In 14 Jun 2005, The Edge published an article written by V Sivapalan with title "World-class company still a dream". He stated that: Currently, there is no Malaysian "world-class company"........... We always cite Singapore's Creative Technologies as an example.........Sure, we have Petronas but that is a national oil company with an absolute monopoly over all our energy resources. We don't have a truly entrepreneurial Malaysian icon. South Korea has its Samsung, Hyundai and LG; China its Haier and Huawei Technologies; India its Infosys and Tata Consulting. Even the Philippines has San Miguel. Malaysia, well, unfortunately, we have nothing but a dream.
I disagree with him and I feel Malaysia have a few company. We have IOI group which has just acquired some business from Dutch's Unilevel Group. We have YTL Corporation which supply water to resident in UK etc.
South Korea icon is Samsung. Samsung started from Brevery, sugar refinery, textile, paper pulp and packaging, electrical appliance, Semiconductor and handphone.
While Robert Kwok in Malaysia start from sugar refinery, like Samsung. He later invest his wealth in leisure industry and not manufacturing like Samsung.
In Malaysia, one company that venture into paper pulp and packaging, electrical appliance and semiconductor industry is Hong Leong Group in Malaysia.
Hong Leong group first involve in packaging business when it acquired Malaysia Pacific Industry Bhd (MPI). Base on profit from the packaging. The company diversified into semiconductor business and renamed MPI. MPI later demerged the pakaging business from MPI to become Guolene Packaging Industries Bhd. In late 2004, Hong Leong Industries Bhd sell it packaging business to San Miguel Corp, the Philippines’ largest publicly listed food and beverage company, for RM133 million cash.
MPI operate it semiconductor business under Carsem and Dynacraft Industries Sdn Bhd. Not MPI nor Hong Leong. Thus, I feel Malaysia do not lack of world class company. The problem is branding. They do not operate under a single brand.
Malaysia is the largest air conditional manufacturer and exporter in the world. The leading player is Hong Leong's OYL Industries Berhad.
OYL Industries Berhad's CEO Liu Wan Min has been listed as one of the 20 CEO we admire at the year end issue of The Edge in end of 2005, together with his boss, Tan Sri Quek Leng Chan.
In Malaysia, OYL market it air-conditional under Acson and US's York Brand since 1978. Not Hong Leong nor OYL. In the 1990s, OYL acquired US-based SnyderGeneral, now renamed McQuay. It is not sure why Hong Leong never renamed it Acson nor Hong Leong but McQuay?
Again, we do not lack of world class company but it is an issue of branding.
If Hong Leong able to merge OYL and MPI under one company. It significant in Bursa Malaysia might be same as Samsung in Korea. OYL market capitalization is larger than Proton, a automobile manufacturing company.
OYL is more like LG in Korea rather than Samsung as it comprise mainly air-conditional and refrigerators and do not have audio division.
In Semiconductor, MPI is doing turnkey pakaging ,test services and manufacturers of lead frames and microelectronic packaging systems. This is still consider the low end of the vlue chain in semiconductor industry compare with Samsung Semiconductor.
The most important is Hong Leong do not have hanphone division.
Clearly, Malaysia have a lot of catch up to do. However, Hong Leong have the foundation which make the catch up much more easy compare with other group. Government should provide incentive for such group to merge, to venture to audio division, to take over loss making government semiconductor manufacturing division and to venture to cell phone manufacturing.
Please be reminded that Samsung mobile does not become competitive base on protection by Korea government but it own achivement.
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