CHINESE BUSINESS IN MALAYSIA Accumulation, Accommodation and Ascendance Edmund

130 Pages·2010·10.82 MB·English

CHINESE BUSINESS
IN MALAYSIA
Accumuliaotn,A ccommodaiton
andA scendance
EdmunTde renGcoem ez
Chinecsaep iitnaM la layaspipae atros
havree asonapbrloes pefcotrfs u rther
growtihnt hei mmediaftuet uAr e.
revieowft hel iteraotnuC rhei nese
busineisnMs a laywsoiual idn dictahtaet
althouaglshlt udiaecsk nowletdhgee
dominarnotl oef C hinecsaep iitnat lh e
economtyh,e riesa deartohfi n-depth
empirirceasle arocnhi tmso deo f
developmaenndts tyloefso peration.
Thisst u,dw yhiccho vertsh ep eriod
fromc olontiiamle tso t hep resednaty ,
filtlhsag ta pb yi dentifykienyig s sues
pertaitnoiC nhgi nebsues iness
operatiionMn asl aysoiwan:e rshainpd
contrpoalt tersntsy,ol feg rowth,
relatiwointsth h es tatpeo,l iticainda ns
otheCrh inese businestshmee n, and
manneorf d evelopmoefnb tu siness
abroaadtt, h es amet imdee bunkitnhge
theoyr thalta rge-sCchailnee csaep ital
isn otv ereyn trepreneiunnr aitaulr e.
Dr EdmundT erencGeo mezi sa
lectuartetr h eF aculotfyE conomics,
UniversoifMt ayl aya.
PrintiendG reaBtr itain
ChinesWeo rlds
ChinesWeo rldsa ,n ew seriesC ufrrzoomnP resasn dt heU niversity
of Hawai'Pir ess,p ublishehsi gh-qualsicthyoa lrshipr,e search
monographasn,d s ourcceo llteiconosn Chineshei stoarnyd s ociety
from1 900i nttoh en ext century.
'Worldssi'g natlhsee thniccu,l turaanldp, o litimcuallt iforamnidt y Chiense Busisnse
regiondailv ersoiftC yh inat,h ec ycloefsu nitayn dd ivisitohnr ough
whicChh inam'so derhni stohraysp asseadn,d r ecernets eartcrhe nds
toward regisotnuadli easn d locailss uesI.t a lsos ignatlhsa t inM alaysia
Chineseniessn so tc ontainweidt hitne rritobroiradle r-so verseas
Chinesceo mmunitiienas l clo untrainedsr egioanrse a ls'oC hinese
worldsT'h.ee ditosreset hema sp arotf a politieccaoln,o misco,c ial, AccumulatAisocne,n dance,
andc ulturcaoln tinuutmh astp antsh e Chinese maTianilwaannd,,
Accommodation
Hong KonMga,c au,S outh-EaAssti aa,n dt hew ordl.
Thef ocuosf C hinesWoe rldiss omnod erpno litaincdss ocieatnyd
historIyti. n cludbeost hh istoirnyi ts brosawdeeerpa nds pecialist
monographosn Chinespeo litiacnst,h ropoyl,po oglitical economy,
socioyl,oe gducatiaonnd,t hes ocial-scaisepnecceot fsc ultuarned
religions.
EdmundT erencGeo mez
ChineBsues ineisnMs a laysia
AccumluatioAns,c endanAccec,o mmodation
InterannadlI nternatMiiognraalt ion
ChinesPee rspectives
VillaIgnec .
ChinesReu raSlo cieitnyt he1 990s
ChenD uxiuL'ass Atr ticalnedsL ette1r9s3,7 -1942
, -"
UNIVERSITOYF HAWAIIPIR ESS
HONOLULU
Int hmee myo orf
mys elflemsoste hrE,m eldGao mez,
myq uiye ltolving sister, Evelyn,
andm yl itbtrloet, Jh eerffreyw,h oh ads om ucht ol ifvore
© 199E9d munTde renGcoem ez
AlRli ghRtess erved
Publisinh Neodr tAhm eribcya
UniverosfHi tayw ai'i Press
284K0o lowaSltur eet
HonoluHlauw,a i9'6i8 22
FirPsutb lisihnte hdUe nitKeidn gdobmy
CurzoPnr ess
15T heQ uadraRnitc,h mond
SurreTyW,9 B1P
England
PrintienGd r eaBtr itain
LibroafCr oyn gCraetssa loguing-Diant-aP ublication
GomezE,d munTde rence.
Chinebsues iniensM sa laysaicac:u mulation, ascendance,
accommoda/tE idomnu nTde renGcoem ez.
p. cm.- (Chinweosrel ds)
Inclubdiebsl iogrraepfheirceaanlnc die nsd ex.
ISBN0 -8248-21(6a5lp-ka3.p er)
1.B usinesspeopleH-iMsatloary2ys.C.i h ai-nese-Malaysia­
Economciocn diti3o.nB su.s ineenstse rprises-Malaysia-History.
4.I nvestmCehnitnse,s e-MalaysiaI-.TH iitsltIeoI.rS. ye .r ies.
HF3800.66.6G1 998 98-499.7 6
338.8'89510595-dc21 CIP
Contents
LiosftT ables ix
LiosftFg iuers xi
Perfcae xii
Acknowglmeendts xiv
Noteo nC urrnecy xvi
LiosfAt b brveiations xvii
ChinesBeu sineCsusl:t urEen,t repreneuorrsP haitpr onage?
ChineBsues iniensM sa laysia 1
LiteraRteuvrieeC wu:l tuErteh,n iacnidtC yl ass 6
ReseaMrecthh odology 14
ReseaTrchehm es 17
OwnersahnidpC ontrol 17
HoldiCnogm panIyn,t erloSctkoicOnkwg n ersahnidp
Pyramiding 19
Interlocking Directorates 22
2 ChinesBeu sineCsosl,o nialainsdmA ccumulation 27
TheC olonPiearli od 27
FromI ndependteonM caey1 969 33
CaseS tudies
RobeKruto ka ndP erlPilsa ntatBihodn s 40
LimG ohT onga ndG entiBnhgd 49
LohB oonS ieawn dO rienHtoalld iBnhgds 58
Conclusion 64
Vll
Chinese BiunM sailnaeysssi a
3 Chinese BustihneeN s sEa,Pn dA ccommodation 67 Tables
TheC hinetsheNe,E Pa ndt hCeo rporatiMzoavteimoenn t 67
TheH okkiCehni neisnte h Be ankiSnegc tor 75
Multi-PuHroplodsien gs 83
Case Studies
WilliCahme nagn dL ioCno rporaBthido n 93
KhooK ayP enagn dM UIB hd 101
VinceTnatnC heeY iouna ndB erjaGyrao uBph d 112
Conclusion 128
4 ChinesBeu sineLsisb,e ralizaantdiA osnc endance 133 1.1M alaysOiwan:e rsohfiS ph arCea pit(aaplta rv aluoefs )
LiberaliAzuatthioorni,t arainadPn aitsrmo nage 133 LimitCeodm pani1e9s6,9 -(9p5e rcentages) 2
ChineBsues inessMmaelnaP,ya troannsdI nter-Ethnic 1.2 BreakdobwyEn t hniocfiE tqyu iOtwyn ersohfiC ph inese
Co-operation 153 Companiaemso ntgh Teo p1 00P ublicly-CLoimsptaenidoe ns
QuekL eng Chan 153 thKe LSEi nT ermosfM arkeCta pitalization 4
LeeL oy Seng 157 1.3C apitFallo wisnE ast Aassa iP ae rcenotfaG greo sDso mestic
Investment 19(9G0D9-I3) , 21
CaseS tudies
1.4M alaysFiuan:dR sa isiendP rivSaetceu riMtairekse 1t9s9,a5 n d
FrancYieso ahn dY TLC orporaBthido n 163
199(6R Mm illion) 22
TingP ekK hiianngd E kranB hd 171
1.5P rofiloefPs r ominBeunmti putDeirrae ctoofCr hsi nese-Controlled
Conclusion 179 CompaniAemso ngT op1 00P ublicly-KLLiSsECt oemdp anies2 4
2.1P erlPilsa ntatBihodSn:es c toBrraela kdoiwnTn e rmosf T urnover
5 Conclusion 183 andP re-TParxo fit1s9,9 (5R Mm illion) 44
ChineBsues iness NetworkintghM:e y tDhi spelling1 83 2.2R obert KBuuoski'nsIe nstse rOeusttssi Mdael aysia 48
2.3G entiBnhgd S:h arCea pitTaulr,n ovaenrdP rofiMta rgins,
CorporGartoew tPha:t ronaangdEe n trepreneurship 186
1991-95 (RM million) 51
2.4G entiBnhgd S:e ctoBrraela kdoiwnTn e rmosfT urnovaenrd
Postpstc ri 191
Pre-TParxo fit1s9,9 5 (mRiMl lion) 53
2.5O rienHtoalld iBnhgdsS: h arCea pital, TaunrdPn roovfietr
Notes 198
Margin1s9,8 4-(93RM million) 59
Refeenrces 215
3.1 MalaysGirao:sD so mestPirco dubcytS ecto1r9,5 5-94
Inedx 224
(percentages) 68
3.2M alaysia: bEyMx apjoorGrtr so up1s9,6 0-(9p3e rcentages6)9
3.3L ioCno rpB hdS:h arCea pitTaulr,n ovaenrdP rofiMta rgins,
1985-(9R5 Mm illion) 95
3.4L ioCno rpB hdS:e ctoBrraela kdoiwnTn e rmosfT urnovaenrd
Pre-TParxo fit1s9,9 (5R Mm illion) 100
3.5M UIB hdS:h arCea pitTaulr,n ovaenrdP rofiMta rgin19s7,8 -95
(RMm illion) 104
viii ix
ChinBeussei nienMs asl aysia
3.6M UI Bhd:S ectorBarle akdowinnT ermso fT urnovaenrd P re-Tax Figures
Profit1s9,9 5( RM million) 110
3.7B erjaGyrao upB hd:S ectorBarle akdowinnT ermso fT urnover
andP re-TaPxr ofit1s9,9 5( RM million) 126
4.1D FIF lowst oS outheaAssti aCno untri1e9s8,5 -1994
(US$m illion) 134
4.2P olitiAcffialli atioofPn r ominent Busineswsh oFa irgeu res
Shareholdaenrds/ oDri rectoofrP su blicly-LCiosmtpeadn ies 142
4.3YTL CorpB hd:S harCea pitaTlu,r novaenrd P rofiMta rgins,
1991-9(6RM million) 164
4.4Y TL CorpB hd:S ectorBarle akdowinnT ermso fT urnovaenrd
Pre-TaPxr ofit1s9,9 5( RM million) 168
4.5E kraBnh d:S harCea pitaTlu,r novaenrd P rofiMta rgin(sRM ) 172 2.1P ertis PlanBthadt( iMoanlsa ysOipaenr atioSnism)p:l ified
4.6E kranB hd: SectBorreaalk dowinnT ermso fT urnovearn d Corporate Str1u9c9t5u-r9e6, 44
Pre-TaPxr ofit1s9,9 5( RM million) 174 2.2G entinBgh d:S implified Corporat1e9 9S5t-r9u6c ture, 57
2.3O rientHaoll dinBghsd :S implifiCeodr poraStter uctu1r9e9,5 -96 61
3.1P ubliBca nkB hd:S implifiCeodr poraStter uctu1r9e9,5 -96 81
3.2I nterlocSktioncgk ownerisnht ihpeM ulti-PurHpoolsdei ng
Group1,9 95-96 91
3.3L ionC orpB hd:S implifiCeodr poraStter uctu1r9e9,5 -96 100
3.4M UI Bhd:S implifiCeodr porate Str1u9c9t5u-r9e6, 111
3.5B erjaGyrao upB hd:S implifiCeodrp oratSet ructu1r9e9,5 -96 127
4.1H ongL eongC o.B hd:S implifiCeodr poraStter uctu1r9e9,5 -96 157
4.2K L-KeponBgh d:S implified Corporate1 9S9t5r-u9c6t ure1,6 1
4.3I TL CorporatBihodn: SimplCiofirepdo raStter uctu1r9e9,5 -961 70
4.4E kranB hd:S implifiCeodr poraStter uctu1r9e9,5 -96 179
P.lS implifiMeodd elo ft heP ractiocfPe o litiPcaatlr onage 193
Maps
Map 1:S abaha ndS arawak xx
Map 2:P eninsuMlaalra ysia xxi
x xi
Preface
Preface pattearcncse,ts ofis n ancciaapli atnadgl o vernmpernotj eacntds ,
involveimnee cnotn osmeicct ors.
Whiluen dertakingo nrth eels aeragrpecushbt l iclyC-hliinsetseed
companIih easv,be e coimnec reasinglyth eab wuasrisenss e ttyhlaet
oft heo wneorfst heslea rcgoem paniispe rso bavbalsytd liyff erent
formth ato fo wneorfss malaln-dm edium-Cshcianleees net erprises
(SMEs.)R eseairnctthoh eCshei neSsMeE sw oulpdr obarbelvyea a l
'
wholdlifyef resntto ryo wo fo whnoeftr hse esnet erpfurnicsteiason nd
develionap ne nvironwmheenrte psoltiactheia evspe r ovi-duendt il
verrye cen-tnlosy u ppoFrotre. x ampolneem,a jcoro ncluisnti hoins
studiyst hhee terogiennb euistiyns etsysl e tahmleoa nrgCg hei nese
firms.It i sq uestioinfsa ubcblhue s inheestse rogeexniesaitmtsoy n g
AlthougChh ineesnet erphraiscs oen tribsuitgendi fictaoen ctol­y theC hineSsMeE sW.h ilieti st hihse terogeanmeointtghy el arge
nomigcr owitnhM alaythseirahe,a bse esnu rprilsiitnrtgellsyee arch enterptrhiabstre isn ignstq ou estait oynp oloof'g Cyhn iees'c apital,
ont hseu bjTehciths.a lse tdov arimoiussc onceapbtoiubotun ssi ness the concdlruaswihnoe nrmsea .y n otb ea pplictaotb hleSe M Es.
praccetasim ontgh eC hinepsaer,t icouflt ahreelx yt eonfbt u siness Nevehretletshseh, i staonrdyd evelopomfet nhtel argCehsitn ese
'netwoarmkosnt'gh bei ggCehri nefisrmes .S ucmhi sapprehensionsc ompannieeesdt sob es tudireedc,o radnedpd u itn p erspective.
havea lscoo nrtibutteodt hew idye hleld btehlaiCteh fi nese
enterpreisspeesc,it ahlolsiyenS ouhteasAts iaH,o ngK onga nd
Taiwaanr,ee m ergaisnam g a ojre conofmoriccte h routghhce r eation
oft ransnabtuisoinsnasnel e tworTkhse.o verwhelamtitnegn tion
givetnoa smanlulm beorfb usindeesasbl yst her egiolne'asd ing
Chinese bushiansae lsspsoom peunl arthienz oetdi oofan d ynamic
formo f' Chinecsaep iitsam.Tl 'hivso luimesa na ttemtpoct o ntest
populsatre reotthyapater seu nsuppobryte emdp iriecvaild ence,
partictuhlteah relstyih sac to mmoent hniidce ntaintdcy u ltwuirlel
insptihrceer eatoifio nnt ra-ebtuhsniince ss networks.
Malyasipar oviadnie nst erecsatssietn ugad sye thnic Chinese, who
constiatbuotu2et8 p erc enotft hep opuiloanht,a vmea intaai ned
hugper eseinntc hece o rporsaetcetd oers phiatvei tnogd eawli tah
state that hsausp pnoorottf ii tbvbseeu e sni nienstse rIenst thse.s e
ciurmcstancietcs o,u lldo glilcbyae p resumtehda itn tra-ethnic
businceos-so perhaatsci oonnt ribtuott heecd o ntingureodw otfh
MalsayiaCnh-inecsaepa iltT.h ivso lumper oviad setsu doyft he
largCehsitn ecsoem paniceosn,t extuwailtihzaiennda nalyosfi s
Malayseicao'nso mdiecv elopCmeasnest t.u dies on celiyg­ht publi
lids Ctheinecsoem panfioceusos n t hfea cttohrahsta vdee termined
formso fb usinpersasc taincdei nfleuncecdo rporvaetnete usr.
Particautltaerni tsig oivne tnot hei mpaocftg overnmpeoinlcti es,
incluedtihnnrgie cd istreinbduetaivodoner rse,g uliantiitoinaa ntdi ves
industriadlriizvaetsi,o hnaw vhseih cahp oewdn ersahnidcp o ntrol
xii Xlll
Ackonwlgeedments
Acknowledgements diligaenndec ffiec enicnsy e ndimneg atlhlim sa terhieallpm eedt o
compltehtreee seairntc ihmf eor p resentoaftt hifieor nsd tr ta ftahte
KualLau mpucro nerfen.cI e ama lsgor atetfuoml y s istEelre,a nor,
whor esponqdueidlc ytk om y numeropulse faoshr e lipn t racing
cruciinoafrlm at.i on
Asa lwaIy s,t hank Shheasrrm u ppfoaornrtd e ncouragienm ent
completthiivnsog l umaen,df or p roviadnie nngv ironcmoenndtu cive
tow ritienvge,n utghhs oheh ash ersbeeleftn i eddo wnw ithhe r
doctorreasle aOrUcfth w.ol itcthliel dErveinae,n dE rioctf,e bnr oke
intos ttuhtdeoy t akae' brefaorkm'p latyoh elmpe k eiyn p arotfts h e
manuscArlitphto.tu hgimhse anmtu chm oreed itliantgte hre,wy e re
am oswte lcomdei straction.
This studfyun dewdap sr imarbiyla y g ranftor m theT oyota AlthouIga hm i ndebttoea dlt lh osmee ntiohneerdIe r ,e main
Foundoant.Ti heF ounadtni,oa lonwgi tthh eC hianCgh ing-kuo responfsorit bhlveei eewxsp reisnst ehdib so ok.
Foundatailospnor, o vitdhefuedn dintgoo rganaic zoen feroenn ce TerenGcoem ez
Chinebsues inienSs osu thAesaishate, l adtt hUen iverosfMi atlya ya, Leed1s99,8
KualLau mpuirnJ un1e99 7A. d rtav fersoifot nh ivso lumbea,s ed
largoenlm yo sotf t hec asset udies heprree,s enawttae sd t his
conefrecneI.b enefited imfmreotnmhs ceeo lmym ents omnta hdaet
papreb ys omeo ft hep articippaarnttisc,Lu eleaP rolhPy i nTga,n
SioCkh ooD,o nalNdo ninGie,og reH ickKsi,tM achadCoa,r l
TrcokiYa,o SouchoRauj,B rown, WLeioL he ngP,e tPeors Pta,u l
Handly,eR obeCrhta na ndS ikkVoi sscIhh earv.ae l sloe armnutc h
form my numeroduiss cussioJnasm iMweaic tkhiw eh oh asb een
particusluaprptloiyrvo ef m y efforttosp ursruees eaornct hh e
suebcjtIa. m e spieaclilnyd ebttoJe odm Ko .Sa.n dL ee KHaimn g,
whor aedt hmea nuscraitsp hto,nr ott iacnedp, r ovitdheodu ghtful
commenatnsds uggieos.nt s
Beingb aseidnL eedEsn,g lafnordt hep asttw oy earIsh ,a ve
received mucfhor ms GurpepgoBorertn toPnr,oe fssoofrC hisnee
Studaitte hsDe e partmeonfEt a sAts iSautnd ieUsn,i verosfLi eetdy.s
Gregw,h or eaadn e arly odftr hamefa tn uscarnidsp utb mitittfeor d
considerfora tpiuobnl icawtaisio nns,t rumienng teatlt mineg t o
comptlete hisst udGyr.e gh as aglesnoe ropursolvyi mdee wdi th
facilittopi uerss muyer eseaarttc hhUe n iveyr.Is a iltswoi sthot hank
FlemmiCnhgr istiwahnosr eena tdh em anuscrriapitss,ee dv eral
improtapnoti natnsde, n gagmeedi nn umeroduesb aotnems a nyof
thvei ewrsae idsh ere.
My reasrecahs sisLtiannTgte k, Soonu,n dertmoooskot f t he
reseaarttc hhRe egisotfrC aormp aniaensda tt hel ibraartSi teasr
PublicatBihodna sn dB ernamtah,en ationneawlsa gencHyi.s
xiv
xv
Noteo n Currency Abbreviations
Unleostsh erwiinsdei caatlecldu ,r revnaclyu aersei nM alaysian. ABB AseaB rownB overi
ring(gRiM:tr ingMgailta y.sT ihaeM) alaysriianngi gssi utp posedly ACCCIM AssociaCtheidn esCeh amberosf C ommercaen dI ndustry
baseodn a b undolfei nternactuirorneanlmc aiienstl,hy Ue S d ollar. Malaysia
Befotrhe1e 790s,i wta sp eggaetdR M3: U SS1 S.i ntchebe e ginning APMC AssociaPtaendM alaysCieam entS dnB hd
offl exiebxlceh arnagteie nts h eea r1l79y0 8i,mt o veidnth er angoef ASN AmanahS ahamN asion(aNla tioUnnailt T rusStc heme)
RM2.-42.t7ot hUeS d ollbaerf,od rreo pppirnegc ipiftoromuJ sullyy BHC BakunH ydroelectCroircpaolr atSidonnB hd
1997t oa na ltli mleo wo fRM 4.9i ne arJlayn ua1r99y8. Bhd Berha(dL imited)
CASH ConstructainodSn u ppliHeosu seB hd
C&C BintanCgy cl&e CarriaBgien tanBgh d
CCM ChemicaColm panyo fM alaysBihad
CIC CapitIasls uCeos mmittee
Citic ChinIan ternatiTornuasaltn dI nvestmCeonrtp oration
CMS CahyaM ataS arawaBkh d
DAP DemocratAicct ioPna rty
D&C Bank Developme&n Cto mmerciBaaln kB hd
DTC deposit-tcaok-ionpge rative
EOI export-oriented industrialization
EON EdaraOnt omobiNla sionBahld
EPF EmployeePsr'o videFnutn d
FCW FederCaalb leWsi,r easn dM etaMla nufacturBihndg
FELDA FederLaaln dD evelopment Authority
FIC ForeigInnv estmCeontm mittee
FTZ freet radzeo ne
GDP grosdso mestic product
Gerakan GerakaRna kyaMta lays(iMaa laysian People's Movement)
HICOM HeavyI ndustries CoropfoM raaltaiyosBnih ad
ICA IndustrCioaolr dinatAicotn
IPP independpeonwte prr oducer
lSI impotr-substitiuntdiunsgt rialization
xvi xvii