Latest news with #RobertKuok
Business Times
3 days ago
- Business
- Business Times
Malaysian tycoons tap Indonesia's digital and logistics boom
[JAKARTA, KUALA LUMPUR] They made fortunes in palm oil, resorts and retail. Now, some of Malaysia's prominent tycoons, including Wilmar's Robert Kuok and Genting Group's Lim Kok Thay, are quietly funnelling serious money into Indonesia's digital and logistics sectors. It is not a new play but a strategic one, reflecting how Malaysian money is chasing South-east Asia's biggest economy, where clicks are starting to matter more than commodities. Malaysian investors have poured some US$905 million into Indonesia's digital space so far, with deal activity peaking in 2023 at US$229 million – even higher than the pandemic-era surge of US$214 million in 2021, data from startup intelligence platform Tracxn showed. 'The post-Covid recovery and structural demand shifts are driving sustained activity,' said Neha Singh, co-founder and chief executive officer of Tracxn. She added: 'Despite global headwinds, Malaysia's interest in Indonesia's digital sector has only grown stronger.' From commodities to clicks For decades, Malaysian capital poured into Indonesia's abundant natural resources, from palm oil estates in Kalimantan to mining ventures in Sumatra. A NEWSLETTER FOR YOU Friday, 8.30 am Asean Business Business insights centering on South-east Asia's fast-growing economies. Sign Up Sign Up Many struck it rich. Tycoons such as Robert Kuok and Lim Kok Thay turned raw commodities into profit engines, cementing their place further among Malaysia's wealth elite. Other Malaysian players, from logistics outfits to venture-backed startups, have also expanded their footprint in Indonesia's digital economy. As Indonesia's 280 million-strong population grows more urbanised, tech-savvy and digitally connected, the nature of consumption and investment is changing. Malaysia's business elites have taken note. Indonesia's digital economy presents a compelling opportunity for Malaysian investors, driven by several strategic advantages, noted Tracxn's Singh. 'The two countries share close geographical proximity, cultural similarities and strong diplomatic ties – all of which make cross-border business engagement more seamless,' she said. Jerry Goh, investment director of Asian equities at Aberdeen, notes that Indonesia's expanding middle class and rising purchasing power are laying a solid foundation for long-term growth in digital commerce. 'This shift is fuelling stronger consumer spending, particularly within the digital economy,' he said. The rapid growth of smartphone adoption and Internet connectivity has significantly expanded Indonesia's online consumer base – particularly in the gaming sector, which is valued at an estimated US$2 billion, indicated the country's Ministry of Communication and Digital Affairs. Sensing long-term potential, Genting's Lim – who is credited for growing the family-controlled business empire into a global casino and leisure giant – has made a strategic play through investment arm Genting Ventures by backing Jakarta-based Evos Esports – one of South-east Asia's top online gaming platforms. The venture firms also took part in a US$6.2 million funding round for Eratani, an Indonesian agri-tech startup, capitalising on the rising momentum of digital transformation in the country's agriculture sector. Jeffrey Cheah, founder of Malaysian conglomerate Sunway Group, has also broadened his regional footprint through venture capital, teaming up with Jakarta-based investment firm Kejora Capital to launch the Orbit Malaysia Fund, an investment vehicle aimed at supporting startups across South-east Asia, with Indonesia as a key focus. Beyond market size As South-east Asia's largest automotive market, Indonesia remains a pivotal growth engine for Carsome, Malaysia's biggest used car platform, which has been operating in the country since 2017. Carsome is backed by businessman Patrick Grove, the billionaire behind Catcha Group and iflix. Grove ranked 48th on Forbes' list of Malaysia's richest individuals in 2025, with a net worth of US$345 million. Eric Cheng, Carsome's co-founder and chief executive officer, says that the company's expansion into Indonesia was driven by more than just its market size. PHOTO: CARSOME Eric Cheng, co-founder and CEO of Carsome Group, emphasised that the company's expansion into Indonesia was driven by more than just its market size. 'Indonesia's growing appetite for used vehicles, alongside a rising preference for digital-first experiences, made it a natural next step in our regional expansion,' he told The Business Times. While macroeconomic challenges and a softer automotive market in 2024 have weighed on the broader industry, Cheng said that Carsome is using this period to strengthen its operations in the country. 'We will be re-investing with more precision, buying the right inventory, improving unit economics and applying learnings from our turnaround in Malaysia,' he noted. Warehousing: new goldmine Experts view Indonesia's booming digital storefront sector as a key driver of long-term growth for the delivery and logistics industry. Gary Tan, portfolio manager for the intrinsic emerging markets equity team at Allspring Global Investments, said the growing demand for fast and reliable shipping has significantly boosted the valuations of supply chain companies – making them increasingly attractive to equity investors and reflecting strong confidence in the sector's long-term prospects. This is where many Malaysian investors are making early, strategic moves. They are not just backing consumer-facing digital ventures, but also investing in the physical infrastructure essential to powering South-east Asia's digital evolution. Wilmar's Kuok, for instance, made an early move into Indonesia's logistics space through Kerry Logistics, where he holds a significant stake. In 2015, Kerry entered a joint venture with local player Puninar Logistics, tapping the country's fast-growing logistics sector, with a strategic focus on inter-island distribution. Kuok topped Forbes Malaysia's 50 richest list in 2024 with an estimated net worth of US$11.8 billion. Mr DIY store in Jakarta. The Malaysian home improvement retailer has been ramping up its expansion in Indonesia following the IPO of its local unit at the end of last year. PHOTO: ELISA VALENTA, BT Meanwhile, Malaysian home improvement retailer Mr DIY – owned by tycoon brothers Tan Yu Yeh and Tan Yu Wei, and their family – has been ramping up its expansion in Indonesia following the initial public offering of its local unit at the end of last year. To support the roll-out of hundreds of new stores in second-tier cities, the company has built a nationwide network of warehousing hubs in partnership with local logistics firms – including one of its largest facilities in Marunda, North Jakarta. Since entering the market in 2017, Mr DIY has rapidly grown to nearly 900 branches nationwide, including in underserved regions. Jai Mirpuri, head of South-east Asia at real asset management group ESR, emphasised that Indonesia's growing automotive sector, particularly in electric vehicles, has attracted significant investments into manufacturing, assembly, and storage space requirements. This further boosts the demand for modern logistics real estate in the country. 'We see attractive investment opportunities in modern warehouses and even data centres that support the broader digital economy,' he said. Geographically complex Despite strong enthusiasm, Indonesia's burgeoning digital economy faces significant challenges. Industry players acknowledged that building efficient logistics networks across an archipelago of more than 17,000 islands is akin to threading a needle. Outside Java and Sumatra, low order density and high transportation costs create logistical headaches. 'Order fulfilment becomes expensive in remote regions. Logistics providers are under pressure to cut costs, especially in a cash-on-delivery environment,' said Swati Chopra, executive director, emerging markets equity, at investment manager Franklin Templeton. 'This requires deep pockets and a long-term view.' Cheng from Carsome noted that Indonesia's vast geography added another layer of complexity, creating supply chain fragmentation and delivery inefficiencies. 'While digital adoption is rising, we quickly learnt that many consumers still prefer face-to-face interactions when buying cars. This required us to complement our digital model with strong on-the-ground engagement to build trust and deliver the experience customers expect.' Cut-throat competition Indonesia's e-commerce sector, while brimming with potential, is among the most fiercely contested in South-east Asia, with both local and international players vying for market share. Indonesia's e-commerce sector is highly polarised, with Shopee and Tokopedia controlling about 71% of the 2022 gross merchandise value. PHOTO: YEN MENG JIIN, BT The market is highly polarised, with Shopee and Tokopedia controlling about 71 per cent of the 2022 gross merchandise value, leaving other platforms to compete for a much smaller share of the market. Indonesia has witnessed the permanent closure of more than a dozen marketplaces, including some that existed before the Covid-19 pandemic. Major players such as Elevania and – China's JD Indonesia unit – have officially shuttered in recent years, with closing its operations in March 2023 after a period of gradual downsizing. Franklin Templeton's Chopra highlighted that with price-sensitive consumers and intense competition, digital marketplaces must invest heavily in user acquisition and retention. This makes long-term survival and growth especially challenging for both new entrants and some established players. 'In the short term, profitability may remain limited due to fierce competition, so patience is essential. We expect further industry consolidation, resulting in larger, stronger and better-capitalised players,' she said.
Forbes
17-04-2025
- Business
- Forbes
Robert Kuok Retains No. 1 Spot On 2025 Forbes List of Malaysia's 50 Richest
SINGAPORE (April 17, 2025) – Malaysia's buoyant IPO market saw 55 listings in 2024, however the benchmark stock index remained sluggish and was pushed down further after the U.S. tariff shock. But a stronger ringgit, up more than 5% in the past 12 months, helped to lift the collective wealth of tycoons on the 2025 Forbes list of Malaysia's 50 Richest to US$90 billion, from $83.4 billion last year. The complete list can be found here, as well as in the April/May issue of Forbes Asia. The ranks of the three richest Malaysians were unchanged from a year ago. Business legend Robert Kuok remained unshakable at the top at age 101, with a net worth of $11.4 billion. The agribusiness-to-hotels empire under his Kuok Group has plans for an ambitious data center buildout in Malaysia's Johor state. Hong Leong group patriarch Quek Leng Chan strengthened his position as the second-richest person with a $1 billion jump in his net worth to $9.8 billion, buoyed by robust sales at his family's finance-to-food conglomerate. The Teh siblings, heirs to the Public Bank fortune, retained the third spot with their wealth rising 9% to $5.9 billion. Aluminium magnates Koon Poh Keong & siblings moved up one spot to No. 4 after a modest boost took their net worth to $5.4 billion. Overall, 30 people are better off from a year ago. Another gainer was Jeffrey Cheah (No. 9), who added $600 million to take his net worth tally to $3 billion on rising shares of his property conglomerate Sunway, which is planning to list its healthcare unit next year. There are three new entrants to the ranks. Debuting on the list at No. 5 with $5.3 billion is the Krishnan family, heirs of a telecom-to-energy empire built by reclusive billionaire Ananda Krishnan, who died in November at age 86. Also new to the list is Lee Thiam Wah (No. 8, $3.5 billion), founder of 99 Speed Mart Retail Holdings, the country's largest minimart chain by number of stores. Lee became a billionaire after taking his company public in September, raising $532 million in the country's biggest IPO in seven years. Another fresh face is that of former police officer Tan Boon Hock (No. 40, $490 million), whose portfolio includes a chain of laser eye surgery clinics and a company specializing in AI-powered traffic management systems. The sole returnee is mall magnate Desmond Lim Siew Choon (No. 44, $420 million), whose Pavilion Reit has benefited from higher rentals. The minimum net worth to make the list rose slightly to $335 million from $320 million. The top 10 richest in Malaysia are: This list was compiled using shareholding and financial information obtained from the families and individuals, stock exchanges, annual reports, analysts, government agencies and other sources. Net worths were based on stock prices and exchange rates as of the close of markets on April 7, 2025, and private companies were valued based on similar companies that are publicly traded. Real-time net worths on may reflect different valuations. The ranking lists both individual and family fortunes, including those shared among relatives and may differ from the World's Billionaires List, which includes individual fortunes with net worths as of March 7. The list can also include foreign citizens with business, residential or other ties to the country, or citizens who don't reside in the country but have significant business or other ties to the country. For more information, visit About Forbes Forbes champions success by celebrating those who have made it, and those who aspire to make it. Forbes convenes and curates the most influential leaders and entrepreneurs who are driving change, transforming business and making a significant impact on the world. The Forbes brand today reaches more than 140 million people worldwide through its trusted journalism, signature LIVE and Forbes Virtual events, custom marketing programs and 42 licensed local editions in 68 countries. Forbes Media's brand extensions include real estate, education and financial services license agreements. For media queries, please contact: Catherine Ong Associates Catherine Ong, cell: +65 9697 0007, Email: cath@ Chenxi Wang, cell: +65 8187 3215, Email: chenxi@
Forbes
16-04-2025
- Business
- Forbes
Malaysia's 50 Richest 2025: Tycoons Get A Wealth Boost Despite Market Mayhem. Robert Kuok Remains Country's Richest.
No. 1, Robert Kuok. Zhu Wei/Xinhua News Agency/Newscom This story is part of Forbes' coverage of Malaysia's Richest 2025. See the full list here. Despite Malaysia's buoyant IPO market with 55 listings in 2024, the benchmark stock index remained sluggish and was pushed further down after the U.S. tariff shock. But a stronger ringgit, up more than 5% in the past 12 months, helped to lift collective wealth to $90 billion. The ranks of the three richest Malaysians were unchanged from a year ago. Business legend Robert Kuok remained unshakable at the top at age 101, though his fortune was a tad lower at $11.4 billion from last year. The agribusiness-to-hotels empire under his Kuok Group has plans for an ambitious data center buildout in Malaysia's Johor state. Hong Leong group patriarch Quek Leng Chan strengthened his position as the second-richest person with a $1 billion jump in his net worth to $9.8 billion, buoyed by robust sales at his family's finance-to-food conglomerate. The wealth shared by the Teh siblings, heirs to the Public Bank fortune, rose 9% to $5.9 billion. Aluminium magnates Koon Poh Keong & siblings moved up one spot to No. 4 after a modest boost took their net worth to $5.4 billion. Overall, 30 people were better off from a year ago. Another gainer was Jeffrey Cheah, who added $600 million to take his net worth tally to $3 billion on rising shares of his property conglomerate Sunway, which is planning to list its healthcare unit next year. There are three new entrants to the ranks. Debuting at No. 8 with a fortune of $3.5 billion is Lee Thiam Wah, the founder of 99 Speed Mart Retail Holdings, the country's largest minimart chain by number of stores. Lee became a billionaire after taking his company public in September, raising $532 million in what was the country's biggest IPO in seven years. Another fresh face is that of former police officer Tan Boon Hock, whose portfolio includes a chain of laser eye surgery clinics and a company specializing in AI-powered traffic management systems. Also new to the list and appearing at No. 5: the Krishnan family, heirs of a telecom-to-energy empire built by reclusive billionaire Ananda Krishnan, who died in November at age 86. The sole returnee this year is mall magnate Desmond Lim Siew Choon, whose Pavilion Reit has benefited from higher rentals. Three from last year dropped off, including property developer Lim Kang Hoo as shares of his Iskandar Waterfront City fell amid a delay in filing its long-awaited financial restructuring plan. The minimum net worth rose slightly to $335 million from $320 million. Full Coverage of Malaysia's Richest 2025: Reporting by Jonathan Burgos, Gloria Haraito, Anis Shakirah Mohd Muslimin, Phisanu Phromchanya and Jessica Tan. Methodology: This list was compiled using shareholding and financial information obtained from the families and individuals, stock exchanges, annual reports, analysts, government agencies and other sources. Net worths were based on stock prices and exchange rates as of the close of markets on April 7, 2025, and private companies were valued based on similar companies that are publicly traded. Real-time net worths on may reflect different valuations. The ranking lists both individual and family fortunes, including those shared among relatives and may differ from the World's Billionaires List, which includes individual fortunes with net worths as of March 7. The list can also include foreign citizens with business, residential or other ties to the country, or citizens who don't reside in the country but have significant business or other ties to the country. The editors reserve the right to amend any information or remove any listees in light of new information.
Forbes
16-04-2025
- Business
- Forbes
Billionaire Robert Kuok, Malaysian Tycoons Seek Profit From Data Center Boom
This story is part of Forbes' coverage of Malaysia's Richest 2025. See the full list here. In the global race to build hyperscale AI data centers, Malaysia has positioned itself as one of the key contenders. A data center boom is underway, the epicenter of which is in the once-sleepy state of Johor in the south, close to Singapore, where palm oil and rubber plantations have made way for sprawling tech parks. Since Singapore imposed strictures on new data center projects in 2021 (after lifting a moratorium that started in 2019), Malaysia has emerged as Southeast Asia's digital infrastructure hotspot, drawing investments of more than $23 billion, according to global property consultancy Knight Frank based on company announcements in the past year. That's more than half of the estimated $44 billion being invested in the region by the likes of Amazon, Google and Oracle. As these global tech giants pour billions into expanding their data storage footprints, amid soaring demand for cloud computing and AI applications, several Malaysian tycoons, including those with roots in agribusinesses, have latched on to this new wave. Some have expanded into building data centers, while others are cashing in by selling land parcels to companies that are constructing them. The country's richest person, Robert Kuok, has backed data center builder K2 Strategic, led by his Singapore-based grandson Kuok Meng Wei. The outfit is scaling up fast with plans to quadruple its data center capacity in Malaysia to 240 megawatts (MW). Francis Yeoh's YTL, with interests in cement, utilities and hotels, has partnered with AI chipmaker Nvidia to build a 500MW data center hub in Johor, powered by an adjacent solar farm. Engineering and construction companies have also piled on. Billionaire Jeffrey Cheah's Sunway Construction, a unit of his healthcare-to-property conglomerate Sunway, has scooped up contracts worth almost 1 billion ringgit ($227 million) to build data centers, including for Kuok's K2 Strategic. 'Demand looks really strong,' says Hussaini Saifee, an analyst at Maybank in Singapore. The ongoing migration of enterprise data to the cloud as well as the proliferation of AI applications are the key drivers of demand for data centers, he adds. More than 2 gigawatts of new facilities are currently under construction in Malaysia between now and 2028, according to Maybank's estimates. Among the landlords raking it in are palm oil-and-construction magnate Gooi Seong Lim, whose Crescendo has netted $137 million since 2023 from selling over 40 hectares of land to companies such as Microsoft, which in turn has earmarked $2.2 billion for its Malaysian data center projects. That includes its February purchase of a 59-hectare site in a business park owned by real estate magnate Leong Kok Wah's Eco World Development for over $150 million, which boosted shares of the Malaysian property development firm. 'Demand looks really strong.' Since last year, Eco World has garnered over $180 million from such land sales, including to Warburg Pincus-backed Princeton Digital Group. Meanwhile tycoon Danny Tan Chee Sing's Tropicana made $140 million selling over 43 hectares of land to Japan's NTT Global Data Centers and China's ZData Technologies. Vast tracts of affordable land plus ample electricity and water resources—which are critical for the business—make Johor in particular an attractive location for major data center players. By the end of 2024, Johor accounted for about 400MW of total data center capacity, according to estimates by Knight Frank. That exceeds the 107MW installed to the north in Kuala Lumpur and Klang Valley. Billionaire Joseph Tsai, cofounder and chairman of Chinese e-commerce giant Alibaba, recently warned at a talk in Hong Kong of a potential bubble amid the construction overdrive. But Maybank's Saifee says there's room to build more as demand has yet to peak. He cites social media companies such as ByteDance's TikTok, which is stepping up its data center outlays in the region. The usual constraints to growth, adds Saifee, don't apply—as yet: 'There's plenty of land and sufficient electricity and water in Malaysia.'
