New Reporter
13-02-24, 15:25
Wee Cho Yaw’s business legacy may live on longer in property than in banking
Leslie Yee
Feb 12, 2024
BUSINESS leaders, politicians and friends have paid tribute to Wee Cho Yaw, who died earlier this month at the age of 95. The late businessman was one of Singapore’s richest persons, an active community leader and a philanthropist.
Prime Minister Lee Hsien Loong hailed Wee as “a titan of Singapore’s banking industry”, citing his business acumen and visionary leadership behind the growth of UOB : U11 +0.39% into one of the most successful banks in Singapore and the region.
Wee helmed UOB, which traces its roots to the founding of United Chinese Bank by his father Kheng Chiang in 1935, for decades.
Under Wee’s leadership, the bank navigated events such as Singapore’s separation from Malaysia in the 1960s, the oil crisis in the 1970s, Singapore’s recession in 1985, the Asian financial crisis in the 1990s, as well as the Sars (severe acute respiratory syndrome) outbreak and global financial crisis this century.
Wee was an astute dealmaker. UOB’s growth was aided by acquisitions such as those of Chung Khiaw Bank, Lee Wah Bank, Far Eastern Bank and the Industrial and Commercial Bank in the 1970s and 1980s.
UOB also made banking acquisitions in the region. And perhaps most famously, UOB trumped DBS : D05 -0.4% to snare Overseas Union Bank in 2001.
Wee’s deal-making prowess extended beyond the banking sphere. In 1981, Wee led UOB to emerge victorious in a three-way contest for what is now called Haw Par Corporation : H02 -0.21%.
In the property sphere, Wee fended off a bid by Temasek to retain control of UOL Group, : U14 -0.99% and emerged tops in his battle with the Filipino Gokongwei family for United Industrial Corporation, which is now renamed as Singapore Land Group : U06 -0.55% (SingLand).
Banking
While Wee left an indelible mark at UOB, his business legacy may live on longest in the property realm.
Wee’s eldest son, Ee Cheong, is deputy chairman and chief executive officer (CEO) of UOB. According to the bank’s latest annual report, Wee’s direct and deemed interest in UOB totalled over 18 per cent.
Ee Cheong is now in his 70s and there are no members of the next generation of Wee’s family who are apparently actively involved in managing the bank.
Thus, the scene looks set for the Wee family to step back from being part of UOB’s management team in the not-too-distant future.
This would be similar to the roles played today by the family members of late banking giants Lien Ying Chow at UOB and Lee Kong Chian at OCBC : O39 +0.15%.
Banks that are managed by families who are also major shareholders are becoming increasingly rare in markets such as Singapore and Hong Kong.
Families who are owners-cum-managers of banks face rising challenges due to growing business complexities and the need for high levels of capital.
If Wee’s family is much less involved in running UOB in future, might a third party eye seizing control of the bank? Also, odds may rise of further consolidation in Singapore’s banking scene that sees the trio of local listed banks comprising DBS, OCBC and UOB becoming a duo.
At listed Haw Par, where Wee was chairman until his demise and a major shareholder, another son Ee Lim is president and CEO.
Haw Par is active in healthcare where it owns the Tiger Balm brand. Its other businesses comprise leisure, property and investments, with a large part of the group’s value coming from investments.
Going forward, the Wee family could conceivably acquire Haw Par’s investments and sell the healthcare business to eager suitors who can bring the Tiger Balm brand to greater heights.
Property
Among Wee’s key businesses, property might be the most suited for the family to continue owning and managing for generations to come.
After all, many wealthy families, who focus on wealth preservation, like owning investment properties for recurrent income and long-term capital appreciation.
The property sector has numerous development and investment groups where families are major shareholders and active in management.
Younger generation members of tycoon families such as Sherman Kwek, Panote Sirivadhanabhakdi and Nicholas Chua, who are in their 40s, helm CEO roles at City Developments : C09 +0.51%, Frasers Property : TQ5 -0.57% and Ho Bee Land, : H13 +0.58%respectively.
In Wee’s stable of companies, son Ee Chao is CEO at privately-held Kheng Leong, whose interests include property development, while grandson Jonathan Eu, who is in his early 40s, is CEO of listed SingLand.
SingLand is active in residential property development and owns a portfolio of office, retail and hospitality assets. With his SingLand leadership experience, Eu could be well positioned to lead SingLand’s parent – the bigger listed UOL – in future.
Wee held direct and deemed interests totalling over 38 per cent in UOL based on the group’s latest annual report and was UOL’s chairman until his demise.
https://i.imgur.com/MvTpkd4.png
The challenge for Eu and any other younger-generation members of Wee’s family is to nurture the property business to greater heights, which can be passed on to subsequent generations.
SingLand is actively rejuvenating older office buildings. UOL and SingLand achieved strong sales at their recent launch of the upmarket Watten House private housing project in the Bukit Timah area.
UOL recently opened the luxury Pan Pacific Orchard, which boasts high volume green open-air terraces, and is busy growing its hospitality portfolio. Both UOL and SingLand have strong balance sheets.
Still, amid high interest rates, building a more capital-efficient property business may be non-negotiable.
UOL and SingLand trade at large discounts to book values, which are likely to be conservative. Between them, they own many good-grade properties.
Both groups should probably actively grow in the listed real estate investment trust and private real estate fund spaces. Boost stock valuations, enhance return on equity and build a strong fund management business in the process.
The values associated with Wee, such as honour, enterprise, unity and commitment, may be his greatest legacy – more than his business achievements and the wealth he leaves behind.
Still, Wee has left big footprints in the business world. May younger generations of the family build on Wee’s business legacy to benefit staff, customers, investors and Singapore.
https://www.businesstimes.com.sg/opinion-features/wee-cho-yaws-business-legacy-may-live-longer-property-banking
Leslie Yee
Feb 12, 2024
BUSINESS leaders, politicians and friends have paid tribute to Wee Cho Yaw, who died earlier this month at the age of 95. The late businessman was one of Singapore’s richest persons, an active community leader and a philanthropist.
Prime Minister Lee Hsien Loong hailed Wee as “a titan of Singapore’s banking industry”, citing his business acumen and visionary leadership behind the growth of UOB : U11 +0.39% into one of the most successful banks in Singapore and the region.
Wee helmed UOB, which traces its roots to the founding of United Chinese Bank by his father Kheng Chiang in 1935, for decades.
Under Wee’s leadership, the bank navigated events such as Singapore’s separation from Malaysia in the 1960s, the oil crisis in the 1970s, Singapore’s recession in 1985, the Asian financial crisis in the 1990s, as well as the Sars (severe acute respiratory syndrome) outbreak and global financial crisis this century.
Wee was an astute dealmaker. UOB’s growth was aided by acquisitions such as those of Chung Khiaw Bank, Lee Wah Bank, Far Eastern Bank and the Industrial and Commercial Bank in the 1970s and 1980s.
UOB also made banking acquisitions in the region. And perhaps most famously, UOB trumped DBS : D05 -0.4% to snare Overseas Union Bank in 2001.
Wee’s deal-making prowess extended beyond the banking sphere. In 1981, Wee led UOB to emerge victorious in a three-way contest for what is now called Haw Par Corporation : H02 -0.21%.
In the property sphere, Wee fended off a bid by Temasek to retain control of UOL Group, : U14 -0.99% and emerged tops in his battle with the Filipino Gokongwei family for United Industrial Corporation, which is now renamed as Singapore Land Group : U06 -0.55% (SingLand).
Banking
While Wee left an indelible mark at UOB, his business legacy may live on longest in the property realm.
Wee’s eldest son, Ee Cheong, is deputy chairman and chief executive officer (CEO) of UOB. According to the bank’s latest annual report, Wee’s direct and deemed interest in UOB totalled over 18 per cent.
Ee Cheong is now in his 70s and there are no members of the next generation of Wee’s family who are apparently actively involved in managing the bank.
Thus, the scene looks set for the Wee family to step back from being part of UOB’s management team in the not-too-distant future.
This would be similar to the roles played today by the family members of late banking giants Lien Ying Chow at UOB and Lee Kong Chian at OCBC : O39 +0.15%.
Banks that are managed by families who are also major shareholders are becoming increasingly rare in markets such as Singapore and Hong Kong.
Families who are owners-cum-managers of banks face rising challenges due to growing business complexities and the need for high levels of capital.
If Wee’s family is much less involved in running UOB in future, might a third party eye seizing control of the bank? Also, odds may rise of further consolidation in Singapore’s banking scene that sees the trio of local listed banks comprising DBS, OCBC and UOB becoming a duo.
At listed Haw Par, where Wee was chairman until his demise and a major shareholder, another son Ee Lim is president and CEO.
Haw Par is active in healthcare where it owns the Tiger Balm brand. Its other businesses comprise leisure, property and investments, with a large part of the group’s value coming from investments.
Going forward, the Wee family could conceivably acquire Haw Par’s investments and sell the healthcare business to eager suitors who can bring the Tiger Balm brand to greater heights.
Property
Among Wee’s key businesses, property might be the most suited for the family to continue owning and managing for generations to come.
After all, many wealthy families, who focus on wealth preservation, like owning investment properties for recurrent income and long-term capital appreciation.
The property sector has numerous development and investment groups where families are major shareholders and active in management.
Younger generation members of tycoon families such as Sherman Kwek, Panote Sirivadhanabhakdi and Nicholas Chua, who are in their 40s, helm CEO roles at City Developments : C09 +0.51%, Frasers Property : TQ5 -0.57% and Ho Bee Land, : H13 +0.58%respectively.
In Wee’s stable of companies, son Ee Chao is CEO at privately-held Kheng Leong, whose interests include property development, while grandson Jonathan Eu, who is in his early 40s, is CEO of listed SingLand.
SingLand is active in residential property development and owns a portfolio of office, retail and hospitality assets. With his SingLand leadership experience, Eu could be well positioned to lead SingLand’s parent – the bigger listed UOL – in future.
Wee held direct and deemed interests totalling over 38 per cent in UOL based on the group’s latest annual report and was UOL’s chairman until his demise.
https://i.imgur.com/MvTpkd4.png
The challenge for Eu and any other younger-generation members of Wee’s family is to nurture the property business to greater heights, which can be passed on to subsequent generations.
SingLand is actively rejuvenating older office buildings. UOL and SingLand achieved strong sales at their recent launch of the upmarket Watten House private housing project in the Bukit Timah area.
UOL recently opened the luxury Pan Pacific Orchard, which boasts high volume green open-air terraces, and is busy growing its hospitality portfolio. Both UOL and SingLand have strong balance sheets.
Still, amid high interest rates, building a more capital-efficient property business may be non-negotiable.
UOL and SingLand trade at large discounts to book values, which are likely to be conservative. Between them, they own many good-grade properties.
Both groups should probably actively grow in the listed real estate investment trust and private real estate fund spaces. Boost stock valuations, enhance return on equity and build a strong fund management business in the process.
The values associated with Wee, such as honour, enterprise, unity and commitment, may be his greatest legacy – more than his business achievements and the wealth he leaves behind.
Still, Wee has left big footprints in the business world. May younger generations of the family build on Wee’s business legacy to benefit staff, customers, investors and Singapore.
https://www.businesstimes.com.sg/opinion-features/wee-cho-yaws-business-legacy-may-live-longer-property-banking