Chinese Business in Malaysia: Accumulation, Ascendance, Accommodation

by Terence Gomez

Overview

Chinese companies have managed to perform well in Malaysia, especially after the recession in the mid-1980s, due to a clear change in the Malay dominated government's attitude to Chinese capital. Despite the problems that prevail among UMNO politicians, the government has provided a stable economic environment and offers opportunities for domestic private investment, even for the Chinese. Given these circumstances, it does appear that Chinese capital in Malaysia has reasonable prospects for further growth in the immediate future.

This study examines the dominant role of Chinese capital in the economy, providing in-depth empirical research on its mode of development and styles of operation. Covering the period from colonial times to the present day this study identifies key issues pertaining to Chinese business operations in Malaysia: ownership and control patterns, style of growth, relations with the state, politicians and other Chinese businessmen, and the manner of development of business abroad, whilst debunking the theory that large-scale Chinese capital is not very entrepreneurial in nature.

Product Details

ISBN-13:	9780415517379
Publisher:	Taylor & Francis
Publication date:	06/14/2012
Series:	Chinese Worlds
Edition description:	Reprint
Pages:	256
Product dimensions:	6.12(w) x 9.19(h) x (d)

About the Author

Edmund Terence Gomez is Associate Professor at the Faculty of Economics and Administration, University of Malaya. He has also held appointments at the University of Leeds (UK), Murdoch University (Australia) and Kobe University (Japan).

Table of Contents

List of Tables ix

List of Figures xi

Preface xii

Acknowledgments xiv

Note on Currency xvi

List of Abbreviations xvii

1 Chinese Business: Culture, Entrepreneurship or Patronage? 1

Chinese Business in Malaysia 1

Literature Review: Culture, Ethnicity and Class 6

Research Methodology 14

Research Themes 17

Ownership and Control 17

Holding Company, Interlocking Stock Ownership and Pyramiding 19

Interlocking Directorates 22

2 Chinese Business, Colonialism and Accumulation 27

The Colonial Period 27

From Independence to May 1969 33

Case Studies

Robert Kuok and Perlis Plantations Bhd 40

Lim Goh Tong and Genting Bhd 49

Loh Boon Siew and Oriental Holdings Bhd 58

Conclusion 64

Chinese Business in Malaysia

3 Chinese Business, the NEP and Accommodation 67

The Chinese, the NEP and the Corporatization Movement 67

The Hokkien Chinese in the Banking Sector 75

Multi-Purpose Holdings 83

Case Studies

William Cheng and Lion Corporation Bhd 93

Khoo Kay Peng and MUI Bhd 101

Vincent Tan Chee Yioun and Berjaya Group Bhd 112

Conclusion 128

4 Chinese Business, Liberalization and Ascendance 133

Liberalization, Authoritarianism and Patronage 133

Chinese Businessmen, Malay Patrons and Inter-Ethnic Co-operation 153

Quek Leng Chan 153

Lee Loy Seng 157

Case Studies

Francis Yeoh and YTL Corporation Bhd 163

Ting Pek Khiing and Ekran Bhd 171

Conclusion 179

5 Conclusion 183

Chinese Business Networking: Dispelling the Myth 183

Corporate Growth: Patronage and Entrepreneurship 186

Postscript 191

Notes 198

References 215

Index 224

Editorial Reviews

'A fascinating and timely study. A definitive and well-written analysis of a significant topic. The book will be welcomed not only by students of Malaysian business but by all interested in the evolution of overseas Chinese enterprise.' - Malcolm Falkus, Business History

From the Publisher