By Sharen Kaur/Business Times - February 6, 2025
KUALA LUMPUR: Lee Thiam Wah, the founder of 99 Speedmart, Malaysia's largest mini-mart chain, has earned a place among the country's top 10 richest individuals, with a net worth of RM17.6 billion, according to Nanyang Siang Pau's Richest List.
Holding an 83 per cent stake in the company, Lee's wealth soared following 99 Speedmart's initial public offering (IPO) last year, securing him the 7th spot on the 2024 Nanyang Rich List.
The FTSE Bursa Malaysia KLCI ended the year with an impressive gain of nearly 13 per cent, significantly boosting the fortunes of industry magnates. However, some tycoons dropped off the list amid wealth fluctuations.
Lee joins returning figures such as Datuk Leong Kok Wah and Tan Sri Ong Leong Huat, along with newcomer Datuk Seri Tan Run Chuan, all of whom benefitted from the strong performance of Malaysian stocks in 2024.
He also stands alongside notable figures like Sunway Group's founder and chairman, Tan Sri Dr. Jeffrey Cheah, ranked 8th on Forbes Malaysia's 50 Richest with a net worth of US$2.4 billion, and Genting Bhd's tycoon, Tan Sri Lim Kok Thay, with US$2.2 billion.
The impossible to a billionaire
Lee Thiam Wah's remarkable success is a testament to his entrepreneurial spirit and strategic business insight. Born in 1957 in Klang, Selangor, Lee defied the odds to carve out a thriving career in the retail industry despite facing significant personal challenges.
Stricken with polio as an infant, Lee lost the ability to use his legs. Financial hardships limited his formal education to primary school, but his determination to succeed never wavered. To support himself during the years he would have spent in secondary school, Lee began selling snacks by the roadside—his first venture into entrepreneurship.
In 1987, at just 23 years old, Lee used his savings from snack sales to open a sundry shop named Pasar Raya Hiap Hoe in Klang.
Recognising the growing potential of small-format supermarkets, he transformed his business in 1992 into Pasar Mini 99. This strategic shift focused on affordable pricing, a high-volume sales model, prime store locations, and streamlined logistics.
Between 2000 and 2003, Lee spearheaded an aggressive expansion plan, opening eight outlets in Klang. These stores were eventually rebranded as 99 Speedmart, reflecting the company's dynamic growth.
The establishment of its first head office and distribution centre in Jalan Kapar, Klang, was completed in October 2022, marking a significant milestone.
Today, 99 Speedmart operates over 2,600 outlets nationwide, with an ambitious goal of reaching 3,000 outlets by 2025. The company also has plans to expand its footprint to Indonesia and Thailand, further solidifying its regional presence.
On Sept 9, 2024, 99 Speedmart was listed on Bursa Malaysia, marking the largest IPO in seven years, since Lotte Chemical Titan Holding Bhd's RM3.77 billion IPO in 2017, priced at RM1.65 per share.
Within just four months, 99 Speedmart's stock surged nearly 50 percent, closing the year at RM2.47 compared to its IPO price of RM1.65.
This impressive performance propelled Lee into the top ten of Malaysia's richest individuals. The company's total market capitalisation soared to RM20.7 billion, securing a spot in the FTSE Bursa Malaysia KLCI index and the exclusive "RM10 Billion Club."
Lee's surge in net worth mirrors the trajectory of Mr DIY Group (M) Bhd, the last major retail chain operator to go public. Listed in 2020, Mr DIY raised RM1.5 billion through its IPO, valuing the company at around RM10 billion based on its IPO price of RM1.60.
According to Frost & Sullivan, 99 Speedmart holds a commanding 40.1 per cent market share within its sector and 11.6 per cent of the overall grocery retail industry.
The company's success is driven by key factors such as bulk purchasing power, enabling it to negotiate lower prices from suppliers; a centralised distribution system that reduces logistics costs; and a no-frills retail model that ensures operational efficiency.
Analysts project that 99 Speedmart's net profit will achieve an impressive 18.2 per cent compound annual growth rate (CAGR) from 2023 to 2026. This growth will be fuelled by continuous store expansions, increased sales, and enhanced operational efficiency.
The company's future performance is poised for further growth, supported by a favourable market environment.
"A boost in consumer purchasing power, especially among low- and middle-income households, driven by the increase in the minimum wage to RM1,700 and a 13 per cent average salary hike for civil servants, is expected to propel Malaysia's retail sector," an analyst told Business Times.
"This bodes well for companies like 99 Speedmart, and we believe the company has the potential to replicate its success in Malaysia across other parts of Southeast Asia."
Source: https://www.nst.com.my/business/corporate/2025/02/1171253/speedmart-founder-among-malaysias-top-10-richest-rm176bil-net
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