Penang’s success is usually associated with foreign multinationals like Intel, Motorola and B. Braun. But there are smaller companies and SMEs that are quietly making waves abroad.

One of these is a homegrown company that sells its product in over 20 countries around the world, and that continues to win fans in unlikely places like war-torn Afghanistan. The company is Lingham & Son (Malaysia) Sdn Bhd, maker of the popular Lingham’s Chilli Sauce.

Lingham was an Indian immigrant labourer with the East India Company working in Butterworth when he started producing the sauce in 1908 for the British population in Penang. He used fresh chillies, vinegar, sugar and salt without preservatives or artificial colouring. After World War II in 1945, desperate to return to India, he swopped the recipe with a Chinese man named Ooi Choo Hong in return for a berth home on a ship.

By then, Lingham’s chilli sauce had gained a following even among expatriates who had returned to Britain. So Ooi maintained the name Lingham’s. Till today, people are surprised when it is revealed that the owners of Lingham & Son (Malaysia) Sdn Bhd are actually Chinese.

The sauce was so popular among the British that it was said to have been included in the rations for officers who served in WWII, a tradition apparently still followed by British soldiers posted abroad.

One letter on Lingham’s website from a soldier in Afghanistan said “there was nothing better than coming in from a hard patrol to see the great Thai chilli sauce waiting for your tea to be covered in it”, and thanking Lingham’s for “making our tough tour that little bit better by tantalising our taste buds”.

Another soldier wrote that having fought the Taliban by day and only being able to lay up at night, Lingham’s sauce made a real difference to the boil in the bag rations, referring to precooked dishes which are usually vacuum-packed and are heated in boiling water before consumption.

Lingham’s flagship product is Lingham’s Chilli Sauce but over time, newer flavours have been introduced, namely Lingham’s Chilli Sauce with Ginger, Lingham’s Chilli Sauce with Garlic, Lingham’s Chilli Sauce with Ginger & Garlic and Lingham’s Thai Chilli Sauce, all boasting 100% chillies and natural ingredients. However, the most popular flavour is still the original sauce which has attained halal certification over the years.

Like in the beginning, the versatile, sweet and spicy sauce contains no preservatives, colouring matter or artificial flavouring. The fresh chillies are mostly sourced from smallholders in Tasek Gelugor and are picked just when they are turning red in order to maintain their juiciness.

According to Lingham and Son managing director Jerry Yeoh, during the initial period, Lingham’s Chilli Sauce was meant primarily for the British population in Penang and only made its way to other customers in the rest of Malaya later.

“The flavour was created to suit the Caucasian palate and because of this, the sauce was easily accepted in the UK, Europe, Australia, New Zealand and the US.

“Though it is chilli sauce, its sweet and sourish taste is a hit,” Yeoh added.

Yeoh is the son of the former managing director of Lingham & Son, Yeoh Teow Chong, who bought a controlling stake in the company in 1995.

The younger Yeoh, who is 40, operates from the US much of the time. In the US, Lingham’s which is known as Lingham’s Hot Sauce is available at stores like Stater Brothers in California and Kruger in Texas as well as ethnic and speciality stores.

Yeoh said he is currently working on expanding the Canadian market.

Currently, Lingham’s Chilli Sauce is available in more than 20 countries around the world. Aside from the US and Canada, Lingham’s is also distributed in the UK (where it is available at both Harrods and Tesco as well as cash-and-carry stores), Australia (where it is available at Coles, among others), various European and Scandinavian countries including Denmark and Finland, as well as the United Arab Emirates, Thailand, Hong Kong, Indonesia, Japan, Kenya, Chile, Ukraine and South Africa.

In fact, Lingham’s sells more bottles of the sauce abroad than in Malaysia. A quarter of its production is consumed here while three-quarters are exported.  

The small and unassuming production facility is located in the Mak Mandin industrial area in Butterworth. The factory now produces 650 12-bottle cases a day.

However, despite Lingham’s success overseas, Yeoh says he has no plans to open up another facility elsewhere.

He also said that although the factory is “organic certified”, the current economic climate did not encourage the sale of organic products just yet.

This article appeared in The Edge Financial Daily, December 13, 2010.