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> Bloomberg Markets interviews Mr. Li Ka-shing |
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| Q: |
I think sometimes people overlook the amount of
charitable work you do in Hong Kong and mainland China. I know you
don't want to boast about this, but would you like to tell us a little
about the charitable work you are funding and the reasons behind the
it? |
| A: |
Our young people, particularly those that were
raised in affluent societies such as in Hong Kong, Europe or America
enjoy many, many privileges and take things for granted. It is more
difficult for them to feel for the less fortunate. Despite my achievements,
I can still remember poverty. I told my children and grandchildren
that "The fruit that you eat will never taste as beautiful as the
fruit that I ate during the turmoil of war. You will never cherish
it as much as I do."
In 1980 I set up Li Ka Shing Foundation; we focused mainly on education
and medical care projects. It is my belief that knowledge can change
one's fate. My father died of Tuberculosis when we could not afford
medical care. I know the feeling of helplessness and loneliness. This
is why I am very dedicated to developing better medical care services.
We have programs in many areas of medicine, including research, education
and training, hospice care, and medical aid for the poor in remote
regions of the PRC such as nomadic tribes in the deserts in Xinjiang.
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| Q: |
The South China Morning Post quoted you as saying
that corporations should pay more tax and poor people less. Is that
correct? |
| A: |
Like all Hong Kong people, I would like Hong Kong
to prosper. I am always supportive of well planned and executed Government
policies that are beneficial to the long-term development of Hong
Kong. If the government is prepared to introduce a detailed plan to
raise taxes and lower public spending I agree that corporations should
take up the responsibility and pay more taxes. As for giving the middle
and lower classes more tax breaks, Hong Kong's present tax base is
already quite narrow. I'll leave it to the experts to debate whether
the tax base should be broadened or further narrowed. |
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| Q: |
What is the best deal you have done in your career?
How would you rate the acquisition of Hutchison shares from the Hongkong
Bank in 1979? How did you feel when you realized you had won control
of that historic company and penetrated the British-dominated business
elite? |
| A: |
With such an encompassing range of businesses,
it is inevitable that some businesses progress at a faster pace than
others. Our managers are constantly making strategic adjustments to
adapt to changing market conditions. We have done so many notable
deals, but the sale of Orange to Mannesmann in 1999 was the most memorable
in recent years. It was the most profitable transaction in history,
and represented a win-win-win situation for shareholders of Hutchison,
Mannesmann and Orange.
Our acquisition of Hutchison Whampoa was indeed very significant.
But if I had not taken control of Hutchison at that time, I would
have purchased another foreign-owned conglomerate. Back in the late
70's, we had already established a solid foundation with Cheung Kong,
and I began to take notice of foreign-owned companies, whose shareholders
were able to control sizeable assets with only a relatively minor
stake. I had a clear intention of taking over one of these companies
with underperforming assets and developing it into a multinational
corporation. At the time, Hutchison had negligible operations outside
of Hong Kong. Now it has investments and operations in 41 countries
and employs 150,000 worldwide. When the transaction was announced,
the press neglected one important factor in Hongkong Bank's decision
to sell the Hutchison shares to me-Hongkong Bank's management was
confident that I am better suited to lead this company. I believe
I have not disappointed them. Hutchison Whampoa is now a world renowned
multinational conglomerate.
When I first took control of Hutchison, there were many internal problems
that others were not aware of. I eradicated those problems, improved
the company's operations and grew the company. Some people seem to
think that the acquisition of Hutchison was a sweet deal for me, but
only because they did not know the full picture. |
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| Q: |
What is your biggest challenge ahead? |
| A: |
The most challenging issue raised by globalization
is how we can all get along with each other in our race against time.
Corporate leaders must possess far-sighted vision, detailed action
plans, macro-thinking, and a global outlook. To get ahead in the race,
they must also possess a deep understanding of their own organization
and that of their competitors. |
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