Sri
(Loh Boon Siew) is no longer around, his legacies stay. His influence is still
strong. His words of wisdom, values and management philosophy are very much
alive in this group.”
Even
Boon Slew’s love for energetic horses is inherited by Wong, who has two
gold-plated horse statutes in his office. “Horses ready to gallop signify
strength, power and loyalty. As someone with a strong sense of loyalty, I like
to associate with horses, like Tan Sri,” says Wong at Wisma Kah Motor, Kuala
Lumpur.
In fact, Wong has never failed Boon Siew.
He has worked tirelessly non-stop for Oriental Holdings to expand the group
into what it is today. His wife complains in jest that they hardly have
“proper” holidays due to his devotion and commitment to work.
But years of night drinking with the
Japanese to ensure Honda distributorship was renewed annually has indeed taken
a toll on Wong’s appearance. It has left a tired impression on his face and
taken away the chi (energy)
and vitality from his vocal cord.
This son-in-law has also adopted the
careful and frugal management style of Boon Siew. This has ensured Oriental
Holdings has a healthy balance sheet.
Yet, like the other members of the Loh
family, Wong has failed to inherit the entrepreneurial spirit of Boon Siew.
This is conspicuously missing in the second generation.
Loh’s
daughter Ean concedes, “We are not like our father who was very
entrepreneurial. He dared to venture into new sectors upon seeing business
opportunities. He founded the group, we build on the foundation and expand the
existing businesses.”
Perhaps, it is for this reason the cash
position of Oriental Holdings has been piling up - to some RM2.9 billion at
end-2015. Investors are hoping this will be given out as cash dividend if it is
not utilised.
Although the interview given by Wong and
his wife may not be as comprehensive as the writer has hoped for, it does
provide a glimpse into the world of Robert Wong and how business is conducted
according to Boon Slew’s wishes.
Below are
excerpts of the interview:
Q: How did you manage to stay so long in
Oriental Holdings, given that you are not one of the Lohs?
Wong: I have great respect for my father-in-law and many of
his philosophies. He passed the baton to me after Kah Kheng’s death and I have
to be loyal to him and work hard for the company.
Also, I agreed when he said: Robert, Your
wife (Ean) has a share in the Loh family’s holding company, and by
contributing to the group, you are helping your wife and your two children.
What have been your greatest achievements
in Oriental Holdings?
Wong: I am instrumental in making Honda the best-selling car
in Malaysia for 11 consecutive years (non-national car segment) from 1990 to
2000. It was the only company and country in the world to have achieved this. I
also played
a key role in maintaining Honda as the No.
1 best-selling motorcycle in Malaysia for almost five decades.
At its height, our motor division achieved
a profit of over RM400mil.
But for me, the best is to see all our car
and motorcycle dealers becoming millionaires and multi-millionaires. For other
financial achievements, you can read the Oriental Holdings’ annual reports.
How did you expand the motor division?
Wong: During those years, Honda distributorship was renewed
annually. I had to accompany the Japanese to drink and sing karaoke until 2am
almost everyday or for about 70% of a year. Luckily, I have an understanding
wife who takes care of the family well.
To answer your doubt: No, I have no other
women outside despite all these nights out with the Japanese who placed company
interest first and family second.
Behind every successful man is a woman,
not many women. One good wife is more than enough.
After 2000, when we set up Honda Malaysia
with DRB-Hicom and ventured into assembly and distribution of Honda cars, such
drinking sessions stopped.
Ean (chuckling): I make sure my husband does not have
women outside. I told my father that since my husband is working fulltime for
him, I should be spared. But on my own, I invest in properties in good
locations such as Bukit Bintang, Jalan Alor, Imbi, and in plantations.
What is your family’s net worth now after
working for the Loh family for over 40 years?
Wong: Don’t compare. One mountain is higher than another. We
must be contented with what we have. Money is not everything. It is important
to have a happy and harmonious family. We are happy we have some money to do
charities, like my father-in-law. We donate more to help the spastic children.
In this regard, the Loh family continues to support all the charities funded by
Boon Siew.
Is the share of Oriental Holdings
undervalued?
Loh: Yes. Its net value per share was RM9.10 at the end of
2015 financial year. We have not re-val- ued the land and properties of the
group. If we do it, the value per share should be more than RM20. (On Thursday,
the share ended at RM6.55).
We have been quite consistent in giving
dividends twice a year. Last year, we gave gross dividends of 20%.
Why are you not utilising your cash pile
of RM2.9bil?
Wong: We are expanding and have gone into healthcare sector,
but we prefer to be conservative, slow and steady.
As times are bad and the market is facing
a lot of uncertainties, cash is king. Many people are not sure what will happen
in the next two
years. We want to maintain sustainable
profit for the group. When there are opportunities, we will act. We have a lot
of land bought in the 1960s and 1970s, it may be cheap for us to enter property
development. We are also studying whether we should enter the education and
halal food sectors.
At 76, what have you not done for the Loh
family?
Wong: You cannot do everything. Now I want to take care of
my family and wife.
Don’t get angry at this question that
many want to ask:
When you dated your wife in the early
1960s, was it because she was the daughter of a rich man?
Wong (no anger shown): You must know I came from a middle-
class family. My father was also a businessman. Tan Sri Loh was very famous
already.
When I returned from Australia after my
studies, I did mingle with some rich kids. At that time, there were three men
who decided to tackle her. I was the fortunate one to be able to get a date
with her.
The first time I went to her house, her
family members interrogated me like a criminal. Luckily, her grandmother later
told everybody to spare me and allow me to take her out.
On the first date, I took her for an
Indian movie and later a coffee shop for a simple meal. She accepted ill this
without complains. She was a very simple person, without the airs of a rich
person’s child.
Ean: When his photo was first shown to me, I rejected him
because he looked like a playboy with the hairstyle of Elvis Presley. So when
he came to our house, he was drilled by my family.
Is there a possibility that the Oriental
Holdings will be split up eventually like many family businesses?
Ean: My father had already drawn up everything before he
passed away in 1995. He laid down that if any of the six family groups in
charge of six different sectors want to sell their share, they must sell to
family members and not outsiders.
Wong: He even drew up the succession plan for the second
and third generations. We have followed his wishes. He could see who was good
at what in the third generation, as many had returned from overseas education
to work in the group during his lifetime. (Note: current executive chairman
Datuk Loh Kian Chong of the third generation has held the post since Jan 1,
2015).
Do you think the third generation, which
has gained respect from the market, is ready to take over and you will retire
soon?
Wong: As senior citizens, we will have to retire one day.
There is still a need to balance the old and the young in the management, and
to bring stability to the group. The old guards are very loyal and hardworking.
They must continue to guide the young.
But our third generation has been with the
group for 10 to 20 years and they have risen from the bottom. Apart from the
elders, they also need professionals to help them. Teamwork is important.
Without teamwork, our motor division would never have achieved huge success.
What is the outlook for 2016 for Oriental
Holdings?
Wong: I believe we can maintain our profitability level. Our
motor division will still contribute the most to the bottom line of Oriental
Holdings.
The Tycoon Who Kidnappers Shun
Riding
high: The
late "Mr Honda of Malaysia" testing a motorbike with which he is
forever associated.
THE late Tan Sri Loh Boon Siew, whose
rags-to-riches story never seems to bore anybody, is a legendary tycoon
philanthropist that had even awed Penang-based kidnappers.
At the peak of kidnapping activities in
the early 1990s, Boon Siew could walk freely without bodyguards and drink in a
Penang downtown coffee shop every morning before he went to office, while other
tycoons in Malaysia had to surround themselves with tight security.
“The kidnappers know who I am. They know
that if they kidnap me, I would not be able to do many charities and help the
poor,” said Loh, at an interview with this writer for the Chinese Forbes
magazine in February 1992 in his bungalow in Jalan Sultan Ahmad Shah in Penang,
which is now being turned into a museum.
In this first and last interview he gave
to the media, Loh related in Hokkien his early struggles after arriving in
Penang from China penniless at the age of 13 in a rat-infested ship that had
braved the South China Sea.
As an illiterate, Loh could only do hard
labour after arriving in 1929. He displayed his foresight when he chose to be a
mechanic apprentice instead of a sedan chair puller that demanded no skill. At
night, he would wash filthy busses dotted with cow dung for 10 cents per
vehicle at the riverside of Prangin Road. During meal time, he would squat by
the roadside, eating plain porridge and salted vegetables.
“During those days, sedan chair puller
could earn eight dollars a month and mechanic only three dollars. My
supervisor said I was hopeless in choosing three dollars. I got angry. Instead
of sleeping in the mechanic shop, I chose to sleep in the smelly buses at
night,” he said.
Through sheer hardwork and intelligence,
the frugal lad saved enough to buy secondhand buses at 18, and from there, he
became the owner of Penang’s Yellow Bus Company. But all his properties were
confiscated during the Japanese occupation.
Boon Siew was determined to rebuild his
business after 1945. But the major breakthrough for him came after he obtained
the dealership for Japan’s Honda motorcycle. His mechanic skill came in handy. When
he was on a sight-seeing trip in a taxi in Osaka, he heard the smooth engine
sound of a Hondo motorcycle. He stopped the rider and checked the make and
structure of the motorbike despite the reluctance shown by the Japanese. He
then went to Honda to negotiate for a distributorship in Malaysia.
His roaring success in marketing Honda
motorcycles and later motorcars won him the title “Mr Honda of Malaysia”.
Meanwhile, Boon Siew went on to set up other businesses through his investment
company, Oriental Holdings. He also bought land and properties. By early 1990s,
he became the biggest landowner in Penang and possibly owned half of Langkawi
island.
In managing companies, Boon Siew was known
to be extremely strict with accounting. He told this writer: “I can use my
money to personally treat you to a meal of several hundred ringgit, but in
company accounts, every sen must be accounted for.”
Before his death in February 1995, Boon
Slew’s interests had spanned from the manufacture and sale of Honda vehicles,
making of automotive parts and building materials to property development,
hotels and resorts, plantation, plastics - locally and overseas.
For entrepreneurs, his story is inspiring.
But for the ordinary Penang people, he is fondly remembered as a
philanthropist. Lam Wah Ee Hospital, which gives free treatment to the poor, is
still being financed by the Lohs.
Boon Siew had six children - four girls
and two boys - from two marriages. He appointed all his daughters as directors
when he formed Boon Siew Sdn Bhd in 1957 as he believed that they should all
have a fair share of the family fortune. Later on, his sons- in-law became
directors as well.
No comments:
Post a Comment