Have you ever heard of Ham Oei Tiong? Although his name just isn’t so widely generally known as other historical figures, the businessman born in Semarang once shook the foundations of the trading industry of Southeast Asia.
Known as “Sugar King of Asia”, Oei was removed from an strange merchant – he was the creator of the priority about Ham Oeiong (OTHC), a large conglomerate who dominated regional trade at first of the twentieth century.
King Sugar Asia
Oei Tiong Ham was born in Semang, Indonesia, on November 19, 1866, he was the son of Oei Tjie Sien, the founding father of the Kian Gwan trading company.
Inheriting his family business, OEI not only continued it – he expanded him dramatically. Under his leadership, the corporate became the primary enterprise involved in trade in sugar, shipping, banking and even opium, which was legal on the time.
Despite the indisputable fact that he didn’t receive formal Dutch or British education, OEI studied under private teachers and attended Chinese private schools. He ran in lots of languages and was known for breaking the convention.
In 1889, he became the primary Chinese in Semarang, who could cut off his queue and adopt clothing within the European style-a symbolic act reflecting his progressive and modern way of considering.
The first “crazy wealthy in Indonesia”
At the age of 24, Oei Tiong Ham began to play an energetic role in his family business. After his father died in 1900, he officially took over Kian Gwan and transformed him into the priority of Oei Tiong (OTHC). Under his leadership, the corporate transformed into the primary international conglomerate of Southeast Asia.
OEI’s business strategy was sharp and calculated. He acquired fighting sugar factories and modernized their activities. He also expanded the worldwide company distribution network, opening branches of branches in large cities, comparable to London, Amsterdam, Bangkok, New York and naturally Singapore.
Unlike many Chinese businessmen, who largely relied on family ties, OEI took a unique path – he hired specialists from outside their community, including Dutch managers and engineers. He even founded his bank, Nv banking association oei tiong hamto administer the financial matters of his huge business empire.
His daring opium trade undertaking also turned out to be highly lucrative – apparently he earned about 18 million guilds from this sector in 1890–1904. At the height period, OHC controlled about 60% of the sugar market in Dutch Eastern India and exported to 200,000 tons of sugar per 12 months.
Do you might have 1 / 4 of Singapore?
One often repeated claim about OEI Tiong Ham is that “he used to have 1 / 4 of Singapore.” Although this will likely seem exaggerated, it’s a more metaphorical statement.
However, that is the reality -Ei had several strategic real estate in Singapore, including the celebrated residential area now generally known as OEI Tiong Ham Park, positioned in District 10 near Holland Road.
In addition to the residential district, one other durable heritage is the Oei Tiong ham constructing, which was once a part of Raffles College, and later the University of Singapore. The constructing was named in his honor in recognition of its contribution to its development.
In 1920, Oei moved from Semang to Singapore, bringing his business empire and big wealth. His decision was partly brought on by his opposition to Dutch civil law, which granted the suitable to inherit to his daughters, in addition to his desire to avoid 30% tax on war profits.
He even renounced the Dutch citizenship of Eastern India to permanently settle in Singapore.
Lasting heritage of Oei Tionga
For his huge success, Oei Tiong Ham also left a trace of controversy. His commitment to opium trade – although legal at the moment – is watched completely otherwise.
Criticism also used using legal contracts to take over assets from indebted company owners, especially sugar factories in eastern rod.
OTHC continued to grow even after the death of OEI. However, in 1961 the Indonesian government took over all its national assets, accusing the corporate of economic violations, including currency manipulation.
In 1964, the corporate was officially nationalized and renamed Pt. Despite this, OTHC branches abroad remained under the control of the OEI family.
In Singapore, the name Oei Tiong Ham remains to be highly rated. He was remembered as a generous philanthropist, which contributed to the development of the Raffles College constructing, supported the Chinese highschool, the medical mission of St. Andrew, and even helped the victims of the Japanese earthquake through the Japanese Earthquake Assistance Fund.
