It is not surprising that the chief executive of food and beverage group Old Chang Kee, Mr William Lim, 48, considers the curry puff chain as his best investment. Few people know that his association with the chain began in 1986 when he gave $5,000 to his uncle Han Keen Juan, 57, as seed money to kick-start the business.
Back then, Mr Lim was an office equipment sales representative at Canon, earning just over $2,000 a month.
After Mr Han bought over the first curry puff stall in a Mackenzie Road coffee shop opposite Rex cinema in 1986 from original owner Chang Chuan Boon, he proceeded to build a retail empire called Old Chang Kee and became its chairman.
Now, the group sells an average of 35,000 curry puffs daily and this is on top of its other 26 products like sotong balls, breaded prawns and gyoza. Today, the chain boasts 69 outlets here and another 11 in Malaysia, Indonesia, the Philippines and China.
Old Chang Kee became a public listed entity in January this year. Based on the last traded price of 22 cents per share last Tuesday, Mr Lim's 6.84 million Old Chang Kee shares are worth $1.5 million.
Not bad for someone whose St Andrew's Secondary School report book was usually awash in red ink. He failed his O levels and was a car mechanic apprentice before he enlisted for national service.
It was his stint at Canon that made him realise the importance of education. He saved some money, borrowed another $70,000 from his parents and, at age 31, left Singapore to continue his studies in Australia. After four years, he returned with a bachelor's degree in commerce in 1994 from Curtin University in Perth.
The following year, he joined Old Chang Kee as the general manager and became its chief executive five years ago. A bachelor, Mr Lim lives with his parents and his labrador which is named 4D so that his Hokkien-speaking mother can pronounce it with ease.
Q: What are your money habits?
I do not splurge. I am cautious with my money. Once you have been overseas, you would understand the difficulty of managing money on a limited budget. When I was studying in Perth, I bought a car for A$7,000 and used it for four years. After that, I managed to sell it for A$5,000.
I have the habit of paying myself first. My target is to save half of my earnings and invest it. I have three credit cards and I pay my bills in full every month.
Q: What financial planning have you done for yourself?
I am a conservative investor. I became kiasu because I have seen some of my friends losing money when they invest in ventures outside their core businesses. So I believe in focusing on what I do, which is the Old Chang Kee business. For my personal investments, I delegate them to a financial adviser.
My personal investments comprise insurance, bonds, currencies and shares which are mostly Old Chang Kee shares. I have some money parked with a few banks and they are invested in 10-year capital-guaranteed funds. For currencies, I invest in Aussie and New Zealand dollars. I also own some structured deposits.
Q: What about insurance planning?
I started buying insurance after I returned to Singapore from Perth in 1985. I own whole life, term, endowment and hospital and surgical insurance plans. I view the premiums as forced savings for me. My aim then was to accumulate a surrender value of about $200,000 when I reach 50. My annual premiums amount to about $12,000.
Q: Any other investments, for example, in property, other businesses, and so on?
Late last year, I bought a two-bedroom, 1,153 sq ft condominium unit in East Coast Road for $980,000. It will be ready for rental next year.
Q: Moneywise, what were your growing-up years like?
I am from a family of six. We grew up in a rented shophouse in Serangoon Road where my father used to run his photography business. My mum was a housewife. They were pretty conservative with money. My parents used to tell us that earning money was hard and they ensured that I saved something from my pocket allowance. However, as I am the only son, I was more pampered than my siblings when it came to receiving their attention, gifts, toys and clothes. When I was 28, we moved to a semi-detached home.
Q: What is your investment philosophy?
When you have money, you must know how to grow it. I want to grow mine steadily.
Q: What has been a bad investment?
In 1995, I invested my CPF savings in some non-performing shares and to date my paper loss is about $10,000.
Q: What's your retirement plan?
To work as long as I can and save enough for retirement. I estimate that I would need $5,000 monthly when I retire.
Q: And your home now is...
A three-storey semi-detached house in Bukit Timah where I live with my parents. It was bought in 1971.
Q: And your car is?
My company car is a black Mercedes CLK200.
This article was first published in The Straits Times on September 14, 2008.
