8 FRI Review 1999.4 Articles
9 Overseas Chinese Corporate Groups in Asia Their development, management characteristics, the impact of Asian economic crisis, and outlook for the future Senior Economist Zhu Yan. Formation and Development of Overseas Chinese Corporate Groups. Development and Management Characteristics of Overseas Chinese Corporate Groups. Role and Contribution of Overseas Chinese Corporate Groups. Impact of Asian Economic Crisis and Outlook for the Future 1. Overseas Chinese corporate groups in Asia were formed as Asian economies grew, and these groups have developed upon the backdrop of economic growth and structural changes in the countries in which they are located as well as changes in economic policies and in government policies with regard to the ethnic Chinese. Today, overseas Chinese corporate groups maintain a significant presence and are a strong economic power in almost every country in Asia. 2. The development and growth of overseas Chinese corporate groups is related to their unique management characteristics. These characteristics can be considered as (1) diversification in business, (2) family-based corporate organizations and structures, (3) mergers and acquisitions and the use of capital markets, (4) utilization of the so-called "Overseas Chinese network", (5) close association with political power and the use of foreign capital, and (6) overseas investment and internationalization. 3. The overseas Chinese corporate groups which have grown and developed contribute not only to the development of Asian economies, but also to economic cooperation throughout the region and to improved industrial structures. However, as they developed in an immature economic environment, overseas Chinese corporate groups in Asia are characterized by both strengths and weaknesses. 4. Economic crisis in Asia caused significant losses to overseas Chinese corporate groups. These groups are now faced with increasing debt levels and worsening business results. However, in response to these situations, they are also moving quickly to sell off business divisions and subsidiary companies, introduce foreign capital, reorganize group companies by strengthening main business areas, and return to their base country by selling overseas operations. In addition, some groups are taking advantage of economic crisis and expanding their businesses. Through these crises, overseas Chinese corporate groups have learned many lessons which they will be able to use in their future development. These lessons include the importance of individual capital and of hedging risk as well as of modernizing management and implementing more effective business structures and regional organizations. If overseas Chinese corporate groups can successfully overcome these crises, they will be able to continue growing in the future.
10 FRI Review 1999.4 97 90
11 60 70 70 70 80 50 60 70 80 60 90 97 94 500 94 97 500 1.6 1.7 1.7 1.8 334.8 88.4
12 FRI Review 1999.4 500 1994 95 96 97 98 4,301.9 4,700.2 5,616.7 6,880.8 3,282.4 1,328.1 1,572.5 1,934.6 2,285.6 2,016.5 279.1 381.2 412.4 463.7 370.7 5,421.0 6,436.8 8,311.2 9,862.4 8,919.7 500 94 500 94 25 95 10 22 96 11 10 97 11 98 11 15 20.3 476.3 19 5.6 98 97 98 800 Forbes 94 200 155 95 94 309 96 341 25 2,858 3,962 17 96 20 80 96 341 89 95 26.1 23.1 79 23.2 14.1 640 57 16.7 21.4 36 184 10.6 13.5 36 10.6 10.8 25 7.3 11.1 GDP 200 20
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14 FRI Review 1999.4 200 CP 200 5 97 90 12 96 451 400 80 20 96 79 62.5 97 534 12 97 82.5 47.8 80
15 70 60 70 80 60 50 60 60 70 80 80 SSP
16 FRI Review 1999.4 90 90 70 70 70 20 NEP 91 NDP 30 98
17 98
18 FRI Review 1999.4 UOB OUB SM 55 80 97 OCBC UOB OUB
19 CP
20 FRI Review 1999.4 1992 93 94 95 96 92 93 94 95 96 61 67.0 88.7 125.4 197.1 227.4 2.0 8.5 15.5 29.8 27.5 8.6 11.8 20.6 36.6 34.6 0.2 0.7 1.7 2.8 1.7 4.9 7.3 12.5 23.6 20.9 0.0 0.4 1.2 2.0 1.1 TSMC 2.6 4.7 7.3 10.9 14.3 0.5 1.6 3.2 5.4 6.9 95 10 CP 98 80 90 OEM 61 96 92 10
21 TSMC IPC PCB YTL 93 96 YTL 97 75 21 50 20 20
22 FRI Review 1999.4 OCBC UOB CP CP
23 95 OCBC 70 UOB 70 80 78 79 85 70 80 85
24 FRI Review 1999.4 90 96 17 19 90 96 90 97 94 95 97 315
25 90 90
26 FRI Review 1999.4 1991 8 750 30 93 11 850 22 95 12 1,500 24 97 8 1,400 30 99 10 1997/1998 World Chinese Entrepreneurs Convention 97 1,400 91
27 50 98 12
28 FRI Review 1999.4 ASEAN 94 96 147.5 935.7 365.3 52.1 2,472.4 100.0 100.0 100.0 100.0 100.0 35.0 24.7 27.7 31.6 63.3 2.8 9.5 1.7 11.6 46.9 13.4 3.8 13.8 5.5 6.6 18.3 6.7 11.0 1.8 7.6 - - 2.9 1.0 3.2 1.0 0.4 - - 0.2 1.1 0.3 0.1 1.8 - - 8.4 0.8 0.0 0.0 0.0 - - 0.2 22.6 13.9 46.0 5.1 6.9 15.9 4.7 19.0 25.7 8.2 94 96 BOI 90 ASEAN
29 70 80 25 70 10 CP CP CDL 63 16,400 12 84 HKCB 97 90 90 NIES ASEAN
30 FRI Review 1999.4 98 97 58 5.6 315 10 11 12 16 CP KMP 95
31 75 50 37.5 92 97 3,600 CP 200 20 99 26 200 11 93 97 6.5
32 FRI Review 1999.4 2.3 20 80 ASEAN
33 20 30 1,000 500
34 FRI Review 1999.4
35 97
36 FRI Review 1999.4 800 620 10.5 570 27.2 235 77.3 100 1.4 80 98 98 97
37 TPI 96 8.8 97 260.9 98 692.6 97 30 11 98 10 98 TPI 38 98 150 14 3.5 70 2001 03 20 30 95 150 97 11 98 98 40 BP 35 15 10
38 FRI Review 1999.4 Rachman Halim 9798 72.7 20.3 52.3 72.0 Lee Shau Kee 146.6 101.2 45.4 31.0 Walter Kwok 123.1 82.3 40.8 33.1 Kwek Leng Beng Robert Kuok Eka Tjipta Widjaja Ng Teng Fong 57.8 28.5 29.3 50.8 70.1 42.4 28.2 39.9 54.3 27.0 27.3 50.2 69.9 48.3 21.6 30.9 Li Ka-shing 109.8 89.2 20.6 18.8 Forbes Global, April 6, 1998 97 56 98 28.4 Forbes 98 IBRA 30 72 52.3 30 48 21 27 21 104
39 40 97 100 98 10 80 2001 2004 20 98 2.8 98 97 11 98 38.1 16 98 14 10 40 98 12 12.4 9.2 BIS 97 25 27 97 100 98 100
40 FRI Review 1999.4 31 43 49 UTV TCRSS UBC 98 30 97 43.8 NKK 11.5 23 98 5 50 45 98 50 36 49 98 80 CP 445 77 1.5 48.7 CP 98 CP CP CP 98 CP 12 CP 13 75 1.8 98 CP 98 17 CP 16
41 98 98 55 98 60 45 98 11 PLDT 17.2 7.5 99 5.7 60 97 98 3.6 4,000 98 2.7 12.4 51 45 99 MSC 98 98 49
42 FRI Review 1999.4 90 CP CP 10 97 8,000 97 700 CP TSMC 36 23 29 15 97 2.7 1.1 30 5,600 430 800
43 98 70 28.4
44 FRI Review 1999.4
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