Towkay Loke Yew

Introduction

From humble beginnings working on the family farm in southern China to becoming one of the richest businessman in history of British Malaya, the life of Towkay Loke Yew is one of the classic rags-to-riches stories. From nothing, he became a millionaire in his thirties mainly through tin, then lost it all, only to bounce back stronger and more successful than before, becoming a popular figure for his many philanthropic works, particularly in the fields of education and health care, and contributing to the foundation of Kuala Lumpur.

Early life

Loke Yew was born in 1845 into a poor farming family in the village of Thong Cheung in Guangdong Province in southern China. He was the only son in a family of five. Not wanting to follow his father working on the family farm he decided at the age of just thirteen to seek his fortune in Malaya and set off on a boat bound for Singapore.

There he found a job in a shop in Market Street and, it is said, saved $99 dollars which he used to open his own shop under the name of Heng Loong. The shop was a success and after five years he decided to leave the business in the hands of a manager and seek opportunities in the burgeoning tin mining industry in Perak – a decision which would eventually secure his fortune and earn him the title of the most successful miner in the history of the Malay States.

Development of his tin mining empire in Perak

Arriving in the late 1860s in Perak, he began his mining career in the Larut and Matang Districts where he entered into a partnership in a mining venture with Messrs. Chan Khom Chong and Ng Sow Swee. His first mines situated near the town of Kamunting were said to be profitable and for four years his luck held out.

However, after his initial success, the early 1870s proved to be a disaster for Loke Yew. First there was a slump in the price of tin which fell by a third leading to loss-making in the industry.

Then, turbulent times came to Perak with widespread social unrest caused by constant infighting between various Chinese clans over their competing interests in the tin mining industry. Tin mining came to a virtual halt and thousands died in the conflict. His workers at the mines were forced to flee as rampaging gangs destroyed his operations and he was left virtually penniless.

Estimates of his losses mention the sum of two million dollars. However, despite his sudden crash over a period of just five years from millionaire to bankrupt, he would soon bounce back regaining all his previous wealth, and much more.

Proving his astute business acumen, he succeeded in taking advantage the social conflict in Perak with new business ventures unrelated to the collapsing, tin mining industry. His most important achievement was securing the contract from the Government for the supply of the troops fighting in what became known as the Perak War which lasted over two years. There are reports of him personally conducting supply operations at great personal risk, such as piloting supply boats up rivers at night under the noses of the rebels.

After the war effectively ended in 1876 and relative calm returned to Perak, Loke Yew wasted no time in getting back into tin mining which was undergoing a mini boom with the opening up of new mines in the Lower Perak region, in particular the Kinta Valley, and for Loke Yew prosperity returned and from then on he never looked back.

Expansion into Selangor

From small beginnings in Selangor, Loke Yew’s business interests in the State would eventually eclipse those in Perak as he helped lay the foundations for the development of Kuala Lumpur. His very first business, Heng Loong, trading company which he founded soon after arriving in Singapore, had established a presence in Kuala Lumpur, and over the years had been so successful that it had become a household name in Malaya.

In Kuala Lumpur he would spend the last thirty years of his life, building the luxurious Loke Mansion on Batu Road (Jalan Medan Tuanku) which has been preserved, undergoing renovation in 2007 following its dilapidation after a long period whilst it remained empty.

His business empire rapidly expanded including new tin mines in Selangor, including the Serandah mine which was the first to use hydraulic machines, to add to those in Perak. When the rubber industry took off he was quick to take advantage of the new business opportunities investing in a large rubber estate at Tanjong Malim consisting of 20,000 acres. He also turned his hand to road and rail operations building roads in distant, rural areas in return for receiving land concessions from the Government, as well becoming the joint lessee with Chow Ah Yok for the Selangor railway line. According to one correspondent writing at the time:

“He joined in every promising venture, and during the last fifteen years everything which he had touched has turned into money.”

Social and philanthropic work

In addition to his many businesses, he was also known for his many philanthropic and charitable works. According to one writer:

“Since he made Kuala Lumpur his home, no public movement of importance in the States has been without his support.”

Some idea of the extent of his charitable work is evident from a list of just some of the causes to which he generously donated: $50,000 to the Tan Tock Seng Hospital for poor Chinese, $30,000 for the establishment of a technical college, $30,000 for the Old Men’s and Cripple’s home at Kuala Lumpur, a large donation to the Methodist Boy’s School, Kuala Lumpur, for the creation of sports fields, and contributions to the Victoria Institution of which he was co-founder. He also donated funds to the University of Hong Kong and provided it with an interest free loan of $500,000.

On the outbreak of World War I he contributed to various war charities in England which he often visited and was awarded the Companionship of the Order of St. Michael and St. George.

Personal life and death

It’s said that Loke Yew never forgot his roots maintaining a frugal lifestyle preferring to take a rickshaw rather than a motor vehicle and dressing modestly. Practising monogamy, he married three or four times (sources vary) and a number of his children were sent to England for their education, including a daughter which was unusual at the time.

He died on 24 February, 1917 aged 71, of Malaria, and was buried at the Hawthornden Estate in Kuala Lumpur. According to press reports relating to the estate proceedings, which took many years to conclude, the Registrar of the Supreme Court in Kuala Lumpur in 1924 ruled that his estate be distributed equally, initially in the form of cash and land, to four heirs, and that the total sum of the estate was the enormous sum of $23,200,000.

At a ceremony for the award of an honorary degree by the University of Hong Kong in Kuala Lumpur just before he died, Sir Charles Elliot, Vice-Chancellor of the university, praised the contribution he had made to the benefit of the society in the following tribute:

“The brilliant nature of your career in the Federated Malay States has abundantly demonstrated your intellectual capacity, and the wealth you have acquired you have largely devoted to educational and philanthropic objects.”