Loke Yew

Abstract

Revenue farming was an integral part of tin mining in the early years of British rule in the Malay States. By holding the farms for the districts where they operated mines as well as by selling opium and other provisions to their workers at inflated prices, often in lieu of paying wages in cash, Chinese capitalists kept down their labour costs — by far their greatest expense — and in so doing usually made an overall profit on their venture. There were great risks, but when deposits were rich, tin prices high and farm rents low profits could be huge (Wong, 1965). It was in this way that one of the region’s most prominent capitalists, Loke Yew, began to amass the wealth for which he was to become famous. But Loke Yew was able to continue to increase his fortune even after he ceased to hold farms, having used the profits to become a major property owner and to diversify into plantation agriculture and a multitude of other businesses.

I am indebted to the Australian Research Grants Scheme (now the Australian Research Council) and the Faculty of Asian and International Studies, Griffith University, for the funding that made possible my research in Malaysia and the Universiti Sains Malaysia for sponsoring my research there. I would also like to thank John Gullick for information on the early part of Loke Yew’s career, Paul Kratoska for a multitude of references and Khoo Kay Kim and Lee Kam Hing of the University of Malaya for their help on this project during my stay in Malaysia.