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Leung Kai Fook Medical Company (Pte) Ltd

Leung Kai Fook Medical Company (Pte) Ltd is the maker of Axe Brand Universal Oil (also known as Axe Brand Medicated Oil), a popular brand of medicated oil which is instantly recognised by many people around the world by its logo, which features an arm holding an axe. Axe Brand Medicated Oil is a colourless, mildly-scented medicated oil which is a unique blend of eucalyptus, menthol, camphor and other essential oils drawn from a variety of flora. For more than 70 years, it has been used by both adults and children as a popular treatment for giddiness, headache, travel sickness, stomach-ache, insect bites and other minor ailments.

Early history
Leung Kai Fook Medical Company was founded by Leung Yun Chee (b.1900, Shunde, China - d.1971, Singapore), who, as a young man in his twenties, travelled from Shunde, China, to Singapore in the 1920s. Leung was initially a manager for a Shanghai silk trading company. But after three years, he decided to run his own business, operating from a shop in South Bridge Road, next to a medical hall. He got to know a German physician, Dr Schmeidler, who gave him the formula for a medicated oil. In 1928, Leung closed down his silk business and started the Leung Kai Fook Medical Company.

Leung named the medicated oil after the axe because in the past, when people used wood rather than gas for cooking, the axe was an essential item in every household, used daily to cut wood. The tagline he came up with, "Therapy in a bottle" further sums up the Axe Brand's values.

In the early years, response to the medicated oil was lukewarm, with stiff competition from more established companies from China and Hong Kong. Leung decided to advertise his product in the local papers, which was a bold marketing move in the 1950s. He also started his own Chinese newspaper, New Life Daily, in order to promote his Axe Brand products, and gave away calendars and gifts to increase awareness of the company's products. Furthermore, he personally conducted business trips to Malaysia, looking well-polished and distinguished in his Western suit, and impressed buyers with his presentation.

The business flourished greatly in the 1960s, when Singaporean and Malaysian pilgrims started using Axe Brand oil on their annual haj pilgrimage to Mecca, Saudi Arabia. The pilgrims used the oil to relieve headaches, giddiness and other ailments caused by the long sea journey. It also became a popular item among Muslims living in countries such as Indonesia, Pakistan and even Kenya. The popularity and sales of the medicated oil grew to such an extent that from a three-storey shophouse, the company built and moved into a six-storey Leung Kai Fook building, which is still standing today.

In 1967, Leung launched Shin Min Daily News, a Chinese newspaper which was sold to Singapore Press Holdings during the 1980s.

Leung passed away in 1971. After his death, his son Leung Heng Keng, who helped manage his father's company since 1951, took over and remains the present company chairman. Another son, Leung Mun Sum, joined the company in 1986 as the Managing Director.

Later developments
Since Leung Heng Keng took over the company, the company has been focusing on expanding its overseas markets beyond Singapore, Malaysia, Thailand and Indonesia, which had been well-covered during his father's time. The company's Singapore factory produces Axe Brand products that not only cater to the local market but are exported annually to 50 countries spread over five continents. In 1993, the company set up a factory in Shunde, Guangdong Province, China. In 2001, it opened its latest factory in Vietnam, to cater for the Indo-China countries of Vietnam, Cambodia, Laos and Thailand.

In recent years, the company has added new products to its line. These include the Axe Brand Inhaler, the Axe Brand Red Flower Oil and the Axe Brand Medicated Plaster. The company also has various other investments. For instance, it has investments in real estate and computer companies in Singapore. In Hong Kong, it has invested in property and the travel industry. While in China, it has ventured into the hospitality business, with investments in the luxurious $US65 million Hotel Landmark Canto in Guangzhou, China. It plans to increase its market share of the Axe Brand Universal Oil in the European and Western markets, through online marketing and continual promotion of its products

Today, Axe Brand Universal Oil is one of the leading brands of medicated oil in Asia, including Singapore, Malaysia, Indonesia, the Middle East and China. The universality of the product is such that the Axe Brand Universal Oil packaging has been translated into 12 different languages, namely Arabic, Cambodian, French, Greek, Indonesian, Italian, Spanish, Sr Lankan, Swahili, Thai and Vietnamese. The company, which remains within the Leung family, was also the first Singapore medical oil producer to obtain ISO-9002 certification.

Address
Leung Kai Fook Medical Company (Pte) Ltd
84 South Bridge Road, #03-00 Leung Kai Fook Building
Singapore 058714



Author
Nureza Ahmad



References 
Lam, J. (1994, August 29). Keeping up with trends and the times. The Straits Times, Life, pp.1-2.

Lim, S. N. (1993, April 26). A dose of perseverance: Leung Kai Fook Medical Co. The Business Times, Enterprise & Management, p.18.

Institute for Traditional Medicine. [n.d.]. Red Flower Oil. Retrieved March 26, 2004, from www.itmonline.org/jintu/redflower.htm

JISU Network Co., Ltd. (2001). Axe brand awarded Superbrand status. Retrieved March 26, 2004, from china.quamnet.com/eng/readnews.jsp?nid=8497 

Leung Kai Fook Medical Company (Pte) Ltd. (2003, March 13). Profile. Retrieved March 26, 2004, from www.axebrand.com.sg/profile.html

Malaysian Organisation of Pharmaceutical Industries. (1999). Leung Kai Fook Medical Company (Pte) Ltd. Retrieved March 26, 2004, from www.mopi.org.my/lkf_store.htm

Superbrands International. [n.d.]. Axe Brand. Retrieved March 26, 2004, from www.superbrandsinternational.com/singapore/vol1/images/member/pdf/AXE.pdf 

The information in this article is valid as at 2004 and correct as far as we can ascertain from our sources. It is not intended to be an exhaustive or complete history of the subject. Please contact the Library for further reading materials on the topic.

Subject
Politics and Government>>Health
Business enterprises--Singapore
Ointments
Business, finance and industry>>Industry>>Healthcare and medicine
Health and medicine>>Medication and therapies>>Traditional Chinese medicine



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