The Malaysian stock market experienced significant growth in 2024, with the FTSE Bursa Malaysia KLCI climbing nearly 13%. This surge in market performance has contributed to the rising wealth of many business leaders, with one standout success story being Lee Thiam Wah, the founder of 99 Speedmart.
According to Nanyang Siang Pau's Richest List, Lee has now secured his place among Malaysia's top 10 wealthiest individuals, with a net worth of RM17.6 billion. His remarkable journey from running a small shop in Klang to building a billion-ringgit retail empire highlights the power of perseverance and strategic entrepreneurship.
Born in 1957 in Klang, Selangor, Lee Thiam Wah was diagnosed with polio at a young age, which left him unable to walk. Despite his physical challenges, he demonstrated a keen business sense early on, saving RM17,000 to establish his first grocery store in 1987.
Recognizing the potential of small-format supermarkets, Lee rebranded his business into 99 Speedmart in 1992. His model prioritized affordability, convenience, and efficient logistics factors that played a crucial role in the chain's expansion.
A defining moment for 99 Speedmart occurred on September 9, 2024, when it was listed on Bursa Malaysia under the stock code 99SMART (5326). This initial public offering (IPO) was the largest in seven years. The stock performed exceptionally well, soaring nearly 50% within four months, closing at RM2.47 by year-end compared to its IPO price of RM1.65.
This growth propelled the company's market capitalization to RM20.7 billion, further cementing Lee's status as one of the nation's top business figures. With an 83% ownership stake, his fortune skyrocketed, earning him the 7th spot on the 2024 Nanyang Rich List.
99 Speedmart has established itself as Malaysia's leading mini-mart chain, holding a 40.1% market share within its sector and an 11.6% stake in the overall grocery retail industry. Unlike traditional supermarkets, its lean business model enables competitive pricing and strong profitability.
Key success factors driving 99 Speedmart's growth include:
Bulk purchasing power Negotiating lower prices from suppliers.
Centralized distribution Optimizing logistics for cost efficiency.
Strategic store locations Positioned mainly in residential areas.
No-frills retail concept Keeping operational expenses low while maximizing efficiency.
As of 2024, 99 Speedmart operates over 2,300 outlets across Malaysia, with plans for further domestic expansion and potential market entries in Indonesia and Thailand.
Industry analysts project that 99 Speedmart's net profit will grow at a compound annual growth rate (CAGR) of 18.2% from 2023 to 2026. This growth will be driven by store expansions, increasing sales, and continued efficiency improvements.
With a solid market presence and ambitious growth strategies, 99 Speedmart is poised to maintain its dominance in Malaysia's retail landscape while exploring new opportunities in regional markets.
Source: Nanyang Siang Pau
