Tan Keong Choon

Tan Keong Choon (b. 2 November 1918, Amoy, China -), nephew of the late Tan Kah Kee, is a prominent Chinese businessman who made his wealth from rubber trading in the 1950s-1970s. Among his many contributions to the local rubber industry, he is known for introducing innovative rubber processing methods which met the requirements of the Standard Malaya Rubber. He, together with Tan Eng Joo, also led a successful campaign against the monopolistic practices of shipping conferences. Tan has held a number of leading positions in Singapore including President and Vice-president of the Singapore Chinese Chamber of Commerce and Industry (SCCCI), Chairman of the National Parks Board, Chairman of the Chinese High School and Hwa Chong Junior College Management Committees, Vice-Chairman of the Hokkien Huay Kuan, and director of Chung Khiaw Bank, the United Overseas Bank and Wheelock Properties. He was twice awarded the Public Service Star (Bar) at the National Day Awards in 1978 and 1989 for his role as Chairman of the Singapore Science Centre.

Early Life
During his early years, Tan would follow his father, Tan Keng Hian - the younger brother of rubber magnate and philanthropist, Tan Kah Kee, on his work trips. His father traveled to many places to help Tan Kah Kee with his rubber business, and to build and manage schools in China. Hence Tan had a rather checkered primary school education. He went to school in Chip Bee (Jimei), Japan, Hangzhou and Shanghai. In 1935, he was admitted into the Amoy (Xiamen) University. During the vacation break of 1937, he decided to visit his relatives in Singapore. When the Sino-Japanese war broke out, he remained in Singapore to study English from 1937-1939. When the situation improved, he returned to China to continue his university education. However, the unrest in China forced him to switch schools from Kunming to Hong Kong, and then to Jinan University, Shanghai. Continued turmoil eventually led him to forego his studies to enter into business.

First Business

While in Shanghai, he began a trading business named the Nanyang Import and Export Company. The company exported Chinese tea leaves, talcum powder - which was used to coat rubber, calcium carbonate and canvases from Shanghai to Singapore. His office in Singapore was located along North Canal Road.

The Japanese Occupation

During the Japanese Occupation, Tan and his family's lives were in danger because of his uncle, Tan Kah Kee's pro-China activities during the Sino-Japanese war. To evade the eyes of the Japanese, Tan lived in various parts of Singapore, including Paya Lebar, Changi and Thomson Road. He eventually fled to Vietnam through Penang and Thailand. Though he had originally planned to escape to China, the danger of being caught at border crossings deterred him. In Vietnam, he began a small business exporting Chinese medicine to Malaya where they were in short supply. When the Japanese forces fell, he traveled north and made his way to Shanghai.

Growth in Business

Tan returned to Singapore in 1946 and rebuilt his business, exporting timber and rubber from Malaya to Shanghai, from an office located in the OCBC Building. His business thrived and caught the attention of rubber magnate, Lee Kong Chian who suggested that Tan set up a private limited company. Hence the South Seas Corporation (Nan Ya) was established in 1948 which Lee Rubber Co. Pte. Ltd (Nan Yi) had a 60% stake. The company grew to become the largest exporter of rubber and timber to Shanghai. When trade with China came to a halt due to the civil war, Tan branched out to trade with Japan, Korea and Hong Kong.

Around 1950, China approached Tan to supply them with rubber. Because the quantity of rubber requested was too large for South Seas to handle, the business was contracted out to Lee Rubber, with South Seas acting as an agent. South Seas reaped handsome profits from the commissions until the British placed an embargo on rubber trade with China from 1951-1955. With the ban, Tan took his business to Japan and Indonesia. In 1957, Tan entered into another business relationship with the Lee family with the setting up of Tropical Produce Co. (Yan Fang), where he was managing director. The company started off by buying rubber from Indonesia and then re-exporting them to other countries. A rubber mill business was later added.

Contributions to the Local Rubber Industry
In those days, the quality of rubber was determined with the naked eye and not assessed according to technical standards. This often led to disputes between the buyer and seller. Malayan rubber was also often rejected on grounds that it was of inferior quality. In 1962, the Rubber Research Institute (RRI) was formed to study and control the quality of rubber, and the outcome was the introduction of the Standard Malaya Rubber. Tan was one of the few businessmen in the rubber trade industry who complied with its specified superior grade of rubber. He even sent his employees to the RRI to learn rubber processing techniques while he read up on ways to improve the mechanical aspect of rubber production. Tan went on to design machinery that could process more rubber in a shorter time. To promote his quality rubber, Tan approached leading rubber-consuming companies such as Marumeni, Bridgestone and Goodyear in Japan and America, and sold them limited quantities of his rubber at cheap prices. He believed that the companies would return to him for more once the rubber was found to be of good quality. His hardwork, foresight and investment paid off. His factory was soon producing large quantities of rubber, and his success led to international acceptance of the Standard Malaya Rubber.

Tan also made significant contributions, along with Tan Eng Joo, towards better freight rates for rubber traders. At that time, shipping conferences, such as the Far East Freight Conference (FEFC) and the Straits New York Conference, helped shippers control freight rates. Both men worked tirelessly to convince rubber traders to use non-conference shippers. The successful boycott of conference shippers broke these monopolistic practices for the first time and opened the way for traders to negotiate for fairer freight rates.

Introduction of Incentive Wage Scheme at the National Iron and Steel Mills

On top of his many business concerns, Tan was made Managing Director of National Iron and Steel Mills Limited in 1961. During his term, he pioneered a new wage scheme where workers were paid a basic wage, and would receive extra wages for extra work done. While the workers' union vehemently protested against such changes, they relented when it became known that the unionists themselves collected their extra wages. Tan also made other improvements such as announcing the results of each worker and arranging for them to work in teams in order to stir up a competitive spirit amongst his workers.

Other Business Achievements and Community Involvement
In the mid-1970s, Tan set up Nassim Mansions, a property development firm. Tan also held directorships at the Chung Khiaw Bank, Overseas Union Bank and Wheelock Properties (formerly known as Marco Polo Developments), and took on many leading posts such as President of the Singapore Chinese Chamber of Commerce and Industry, Founder and Vice-Chairman of the Singapore Shippers' Council, Vice-President of the Singapore Rubber Packers Association, Member of the Rubber Association of Singapore, Chairman of the National Parks Board, Chairman of the Chinese High School and Hwa Chong Junior College Management Committees, Vice-Chairman of the Hokkien Huay Kuan, and Chairman of the Singapore Science Centre. He was twice awarded the Public Service Star (Bar) at the National Day Awards in 1978 and 1989 for his role as Chairman of the Singapore Science Centre.

Family

Father: Tan Keng Hian

Mother: Ong Peck Lian

Wife: Tan Iwen (Ueda Seiko)

Children: Sons: Ben Tat, Ben Tiat (deceased); Daughter: Cheng Han



Author

Isabel Ong



References

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(Call no.: RSING 959.57 SGG-[HIS])

Lam, J. (1993, January 28). My big mistake: Clever people learn from advice. The Straits Times. Retrieved on March 7, 2011, from NewspaperSG.

Lim H. S. (Interviewer). (1981, September 20). Oral history interview with Tan Keong Choon (transcript of Cassette Recording No. 000052). Retrieved March 18, 2009, from National Archives of Singapore Web site http://www.a2o.com.sg

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(Call no.: RSING 338.0409225957 LOH)

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(Call no.: RSING 920.05957 WHO)

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NParks head retires. (1998, June 10). The Straits Times. Retrieved on March 7, 2011, from NewspaperSG.

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(Call no.: RSING 337.5205957 SHI)

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