Published March 26, 2009

Outsider may head Hong Leong one day

Exec chairman Leng Beng keeps an open mind on group's future leadership

By KALPANA RASHIWALA

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(SINGAPORE) Hong Leong Group Singapore executive chairman Kwek Leng Beng says that the top post in the group he occupies today could one day be filled by someone outside the family.

Mr Kwek: It is good to have as the group chairman a family member...(but) if we don't have the right person, we may appoint someone outside the family

'It is good to have as the group chairman a family member, who understands the family culture and history. Having said that, if we don't have the right person, we may appoint someone outside the family. Maybe he can bring a different dimension to the group. On the other hand, if he turns out to be bad, there is the real danger that the whole company may be destroyed in a short time,' said Mr Kwek. A fuller version of that interview can be found in the April edition of Pulses.

The 68-year-old tycoon leads the second-generation members of his family who run and have expanded the business empire set up by Mr Kwek's late father, Kwek Hong Png. The group's businesses today include several listed companies, such as property group City Developments, Hong Leong Finance, Hong Leong Asia and London-listed Millennium & Copthorne Hotels.

Currently, nine third- generation Kwek family members - six men and three women - are involved in the group's businesses.

Another possibility Mr Kwek Leng Beng raises is that the top post of executive chairman of Hong Leong Group could in future be rotated among third-generation family members, unless one of the younger Kweks proves to be the most outstanding of the lot.

He hastens to add, however, that 'in my generation, there are still many people younger than me; they probably will assume the post before the third generation comes into the picture'.

Mr Kwek says he has not picked anyone to succeed him to lead the Hong Leong Group.

The father of two grown-up boys is also open to the idea of the family's third generation wanting to work outside the family business before joining it. If they show their aptitude and are keen, they may some day become CEOs of some of the companies within the group.

But if they don't want to slog so hard, they may sit on the boards of these companies and guide a professional CEO who is not a family member. Even if that CEO is more of an administrator, the family members on the board will inject an entrepreneurial streak into the set-up to advance the business, Mr Kwek reckons.

'These family members travel around the world regularly and are likely to come up with fresh ideas on how to improve the business. Just one good idea given to a CEO can propel the company to the next level,' Mr Kwek argues.

'We can put different family members in charge of our various companies. Then you also minimise conflicts,' he adds.

To some extent, the group has already begun to adopt this model. While Mr Kwek, his brother Leng Joo and cousins such as Leng Chye, Leng Kee and Leng Peck keep a close eye on the various businesses in the group, many of these companies, especially the listed ones, also have professionals in top management. Examples include Hong Leong Finance president Ian Macdonald, M&C's chief executive Richard Hartman, and Hong Leong Asia CEO Teo Tong Kooi.