The Transition to Electric Buses: The KMB Experience & Philanthrophy with William Louey
Fresh out of the studio, William Louey, 4th generation business leader of Kowloon Motor Bus (KMB), talks about his vision for transforming Hong Kong’s public transportation system through sustainability and innovation. He discusses KMB’s ambitious plan to electrify its bus fleet by 2040, highlighting the challenges of infrastructure, power supply, and government collaboration. He also shares his philanthropic efforts specifically on education and how they shaped the next generation of leaders to pay it forward. Last but not least, William shares what great would look like for KMB in a green and sustainable future.
"We plan to replace the fleet by 2040. We can't scrap all of them now because each bus lasts 18 years, so we have the depreciation for 18 years. That's because they're all from the U.K. All the buses are from the U.K., including the double-deckers. That's the only country that makes double-deckers. It's the same as Singapore. All the double-deckers are from the U.K. Because of COVID, when we replace all these diesel buses with electric. It would help if you had a lot more power, a lot more electricity to accommodate this, but so the government has to work with us. But today, we can't see that if we import all these 4, 000 electric buses to Hong Kong, there won't be enough charging stations. We'll have to build a new depot that accommodates electric buses. So in Yuen Long, we're building a seven storeys, new depot that can charge 1, 000 buses every night. But after we built it, the government has to give us the confidence that they can give us the power to charge these buses. So there's no point in building a new depot and there's not enough electricity to charge it. So we're delaying it now. But the idea is still the same. We will have to replace it with green energy because it's much better for the environment.” - William Louey
Profile:
William Louey, Businessman and Philanthropist in Hong Kong. William Louey serves as a non-executive director of Transport International and founding member of JNW Properties. He established the William S. D. Louey Educational Foundation in memory of his grandfather. The William S.D. Louey Educational Foundation provides scholarships and bursaries to academically outstanding students from Hong Kong and Greater China for overseas studies.
Here is the edited transcript of our conversation:
Bernard Leong: Welcome to Analyse Asia, the premier podcast dedicated to dissecting the pulse of business technology and media in Asia. I'm Bernard Leong, and how does a fourth generation leader of a family business help to facilitate the most important transition to scale bus fleets to electrification and sustainability?With me today, William Louey, non executive director of Kowloon Motor Bus, or KMB in short, and founding member of J& WProperties to discuss this major plan and his philanthropic work. So William, welcome to the show.
William Louey: Thank you very much, Bernard.
Bernard Leong: In preparing for this interview, because of, all the materials I have, I've done some research of your work and I'm pretty impressed by some of your philanthropic work, but I want to start with your origin story, Given your background as a fourth generation leader of a family business, who are the key people within your family that provide you with the tenets of both business and philanthropic leadership?
William Louey: Well, I mean, the most important person is really my grandmother because my grandfather died very young at the age of 50, and then she basically took care of the family business. And then my father, of course, also died very young. He died when I was 18 years old, so he was only 49.
Bernard Leong: I hear that.
William Louey: Yeah. And then I was very much influenced by my grandmother. I lived with her since the age of 18. We lived in this house on the peak in Hong Kong, and it was basically the two of us and eight dogs. That’s why, you know, I’ll later on tell you about how we launched a pet bus route for the Hong Kong public, which I was recently interviewed about by Hong Kong newspapers.
We have a dedicated bus for pets—any pets, including snakes. I’ve seen people carrying snakes on the bus, and I’m going to tell you about that. My grandmother was the one who gave me all the philanthropic ideas. She built a lot of old people’s homes and helped disabled children in Hong Kong. Starting from the age of seven, she used to take me with her to visit these old people and disabled children. I didn’t like it at the time because it was boring for me, right?
She would make me prepare sandwiches in the kitchen, and then we’d bring them to play with these children. But they weren’t children; they were grown-ups, maybe 30 or 40 years old, but mentally they were like three years old. At that time, I was a bit frightened by this. Later on, though, I think it somehow implanted in my head what makes me want to help people.
I kind of changed her idea a bit. I started to help very bright children because I’m very efficient and try to do everything with minimal effort to achieve a big effect. I thought to myself, if I help a handful of bright people, they can change the world. Instead of helping thousands of others—I’m not saying they don’t need help—but for me, I get a lot of satisfaction from helping the brightest of the brightest. That’s because I want to make an impact.
Bernard Leong: So, that’s actually the inspiration for your philanthropic work.
William Louey: From my grandmother, yeah, basically.
Bernard Leong: How about the business side?
William Louey: Even the business side, you have to have integrity. KMB actually serves 2.8 million people every day. Our ridership is 2.8 million people riding our buses every day. It’s a very difficult business to run—every little detail, there are accidents, there are people who slip on the bus, elderly people—and it’s basically something that I think people don’t want to start as a business.
My great-grandfather started it over 100 years ago, in 1921. But if you started a bus business today, nobody would want to do it. We don’t make a huge amount of money because we have a big fleet of buses and 15,000 employees. It’s a very, very difficult business to run. We also have to communicate with the government a lot to fine-tune bus routes.
When there’s huge inflation like this year, we have to increase bus fares, and then everybody shouts at us—even though we only raised it by 3 percent. It’s a big deal for the Hong Kong public.
Bernard Leong: I guess it’s the difficult part of trying to balance the mission of serving people and being sustainable at the same time.
William Louey: I look at it as a contribution—we’re doing good for society. I really don’t like making money from trading. Sitting at a desk looking at a computer screen—that’s not interesting to me at all. I’ve never liked trading. I leave that to professionals. Of course, I look after my family wealth, but I pay very good people to help run my family office. Personally, I’m not interested in stocks, shares, trading, or speculative things like Bitcoin. I’m interested in being creative, helping the community, and making an impact.
Bernard Leong: That gives a lot of satisfaction. I want to get to the philanthropic part. I guess the time you spent with your grandmother inspired you to set up the William Louey SD Educational Foundation.
William Louey: S.D. Louey Scholarship. William S.D. Louey is my grandfather’s name.
Bernard Leong: That’s right.
William Louey: So, yeah, it funds students studying in universities overseas. I’m trying to help people so they can also create an impact.
Bernard Leong: So can you talk about that part of how they came about?
William Louey: I started the scholarship in the early 90s. The idea came about when I got married in 1990. Very soon after, my wife was pregnant—literally nine months after we got married—with a son coming. One night, I talked to my wife and said, "Look, you see all our friends enjoying the crops from what the previous generation has brought us. A lot of my friends just wake up at noon, go to the yard, smoke cigars, and talk about red wine all day. But how are we going to bring up our kids? We need to have some kind of support."
Because of my grandmother's influence, I suggested we set up a scholarship for the brightest of the brightest. At that time, China was just opening up, and I was a member of YPO (Young President Organization). I met the only YPO member from China then, Richard Yan. The Yan family was very influential, connected to the Sung sisters, and they had started Nankai University. I discussed the idea with Richard, asking if he could help me find some exceptionally bright children in Beijing.
In 1991, Richard found about 100 very bright children by approaching headmasters of top schools in Beijing, such as Ren Da Fu Zhong. These schools had talent classes where students were three to five years ahead of their peers. A hundred students applied, and I spent three days interviewing them. I was so impressed—these children were talking about nuclear dumping and the Greenwich Observatory in England, things I didn’t even know despite studying in the UK.
After meeting them, I shortlisted 25 students but decided I couldn’t manage all of them in the first year. I told them I’d come back in three months to see how their English had improved. It became a competition; they crammed English, and eventually, I screened it down to six children from Beijing. Then I had to deal with the Chinese government. The education department in Shanghai summoned me, asking why I was taking China’s treasures away. I explained that they wouldn’t truly become treasures until they saw the world, and whether they returned to China was up to the government, not me.
In the end, 90 percent of my scholars returned to China and had wonderful careers. Many are now connected to companies like Didi and Shunfeng.
Bernard Leong: Wow. How did this lead to the Pay It Forward Foundation, and do you think it has achieved your original intention?
William Louey: It wasn’t planned. It just happened by fate. The movie Pay It Forward came out, and I bought DVDs for all my scholars to watch. The movie’s message—that you help three people unconditionally, who then help others—resonated with me. It created a multiplying effect.
Years after starting the scholarship, I sent my scholars to boarding school in the UK, and when the movie came out, I gave them the DVDs. That inspired the creation of the Pay It Forward Foundation. It was set up by my scholars, who now have their own scholars. So, I have two generations of scholars—scholars and scholar-scholars. We meet regularly.
Bernard Leong: What advice would you give young and aspiring people today about doing good and doing well in the world?
William Louey: Being creative is very important. Don’t just copy others. You can take ideas from others, but modify them to make them your own. A lot of people criticize the younger generations—Generation Z and Generation Alpha—for not sticking to anything, staying home, and playing video games. But I don’t believe that’s the full picture.
Because of my involvement in education, I interview 150 scholars every year, and I’m constantly blown away by their improvement and talent. There are always good people around. We must not focus on the negative.
Through my connections with institutions like Oxford and St. Hugh's College, I’m exposed to bright young minds. Many of my family and friends have attended top universities in the UK, so I’m surrounded by brilliant people. I also encourage my friends to give back. For instance, one of my friends supports suicide prevention services in Hong Kong, which is incredibly meaningful given how competitive education has become.
Every year, 2,000 people commit suicide in Hong Kong, half of them children. Another friend works on spinal cord injury initiatives. We all support each other—donating to each other's causes, exchanging ideas, and helping one another out. It makes us all feel good.
Bernard Leong: That’s the compounding effect of helping and uplifting one another.
William Louey: Exactly. Philanthropy isn’t about giving to gain recognition or climb the social ladder. It’s about doing it because it makes you happy. I believe that happiness from within brings health and positive energy.
I always tell my friends that I’m healthy because I’m happy. I don’t get sick as often as others, and at over 65 years old, I’m often told I look young for my age. That’s because I find joy in helping others. Philanthropy brings this inner happiness and positive energy more than any recognition ever could.
Bernard Leong: So I'm going to now switch topics from philanthropy to the main subject of the day, which is Kowloon Motor Bus, or KMB, in Hong Kong. I'm curious about the very large electric bus fleet concept you're now working to bring to fruition. For those unfamiliar with KMB, can you give an overview of the company and its significance in Hong Kong’s transportation landscape?
William Louey: My great-grandfather started KMB. A few years before COVID, we announced plans to replace the entire fleet with electric buses. However, COVID disrupted these plans. The government, facing deficits while supporting Cathay Pacific and even KMB, limited what we could do. During that time, I refused to lay off any frontline staff because they are the backbone of our company.
To keep morale high, I run various recreation clubs for our staff—basketball, dragon boat racing, singing, and more. There are 60 such clubs with over 6,000 members, far outnumbering the union membership of 2,000. We also organize spring dinners and lunches every year, inviting all 15,000 employees. It takes about 30 events to include everyone, and I personally attend each one, going from table to table to listen to their feedback on how we can improve and make them happier. KMB is about people—it’s a social network as much as it’s a transportation network.
When my father passed away, he thought KMB would become a passé business. However, Hong Kong’s population has grown from 3 million back then to 7.5 million today, with plans for it to reach 10 million. While the MTR (railways) serves as the arteries of the city’s transportation system, buses function as the veins, providing door-to-door connectivity that trains cannot. As new towns emerge to accommodate population growth, KMB will remain vital.
Recently, the Abu Dhabi government selected KMB to advise on their transportation system.
Bernard Leong: Given that KMB is leading the charge to build one of the largest electric bus fleets in Asia, can you share your vision for the future of green transit in Hong Kong?
William Louey: Our plan is to replace the fleet by 2040. However, each bus has a lifespan of 18 years, so we can’t replace all of them at once due to depreciation costs. Additionally, all our double-decker buses are imported from the UK, the only country that makes them.
COVID further complicated things because transitioning to electric requires significantly more electricity, and Hong Kong currently lacks sufficient charging infrastructure. For instance, we’re building a seven-story depot in Yuen Long that will charge 1,000 buses every night. However, this effort depends on the government providing enough power. Without that confidence, we’ve had to delay some plans.
That said, green energy remains the ultimate goal. While technology evolves—such as hybrid models that could last 2,000 kilometers per charge—the direction towards eco-friendly transit hasn’t changed.
Bernard Leong: What are the infrastructure challenges in transitioning Asia’s bus fleets to electric?
William Louey: The main challenge is ensuring enough power to charge the buses. Hong Kong, being small and densely populated, is actually ideal for electric vehicles because a single charge can last a whole day, covering the average 400 kilometers that our buses travel. However, building depots and charging stations takes time and coordination with the government.
Each year, we retire about 400 obsolete buses and replace them with new ones. As infrastructure improves, we’ll gradually replace those with electric buses. However, the process is slower than we’d like because of these power and infrastructure limitations.
Bernard Leong: Balancing eco-friendly transitions with affordable and reliable services for millions of daily passengers must be challenging. How does KMB approach this?
William Louey: Our average bus fare is about seven Hong Kong dollars—roughly 70 pence in English pounds—which is very low for an expensive city like Hong Kong. We provide an essential service for people going to work, school, or the market. Keeping fares affordable while transitioning to green energy is a delicate balance, but it’s one we’re committed to.
Bernard Leong: What emerging technologies beyond electrification excite you for the future of transportation?
William Louey: Autonomous vehicles are promising, but they aren’t viable in Hong Kong yet due to the dense population and lack of dedicated bus lanes on busy roads like Nathan Road. However, as technology advances and safety improves, we may consider replacing retired buses with autonomous models. That said, we won’t lay off staff for the sake of automation.
Other innovations, like drones for deliveries, are also interesting, though less relevant for buses. In densely populated areas like Hong Kong, too many variables make autonomous buses a long-term rather than short-term prospect.
Bernard Leong: That’s a very humane approach, ensuring that technology transitions don’t harm the workforce.
William Louey: Absolutely. For example, at our annual dinner and award ceremony, we recognize long-serving employees. This year, we gave out over 1,000 awards: 627 for long service, 50 for 35 years of service, 81 for 30 years, and so on. We also recognize star bus captains for driving excellence and eco-safe driving.
Some of our drivers have worked with us for 35 years, which is no easy feat. Recognizing their loyalty and contributions is a cornerstone of our company culture.
Bernard Leong: I’m curious to know—what kind of partnerships or collaborations are crucial for advancing KMB's current sustainability goals? Also, how does this roadmap align with Hong Kong’s broader goals for reducing carbon emissions?
William Louey: We work with power supply stations and collaborate with the Shenzhen bus company. Interestingly, we used to advise them, but now they advise us because Shenzhen already has 9,000 electric buses in operation. Hong Kong is behind. We’re buying buses from China, with BYD providing most of them. However, we won’t rely solely on BYD; we also work with companies like ADL (Alexander Dennis), which sells to Singapore, and Wrightbus in Belfast, which specializes in double-deckers.
About ten years ago, we started exploring hydrogen fuel cells. I visited ADL’s development office in Guildford to learn more about hydrogen technology and was impressed. However, I don’t support "dirty hydrogen" made from coal or fossil fuels. I want clean hydrogen, like that produced from water. But to make hydrogen from water, you need electricity, so why not just use electricity directly? It feels inefficient to me.
Bernard Leong: That’s interesting because Japanese carmakers are heavily investing in hydrogen as an alternative to electrification.
William Louey: Yes, and they’ve completely failed! From first principles, it’s much simpler to electrify rather than produce hydrogen. Unless we have a better solution for green hydrogen, I don’t see the point. Using electricity to make hydrogen, instead of using it directly, doesn’t make sense.
Bernard Leong: What’s one technological shift in your industry over the past 12 months that has changed your perspective?
William Louey: My view on hybrid buses has shifted. Two years ago, we weren’t discussing hybrids that could run 2,000 kilometers, but now it’s a possibility. While my stance on advancing environmental sustainability hasn’t changed, technological advancements like this can influence how we approach it.
COVID also changed everything. For instance, Hong Kong residents now return home earlier, so we’re looking at ways to promote nightlife in the city. These shifts force us to adapt our strategies.
Bernard Leong: What’s one question you wish people would ask you more about KMB and its sustainability efforts?
William Louey: I wish people would ask, "When will the entire fleet be electrified?" so I could explain why it’s not entirely up to us. We intend to change everything, not only for environmental reasons but also because diesel price fluctuations significantly impact our profits. If oil prices rise to $100 per barrel, we could make no profit at all.
Switching to electric would stabilize costs, but the government must support this transition by providing additional power for charging. Currently, we only have 80 electric buses. People don’t always understand that transitioning a fleet of this size takes time due to depreciation and infrastructure constraints.
Bernard Leong: That’s a good point. People often don’t appreciate how traditional industries operate. Unlike developing a mobile app, transforming a fleet involves physical infrastructure and long timelines.
William Louey: Exactly.
Bernard Leong: What does success look like for KMB in the next decade?
William Louey: I’m optimistic. As a fourth-generation leader, with my son as the fifth, I see Hong Kong’s population growing to 10 million, with 100 million people in the Greater Bay Area. There will always be new towns where buses are essential for door-to-door connectivity, especially as railways can’t reach everywhere.
The aging population is another factor. Elderly people prefer buses because they’re more accessible than navigating stairs or long walks in train stations. We’ve even introduced dedicated pet bus routes to serve pet owners who struggle to use other transport options.
Additionally, we’re promoting inclusivity with initiatives like a bus route operated entirely by women drivers. This reflects our commitment to empowering women, and it’s worth noting that 80 percent of our department heads are women—not because of deliberate quotas but because they consistently excel.
Bernard Leong: That’s impressive. Thank you for sharing these insights. As we close, do you have any recommendations that have recently inspired you?
William Louey: I find inspiration daily, often from unrelated things. For instance, the movie Pay It Forward inspired me to create a scholarship that has now grown into a second generation of scholars. Seeing this network thrive is incredibly fulfilling.
Bernard Leong: How can my audience find you?
William Louey: They can visit KMB’s website or find me on YouTube.
Bernard Leong: Thank you, William, for joining the show. I’ve learned a lot about your philanthropic work and the challenges of electrifying a bus fleet of this scale.
William Louey: Thank you. I appreciate your natural and content-driven approach. It’s much like Hong Kong’s ethos—we value substance over decoration.
Bernard Leong: Thank you, William. I look forward to catching up again when I’m in Hong Kong.
William Louey: Thank you very much.
Podcast Information: Bernard Leong (@bernardleong, Linkedin) hosts and produces the show. Proper credits for the intro and end music: "Energetic Sports Drive" and the episode is mixed & edited in both video and audio format by G. Thomas Craig (@gthomascraig, LinkedIn). Here are the links to watch or listen to our podcast.
