New Strait Times Business 9-Jan-08
Q&A with IOI Group head: A passion for oil palmTan Sri Lee Shin Cheng, the head of IOI Group, is the fourth richest person in Malaysia and an icon to many businessmen. Lee, who started off selling ice-cream on a bicycle, tells Chok Suat Ling that with hard work, perseverance and discipline, anything is possible.
QUESTION: Tan Sri, you are well known for your passion for your work and the oil palm plantations. There is a story making the rounds about how you even talk to the trees. What were the lessons learned along the way which helped you stay focused, as it were?
ANSWER: Yes, besides loving my good management team, I also love all my palm trees because they are all my workers, too. When we are sleeping, they are still working for us for 24 hours without complaining. Therefore, I feel that it is my duty to look after these trees well. I make sure the welfare of these 'good staff' of mine are well taken care of by giving them adequate nutrition and by removing any hazards around them. I try to understand their behaviour and to communicate with them. When palm trees look 'pale' or exhibit abnormal characteristics, they could be 'hungry' (malnourished); suffering from disease or pest attack; or the palm base could be waterlogged; or there might be weeds surrounding the trees. When I see these signs of unhealthiness, I will turn to the manager or the assistant in the estate to let them know that the palm trees are complaining to me that they are hungry or suffering from disease. I will check with the manager or the assistant and find out why they are not taking care of the trees. Maybe because of this, people say I could talk to the trees!
Q: Did you think, back in the days when you were selling ice-cream, that you would become one of the most respected plantation men in the business?
A: I never thought this would happen. But coincidentally, when I was selling ice-cream at the age of 11 for four years, most of the time I would sell them at oil palm and rubber plantations.
Q: What were the personal highlights for you?
A: My happiest day was in 1989 when I bought over Dunlop Estate from Multi-Purpose Holdings Bhd. This was because during the late 1960s, I had applied for a job at Dunlop Estate but they did not employ me because I was not adequately qualified. If they had employed me, I would probably not have owned the entire asset of Dunlop Estate today. This purchase marked a significant milestone in my life.
Q: Were there low points as well? And how did you overcome them?
A: I started working in a small plantation as a supervisor in 1961. I worked my way up to be an assistant, and then manager. At that point in time, the estate was broken up and sold in fragments. The management paid me a handsome retrenchment benefit. With that money and savings, I started a pig farm with a friend where we bred up to more than 2,000 pigs. A year later, when the pigs were infected with swine fever, we had no choice but to close down the farm. I managed to recover only RM5,000. With that money, I started a petrol station and worked part-time in a plantation. That was my low point.
Q: You remain very hands-on with your business. Why? Do you think that is the mark of a great leader?
A: Yes, I remain very hands-on and focused on the business. I strongly believe nothing can replace that. If things need to be done by today, we have to get it done right now, not tomorrow. A good leader must set a good precedent for the rest to follow.
Q: What are the values you want to pass on to your children?
A: I would like to pass good values and discipline to my children, and I always tell them honesty is the best policy and to also contribute to society one way or another.
Q: How do you think you can get the younger generation to feel this same passion for their work, their country?
A: Unfortunately, today's younger generation do not enjoy this type of work. They love IT (information technology) and quick profit. They do not have the stamina to wait. In agriculture, the gestation period is quite long. But I am trying to figure out how to enhance this industry and improve productivity for the benefit of the people. To be a planter is a very noble profession. The future in this field is very bright. Therefore, I urge young people to change their attitudes.
Q: Who are the Malaysians who are your heroes? Who inspire you?
A: There was a man in the mid-1960s who had the vision and wisdom to acquire the plantation company which was established and owned by the British by buying over the shares owned by them. This was none other than the late Tan Sri Lee Loy Seng. His courage and vision, to a certain extent, turned around the plantation industry in Malaysia. His tireless efforts to contribute to this industry to make it what it is today should be remembered. His achievements and contributions to this sector, to a certain extent, inspired me to be in this industry. I would say he is my role model.
Q: What are the things you would like to see improved upon?
A: Crude palm oil (CPO) is very versatile, and the usage of CPO is tremendous. However, usable land for the planting of oil palm trees is very limited. The only way to improve the volume of the CPO is to increase the productivity by using the same area of land. If we can increase the productivity per hectare from the national average of four tonnes of CPO to eight tonnes, then we will be able to double the CPO production from the current 16 million tonnes to 32 millions tonnes a year. If we are able to do that, then we are already doing a big favour to satisfy the oil consumption for the people. Perhaps, this would better satisfy the competitive needs for both the food and industrial, particularly biofuel, use. This is one of the things I hope to benchmark for the industry. With the cooperation of everyone, I'm sure this target is achievable.
