Who Is Dato' Seri Koay Hean Eng? Founder of Kobay Technology from Penang

In the world of stock investing on Bursa Malaysia, the name Kobay Technology Bhd (KOBAY, 6971) has been gaining significant attention - particularly after the company recorded a profit surge of over 100% in financial year 2026. Behind this success stands a corporate figure who started with just a vocational certificate - Dato' Seri Koay Hean Eng.

He is not only the founder and Managing Director of Kobay Technology, but also a Penang entrepreneur who has built a precision engineering empire over more than four decades. This article explores his life journey, business strategy, and roles in listed companies on Bursa Malaysia.

Background and Early Education

Dato' Seri Koay Hean Eng was born and raised in Penang. He obtained the Malaysia Vocational Certificate of Education in 1976. Despite not having a university degree, his hands-on experience in engineering became the foundation for building the Kobay Group empire.

With a strong technical background and entrepreneurial spirit, Koay Hean Eng began his career in the precision engineering industry - a sector that was still in its early stages in Malaysia at the time. This decision eventually brought him to the top of the industry, proving that academic qualifications are not the sole determinant of success.

Founding Kobay Technology (1984)

In 1984, Koay Hean Eng founded Kobay Technology together with his brothers - Koay Cheng Lye and Koay Ah Bah @ Koay Cheng Hock. The company started as a small precision engineering workshop in Penang, which was known as the "Silicon Valley of the East" due to the booming electronics and semiconductor industry.

Kobay's initial focus was providing precision machining components for multinational companies in the electrical and electronics (E&E) sector operating in Penang. Consistent quality work and the ability to meet strict specifications from global clients made Kobay a preferred vendor.

Just 13 years after its founding, Kobay Technology was successfully listed on Bursa Malaysia in 1997 - a significant achievement for a local engineering company that started from the ground up.

Roles in Listed Companies

The following are Dato' Seri Koay Hean Eng's roles in companies listed on Bursa Malaysia:

• Kobay Technology Bhd (KOBAY, 6971) - Founder, Chief Executive Officer (CEO) and Managing Director (MD) since 17 September 1994. Indirect shareholding of ~26.02% through Kobay Holdings Sdn Bhd, plus direct shareholding of 1,654,154 ordinary shares.
• Lipo Corporation Berhad (LIPO) - Managing Director. Lipo Corp is a subsidiary of Kobay Technology with ~53.16% ownership.

This information is as of 4 April 2026. Please refer to the latest annual report for verification.

Evolution of Kobay - From Workshop to Main Market

Kobay Technology's journey from a small engineering workshop to a company listed on the Main Market of Bursa Malaysia is an extraordinary transformation story.

Early Phase (1984-1997): Building the Foundation

In the first decade, Kobay built a reputation as a reliable precision component provider. The company received various recognitions including Best Vendor Awards from multinational clients and Enterprise 50 Awards - a government recognition for high-performing small and medium enterprises (SMEs).

Listing Phase (1997-2010): Capacity Expansion

After listing on Bursa Malaysia in 1997, Kobay used the funds raised to expand production capacity and diversify technical capabilities. The company began offering more comprehensive services including metal stamping, sheet metal fabrication, and die casting.

Diversification Phase (2010-present): Beyond Engineering

Kobay expanded into new sectors including property development, pharmaceutical and healthcare, as well as asset management. This move demonstrates Koay Hean Eng's long-term vision of not relying solely on a single sector.

Business Segments of Kobay Group

Today, Kobay Technology operates across five main segments showcasing the diversity of Koay Hean Eng's business empire:

1. Manufacturing

Kobay's core segment encompasses:

• Precision machined components - high-precision components for the E&E sector
• Metal stamping and sheet metal fabrication - including enclosures and housing
• Die casting - high-precision aluminium components
• Oil & gas - subsea structural machining and fabrication
• Tooling and dies - precision moulds for mass production
• Semiconductor equipment - assembly and testing machines
• Surface treatment - plating and surface treatment services

According to BusinessToday, the manufacturing segment recorded a 27.2% year-on-year revenue increase in Q1 FY2026, supported by higher orders from the E&E sector.

2. Property Development

Established in 2015, Kobay's property arm has grown rapidly with focus in Penang, Kedah, Perak, and Kuala Lumpur. The existing land bank has the potential to generate a gross development value (GDV) exceeding RM1.50 billion - comprising residential, commercial, mixed developments, and hotels.

3. Pharmaceutical and Healthcare

This segment is involved in wholesale and retail of pharmaceutical, medicine, and healthcare products.

4. Asset and Investment Management

The group's investment holding and asset management segment, including investment portfolio management.

5. Others

Includes support operations and management services to subsidiaries.

Recent Financial Performance - A Remarkable Surge

Kobay Technology's financial performance in FY2026 (ending June 2026) has attracted significant investor attention. Based on quarterly reports filed with Bursa Malaysia:

First Half FY2026 (Jul - Dec 2025):

• Revenue: RM255.89 million (up 45% compared to the same period last year)
• Profit before tax (PBT): RM31.14 million (surged 134%)

Second Quarter FY2026 (Oct - Dec 2025):

• Revenue: RM145.01 million (up 75% YoY) - only the second time Kobay has surpassed the RM100 million mark in a single quarter
• PBT: RM16.93 million (surged 232% YoY)

This surge was driven by strong growth in the manufacturing segment, particularly orders from the E&E and semiconductor sectors which are expanding rapidly globally.

KOBAY's share price as of April 2026 was around RM1.45 per share. The next quarterly results report is scheduled for 20 May 2026.

Family and Business Succession

Kobay Technology is a fully family-owned business. The three Koay brothers control the company through Kobay Holdings Sdn Bhd, which holds approximately 26% stake in Kobay Technology.

Family Members in Management

• Dato' Seri Koay Hean Eng - Founder, CEO and Managing Director
• Koay Cheng Lye - Brother, director and major shareholder through Kobay Holdings
• Koay Ah Bah @ Koay Cheng Hock - Brother, Non-Independent Non-Executive Director
• Koay Zee Ee - Son of Dato' Seri Koay Hean Eng, Director of Kobay Technology
• Koay Wooi Tatt - Nephew (son of Koay Ah Bah), Chief Operating Officer (COO) of Kobay Technology. He was appointed as COO after serving as functional manager since 2003 and general manager since 2004.

The involvement of the second generation in management demonstrates systematic succession planning. Koay Zee Ee and Koay Wooi Tatt represent the next generation being prepared to continue the family legacy in Kobay Group.

Recognition and Awards

Dato' Seri Koay Hean Eng has received various recognitions throughout his career:

• Darjah Gemilang Pangkuan Negeri (DGPN) - an award from the Governor of Penang which carries the "Dato' Seri" title
• Enterprise 50 Awards - government recognition for high-performing SMEs
• Best Vendor Awards - awards from multinational clients for service quality
• Best Equipment Award - recognition for equipment and technology capabilities

These recognitions not only prove the quality of Kobay's products and services, but also Koay Hean Eng's leadership in bringing the company to international standards. With operations spanning Malaysia, Singapore, and the United States, Kobay is now a global player in the precision engineering industry.

Lessons from Koay Hean Eng's Journey

Dato' Seri Koay Hean Eng's story offers several valuable lessons for investors and entrepreneurs:

1. Academic qualifications are not everything - With just a vocational certificate, he built an empire worth hundreds of millions of ringgit. Technical skills and practical experience can replace formal qualifications.
2. Business diversification protects against risk - Rather than relying solely on precision engineering, Kobay diversified into property, pharmaceuticals, and asset management.
3. Succession planning ensures continuity - The involvement of children and nephews in management shows long-term planning for business continuity.
4. Strategic location provides an edge - Operating in Penang gives Kobay direct access to Malaysia's largest E&E and semiconductor cluster.

Frequently Asked Questions (FAQ)

Who is Dato' Seri Koay Hean Eng?

Dato' Seri Koay Hean Eng is the founder, Chief Executive Officer (CEO), and Managing Director of Kobay Technology Bhd (KOBAY, 6971). He founded Kobay in 1984 and has led the company for over four decades.

What companies does Koay Hean Eng own?

He is the founder and major shareholder of Kobay Technology Bhd through Kobay Holdings Sdn Bhd (~26% stake). Kobay Technology in turn owns ~53.16% of Lipo Corporation Berhad. He also holds directorships in various Kobay Group subsidiaries.

What is KOBAY's current share price?

KOBAY (6971) share price was around RM1.45 per share as of April 2026. Please check the latest price on Bursa Malaysia or your trading platform for current information.

What are Kobay Technology's main business segments?

Kobay Technology operates in five segments: manufacturing (precision engineering), property development (GDV > RM1.5 billion), pharmaceutical and healthcare, asset management, and others.

How has Kobay Technology performed financially in 2026?

For the first half of FY2026, Kobay recorded revenue of RM255.89 million (up 45%) and profit before tax of RM31.14 million (up 134%). The second quarter alone saw revenue of RM145.01 million with PBT surging 232%.

Is Kobay Technology a Shariah-compliant stock?

Investors are advised to check the latest Shariah-Compliant Securities List issued by the Securities Commission Malaysia (SC) as this status is updated periodically.

Who are the successors of Kobay Technology's business?

The second generation of the Koay family is already active in management. Koay Zee Ee (son of Dato' Seri Koay Hean Eng) serves as Director, while Koay Wooi Tatt (nephew) holds the position of COO.

Where is Kobay Technology headquartered?

Kobay Technology is headquartered in Penang, Malaysia. The company also has operations in Singapore and the United States, making it a global player in the precision engineering industry.

Conclusion

Dato' Seri Koay Hean Eng exemplifies a Malaysian corporate figure who built success through hard work, technical expertise, and long-term vision. From a small workshop in Penang in 1984, he has transformed Kobay Technology into a conglomerate operating across five business segments with revenue exceeding RM255 million per year.

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Further Reading

• IPO Ambest Group Berhad: Precision Machining & CNC Firm in Semiconductor Sector
• Cash Flow Statement: Detecting Real Company Performance on Bursa Malaysia
• PE Ratio: How to Know If a Stock Is Expensive or Cheap by Sector in Malaysia
• Dividend Yield & Payout Ratio: Guide for Malaysian Dividend Investors
• Tan Sri Lim Hock San: From Trucking Business to Billion-Ringgit Property Empire