Have you ever heard of Oei Tiong Ham? Though his name isn't as widely known as other historical figures, this Semarang-born businessman once shook the foundations of Southeast Asia's trading industry.
Known as the "Sugar King of Asia," Oei was far from an ordinary merchant—he was the mastermind behind the Oei Tiong Ham Concern (OTHC), a massive conglomerate that dominated regional trade in the early 20th century.
The Sugar King of Asia
Oei Tiong Ham was born in Semarang, Indonesia, on November 19, 1866. He was the son of Oei Tjie Sien, founder of the trading company Kian Gwan.
Inheriting the family business, Oei didn’t just continue it—he expanded it dramatically. Under his leadership, the company grew into a major enterprise involved in sugar trading, shipping, banking, and even opium, which was legal at the time.
Despite not receiving a formal Dutch or British education, Oei studied under private tutors and attended Chinese private schools. He became fluent in multiple languages and was known for breaking conventions.
In 1889, he became the first Chinese man in Semarang permitted to cut off his queue and adopt European-style clothing—a symbolic act that reflected his progressive and modern mindset.
Indonesia’s First “Crazy Rich”
At the age of 24, Oei Tiong Ham began taking an active role in the family business. After his father passed away in 1900, he officially took over Kian Gwan and transformed it into Oei Tiong Ham Concern (OTHC). Under his leadership, the company evolved into Southeast Asia’s first multinational conglomerate.
Oei’s business strategy was sharp and calculated. He acquired struggling sugar factories and modernized their operations. He also expanded the company’s global distribution network by opening branch offices in major cities such as London, Amsterdam, Bangkok, New York, and of course, Singapore.
Unlike many Chinese businessmen of the time who relied heavily on family ties, Oei took a different path—he hired professionals from outside his community, including Dutch managers and engineers. He even established his own bank, N.V. Bankvereniging Oei Tiong Ham, to manage the financial affairs of his vast business empire.
His bold venture into the opium trade also proved highly lucrative—he reportedly earned around 18 million guilders from this sector alone between 1890 and 1904. At its peak, OTHC controlled about 60% of the sugar market in the Dutch East Indies and exported up to 200,000 tons of sugar annually.
Owning a Quarter of Singapore?
One often-repeated claim about Oei Tiong Ham is that he “once owned a quarter of Singapore.” While this may sound exaggerated, it’s more of a metaphorical statement.
However, there’s truth behind it—Oei did own several strategic properties in Singapore, including a prestigious residential area now known as Oei Tiong Ham Park, located in District 10 near Holland Road.
Beyond the residential area, another lasting legacy is the Oei Tiong Ham Building, which was once part of Raffles College and later the University of Singapore. The building was named in his honor in recognition of his contributions to its development.
In 1920, Oei moved from Semarang to Singapore, bringing along his business empire and immense wealth. His decision was driven in part by his opposition to Dutch civil law, which granted inheritance rights to daughters, as well as his desire to avoid a 30% war profits tax.
He even renounced his Dutch East Indies citizenship to settle in Singapore permanently.
Oei Tiong Ham’s Lasting Legacy
Behind his immense success, Oei Tiong Ham also left a trail of controversy. His involvement in the opium trade—though legal at the time—is viewed quite differently today.
He also drew criticism for using legal contracts to seize assets from indebted business owners, particularly sugar factories in East Java.
OTHC continued to grow even after Oei’s death. However, in 1961, the Indonesian government seized all of its domestic assets, accusing the company of economic violations, including foreign exchange manipulation.
In 1964, the company was officially nationalized and renamed PT Rajawali. Despite this, OTHC branches abroad remained under the Oei family’s control.
In Singapore, Oei Tiong Ham’s name continues to be held in high regard. He is remembered as a generous philanthropist who contributed to the construction of the Raffles College building, supported Chinese High School, St. Andrew’s Medical Mission, and even helped victims of the Japanese earthquake through the Japanese Earthquake Relief Fund.
