Lee Kar Whatt, co-founder of discount retail chain Eco-Shop Marketing, is now the 18th richest individual in Malaysia with a net worth of US$1.5 billion.
His wealth has surged 30% since the company’s initial public offering in May last year, according to U.S. magazine Forbes.
Modeled after dollar stores, Eco-Shop, founded by Lee and his partners in 2003, offers household goods and other items at fixed prices of MYR2.6–2.8 through a network of more than 400 outlets nationwide.
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Lee Kar Whatt, founder and managing director of Eco-Shop. Photo courtesy of the company |
The company, which Lee built from a single small-town store, plans to open at least 70 new outlets annually through 2029, using part of the MYR974 million ($248 million) raised from its IPO to expand retail and distribution coverage.
Lee, who did not attend college, previously worked in construction and shipping before founding a small construction firm in 1994. In 2002, he entered the retail sector with his brother Lee Tiong Bin and two other partners.
Eco-Shop’s shares have risen 13% since the IPO, supported by stronger margins. For the six months ended Nov. 30, net profit increased 30% to MYR121 million, while revenue grew 3% to MYR1.4 billion.
Malaysia’s dollar-store segment “remains under-penetrated, offering a long runway for growth,” according to CEO Jessica Ng.
If you look at the current economic situation, our business model is even more needed. We stretch the ringgit for many, many people,” Ng told Bloomberg in an interview.
