Datuk Seri Lim Keng Cheng, managing director of Ekovest Bhd, believes that family wealth can be preserved if the right values are imparted to the following generations. His father passed away when he was just 14, but the values that he learnt from him have contributed much to his success. 

Lim, who has a 6.12% stake in the company, remembers that his father used to say, “Prepare an umbrella before it rains”. “I have always remembered this and applied it to my life and company. That is why I always have a plan before doing something. And I always keep some cash in reserve to tide me over if anything unforeseen happens,” he says.

His father, who had a horror of owing anyone money or being overleveraged, also taught him not to live beyond his means. Lim says these values, which have played a big part in his success, will be passed down to his children.

“It is the values that matter, not money. You can give them RM10 million, for instance, but if they are not brought up correctly, it can all be spent in a day,” he says.

Besides an academic education, family education is important to instil such values in the second generation, says Lim. He points out that he was not a “child of a scholarly family” (shuxiang zidi), but he learnt good values from his father and grandfather.

“My dad was a small contractor and so was my grandfather. They were not learned, but I learnt all these from them early in life,” he says.

Lim was exposed to the construction business when he was young because he would listen in on his grandfather’s conversations with friends when they talked shop at a local coffee joint. “I used to take my grandfather to the coffee shop on my motorcycle and then sit there listening to him and his friends about business. That was how I was exposed to this business and how I developed a passion for it,” he says.

This shows that values are not only learnt from books. Children absorb them unconsciously from their family and friends in their daily lives.

These days, however, it is harder for the younger generation to absorb these values, says Lim. They are constantly distracted by consumerism, spending their money on branded and luxury goods to keep up with their peers.

“The world is different today because of things like the internet and technology. There are more temptations out there and we have to be more flexible when it comes to our children’s education,” he says.

“However, parents have to ensure that their children do not pick up bad habits such as gambling. Once they do, it really does not matter how much wealth you pass on to them.”

A generation also depletes wealth when there are family feuds. Some of these have been fodder for the history books, including the rise and fall of great Chinese dynasties. 

In most cases, a dynasty falls when the emperor’s children fight among themselves for the right to sit on the Dragon Throne, says Lim. To prevent this from happening, he has established a committee composed of his siblings to decide how to best use the family wealth. All decisions related to family wealth are determined by consensus. 

“This is very important to build trust among family members. For instance, if there is no such committee in place and you were to dispose of your shares in the company, the other members may become suspicious of your motives,” he points out. “Are you trying to benefit yourself? How will the money be used or distributed?”

A family committee, where all the siblings sit down to discuss matters and make collective decisions, will address such issues. 

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