by Ganesh Sahathevan
Public Bank Bhd one of Malaysia's largest by assets, and regarded by most Malaysians and a good number of regional experts to be that country's best run, and most conservative bank. The company is listed on the Malaysian exchange, and its founder-Executive Chairman Teh Hong Piow regarded a paragon of frugality and conservatism, an exemplar of what a banker should be. Shown above is how the bank, using public funds,celebrated Teh's birthday in 2009. Teh passed away recently, and his controlling stake in the bank is likely to be in play.
This writer can attest from his attendance at Public Bank press conferences in the 90s that the ladies in waiting seen in the video above were a not unusual presence when Teh appeared in public.
His appearance at another event, driven by Malaysian supermodel Amber Chia,is yet another example.
So forgiving have analysts and media been of Teh's extravagance that his history has been accepted without question. That history is in the public domain, and assembled below.
A) The 4 June 1966 advertisement in the Straits Times, congratulates one Teh Hong Piow, General Maneger, Publiic Bank Bhd, on being conferred a datoship by the then Sultan of Pahang
http://newspapers.nl.sg/
B) THE STAR 18 October 2007 tells the story of the start of business at Public Bank as follows:
Teh Hong Piow, then 36, beat all the odds and became the founder, owner and managing director of Public Bank Bhd, which opened its doors for business on Aug 6, 1966, in a three-storey building at No 4, Jalan Gereja in Kuala Lumpur
In 1960, the 30-year-old Teh left OCBC to be part of a small group which helped start Malayan Banking. He was one of the management staff charged with building the bank from scratch.
He rose swiftly through the ranks and became general manager within four years.
In 1966 came the decision to strike out on his own.
One of his earliest breakthroughs – a foray into housing development – generated some RM10mil, which was used as seed money to set up the bank.
In short, Teh left Maybank in 1966, became a property developer, made RM 10 million and started his own bank in August that year.
However, 1966 was also the year of the Maybank rum which saw Bank Negara taking over the bank. The run occurred as a results of rumours, later proven true, that Khoo and his team, which included Teh Hong Piow, oversaw the siphoning of depositors money into a series of businesses that Khoo controlled.
It does seem more likely that Public Bank began with money from Maybank. It is now time that Public go home.
It is also time that media and analysts took a more objective, critical view of Public and its related businesses.
TO BE READ WITH
On October 28, 1966, about a month and a half after Teh Hong Piow and other former senior executives of Malayan Banking Bhd opened Public Bank Bhd for business, there was a run on Malayan Banking.
The matter was so serious that police had to be called in to control crowds at some branches, and Bank Negara and its then Governor Ismail Ali had to issue a statement expressing Government support for Malayan(Straits Times, Saturday ,29 October 1966,page 1).
According to a market commentary in the Straits Times, Monday 31 October 1966:
The (Bank Negara) statement on Malayan Banking was more than timely in view of the rumours that have been sweeping through the market over the past month or so.
The market has to a large extent been holding back because of concern about the affairs of this huge bank chain, with all its ramifications and which in the past few years has expanded so rapidly.
The report and accounts for the year ended June 30 are well overdue.The annual meeting is some six weeks late .....the market view is that the affairs of the bank
should be the subject of an investigation to clear the air completely.
According to the Bank Negara Annual Report for the year ended 31 December 1966:
Rumours arose from the differences of opinion among some members of the board of directors of the bank regarding certain material advances to customers of the bank.These advances were found to be inadequately secured, particularly as a result of depressed prices of property shares which formed the main security of the advances.Subsequently additional securities were lodged with the bank in respect of these advances.
(Note: The Bank Negara report is careful to not name Malayan Banking -it simply refers to a commercial bank which experienced abnormal withdrawals at the end of October 1966 which required the Central Bank to issue a public statement to assure the bank's depositors of the safety of their funds)
And to take readers back to Part 1 of the Teh Hong Piow story:
He rose swiftly through the ranks and became general manager (in 1964).
In 1966 came the decision to strike out on his own.
One of his earliest breakthroughs – a foray into housing development – generated some RM10mil, which was used as seed money to set up the bank.
(http://biz.thestar.com.my/news/story.asp?file=/2007/10/18/business/19198449&sec=business )
So -Teh left Maybank in 1966-got into property development , made RM 10 million-and started his own bank in August that year.How brilliant, how skillful......(readers can add other adjectives)
(see full story at http://gsahathevan.blogspot.com/2007/10/public-banks-teh-hong-piowwhat-exaclty.html)
The matter was so serious that police had to be called in to control crowds at some branches, and Bank Negara and its then Governor Ismail Ali had to issue a statement expressing Government support for Malayan(Straits Times, Saturday ,29 October 1966,page 1).
According to a market commentary in the Straits Times, Monday 31 October 1966:
The (Bank Negara) statement on Malayan Banking was more than timely in view of the rumours that have been sweeping through the market over the past month or so.
The market has to a large extent been holding back because of concern about the affairs of this huge bank chain, with all its ramifications and which in the past few years has expanded so rapidly.
The report and accounts for the year ended June 30 are well overdue.The annual meeting is some six weeks late .....the market view is that the affairs of the bank
should be the subject of an investigation to clear the air completely.
According to the Bank Negara Annual Report for the year ended 31 December 1966:
Rumours arose from the differences of opinion among some members of the board of directors of the bank regarding certain material advances to customers of the bank.These advances were found to be inadequately secured, particularly as a result of depressed prices of property shares which formed the main security of the advances.Subsequently additional securities were lodged with the bank in respect of these advances.
(Note: The Bank Negara report is careful to not name Malayan Banking -it simply refers to a commercial bank which experienced abnormal withdrawals at the end of October 1966 which required the Central Bank to issue a public statement to assure the bank's depositors of the safety of their funds)
And to take readers back to Part 1 of the Teh Hong Piow story:
He rose swiftly through the ranks and became general manager (in 1964).
In 1966 came the decision to strike out on his own.
One of his earliest breakthroughs – a foray into housing development – generated some RM10mil, which was used as seed money to set up the bank.
(http://biz.thestar.com.my/news/story.asp?file=/2007/10/18/business/19198449&sec=business )
So -Teh left Maybank in 1966-got into property development , made RM 10 million-and started his own bank in August that year.How brilliant, how skillful......(readers can add other adjectives)
(see full story at http://gsahathevan.blogspot.com/2007/10/public-banks-teh-hong-piowwhat-exaclty.html)
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