Malaysia’s Top 40 Richest People 
Feb 3 2018, 10:28 AM, updated 8y ago
LAST year was dotted by the return of higher commodity prices and better economic growth. The world’s economies on average are back in business as growth rates and trade have started to improve once again after some period of uncertainty caused by a cooling China economy and also the slump in global crude oil prices.
That translated to indeed a stellar year for Malaysia’s richest people. The top 40 richest Malaysians saw their net worth increase by a combined RM63.62bil or 28% to RM290.48bil at the end of 2017.
That amount though is limited to the value of listed shares the 40 individuals own and do not take into account the debt taken to buy the shares and the information gathered is based on latest disclosures made by those companies as at the end of last year.
Among the richest 40, the person who saw the largest increase in wealth was Robert Kuok. Malaysia’s richest man who saw a RM13.17bil increase in his wealth and that was followed by Press Metal Aluminium Holdings Bhd founder Tan Sri Koon Poh Keong and Koon Poh Ming, who is his brother.
The rebound in aluminium prices and the great improvement in the financial performance of Press Metal led to a huge rise in wealth for Poh Keong and Poh Ming, and subsequently their ranking from the 14th spot to eighth this year.
This year also saw the entry of seven new people into the list, led by Tan Sri Tony Fernandes and Datuk Kamarudin Meranun of the AirAsia Group. The big jump in the share price of AirAsia as the profits of the company soared amid an internal restructuring of the group saw them catapult into the 17th position with a combined wealth of RM3.95bil.
Other notable entries into the list with wealth in excess of RM2bil are Datuk Mohd Abdul Karim Abdullah, Abdul Kadier Sahib and Datuk Awang Daud Awang Putera of Serba Dinamik Holdings Bhd (RM2.5bil) and fund manager Datuk Seri Cheah Cheng Hye (RM2.47bil) of Value Partners Group.
But with every entry into the list, there is an equal number of individuals who have dropped out of the top 40. Tan Sri Shahril Shamsuddin of Sapura Energy Bhd was ranked the 29th richest person in Malaysia in 2016 but the collapse in crude oil prices and also the share price of his listed company saw him lose more than half of the value of his shares in the company.
The drop in the share price of Sapura Energy erased RM958mil in the value of Shahril’s shares in the company.
Other notable people who have dropped out of the top 40 are Rimbunan Hijau boss Tan Sri Diong Hiew King @ Tiong Hiew King and Tan Sri Mokhzani Mahathir after he sold his listed shares in Sapura Energy.
1. ROBERT KUOK
Flagship: PPB Group Bhd /Kerry
Group net worth: RM49.9bil
MALAYSIANS know Robert Kuok as the country’s richest man, and for a very long time too. His wealth, estimated at nearly RM50bil at the end of 2017, is more than double the next name on the list of the country’s richest people. But last year, the legendary 94-year-old multi-billionaire did something many have been waiting for.
Kuok is reclusive. He is still sharp of mind when it comes to running his business empire and by publishing his memoir, a lot of the whispers, legend and rumours about his life were corrected or validated in some way. In fact, he let on more than what people knew about his journey in life and business, and understandably, the book was sold out as fast as any book could have in this part of the world.
His influence is well-documented. Kuok was the trailblazer who opened his doors to China, and in return, made money for generations to come.
Kuok’s wealth at the end of 2017 was RM49.9bil, but in a year that was dotted by the return of high commodity prices and economic growth in this part of the world, Kuok made more money than any of the other billionaires on the list.
The rich do get richer and Kuok made RM13.2bil last year, or a 35.9% increase from the RM36.7bil he was worth at the end of 2016. That increase alone is equal to what the eighth-richest man in Malaysia was worth last year.
Kuok has controlling stakes in three listed companies in Malaysia – PPB Group Bhd, Malaysian Bulk Carriers Bhd (Maybulk) and Shangri-La Hotels (M) Bhd . PPB is a diversified company that is in plantations, food and also cinemas through Golden Screen Cinema Sdn Bhd. Maybulk is a shipping line and Shangri-La Hotels is the No 1 hotel chain in the country.
His businesses in Malaysia are a big part of his wealth, but the majority comes from his listed companies in Hong Kong and Singapore through Wilmar International Ltd.
Through a web of shareholding structures, Kuok’s wealth is primarily held by Hong Kong-based Kerry Group. Kerry Group has stakes in Hong Kong-listed entities such as Shangri-La Asia, Kerry Properties and Kerry Logistics.
It was the big rise in the share prices of Kerry Properties and Shangri-La Asia that fuelled the big jump in Kuok’s wealth last year. Kerry Properties’ share price rose nearly 70% last year, while the value of Shangri-La Asia more than doubled in a single year.
2. TAN SRI LIM KOK THAY
Flagship: Genting Group
Group net worth: RM23.8bil
TAN SRI Lim Kok Thay has turned the Genting Group from a one-hill casino wonder to an international gaming and entertainment company. The 65-year-old tycoon inherited the business empire built by his father and took it beyond the local shores in a far bigger way than the group had ever done.
The Malaysian operations are still the foundation of a group that now has diversified from being just a leisure and hospitality company. Plantations, property development and even biotechnology are areas that matter to the group that is ranked among the world’s biggest hospitality companies.
With Genting Highlands still a linchpin for the group and the foundation of its global success, the Genting Integrated Tourism Plan, handled through subsidiary Genting Malaysia Bhd , has developed and launched new tourism facilities that will be a source of long-term growth for the group.
Work on a 20th Century Fox theme park is well underway and that will seal Genting Malaysia’s appeal as a huge tourism site, and last year, the group announced the development of its Resorts World New York City. The US$400mil expansion at the Aqueduct Racetrack in Queens, New York, is set to become the Genting Group’s long-run growth engine.
Genting Singapore’s share price was up about 45% last year and Genting Bhd ’s stock was higher by about 15%.
His wealth grew by 7.2% last year to RM23.8bil from RM22.2bil in 2016 and the most significant development for him was asserting control over the Genting Group by declaring that he is a major shareholder of the group with direct and indirect stakes totalling 44.38%.
His announcement in November came after a report inferred that Lim may not be a substantial shareholder of the diversified group.
3. TAN SRI TEH HONG PIOW
Flagship: Public Bank Bhd
Group net worth: RM21.6bil
UNLIKE the others ahead of him in the ranking of the richest people in the country, Teh has been a one-man show who built his wealth through the financial sector. The founder of Public Bank has been largely absent from the public eye for some time, as the 88-year-old banker juggles his time between the office and nurturing his health.
But the bank seems to be ageing like fine wine, going from strength to strength as its share price hit a record high in 2017.
Teh’s wealth increased by 6% last year to RM21.6bil from RM20.3bil in 2016. The rise has been pinned to Public Bank’s strong financial performance which posted a net profit of RM1.4bil in the third quarter. For the nine-month period, Public Bank also increased its dividend a notch to 27 sen a share from 26 sen a share last year.
It is such generous dividends over the years, along with the steady rise in profitability, that has made Public Bank shareholders beam. The one statistic the bank always releases is shareholder returns and in its latest annual report, it showed that a shareholder who had bought 1,000 Public Bank shares in 1967 (the year the bank was listed) and held on to them, would be holding 148,938 shares as at end-2016 valued at RM2.94mil.
In addition, that shareholder would have received total gross dividends of RM1.2mil.
The other big development last year was Teh’s announcement that he would be taking a backseat in January 2019 when he retires as chairman come that year.
He will remain as the bank’s adviser and assume the title of “chairman emeritus” in recognition of his contributions to the bank he founded at the age of 35 in 1965. The bank’s shares hardly reacted, as the announcement of Teh’s departure ahead of the real schedule underlines the strategy of the banking group in putting in place a succession plan and making it public.
4. TAN SRI LEE SHIN CHENG
Flagship: IOI Corp Bhd
Group net worth: RM20.6bil
IOI CORP has been the stellar plantation company for the longest time, as the group has had a phenomenal record of delivering growth organically and via acquisitions. By acquiring estates from the 1990s, IOI Corp has grown in size and profit, which has made Lee one of the country’s richest men.
For the 79-year-old planter who claims to be able to talk to oil palm trees, Lee’s plantations are said to have one of the best yields in the business. Its sprawling plantation empire is also complemented by the property business through IOI Properties Group Bhd that saw his wealth increasing by 8.4% last year to RM20.6bil from RM19bil.
IOI Properties is also one of the largest property companies in the country and its strength is its overseas exposure that has helped buffer revenue and profit away from solely the Malaysian market.
It has bought properties in Xiamen, China, and also Singapore and those properties delivered big returns, as IOI Properties in the first quarter of its financial year posted a 28.1% year-on-year jump in net profit to RM242.85mil.
But the stalwart of its business is plantations, and last year, IOI announced the proposed disposal of a 70% controlling stake in IOI’s Netherlands-based palm oil refinery IOI Loders Croklaan Group BV for RM3.94bil to Bunge while retaining a 30% stake in Loders.
Loders is one of Europe’s leading global suppliers of specialty oils and fats to the processed food industry. IOI bought this business from Unilever in November 2002 for RM814mil.
The disposal of the 70% stake in the oleochemical company will help to pare down the debt of IOI Corp and give it the cash to not only make a special dividend that the market is expecting, but also channel more funds to look to increase the size of its plantation business which has been delivering stellar returns of late.
The group is looking to invest RM1bil in plantations after spending substantially in the downstream businesses over the past few years.
5. T. ANANDA KRISHNAN
Flagship: Usaha Tegas Sdn Bhd
Group net worth : RM20.4bil
AFTER A big decline in his net worth in 2016, Ananda saw an increase of 2.5% to RM20.4bil from RM19.9bil in 2016, a gain of RM500mil from a year earlier. The increase was the smallest of any tycoon on the top-10 list of the richest people in Malaysia, as a lot of that gain, at least in percentage terms, was given by Ananda’s stake in oil and gas (O&G) company Bumi Armada Bhd .
The rebound in crude oil prices lifted sentiment in a number of O&G stocks and it was no different with Bumi Armada. The near 30% increase in market capitalisation of that company lifted Ananda’s wealth, while the other two heavyweight companies that he owns, Maxis Bhd and Astro Malaysia Holdings Bhd, were either flat or up marginally.
Maxis is the source of much of Ananda’s wealth and the issues with the company in the past seem to have been ironed out last year, as the telco rebounded strongly in terms of profitability.
In the third quarter of its current financial year, Maxis posted a net profit of RM554mil from RM503mil in the previous corresponding period. For the nine-month period, its profit was up to RM1.63bil from RM1.51bil previously.
Astro, however, saw a dip in its profit in the third quarter although its profit for the nine-month period was higher than a year ago. While Astro stands to benefit from higher advertising expenditure and average revenue per user, there are risks to its business from rising content cost and a decline in pay-TV subscribers.
The year also saw the reported departure of his long-time lieutenant Ralph Marshall, who along with the 80-year-old Ananda is continuing to see protracted issues with a legal case in India.
Although his wealth is based on his stakes in Malaysian listed companies, sentiment from ongoing troubles in India will affect opinions on Ananda. But he recently received a bit of good news in India, as bankers have agreed to swap debt into equity in the debt restructuring of his mobile network Aircel.
6. TAN SRI LAU CHO KUN
Flagship: Hap Seng Consolidated Bhd
Group net worth: RM17.6bil
THE Sabah-based tycoon saw a RM1.17bil increase in his net worth to RM17.6bil from RM16.4bil in 2016, and much of that is down to a stellar performance of Hap Seng Consolidated shares last year.
The performance of the company’s share price over the past few years shows a steady upward trajectory that is underpinned by an equally calculated rise in the profitability of the group. The group, for the nine months to end-September last year, posted a net profit of RM1bil from RM962mil in the previous period. Cho Kun is the nephew of the late Tan Sri Lau Gek Poh and much of the business is run by professional managers.
Cho Kun is the largest shareholder in Hap Seng with a 73.9% stake by virtue of the family’s stake in Gek Poh Group and Lei Shing Hong Investments.
Although Hap Seng is the largest independent distributor of Mercedes-Benz cars in Asia, which is run through the private family business, the diversified listed group on Bursa Malaysia has interests in plantations, building materials, fertilisers, automotive distribution and credit financing and has been busy in recent years.
During the year, Hap Seng was reported to have proposed to sell subsidiary Hap Seng Logistics Sdn Bhd to LSH Logistics Pvt Ltd for RM750mil and sell 10 acres of land in Tawau, Sabah for RM175.28mil to Hong Kong-based Lei Shing Hong Ltd.
Its subsidiary, Malaysian Mosaics Sdn Bhd, proposed to sell a parcel of leasehold land and buildings in Kluang, Johor to Byorion Sdn Bhd for RM97.5mil.
Hap Seng controls 53% of Hap Seng Plantations Holdings Bhd and 25% in Paos Holdings Bhd – a soap manufacturer where it is the second-largest shareholder.
As for the property business, Hap Seng has launched Hap Seng 3, a new tower in the heart of Kuala Lumpur for an estimated RM312mil. The 26-storey project is scheduled to be completed in 2019.
7. TAN SRI QUEK LENG CHAN
Flagship: Hong Leong
Group net worth: RM15.9bil
THE 75-year-old tycoon has substantial stakes in arguably the most number of listed companies, with 16 spread through jurisdictions in Malaysia, Singapore and Hong Kong.
For his myriad of companies that he owns and controls, Quek’s varied interests also saw him reap the benefit of having a financial-services spine in his business empire flanked by many cyclical-based industries such a technology and property development.
Quek saw his net worth rise by 17.7% or RM2.39bil to RM15.94bil from RM13.54bil.
In Malaysia, Quek’s prized asset remains his stake in Hong Leong Bank Bhd , which he owns through Hong Leong Financial Group Bhd (HLFG). The market capitalisation of Hong Leong Bank at the end of 2017 was RM36.85bil, of which HLFG owns a 62% stake.
Quek, through Hong Leong Company (M) Bhd, controls a 75.6% stake in Guoco Hong Kong, which holds a 25.4% stake in HLFG. HLFG, in turn, has a direct 62% stake in Hong Leong Bank and 81.3% in Hong Leong Capital Bhd .
With the impending retirement of Tan Sri Teh Hong Piow as chairman of Public Bank, Quek will be the last individual shareholder who is allowed to hold such a large stake in a Malaysian bank under the grandfather clause.
During the year, Hong Leong Bank and its parent company controlled by Quek announced plans to raise capital to boost its financial buffers to comply with regulatory requirement.
HLFG is looking to raise RM25bil via a perpetual notes and commercial papers programme. The bank is planning to raise up to RM10bil by issuing additional tier-1 capital securities.
Quek also controls London-listed gaming outfit Rank Group plc and has a 13.4% stake in Bank of East Asia of Hong Kong.
8. TAN SRI KOON POH KEONG and KOON POH MING
Flagship: Press Metal Aluminium Holdings Bhd
Net worth: RM13.07bil
LAST year saw Press Metal Aluminium Holdings’ share price surging some 200% year-on-year, bolstering the Koon family’s wealth to RM13.07bil from RM3.71bil in 2016; and catapulting their position to eighth place on Malaysia’s top-40 richest list in 2017, up from the 14th spot in the preceding year.
As at Dec 31, 2017, Poh Keong, the company’s group chief executive officer, had a 17.3% stake in Press Metal, while his brother, Poh Ming, had an 8.4% stake in the company.
Alpha Milestone Sdn Bhd, the vehicle of Poh Keong and Poh Ming, had a 22.3% stake in Press Metal as at Dec 31, 2017.
Aluminium prices have since rebounded to hover around US$2,200 (RM8,500) per tonne, following a temporary blip in early December 2017.
A graduate in electrical engineering from the University of Oklahoma in the United States, the 57-year-old Poh Keong formed the company as an aluminium-extruding operation in 1986 – employing just 12 workers. Press Metal today has grown into a globally integrated aluminium corporation.
The company has a downstream extrusion operation that is integrated with its greenfield aluminium-smelting plants in Mukah and Samalaju in Sarawak, which have an annual combined capacity of 760,000 tonnes per annum – which is 1.3% of global aluminium consumption.
Part of the rise of Press Metal’s share price is the profit it makes from the aluminium business, thanks to a long-term cheap power deal to buy energy from Bakun Dam. Press Metal is said to be the single largest buyer of power from the dam.
The company also operates aluminium extrusion plants in Malaysia and China. Press Metal’s market capitalisation stood at RM20.7bil as at Dec 31, 2017.
Press Metal’s cumulative nine-month core profit ended Sept 30, 2017 rose 57.3% to RM452.6mil from RM287.7mil a year ago.
The increase was mainly due to additional production output generated by its Samalaju Phase 2 smelting plant and higher metal prices.
Cumulative nine-month revenue was up 30.1% to RM6bil from the preceding year’s nine-month revenue of RM4.6bil. The company is targeting to increase the contribution of value-added products from 30% to 50% by end-2018.
9. KUAN KAM HON @ KWAN KAM ONN
Flagship: Hartalega Holdings Bhd
Net worth: RM9.71bil
KUAN is best known for his flagship Hartalega Holdings – where he is executive chairman.
As at Dec 31, 2017, he had a 6% direct stake in Hartalega Holdings and an indirect stake of 49% via outfit Hartalega Industries.
Shares of Hartalega Holdings rose some 124% in 2017, raising Kuan’s position to ninth on Malaysia’s top-40 richest list in 2017 from 11th the previous year, and more than doubling his net worth year-on-year to RM9.71bil last year from RM4.44bil in 2016.
The company’s market cap stood at RM17.65bil as at Dec 31, 2017.
Analysts have noted, however, that it would be challenging for the glovemaker to deliver a similar above 50% growth rate in financial year 2019, as the group is already running at full capacity and margin expansion estimates would not be as significant as in 2018.
Based on reports, Hartalega Holdings’ plants were operating at utilisation rates of more than 90% in the fourth quarter of 2017.
This is close to its maximum capacity and above its historical average of 85%-88%.
A self-made tycoon, Kuan, 71, founded the company in the early 1980s and was instrumental in growing it to become the world’s largest manufacturer and distributor of nitrile gloves.
The company is the world’s largest manufacturer and distributor of nitrile gloves, with an infrastructure currently built to support the production of 30 billion gloves per year.
The company operates from two main sites – five plants at Bestari Jaya spanning an area of 37 acres; and six plants to be commissioned at Sepang, called Hartalega Next Generation Complex, encompassing an area of 112 acres, which upon its completion would be capable of boosting group total production capacity to 42 billion gloves annually.
Their dedicated production lines aggregating to 117 lines in total are designed in-house, applying custom-built and cutting-edge technologies to serve the global market with speed, efficiency and quality.
10. TAN SRI DR CHEN LIP KEONG
Flagship: NagaCorp
Net worth: RM9.31bil
A MEDICAL doctor by training, Chen made his fortune through the gaming and tourism business.
Last year, the 71-year-old saw his net worth more than triple to RM9.309bil from RM2.8bil in 2016, catapulting him to the 10th spot on Malaysia’s top-40 richest list in 2017 from the 17th spot in the preceding year.
Chen’s flagship company is NagaCorp Ltd, in which he owns a 65.4% stake. The tycoon also controls Karambunai Corp Bhd , in which he has a 73.4% stake.
Chen also has a 29.7% stake in FACB Industries Incorporated Bhd and an 82.9% stake in Petaling Tin Bhd .
NagaCorp is the largest hotel, gaming and leisure operator in Cambodia. NagaCorp became the first company with operations in Cambodia to become a public-listed company in Hong Kong, as well as the first gaming-related company traded.
The company had a market capitalisation of HK$26.26bil as at end-2017.
NagaCorp-owned NagaWorld is the only casino-hotel entertainment complex in Phnom Penh and enjoys a 70-year concession on its licence that runs until 2065. The 41-year monopoly of its licence will also see it having a casino monopoly within 200km of Phnom Penh until 2025.
Karambunai, on the other hand, is involved in the tourism industry in Sabah and property development in Malaysia. The group, which owns 1,300 acres near Putrajaya and the KL International Airport, had a market capitalisation of RM347mil as at end-2017.
Chen’s two other listed companies – FACB and Petaling Tin – had smaller market capitalisations of RM126mil and RM130mil, respectively, as at end-2017.
FACB is a manufacturer of mattresses and steel fittings, while Petaling Tin is involved in property development.
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This post has been edited by ironmaid89: Feb 3 2018, 10:29 AM
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