The involvement of the Chinese in Malaysia`s agriculture

The involvement of the Chinese in
Malaysia’s agriculture sector
The book “Land to Till: The Chinese in the Agricultural Economy of Malaysia” by
Tan Pek Leng is a welcome find in the local bookstores. This book is a welcome
addition because it tells about the role the Chinese have played, past and present,
in the Malaysia’s agriculture sector.
“Land to Till: The Chinese
in the Agricultural
Economy of Malaysia” by
Tan Pek Leng
Although this book contains some valuable information about our country’s
history, I am not surprised by the low profile this book has been received by the
public so far. Most Malaysians unfortunately have little interest in books that
cover topics other than local political issues, political conspiracies, self help, and
feng shui.
Hence, this blog entry is not so much of a review of “Land to Till” but to
summarize the wealth of information found in this book about the involvement of
the Chinese in our nation’s agriculture sector.
Early history of the Chinese in Malaysia
The Chinese have long and deep roots in this nation’s agriculture history. The
Chinese came to this country from China, fleeing the political upheaval, civil
strife, and starvation there. The lure of wealth drove the Chinese here to
Malaysia, often bringing with them nothing more than what they carried in their
little knapsacks slung over their shoulders.
They came here to become farmers, labourers, and coolies. Many failed to find the
success and wealth they yearned. Instead, many of them succumbed to sickness,
hard labour, and poor working conditions. Few, however, managed to climb out of
poverty to become bankers, entrepreneurs, and professionals.
Early Chinese hawkers in the19th
century in Malaya (photo from
www.my-island-penang.com)
The Chinese migration to Peninsular Malaysia, Sarawak, and Sabah followed
distinctive and separate paths. In the Peninsular Malaysia, the then British
colonial rulers encouraged actively the migration of the Chinese to work in the
agriculture, mining, and business sectors. The influx of the Chinese into
Peninsular Malaysia grew so much that in 1941, the Chinese population actually
exceeded that of the Malay population.
A Chinese farmer in
1876 in Malaya (photo
from
www.my-island-penang.
com)
In Peninsular Malaysia, the Chinese farmers chose crops that brought quick
returns. Consequently, the Chinese were actively planting crops such as pepper,
sugar, tapioca, and gambier in Penang, Melaka, Johor, Negeri Sembilan, and
Johor. Eventually, the Chinese became actively involved in a much more lucrative
crop: rubber.
In Sarawak, on the other hand, the Chinese initially came not to become farmers
but to work in gold mines opened by the Sultan of Sambas in Larak. Only later
when the White Rajahs came into power that the Chinese responded to the White
Rajah’s concessions and land leases to grow pepper, gambier, and vegetables.
An important milestone of the Chinese history in Malaysia occurred between 1898
to 1911 when Charles Brooke sponsored four Chinese colonies to settle
permanently in Sarawak for agriculture purposes. These colonies included the
well-known Fuzhou (or Foochow) Methodists in Rejang Basin and the Keija (or
Hakka) Christians in Kuching.
In Sabah, the Chinese were brought in by the British North Borneo Chartered
Company in 1881 to help to develop Sabah. Many Chinese were involved as
coolies, working in tobacco estates owned by the Europeans. The Chinese Keija
Christians, however, were involved in growing maize, rice, vegetables, fruits, and
coffee in Kudat. The economic boom in Sabah in 1920 saw huge numbers of
Chinese influx into Sabah.
Early crops
As mentioned previously, the pioneer Chinese farmers chose crops that gave
quick returns. This is because many Chinese came into Malaysia on a contract
basis, meaning that their trip to Malaysia were paid by third parties. Having their
trip paid meant that many Chinese migrants carried huge debts that must be paid
off quickly. Consequently, the Chinese farmers avoided long term crops such as
coffee and preferred quick return crops such as tapioca, sugar, pepper, and
gambier.
The Chinese who made their wealth from growing such crops were Tan Chay Yan
(who was also the first person to grow rubber commercially), Yap Ah Loy, Lim
Lean Teng, Kee Lai Huat, Yeap Chor Ee, and Tan Hiok Nee.
It is a fairy tale-like story that these pioneer planters who came into this country
with little money and fame, chose to grow a crop that would eventually lead them
to immense wealth and fame.
Another Chinese entrepreneur highlighted in the book “Land to Till” is the “Sugar
King”, Tan Sri Robert Kuok, who, in the 1970s, controlled 10 per cent of the
world’s sugar market.
“Sugar King” Tan Sri Robert Kuok
(photo from 1.bp.blogspot.com)
Rubber: white gold
The Chinese farmers practised shifting cultivation, deemed by the British colonial
rulers then to be wasteful because vast tracts of land are cleared for crop
cultivation but only to be abandoned a few years later when the land has
degraded due to intensive agriculture practices. Consequently, the British wanted
a more permanent crop and settled on rubber.
Sir Hugh Low, the then British Resident of Perak, started the first rubber planting
in Malaysia, and the first trees were planted in Kuala Kangsar. Henry Ridley, a
botany enthusiast, invented the “herringbone” tapping method on which today’s
rubber tapping method is based. However, it was Ridley’s close friend, Tan Chay
Yan, who was the first to grow rubber for commercial purposes.
Tan Chay Yan, the first person
to grow rubber trees
commercially (photo from
www.emp.com.my/eMelaka)
Starting at Bukit Lintang Estate (which was converted from a tapioca plantation),
Tan Chay Yan soon established several more rubber estates including some in
Singapore. Tan Chay Yan is also credited as the inventor of commercial sheet
rubber.
Encouraged by Tan Chay Yan’s success in rubber, Tan Kah Kee decided to be
involved in the rubber enterprise, eventually succeeding immensely to be known
as the “Rubber King”. He went on to establish several rubber mills and rubber
manufacturing factories to produce shoes, tires, and tubes. Tan Kah Kee is also
the first to export rubber overseas, and he is one of the first few millionaires in
Singapore and Malaysia.
As interesting trivia is Tun Tan Cheng Lock. Many Malaysians would know him as
one of the founders of the political Chinese party, MCA. However, few might know
that Tun Tan Cheng Lock was also actively involved in rubber planting. For
instance, he established United Malacca Rubber Estates Limited in 1910 at the
age of only 27.
The Chinese were also actively involved in the rubber milling, marketing, and
manufacturing sectors, without which the rubber industry in this country would
not be successful. The most important company in rubber milling and marketing
was Lee Rubber, established by Lee Kong Chian. Lee Rubber is still in operation
today, running 12 rubber mills in Malaysia and is responsible for 30% of the total
rubber export in this country.
Two important Chinese entrepreneurs in the rubber manufacturing sectors are
Loke Yew Fai and Tan Sri Dr. Lim Wee Chai.
Low Yew Fai, for example, runs International Footwear, a company his late fatherin-law, Datuk Seri Tan Hoay Eam, indirectly helped to establish. International
Footwear was once the official equipment manufacturer (OEM) for Dunlop
footwear. International Footwear also established, in 1979, the footwear Pallas, a
household brand name.
Tan Sri Dr. Lim Wee Chai helped to established Top Glove, the world’s largest
rubber glove manufacturer, and Top Glove is considered a “one-stop centre” for
all rubber glove types and uses.
The Chinese were also involved in research and development in rubber. In the
early days, however, it was the Europeans who were mostly active in R&D in
rubber. After the 1960s, local researchers begun to play a more prominent role.
Well known scientists are such as Dr Chee Khey Hong (plant pathology), Dr Ong
Seng Huat (plant breeder), and the late Lim Sow Ching (economics and policy
planning).
Oil palm: golden crop
Undoubtedly, oil palm is the most important crop in Malaysia today. Oil palm
currently covers over 4 million hectares in Malaysia, or nearly one-fifth of
Malaysia’s total land area is occupied by this single crop alone.
Unlike rubber, oil palm is not a smallholder crop. Oil palm plantations are
managed mostly by the private companies (60%), followed by the government
(30%), then the smallholders (10%).
The first oil palm tree was planted in Tennamaram Estate in Batang Berjuntai in
1917 by a French planter, Henri Fauconnier. However, it was only after 1960 that
oil palm cultivation began extensively, eventually overtaking rubber in terms of
importance and land area by 1980.
Unlike rubber planting, the Chinese played little role in pioneering the oil palm
planting. The early oil palm estates were foreign-owned, which was later bought
out by the Malaysian government and local private holders. The Chinese only
became actively involved in oil palm starting from the 1970s when it was clear to
many that rubber’s importance in Malaysia’s economy was diminishing due to
rubber’s persistent problem of low and fluctuating prices.
Today, the two largest Chinese-owned oil palm plantation groups in Malaysia are
IOI and KLK.
Tan Sri Lee Shin Cheng
(photo
from
4.bp.blogspot.com)
The CEO of IOI is Tan Sri Lee Shin Cheng who was born poor, and to help out his
family, he had to, among other things, sell ice cream on his bicycle. Very few
people then would foresee that this ice cream boy seller would eventually climb
the ladder of success to become the CEO of a company that is the largest
producer of palm oil in Malaysia. His company also owns the largest oleochemical
plant in the world. Besides palm oil production, IOI is also actively involved in
palm oil downstream activities, as well as in real estate and township
development (such as in Puchong and south Johor).
The other large palm oil company is KLK, a company that first made its fortune in
rubber before switching over to oil palm when it became clear that oil palm had a
brighter future than rubber in Malaysia. Today, KLK owns 18 palm oil mills, two
refineries and two crushing plants. It also owns an oleochemical plant in Rawang
which is one of the largest in Malaysia. Datuk Seri Lee Oi Hian is now the CEO of
KLK, and he has diversified KLK’s palm oil activities to include international
retailing (such as Crabtree & Evelyn), health, cosmetics, and food products.
Other Chinese-controlled groups involved in oil palm planting are such as Foo
Nyit See & Brothers, United Malacca (established by Tun Tan Cheng Lock), and
the Fuzhou collective in Sitiawan, Perak, once headed by the late Tan Sri Ngan
Ching Wen.
Three Chinese firms were among the pioneers in Malaysia to be involved in kernel
crushing, refining, and oleochemical production. These firms were Lam Soon (M)
Berhad, Lee Oilmills, and Palmco Holdings Berhad (now a subsidiary of IOI
Group).
Of these three firms, Lam Soon is perhaps the most well-known. Lam Soon
company was established by Samuel Kam Sheung Woo, and its company’s
products such as Knife cooking oil, Daisy margarine, May soap, Labour dish
washing liquid, Zip cleaner, and Drinho and Isomax drinks are among the
common products found in Malaysian homes today.
Palmco Holdings Berhad, on the other hand, was established by Datuk Robert
Chan Woot Khoon. Palmco is credited as the first to introduce physical refining of
crude palm oil in Malaysia.
Other Chinese-controlled companies involved in downstream activities of oil palm
are Carotino Sdn. Bhd. and Biotrop Organic Waste Management Sdn. Bhd. Two
signature products from Carotino are the Carotino Red Palm oil cooking oil and
Enffue (Environmentally Friendly Fuel) biodiesel. Biotrop company, established
by Ngan Teng Ye, was setup to convert palm oil milling wastes into compost and
fertilizers.
Like the rubber industry, the oil palm industry enjoys ample support in terms of
research, consultancy, and extension from various organizations in particular
from MPOB (Malaysian Palm Oil Board) and Applied Agricultural Research Sdn.
Bhd. Key people involved in these supporting services are such as Tan Sri
Augustine Ong, Datuk Dr. Choo Yuen May, Dr. Ma Ah Ngan, and Dr. Ooi Tian Lye.
Datuk Dr. Choo Yuen May, in particular, is a key researcher in the oil palm
industry. With 36 patents to her name, Datuk Dr. Choo is well-known in her
research and successful commercialization efforts in palm oil biodiesel. She is
currently the Deputy Director General of Research at MPOB.
Another key researcher is Dr Ng Siew Kee on his work on clonal oil palm. Like Dr.
Ng, Datuk Chan Yew Mun, the director of Foong Lee Plantations, is convinced of
the superiority of clonal palms over hybrid palms as the former consistently
produce higher bunch and oil yields.
Vegetables, fruits, flowers, and rice
Vegetable and flower farming in Malaysia are dominated by the Chinese.
Cameron Highlands, in particular, is an important farming area for vegetables
and flowers, where 83 per cent of the farmers there are Chinese, followed by the
Indians (15 per cent), and the Malays (2 per cent). The Chinese vegetable farmers
in Cameron Highlands are the pioneer uses of rain shelters in the 1970s.
Cameron Highlands is an important
farming area where the Chinese
farmers make up nearly 85% of the
farming community (photo from
www.cameronhighlandsinfo.com)
Another important development in Cameron Highlands today is the rapid growth
of organic vegetable farming. Among the actively involved in organic farming
there are Grace Cup Sdn. Bhd. and Cameron Organic Produce Sdn. Bhd., where
the latter was established by five farmers.
The bulk of flower farmers in Cameron Highlands today are also the Chinese.
They were the first to commercially grow flowers, beginning in in 1952, at Yuland
Farm in Ringlet, a farm which is still in operation today.
The Chinese are also actively involved in fruit farming, growing in particular
pineapple and dragon fruit. Introduced only ten years ago, dragon fruit is
attracting a lot of interest from farmers because, like pineapple, there are a lot of
opportunities for downstream activities for the dragon fruit.
In Malaysia, most rice farmers are the Malays. However, Sekinchan is an unusual
rice bowl in Malaysia for two reasons. In Sekinchan, not only are the rice farmers
mostly the Chinese, Sekinchan is also a highly productive rice production area,
producing rice yields of 10 or more tonnes per hectare which is higher than the
average national rice yield. Sekinchan rice farmers are well known for their
ingenuity and self-reliance. For instance, they developed a direct seeding method
for planting rice as one method to overcome labour shortages in rice fields. Sadly,
increasingly more Sekinchan rice farmers are turning to vegetable and fruit
cultivation due to low income and controlled rice pricing.
Sekinchan is a highly productive rice
bowl in Malaysia, where the rice
farmers here are nearly all Chinese
(photo from mycoolholidays.com)
Unlike those in rubber and oil palm, farmers of vegetables, fruits, and flowers
have little support services in terms of marketing, extension, and research.
Consequently, they often have to rely on their own efforts or their network to
solve their problems and difficulties. These farmers also complain about the
support services from MARDI and FAMA that are far from adequate.
The Farmers’ Representatives, for example, headed by Chay Ee Mong and Liew
Yow Fatt, explained that the common problems faced by farmers are: lack of land
and land security, lack of research and extension support from the government,
rising costs of production, poor marketing infrastructure, and increasing
competition from imports (particularly from China).
Lack of land area and land security are two acute problems for vegetable farmers.
Most vegetable farms are located in peri-urban areas (areas just outside urban
areas), where competition for land is stiff. Consequently, many vegetable farmers
grow their vegetables on illegal lands or on lands where the land tenure is short.
Nationwide, 70 per cent of vegetable farmers are working on such illegal or
rented lands. Only Johor and Selangor have allocated substantial land area for
vegetable farming.
Concluding remarks
Although I found the writing in “Land to Till” somewhat dry (akin to reading a
collection of Wikipedia articles), I commend the book author, Tan Pek Leng, on
her research and efforts to record the diverse roles the Chinese had participated
(and are still participating) in Malaysia’s agriculture sector.
I can imagine it had not been easy for her to arrange and conduct the interviews
with the many key people in her book. However, these interviews probably meant
that some information reported in this book can only be found here in this book
and nowhere else.
Books like “Land to Till” are immensely useful and timely because it is a book
written not with the intention to be in the bestseller list, but written more to
educate the lay readers on a less appreciated topic on the Chinese involvement in
our country’s agriculture sector.
This is particularly important when there are unfortunately some people out there
who still see the Chinese (as well as other races) as immigrants in Malaysia. The
Chinese may have once been immigrants but no longer. The Chinese have
contributed significantly to the security, progress, and harmony in this country, as
so exemplified in “Land to Till” book. For all the Chinese in this country, it is
Malaysia that they call home.
Tan Pek Leng’s writing of “Land to Till: The Chinese in the Agricultural Economy
of Malaysia” was sponsored by the late Tan Sri Ngan Ching Wen. The book was
published by the Centre for Malaysian Chinese Studies in 2008.