Tengku Razaleigh bin Tengku Mohd Hamzah (Jawi: تڠکو غزالي بن تڠکو محمد حمزة; born 13 April 1937) is a Malaysian politician who served as the Member of Parliament (MP) for Gua Musang from August 1986 to November 2022 and for Ulu Kelantan from August 1974 to August 1986. He is the longest-serving MP to date, serving from 1974 until 2022, for 48 years in a row.Ku Li now longest-serving MP The Star He is sometimes referred to as the Father of Malaysian Economic Development for playing a pivotal role in establishing and implementing key foundations and policies in Malaysian economy.British Business in Post-Colonial Malaysia, 1957-70 Neo-colonialism Or Disengagement?, Nicholas J. White, Page 78, RoutledgeMalaysiaís foreign policy the first fifty years Alignment neutralism Islamism 1957-70: Neo-colonialism Or Disengagement?, Johan Saravanamuttu, Page 141, Institute of Southeast Asian StudiesThe Straits Times, 7 July 1975, Page 10, National Library, SingaporeTengku Razaleigh, Rintangan Dan Cabaran, Alias Muhammad, Page 42, Gateway Publishing House A descendant of Malay royalty, he is a great-uncle of the current Sultan of Kelantan, Sultan Muhammad V.
He was the Minister of Finance (1976–1984), Minister of International Trade and Industry (1984–1987), former chairman of Asian Development Bank, former chairman of Islamic Development Bank, founding chairman and Chief Executive of Malaysian oil company, Petronas, and chairman of the 33rd Board of Governors of the World Bank and IMF. His popularity has earned him nicknames such as "The People's Prince" and "Ku Kita" (Our Tengku). He is affectionately known as Ku Li, derived from the last syllables of Tengku Razaleigh; a common custom in the Kelantan dialect.
Early life and education Razaleigh was born on 13 April 1937 in Kota Bharu to Tengku Sri Maharaja Tengku Muhammad Hamzah Ibni Almarhum Raja Dewa Tengku Zainal Abidin, who was once the Menteri Besar of Kelantan. Razaleigh was educated at English-medium schools and attended Sultan Ismail College before moving on to the Malay College Kuala Kangsar (MCKK). He left MCKK disliking the boarding school environment there, and transferred to Anderson School in Ipoh, Perak. He received a Bachelor of Science in economics from the Queen's University of Belfast in 1959 and later pursued a law degree at Lincoln's Inn. However, upon his father's death, he was forced to return and never continued his studies.Tan, Chee Khoon & Vasil, Raj (ed., 1984). Without Fear or Favour, p. 45. Eastern Universities Press. .
Razaleigh took over the family business, and then joined the United Malays National Organisation (UMNO).
Involvement in Malaysia's economic development Starting from the mid-1960s, with the support of then Prime Ministers Tunku Abdul Rahman and Abdul Razak Hussein, several initiatives were launched to increase Malaysia's economic growth. Being a favourite of both leaders, Razaleigh was hand-picked to fulfill many of these initiatives. This included major corporate takeovers of foreign conglomerates and industries which were previously foreign-owned.
Bank Bumiputra Malaysia Berhad On 4 June 1965, "Kongres Ekonomi Bumiputra" (Bumiputra Economic Congress), sponsored by the Ministry of National and Rural Development, was held in Kuala Lumpur for 3 days to generate an interest among Malays and other local indigenous groups to participate in commerce and industry. Seven working committees were formed to achieve these objectives.The Straits Times 5 May 1965 page 18, National Library, Singapore
Tun Abdul Razak, the then deputy prime minister of Malaysia, announced that the Government had agreed to form a local Bank ("Bank Bumiputra") as recommended by the Economic Congress based on a majority of the 69 resolutions passed in the meeting.The Straits Times 8 May 1965 page 1, National Library, Singapore The Bank, with its initial capital to be provided by the Malaysian Government, would be established. The bank's ownership would ultimately be sold to the public through shares. On 15 July 1965, Abdul Razak announced the Government's decision to provide $5 million as the initial capital for Bank Bumiputra.The Straits Times 15 July 1965 page 11, National Library, Singapore He stated that the bank's main function was to assist rural businessmen in the form of loans.The Straits Times 4 September 1965 page 11, National Library, Singapore
Bank Bumiputra Malaysia Berhad was formally launched by Tun Abdul Razak on 1 October 1965 with authorised capital of $25 million, instead of the $5 million announced earlier.The Straits Times 1 October 1965 page 1, National Library, Singapore The senior management was headed by Mohd Raslan bin Dato' Abdullah as managing director and Tengku Razaleigh as executive director. The other board members include S.O.K. Ubaidulla (president of the United Chamber of Commerce), L.E Osman, K. Mushir Ariff, Wan Yahya bin Haji Mohamad, K.D. Eu and Kuok Hock Nien. The general manager of the bank was Wong Aun Pui, a prominent local banker with 20 years of experience and director of many rubber and palm oil companies.The Straits Times 10 March 1966 page 10, National Library, Singapore
In 1999, Bank Bumiputra was merged into Bumiputra-Commerce Holdings (which is the listed vehicle for CIMB Group).
Perbadanan Nasional Berhad (PERNAS) PERNAS (Perbadanan Nasional Berhad or National Corporation) was set up in November 1969 as a wholly owned government company to carry out the resolutions at the Second Bumiputera Economic Congress. Among the major shareholders were the Ministry of Finance, Bank Negara Malaysia (The Central Bank of Malaysia) and Bank Bumiputera Malaysia Berhad. Pernas was put under a solid footing under the chairmanship of Razaleigh (1970–1974).The Developing Economies, Malaysia's Localization Policy and its impact of British owned Enterprises, Page 372, Institute of Developing Economies, Japan
In view of the very low participation of Bumiputeras in the private sector and industries at the time, PERNAS' principles were to: enter undertakings which would bring high economic returns, enter into joint ventures where PERNAS was to be the majority shareholder with controlling interest over operations, employ Bumiputeras at all levels of operations and undertakings.The Developing Economies, Malaysia's Localization Policy and its impact of British owned Enterprises, Page 374, Institute of Developing Economies, Japan
To achieve its objectives, many subsidiaries were subsequently set up. The first of which was Malaysia National Insurance Berhad (MNI), which was established in April 1970. This was followed with Pernas Construction Sdn Bhd, Pernas Engineering Sdn Bhd, and Pernas Securities Sdn Bhd. In 1973, Pernas Mining Sdn Bhd was set up and in the following year, Pernas Edar Sdn Bhd.
Razaleigh became involved in what became known as the Haw Par imbroglio of the mid-1970s, working in concert with the Singapore-based Haw Par Brothers International Ltd, then one of the subsidiaries under the control of British wheeler-dealer Jim Slater, to acquire control of the British-owned tin conglomerate known as the London Tin Company, and the plantations conglomerate Sime Darby.The Straits Times 2 January 1976 page 5, National Library, Singapore This was to be achieved through a web of transactions in which both would end up in the control of PERNAS. Things came to a standstill when Singapore accused Haw Par of financial irregularities and later jailed a senior executive.
But this proved a short-lived setback for Razaleigh. Within two years, he enlisted the help of the merchant bank Rothschild – which was also a part owner of Bumiputera Merchant Bankers – to engage in a share and proxy battle to wrest Sime Darby from British control and shift its headquarters to Kuala Lumpur. Control of the London Tin Company soon followed. In 1979, another takeover attempt was made to achieve control of Kumpulan Guthrie Bhd, when Malaysian money made a "dawn raid" on the plantation giant; this helped to kickstart a "domino effect" which sealed the fates of most other foreign owned plantations.
Among the major corporate takeover exercise and formation of new businesses during Razaleigh's stewardship as Pernas chairman were Insurance – Malaysia National Insurance Bhd, Banking – Maybank Bhd, Mining – the then-largest tin mining company in the world, London Tin Company, which was later renamed MMC Corporation Berhad. Palm Oil and Rubber Producer – Sime Darby, Guthrie Berhad, Highlands & Lowlands Berhad.
In 1971, Razaleigh led a trade delegation to China to initiate a prospect of a business relationship.The Political Economy of Malaysia's Trade Relation with China, John Wong, Page 9, Institute of Southeast Asian Studies During the visit to China, Razaleigh was granted a meeting with China's then Premier Zhou Enlai. In 1971, total trade with China stood at a mere RM105.6 million. By 1980, this ballooned to RM1.6 billion. Since then, the contact between the two countries has steadily increased.
Fleet Holdings Fleet Holdings was created to reduce UMNO's financial dependence on non-Malay supporters, such as Chinese businessmen, and to break the foreign hold over Malaysia's media companies.
The Youth division of UMNO had protested strongly about foreign control over the Malaysian publishing media and passed a resolution requesting the then prime minister, Tun Abdul Razak, to obtain control of the publishing company, the Straits Times Press.
As a result, Fleet Holdings Sdn Bhd was formed in 1972 by Razaleigh as the Treasurer of UMNO on the instructions of Tun Abdul Razak. This company was started with Razaleigh's own money and its purpose was to take control of the local media not just in the form of capital, but in management terms as well.
In the year that it commenced operations, Fleet Holdings paid RM32 million to control 80% of the Straits Times Press (later renamed New Straits Times Press).The Straits Times 17 September 1972 page 1, National Library, Singapore After its successful venture in media, Fleet Holdings expanded into other fields, including banking, car rental, leasing, communications, filming, insurance, and others. When Razaleigh gave up control of the company in 1983, total asset value of Fleet Holdings stood at more than RM500 million with liabilities amounting to only RM56 million. By 1987 however, liabilities exceeded RM448 million and the company was struggling to service its monthly interest payments of RM3 million. Fleet Holdings became the subject of a bitter dispute between Mahathir and Razaleigh before the UMNO party's split.
Through Fleet Group, UMNO held substantial stakes in Bursa Malaysia listed companies, including The New Straits Times Press (M) Bhd, Time Engineering Bhd (now known as Dagang NeXchange Bhd), Bank of Commerce Bhd, Commerce International Merchant Bankers Bhd (both banks later subsumed into CIMB Group) and Faber Group Bhd (now known as UEM Edgenta). Many of the assets have since been sold to government investment companies and other investors.
Petroliam Nasional Berhad (Petronas)