By Lee Siew Hua

TYCOON Oei Hong Leong gave $7 million to the Lee Kuan Yew School of Public Policy yesterday to fund the studies of its post-graduate students from China.

His gift arose from the perfect timing of his trades of one million American Insurance Group (AIG) shares that he donated to the school.

Mr Oei, 60, had scooped up shares of the embattled American insurer at US$1.80 apiece on the birthday of Minister Mentor Lee Kuan Yew, who had turned 85 on Sept 16. On Sept 22, he sold the shares at about US$5 each - a gain of 177 per cent.

The $7 million from his bold investment will be matched by the Government, giving the school a $14 million windfall. It goes to an endowment fund, and income generated will pay for scholarships.

At the signing ceremony for his gift, he quoted from the Bible to explain why he gave: 'It's better to give than to receive.'

Besides, a church friend had told the Indonesian-born investor: 'It's a sin to die rich.'

Mr Oei is listed by Forbes magazine as the 29th richest man in Singapore, with a net worth of $290 million. He made his fortune dealing in anything from steel to property, and had turned around 200 state enterprises in China in the 1990s.

His gift was not made 'to please China' as he had sold all businesses there, he stressed. It was to get its students to pick up the good in capitalism.

'The Chinese learn fast,' he said, noting that this includes greed and other excesses of capitalism. The tainted-milk scandal is an instance of rampant profit-making, he indicated.

'They need to learn a lot of good things about capitalists: integrity, fairness, contribution to the community.'

China sometimes perceives that Singapore has 'a better Confucius culture', with family gatherings as one sign.

The Cultural Revolution dissolved many good Chinese values that should be restored, said Mr Oei, who was sent to school in China in the 1960s.

He also viewed his gift as Singapore's long-term investment in future Chinese leaders who pass through the school. Students from China are the next largest intake after Singaporeans.

A Singapore citizen now, he said his four daughters were born here. His family is 'very committed' to the country. 'To live in Singapore today, we are very lucky. Under MM Lee's leadership, we have a clean and efficient Government,' he added.

Mr Oei also disclosed that Mr Chua Thian Poh, chairman of property developer Ho Bee Group, will soon donate $5 million to the National Technological University.

Details of the donation will be announced next month, said Mr Chua, who was at the signing ceremony for Mr Oei's donation, his second in five years. In 2003, he gave the school $1 million.

Yesterday, Mr Oei also read from a letter he had received from MM Lee, who wrote: 'Your initiative will encourage other successful Singaporeans to contribute to the public causes.

'Philanthrophy will keep a society cohesive by developing bonds between the successful and the less successful, and for Singapore to stay a united society as incomes in a free market economy widen in the present globalised environment.'

The biggest private donation to a tertiary institution here was made in 2005, by the family of Dr Yong Loo Lin who made his fortune as a businessman. The NUS Yong Loo Lin School of Medicine received $100 million from the Yong Loo Lin trust.

This article was first published in The Straits Times on Oct 8, 2008.

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