In a suburb of Kuala Lumpur, William Cheng hosts a festive dinner. But it's no holiday. Cheng needs to maintain contacts for his business, but can't afford the time to see others individually, so he brings them all together to exchange intelligence. From this we get a clue as to Cheng's ability to deal with time. No wonder this leader of the Lion Group--with over 9,300 employees and 100 companies--still seems unhurried.

Getting the scoop on information is the key to his success. Apart from time set aside for his family, Cheng likes to dine with people. The object is to exchange views. He has always been able to solve numerous vexing problems after talks with experienced friends.

The big-hearted Cheng is sharp and intelligent. Though his name is well known in Malaysia, he prefers to let his Lion Group bask in the limelight. In Malaysia, the group's golden lion's head symbol is everywhere. Besides steel, its activities include auto assembly and sales, construction, financial services . . . and in 1987 it charged into department stores and retail outlets. The group has the biggest steel mill in Malaysia, the biggest furniture business, the biggest department store. . . . Business boomed even as the Malaysian economy slowed. There are offices in the U.S. and Japan.

Although Cheng is a second-generation entrepreneur, his empire is by no means due entirely to relying on his family.

The Cheng family set up a steel furniture factory in Singapore, later moving to Malaysia. Unwilling to wait, William Cheng struck out at 29, setting up a steel factory in Indonesia in 1972 without any family money. The going was rough--early on Cheng faced the problems of investors temporarily pulling out and changes in Indonesian financial policies.

Cheng did the work of building the factory, finance, setting up a sales network, and open ing markets himself. "I never thought I would fail!" His reason is that although Indonesia at that time was the most backward country in Southeast Asia, considering his technology and production costs there it was also the place with the highest profits.

While Malaysia's infrastructure, investment policies, and productivity are better, it cannot match Indonesia for low wages. Cheng was convinced that a properly man aged company could succeed. He got the company on track very quickly, turning a pro fit by the second year. Today there are five companies. One investor says, "Those who pulled out in the early days regret it!"

In 1978, with the Indonesian factory stable, Cheng decided to return to Malaysia to take over the family business and build a factory. Malaysia already had a steel factory of considerable scale, but, "I didn't just jump in on a whim." He says that before entering any industry you must know the competition. If you can do better, then go for it.

In planning, Cheng visited major plants in the U.S., Europe, and Japan for comparisons. After determining he could cut costs 20 percent, he went ahead, choosing the most appropriate equipment and laying out serious money for specialists. In Cheng's view, it is better to pay now what needs to be paid, and recoup later. There was also technical cooperation with major French and Japanese steel concerns and with Taiwan's China Steel.

Today the Lion group cooperates with many renowned foreign firms including Knoll (U.S., furniture), Suzuki (Japan, motorcycles), Hitachi (Japan, electronics), Hugo (Switzerland) and Fichet (France).

"You have to put the good of the company first; you can't think of personal benefit," advises Cheng. "Regardless of whether you are building the reputation of a business or an individual, it takes a long time." Trust is the most important.

How does he manage so many enterprises? "Don't employ those you doubt; don't doubt those you employ." Each concern has its general manager, responsible directly to head-quarters, which handles internal bookeeping, taxes, finance, and law. But the latter usually only intervenes in the early stage; firms are on their own, with only monthly reviews. Cheng sees his main job as "raising employee dedication."

One high-ranking officer notes Cheng handles matters quickly and clearly, is unpresuming when dealing with others, and is open to others' views. His office door is ordinarily open to employees on a moment's notice. "Our company's documents are clear and simple," says one employee proudly. Decisions are usually handed down the same day--the second day at the latest. However, the documents must have complete data, and proposals must be concrete and practicable.

"I don't have any absolute management technique; only that people be treated with sincerity." Cheng learned from watching his father the value of diligence and trust. He does not easily make promises to employees, but when he does they are inevitably carried through.

But Cheng feels far from completely successful. The Lion group hopes to develop its own corporate culture, to "provide as much as possible an ideal environment, and allow employees to have the chance to show their abilities and express themselves." Cheng especially emphasizes cultivating talent. Aside from the fixed training provided by the companies, Lion sends employees to receive specialized training home or overseas. Base-level employees have a chance to participate in ordinary decisions. Cheng discusses important decisions in detail with other key figures; rarely does he decide without consulting others. No wonder his employees say he is "a boss who doesn't seem like a boss."

Lion's future goal is to export over half of its products, and in the process stimulate all of Malaysia's export industries. Smaller in population than Taiwan, Malaysia's domestic market can't support large-scale production without exporting.

Many are aware of Malaysia's often turbulent racial relations. As a person of Chinese ancestry, Cheng says, "Malaysia is a multi-racial country. That political and military power are in Malay hands and that Malays enjoyed special privileges at an early period is already a fact." There is no point now to causing trouble about it; it is better to coolly sit down to resolve problems.

"In fact the Malaysian character is quite kind-hearted and well-disposed," he says. If there is trust, the two groups can make good partners. "It's going to take everybody's cooperation to industrialize Malaysia." He believes the current premier, Mahathir, looks at the reactions of all sides, but notes that "attacking the other side publicly in the newspapers is not as good as personally communicating."

He says the Chinese business community offers suggestions to reflect public views on policy matters: "The government knows we have no political purpose and consider matters from the national viewpoint." If they understand how, Chinese can in fact participate in decision-making.

Says Cheng with undaunted spirit: "I hope our country gets better and better."

[Picture Caption]

The biggest department store in kuala lumpur is a new venture of the "St eel King." Cheng's business interests are extremely diverse.

A Cheng family portrait.

Cheng's business interests are extremely diverse.

A Cheng family portrait.