Friday, February 01, 2008

Brash, ambitious (read greedy), ruthless ... Kith Meng is Hun Sen's tiger cub (read crony)

02.11.08
By Ron Gluckman
Forbes


Brash, ambitious, some say ruthless, Kith Meng is building an empire in the newest tiger economy.

A towel around his neck, the slight Cambodian in a sweaty Nike (nyse: NKE - news - people ) sports shirt shouts instructions into a cell phone. He's stomping across the spacious lawn of the Cambodiana Hotel with an arrogant swagger, like he owns the place. Which, in fact, he does.

He's Kith Meng, and that same swagger is on display practically everywhere you look these days in Cambodia. From hotels to telecoms and television, banking, insurance, even education, Kith's Royal Group has a finger in nearly every pot simmering in Asia's newest tiger economy.

Long derided as a backwater that utterly missed the Asian economic boom, Cambodia has been racing to make up for lost time. News that the economy surged by more than 13% in 2005 caught everyone's attention. But growth has averaged 9% annually since 1998, says Stephane Guimbert, senior country economist at the World Bank. That's the second fastest in Asia, after China. Last year growth may have hit 10%.

Granted, it's from a very low base, and exports are mainly textiles. But investment has picked up in the expectation that oilfields off the southern coast will be developed. Real estate is skyrocketing, faster than anywhere in Asia outside of China. And the country drew more than 2 million visitors last year for the first time. Plans call for a stock exchange to open in 2009.

Susan Schwab, who in November became the first U.S. Trade Representative to visit Cambodia, praises its liberal investment laws and a commitment to cleaning up rampant corruption. "This is a wonderful story, for any country, more so one so scarred by its past," she says. "If the buzz factor hasn't already hit, it's definitely developing." Her visit coincided with a landmark Phnom Penh investment conference. "We expected 300 people, but there were over 500," says Christopher Bruton in Bangkok, one of the organizers and a researcher and consultant in Cambodia for decades. "We have never seen such interest in Cambodia."

Kith happily notes: "Before, people used to think of this as a place of war and instability. But now we are part of the global economy, and everyone is coming."

When they arrive, many have no choice but to court Kith, who, more than any of the country's other tycoons, stands as the rugged role model for wheelers and dealers in this anything-goes, frontier economy. "He's a real rags to riches story," says Dean Cleland, chief executive of ANZ Royal, which is planting ATMs and the bank's vivid blue logo everywhere around Phnom Penh. Australian banking powerhouse ANZ holds 55% in the joint venture, with Kith holding the rest, but nobody would consider him a meek minority shareholder. "We have strong and rigorous board meetings," Cleland says.

The word around town is that the two sides battle constantly, with ANZ struggling to distance itself from a meddlesome Kith. "Who said that?" Kith snorts, temper flaring at any inkling of criticism. Yet he quickly calms down, chuckling as he concedes: "My role in the partnership is to push. And push. I'm like the driver."

It's clearly a role he relishes. And, whatever confrontations ensue behind closed doors, the combustive mix has propelled the venture into a lead role in a banking market that may be growing at 30% a year, fueled by the bubbling real estate market. Of course, Kith also claims plenty of prime Phnom Penh plots.

New high-rises are rapidly reshaping a city skyline still dominated by a 15-story Intercontinental Hotel. But 40-story office, commercial and residential towers are on the rise. Just to trump them, Kith vows to build one 45 floors high. Then came the announcement last month that the 52-story International Finance Tower had gotten approval. Kith will surely adjust his sights higher.

Many of Phnom Penh's streets are still unpaved, and there isn't a single Golden Arches or Starbucks (nasdaq: SBUX - news - people ) yet. Hence, at the opening late last year of a Swensen's, a U.S. chain of ice cream parlors, none other than the U.S. ambassador and the commerce minister cut the ribbon. The hunger for fast food will be satisfied this year by the first Kentucky Fried Chicken outlets opened by--who else? Kith, who also has the Pizza Hut concession.

"He's not an entrepreneur in the traditional sense of creating new businesses," notes one close friend. "What he does is go out and get the business that Cambodia needs. He brought in mobile phones, television, banking, insurance. He's the right guy at the right time."

Take ATMs. When ANZ opened in late 2005, there were hardly any in Cambodia. "We wanted to bring in 25," Cleland recalls. Kith wanted 100. "We ended the year with 52, which seemed a fair compromise," Cleland says. The number quickly topped 90 and will surpass Kith's goal any day.

Not that Kith is satisfied. Now he's barking about credit cards. No Cambodian bank issues plastic, not surprising considering the country's rather recent financial turmoil. Money finally returned to circulation after the Khmer Rouge outlawed currency, blew up the banks and turned clocks--and this war-torn nation--back to Year Zero.

Cleland says there may be 6,000 credit cards issued by overseas banks in the country. He reckons that cards rarely make financial sense until the number reaches 100,000. But Kith is guided by intuition, not market studies. "In his words, you cannot be the number one bank without credit cards," Cleland says. And guess what? "We're rolling them out in April," he notes.

The bank boss may not be very excited about the $1.5 million likely to be spent on the rollout, but he's quite satisfied with a profit of $541,000 for 2007--years before any profit was projected. All the more impressive, it comes as the bank plows cash into expansion. "This has been a good partnership, for both sides," Cleland says. "[ANZ] tends to be more cautious, but that definitely isn't his style. He's very aggressive, very bullish."

ANZ almost took a pass on Cambodia. "If not for Kith Meng, I don't think we'd be here," says Cleland. "A lot of people ask why ANZ is in Cambodia. The answer is that he went to Australia looking for a bank for the country. He made the rounds and came back and told us that of all the banks, we were the one that had said 'No' the most politely." Cleland says ANZ had previously assessed Cambodia: "It came up as a market that was too small, and it was too soon." Kith pressured ANZ to reconsider, suggesting that it fly people in for a new look. If they didn't like what they saw, he would pay for the trip. What ANZ saw was a huge cash economy bigger than what bank deposits indicated. "We caught the wave at exactly the right time," Cleland says.

ANZ may know banking, but Kith has the Midas touch in Cambodia. And he clearly stands apart from both the old money--made mainly in mining, logging and smuggling in the 1980s and 1990s--and the new entrepreneurs starting restaurants and tourism businesses. The older tycoons tend to be reclusive and tied by blood or marriage to the political leaders. In contrast the brash Kith is only 39, unmarried and linked to nothing but the pursuit of profit. Many call him the new face of Cambodian capitalism.

46 comments:

Anonymous said...

Good job, Mr. Kith Meng. It takes a strong individual like him to get anything done in cambodia. Please invite Western investors and expand your vision for Cambodia. Don't listen to the chicken critics who do not want to see Cambodia grow; they are only good with their foul mouth. Congratulations for your unprecedented success. I'm with you all the way, no matter what any else say, till their heart content.

Anonymous said...

Bravoo! Bravoo! Neak Ok Nha Kit Meng! you play a role model for Cambodian young people. Bring more big companies and investors to Cambodia.

Anonymous said...

8:50am seem like Kid Meng sucker.You don't know how Kid Meng did to Cambodian and grab their lands.You will see what happen in the future.

Anonymous said...

Leave it to an American magazine like Forbes to profile and glorify a gangster like Kith Meng. Could his fabled rags to riches story have anything to do with his close association with Hun Sen? And Susan Schwab praises Cambodia for its commitment to clean up corruption? Seems like I've heard that before.What a load of rubbish.

Wanna said...

You're a role model of new Cambodian generation, Kith Meng. Bravo!

Anonymous said...

MR. KITH IS AN "AUSTRALIAN CAMBODIAN" HE OWN CTN" CAMBODIAN TELEVISION" THAT EVERY EVERYBODY IS WATCHING IN THE U.S CANADA, AND AUSTRALIA.DID YOU KNOWN THAT ALL THE THAI MOVIE TRANSLATED TO CAMBODIAN IS OWN MY "KITH" MULTI MILIONS DOLLAR "CAMBODIANA HOTEL" OWN BY KITH.A STUPID HUN SEN ALWAY ASK FOR MONEY FROM MR. KITH MENG. iN THE NEXT 6 MORE YEARS CAMBODIA WILL BE THE NEXT BIGGEST ECONOMY IN ASIA AFTER JAPAN!!!!

Anonymous said...

Am I surprised by Kith Meng success story? No! He became millionaire through connection with HUN SEN government which allowed him to have total monopoly in all of his business activities!

I want to see more economic competition in Cambodia where Cambodian people can benefit economically! I don't want to see the whole investment scheme falling to just one person such as Kith Meng! Sometime I wonder why AH HUN SEN economic policy produces only small handful of millionaire which in contrast to United States, Great Britain, Germany, China, Japanese which produce more millionaire than Cambodia?

http://www.businessweek.com/bwdaily/dnflash/content/oct2007/db20071017_916634.htm

Anonymous said...

How the Khmer Refugee like Kith Meng have millions of dollars to invest in Cambodia? Where are those money comes from? from the first place? find out and soon no moo khmer.

Anonymous said...

Between the two multi-millionaire devils (Kith Meng and Sok Kong), I'll choose Kith Meng because he at least has some Khmer blood in his vein.

Being successful could also mean making other people's lives a misery. One man's profit is another man's loss. That's the reality in doing business. Are we to say that those who are less successful are a better person?

Successful people, such as George Soros or Bill Gates, make billions in profits, not millions. But they are different from Kith Meng, because they are also philanthropists. They channel back billions to support charities and foundations to help humanity.

But, Kith Meng's millions in profits are also used to suck up to corrupt Hun Sen and his cronies so that his business interests are protected. When the corruption factor is included in the equation, his success story will be tainted for sure.

Anonymous said...

How about the killing of his brother hoe his first millions dollars who knew that story?

Anonymous said...

Kith Meng has HIV because he sleep with a lot of girls, actress and singers. I know it from a friend's aunt whose home is near one of his mistress home....He has a lot of undeclared children also. By the way he will become the future in-law of Hun Sen. His future wife divorced from Hok Lundy's son. That'swhy Hok Lundy is not happy, but what can he do with the in-law of HS?!

Anonymous said...

Kith Meng is 2nd husband of Ms. Hun Mana (Hun sen's daughter)

Anonymous said...

Who will be 3rd husband of Ms. Hun Mana (Hun sen's daughter)

Anonymous said...

601pm,
Long Beach's cat, Richer San, is working on his strategic move to take over Hun Mana asset before 2010.

To be correct,Kith is not Hun Mana husband but her part time lover.

Anonymous said...

Congratulation Mr. Kith Meng. My request to you is to change the way the payroll in Cambodia to be bi-monthly that will make economy move faster. And others campany will follow you. Better for Cambodia.

Anonymous said...

Someone said it before. Leave to an American capitalist magazine like Forbes to glorify the exploits of a robber-baron. But time will tell whether or not he bet on the right on right horse. You can just wait for his first pratfall. It looks like the credit cards are the first, or when he is kept sitting on his empty condos. We have seen many of these success stories in the past. Not all succeed in the long run. Maybe he does, maybe he doesn't. One certainly has to admire his energy. But maybe he is just a little too full of himself. And without his connection to Hun Sen he wouldn't have achieved anything this size.

Anonymous said...

Advice: Mr. Kith Meng, just watch yourself, since you have a lot of property in Cambodia -- of course, you do not want to upset Mr. Hun sen, and if you do, you'll surely find out what will happen to your business in Cambodia, because you do not have the right protection as opposed to Mr. Sok Kong. Whereas, Mr. Sok Kong has all the protection he can get from the Vietnamese.

Good luck... and stay ALERT!

Anonymous said...

I guess everyone is entitled to their opinion, but I ask to be constructive in critizing. Learn to put yourself in the person you critize's shoes. What would you do? Is the negatives out weight the positives? Will it be better off or worse off with and without?

I know you can't make everyone's happy. I suggest people should learn to see things in broader pictures. After all this is our country and certainly we want see more successful Khmer stories happen there.

Anonymous said...

I guess everyone is entitled to their opinion, but I ask to be constructive in critizing. Learn to put yourself in the person you critize's shoes. What would you do? Is the negatives out weight the positives? Will it be better off or worse off with and without?

I know you can't make everyone's happy. I suggest people should learn to see things in broader pictures. After all this is our country and certainly we want see more successful Khmer stories happen there.

Anonymous said...

A new face of capitalism. Kith is young and full energize,and looking forward to make more profit. Kith has to be more vigilant and energizing as he wakes up every morning thinks not only that he has opportunity to conduct businesss for profit but feels relieve that he survives one more day without being accussed of stray away from the old clawn of watchful hawky and tiger-eyes from the above. At the moment of notice Kith has to slash and burn a large shunk of fortune to feed the savaged hungry monsters.

Nonetheless, he definitely in a good advantage of being outsmart of making profit although there haven been alledgedly involved in too risky to contemplate the outcome of this adventure. however, Kith has reserved various point of views regarding those devil smiles. No one exactly knows what those points, but is clearly indicated a young energizing new Cambodian enterpreneur is skillfull to manouver himself through the zizaging barrel of rocky steep cascade of unseen jungle.

The point of the business contest for him laid on the slope of getting profit as fast and slide the rest to a content of port-folio to remain as it is protected for contigency of unforeseen. Kith is in the best suit to do such that for his own future sake.

The philosophy of cowboy of capitalism in Cambodia has been widely cushioned with the fact that
the walk and talk are enthralling the tune of self-readiness to capitulation for the masters of command.

Anonymous said...

get with the pioneer spirit of investment in cambodia and stop complaining. and stop politicizing your opinion, not everybody likes your idea of seditary lifestyle. if people have the entrepreneur spirit, help encourage them. rich, business people don't think like you, they think in terms of making more and more money, and cambodia is a good place for that right now. if you take too long, then you may not be able to afford to buy land to do your business as price of real estate keeps climbing and climbing all over cambodia. soon, phnom penh land price will be like those of tokyo, london, etc. think about, now is a good time, but even better was 5 to 10 years ago, but wait too much longer. your opportunity.

Anonymous said...

To 2:45AM!

Get real! It is obvious that Cambodia doesn't have world class education! It is obvious the Cambodian poorer are getting poorer and the Cambodian rich are getting richer! It is obvious that not all Cambodian people will become successful and that is why I want to see Cambodian government create a nurturing system for all Cambodian people to have the same opportunity under the laws and regulations such as having equal access to higher education, housing, healthcare, get the proper training, free to compete base on merit...

At the moment the only so called successful Cambodian business people are those having connection with the government from wealthy family! It is a fact that those Cambodian people who are born as poor and will remain poor for the rest of their life unless they marry their son or daughter to a richer family or have connection with top officials! This is the sad reality for dirt poor Cambodian people!


If the land price keep going up beyond the reach of average Cambodian people and where do Cambodian people go to live? What is the fucken point of having economic growth when dirt poor Cambodian people can't afford to pay for basic needs? Is this another form of exploitation disguise as economic growth?

Anonymous said...

It is rediculous by put any mockory toward Cambodian interpreneur. Young Kith Meng has all skills, Human Resource, Marketing, and Management. He is doing so well contributing his idea and asset to the prospers the Cambodian market economies. Idea generation and system development, it is hard to set forth in Cambodia, But Kith Meng does.

Anonymous said...

We'll wait and see what will happen to this so-called young Kith Meng when the relationship begin to diminish with Mr. Hun Sen.

When that time comes... remember that I told you so....s

Anonymous said...

Please, get a life! Rich and poor people exist in any society. This is where social services or gov't public services existed to help these misfortunate people. Cambodia can ask to strengthen this section so people could be rescued, find jobs, get good healthcare, etc. It is everyone's job to encourage the gov't to do this. please stop pointing fingers like small children; instead, get involved in the community. Take some responsibility into your own hand.

Anonymous said...

Don't forget those women who are majoring in men. Especially, a rich man. Hopefully, some of our own women know the trick and will get ya!

Hey!there is already a book that can show you all the trick on " how to marry a millionaire or billionaire ", Ladies! Check that out! The trouble is, most of our own ladies cann't read in English and a lot of them are Tip Sodachan's type of women. It's sad that they couldn't careless about you Kith, but that don't mean, you cann't save them a spot. Think about it buddy!!!!!!

Anonymous said...

No Cambodian people are advocating that the Cambodian government should do everything for Cambodian people but the Cambodian government must create a fair system for all Cambodian people to participate and to have the same equal access to education, healthcare, housing, ownership, to compete base on merit...

Any fool who said that AH HUN SEN Vietcong slave government is creating a fair system for Cambodian population and you got to be kidding me!

Anonymous said...

Yeah! and most of them would think that you're as ugly as a dog. Who gives a shit?, but please watch other women, if you know i mean. You're # 1 man! No! your money is #1 and the only way to get that money, is to get you! and they will. You'd better look out!or your ass and your money will be in their sack.

Anonymous said...

I am talking about a fair system for Cambodian people to have equal access and some fool in here talking about women!

This fool must be drunk for him to talk about women!

Anonymous said...

A word of advice: This advice is for you, Mr. Kith Meng. So, listen well!

Every business tycoons throughout the world will be on the FBI file; also, undoubtedly -- you, yes, you'll be one of the most (pontential) wanted list to ensure that you're exercising your business legitimatedly in Cambodia and elsewhere. Again, the FBI will put you under its microscope for a possibility of scrutiny.

Furthremore, if you involved in the GB incident, then you business will be in jeopardy.

Anonymous said...

8:34 AM

Your knowledge is comparable to a Cambodian second grade.

Also, you don't even know what the truth and reality are?

What do you know about responsibility?

You know absolutely nothing about knowledge, truth, reality and responsibility. Therefore, don't you pontificate your ignorance and second grade education to us.

Anonymous said...

get hilary clinton's book, "to raise a village." she talked about how in the third-world countries, it takes the entires village to help raise a family. that means a lot because everyone in the village contributed something to help protect and feed the entire family. in other words, it would take an uncle, an auntie, both grandparents, both parents, all siblings, extended relative, and in some case, the entire neighbor to raise a family. cambodia should read this book to help people in the community.

Anonymous said...

remember what the former president John F. Kennedy said: "ask not what your country can do for you, ask what you can do for your country." cambodians, please learn from this great quote.

Anonymous said...

3:09 AM

It does not mean anything!

No one will stick a gun to your head to hae you made your choice, and therefore just forget about the quot you found; again, it does not mean anything.

Anonymous said...

3:05 AM

what is or was good to you, does not necessarily mean it is good for others. We're like you like this American whore's book.

Anonymous said...

I wish the patriot khmer rouge can come back to kill all these sino-khmer and fucking profit-men from real cambodian people. kill kill kill kill all deserve to die. Viva Pol Pot!!

Anonymous said...

only the khmer rouge who has pure hatred for the vietnamese.

i don't think we can follow the khmer rouge leadership, unless hun sen is willing to turn around and follow his former leadership

but it would impossible for him to do that, because too many yuons are surrounding him every inch of him and his staff, he's not safe
but he does not care , because he has almost all of his nieces and nephews in the u.s. also he has plan for his sons and daughter escape route
because he knows that there won't be a family dynasty
because when the hun sen's regime falls, everything will fall like dominoes

it won't be long,it will come to him, hun sen, without he and his staff knowing it.

everyone in his regime will be surprised.

Anonymous said...

well, this is called changes, if you don't know already. but changes shouldn't always be bad, though. cambodia shouldn't use changes as a method to scare people either. this is called human rights. it is ok to make changes in order to better a nation and its people's way of life, but be careful not to make people feel be they will be targeted because of their past affiliation or what have you. Cambodia should learn from the past KR regime; whose often killed off educated people or people they deemed have allegiance to the past gov't or something, thus killed them all. Cambodia can changes, as in gov't, way of thinking, etc., but be very careful not to fright people at the same time because how people will fight back and resist to changes because of the culture of fear, fear, and more fear. so be very careful, don't threaten people because, as human being, they will retaliate in some way... don't forget that we are all human beings, not some kind of wild animals.

Anonymous said...

Cambodia doesn't need another gangster. For all those who see him as a hero, take a fork and stick it in your eyes for I believe you're already blind and numb. Senseless acts deserve senseless people.

Anonymous said...

i say, fuck all of you who are so fucking jealous of someone's success, and make it as your enemy.

get a fucking life,would you!

Anonymous said...

What is your problem 1:49pm? I'm trying to tell my buddy to watch his ass from all the gold diggers man! He may be smart with money and everything else, but the way I look at it, he's as dumb as the dumb donky when it comes to women. You fool need to shut your trap! and give everybody else a chance to be heard just like you dumb ass!

Anonymous said...

Kith Meng hey your doing a wonderful job in cambodia but can we step into the future and out of corruption. i went to your hotel cambodiana and ask the employee in there. what are you paying them and do they have medical insurance and your hotel lets take pride in it. your phone system suck during busy traffic we cant get anywhere and you making money off the poor people by lieing that you have the state of the art phone system. At&t never gave me any of this problem lets grow up as a nation not to be rich by yourself. if you cheat the system its only going to come back to bite you. hear the voice of your customer and grow up a little bit be more respectful. wish you well but listen to your employee and take care of them. dont take from the poor give some back.

Anonymous said...

Hey, guys.

The article in Forbe magazine is not a positive article.

Being called "Swagger" is not very good thing to be called by.

Ruthless, is another NO good name to be called by.

Just think of it.

Anonymous said...

I am not jealous of the rich and I do want to see Cambodia grow but not this way. I don’t want to see a corrupted guy taking for his self and leaving the poor behind. This guy tax in Cambodia and nobody else is doing it. What does he do with the tax fund his karaoke. Well I will be starting a blog just to make sure you don’t succeed other legitimate Cambodian will make it. My blog will be with google, yahoo, and other well known ones. There are several on my list because you guys are cheating the Cambodian people if you guys play by the rules I will not bother you. Well here are the guys that is on my list now… kith meng, craig jones Indochina, chhay hok computer trading company.

Anonymous said...

Kith killed his brother, Kith Phan and controls all of his brother's properties. Those properties should be transferred to his sister in law and children but not.... because he killed his brother in one hospital in Thailand by the time one in hospital he wrote inherit by himself and put his dead brother thumb print... good job Kith...

Anonymous said...

kith meng i think he need Jesus maybe he can get a little respect. Because he is pretty ruthless need some sort of change. we will see how he do after no tourist.