Nanyang 1931: From piglets to giants

Chapter 46 New Base: Penang
Let’s not talk about Li Xiaoshi’s little thoughts.

Tan Kah Kee asked, “I just heard from you that the motor factory is going to be independent of Taiyou, is that right?
I just listened to your speech, but I didn't hear you mention the plane outside. These are not considered Tai's business, right?"

Zheng Yi: "Yes, Mr. Chen, they are all independent. Taiyou Machinery's main business direction is manufacturing machinery and equipment, mechanical parts, and designing production lines. It is a standard heavy industrial enterprise.
Other independent finished products developed by Taiyou Mining will be established as relatively independent companies, and Taiyou Mining will only hold shares."

Tan Kah Kee: "So, we can still invest in the companies that have been spun off from Thai-Yoo Mining? Then, will Thai-Yoo Mining and the Li family seek a controlling stake?"

Zheng Yi: "I can't represent the Li family, but at least for Taiyou Mining, we will not pursue absolute control of the derivative company."

As he spoke, Zheng Yi looked at Li Xiaoshi.

Li Xiaoshi: "Our Li family will not pursue absolute controlling stakes in other independent companies. All we need is Thai Mining."

This was of course a strategy they had discussed long ago. After all, Zheng Yi's research was progressing too fast, with various independent companies and projects popping up one after another. The Li family alone was financially unable to cope with the situation.

In fact, the Lee family doesn't have much money now. The Lee family in Kuala Lumpur is not even as rich as Zhang Yucai. At least for now, they are not truly top-tier wealthy people. Lee Hsiao-shih's strength lies in his British classmates and connections in British politics.

However, he had just returned to Kuala Lumpur and had taken over the family business not long ago. Although the momentum was strong, the time was too short and he could not produce much wealth. All the wealth he could produce had been given to Zheng Yi.

If the production continues to expand, Li Xiaoshi will not even be able to acquire a controlling stake, let alone a shareholding.

Attracting new partners is currently the only way to expand rapidly.

Many hands make light work. Li Xiaoshi was not pursuing money in his industrial endeavors. In Southeast Asia, reputation was more important than money.

Tan Kah Kee: "Then can we also buy shares in that airplane?"

Zheng Yi: "Mr. Chen, those two powered delta-wings? Yes, that's actually not suitable for Tai Youlai to make. He will set up an independent delta-wing manufacturing company."

Tan Kah Kee: "Can I buy shares?"

Zheng Yi: "Of course, the initial idea is to move the production of powered delta-wing aircraft to Penang.

If we build a factory, in addition to Mr. Chen, we also need a Penang local veteran to invest. We, Tai You Machinery, are willing to give up the absolute control of this factory."

"Oh? Penang? I see."

Tan Kah Kee seemed to be lost in thought, as if he had guessed some of Zheng Yi's thoughts.

Li Xiaoshi on the side couldn't help but frown and looked at Zheng Yi with a relatively puzzled look, as if questioning him why he didn't discuss such a big thing with him in advance.

He also didn't quite understand why the factory was located in Penang.

You should know that among the major Chinese cities in Malaya and even in Southeast Asia, Li Xiaoshi looked down upon Penang the most, because in his opinion, the gang forces, that is, the secret society forces in Penang were really too strong.

Nanyang itself is a bit of a lawless place, and Penang is a lawless place within a lawless place. It is a city with a strong underworld atmosphere. 92% of the adult male population in the city are members of the Hongmen.

The remaining 8% is most likely also from Hua Ji.

As intellectuals, they instinctively reject brotherhoods, the Hongmen, secret societies, or simply put, people who have a gangster-like air.

In his eyes, that place is full of gangs!

Why did you go there to build a factory?

Zheng Yi also knew that it was wrong not to tell Li Xiaoshi about this matter in advance, but no matter whether Li Xiaoshi agreed or not, he had to do it in Penang.
He also knew that Li Xiaoshi would most likely not agree, so he could only act first and report later.

If Li Xiaoshi is determined not to invest in real estate in Penang, then he can only look for other partners in his personal capacity as Zheng Yi.

He explained this to Li Xiaoshi and others, "The powered delta wing is undoubtedly a military device. In other words, it's relatively sensitive, and the Colonial Administration may not allow us to produce it."

"What's more, if these products are exported and sold back home in the future, the Japanese will almost certainly protest. As far as I know, Germany and Japan established an alliance last year, and Britain's foreign policy after the World War was one of comprehensive appeasement."

"In other words, it is very likely that the British Colonial Office, under pressure from Japan, will turn around and put pressure on us, affecting the production and export of powered delta-wing aircraft, as well as all other weapons and military products."

"Kuala Lumpur has a British police force, not to mention Singapore, which is the de facto capital of the British Far East. Facing the British, we have no bargaining power at all, as the gun is in their hands.

Therefore, all military products, including powered delta wings, will be produced in Penang.

In Penang, we Chinese are more powerful and have more bargaining power with the British."

Li Xiaoshi: “…………”

He really wanted to interrupt Zheng Yi and say that he had connections and face in the Colonial Affairs Bureau, and that the things were being built in Kuala Lumpur. If one day the people from the Colonial Affairs Bureau really wanted to hinder their production and development, he could find someone to smooth things over.

However, in this situation, he certainly cannot openly question Zheng Yi. What Zheng Yi says must represent the opinions of Li Xiaoshi.

Immediately, his face darkened and he said nothing, which was considered as his tacit agreement to Zheng Yi's plan.

Of course, everything Zheng Yi said was based on a prerequisite, that is, he must have a backer in Penang, and the interests of the factory must be tied to the local tyrants in Penang.

It can be said that any secret society member in Penang would not be easier to deal with than Zhang Yucai. He had to go to Penang to avoid the British, but if he could not deal with the local forces in Penang, these people might not be any less ruthless than the Colonial Bureau.

With a bang, Xu Shengli of Penang slammed the table and said, "Mr. Zheng, please give us a figure. How much does it cost to build this factory? Our Xu family has invested in it. I can assure you that if the factory opens in Penang, no one, not even the British, can shut it down. Penang is a place where we Chinese have our say!"

Zheng Yi also smiled and said, "That's great. Mr. Xu, why don't you stay in Kuala Lumpur for a few days? We can talk after the meeting."

(End of this chapter)