“We believe the strong growth in our young buyers is both a natural
evolution and as a result of a conscious strategic effort we have made
to appeal to this important customer group,"- Datuk Chang Khim Wah
Eco World Development Group Bhd president and chief executive officer
Datuk Chang Khim Wah told StarBiz the increase in younger buyers was due
to a conscious strategic effort made by the group to appeal to this
target market.
Property developers are seeing a pick up in sales, especially from younger buyers, as the numerous interest rate cuts and government incentives have spurred buying interest.
Eco World Development Group Bhd president and chief executive officer Datuk Chang Khim Wah said the increase in younger buyers was due to a conscious strategic effort made by the group to appeal to this target market.
“During our initial years of operations (circa 2015) the percentage of young buyers (below 40 years old) was around 43% and today it is more than 70%.
“We believe the strong growth in our young buyers is both a natural evolution and as a result of a conscious strategic effort we have made to appeal to this important customer group, both through the products we are offering as well as the way in which we engage them via social media and digital channels, ” he told StarBiz.
Of the 70%, Chang said around 50% are in their 30s and the remaining 20% are in their 20s. “We are particularly happy that a good number of these buyers include children of our own customers and residents in the vicinity of our development. This validates our efforts over the last few years to make a strong pivot to serve the needs of this market segment and the wider M40 group.
“Our upcoming launch of the new Duduk series of vertical townships offering semi-furnished apartments priced below RM400,000 at Eco Ardence and Eco Sanctuary, as well landed homes starting from RM500,000 at Eco Botanic 2, will enable us to further capture the hearts and minds of this very important market segment.”
Chang said the prolonged movement control order (MCO) period has really made many young people realise that the quality of home and living environment matters greatly.
Mah Sing Group Bhd chief executive officer Datuk Ho Hon Sang (pic below) said as the bulk of its projects comprised units within the affordable range segment, the majority of its buyers comprised those below 35 years of age.
“For Mah Sing, 84% of our target sales for 2020 are for residential properties priced below RM700,000 with key focus in the affordable segment. We typically see about 65% of buyers who are 35 years and below, for most of the affordable projects were launched in recent years. Hence, the majority of our buyers are first time homeowners.”
Despite the challenging market environment in view of the Covid-19 pandemic, Ho said demand continues to be resilient as property remained one of the safest forms of asset class for long-term capital protection and appreciation.
“Malaysia’s population is still very young with 66% below 40 years old and as such, household formation continues to be strong. Affordably-priced properties of good quality and at strategic locations remain highly sought after.
“This is especially for first-time home buyers, which augers well for Mah Sing’s product composition.”
Sunway Property said it is seeing increasing interest from younger buyers from 25 years to 35 years in its properties that are transit-oriented and have good facilities nearby.
“For example, our developments such as the transit-oriented Sunway Avila in Wangsa Maju, the integrated and transit-oriented Sunway Velocity TWO and the youth-focused development of Sunway Grid in Sunway Iskandar has seen enthusiastic response from younger purchasers, ” it said.
Property data, analytics and solutions provider MyProperty Data chief executive officer Thor Joe Hock said the median age for residential property transactions has gradually dropped over the years.
“When we look at the over 2.5 million residential property transactions, including serviced apartments, it appears that the median age of buyers from 2000 to 2019 has remained largely unchanged at between 34 to 35 years of age.
“However, when you break it down into landed and non-landed transactions, we start to get a clearer picture. The median age for non-landed properties has fallen from 40 years in 2000 to 28 years in 2019; while the median age for landed property purchasers marginally decreased from 40 years to 37 years over the same period.”
MyProperty Data manages a property data portal called PropertyAdvisor.
Meanwhile, Lagenda Properties Bhd managing director Datuk Jimmy Doh said more than half of its buyers are below 39 years of age.
“We believe as young people start new phases in their lives, for example getting a job or starting their own families, they prefer to stay independently and have their own space, granted that the properties are within their price range.
“Over the past few years, we have been seeing an increase in buyers. Our properties are priced below RM200,000, ” he said.
MIDF Research in a recent report said the aggressive overnight policy rate (OPR) cuts have improved home buyers’ purchasing power.
“Bank Negara cut its overnight policy rate for the fourth time this year by 25 basis points (bps) to a record low of 1.75% in July due to the severe impact of the Covid-19 pandemic on the global economy. The aggressive OPR cuts this year are positive to the sector as it improved home buyer’s purchasing power by reducing loan installments.
“We estimate monthly installments to reduce by 14%, after 125 bps cut for RM500,000 loan with a loan repayment period of 30 years, which is quite significant in our view. Hence, we think the record-low interest rate will partly help to alleviate home buyers’ issue of securing home financing, as the record low yield has boosted the affordability of home buyers.”
MIDF Research also said it expected loan demand to recover in the second half of 2020.
Citing Bank Negara’s statistics, it said total applied loan for the purchase of property improved sequentially by 52.9% month-on-month to RM13.1bil in May, after plunging by 64.8% month-on-month in April.
“Note that total applied loan recorded steep decline in April due to the disruption to business activity following the commencement of the MCO.
“Nevertheless, total applied loan in May was lower by 61.8% year-on-year while cumulative total applied loan in the first five months of 2020 was lower by 33.6% year-on-year, indicating buying interest was subdued.”
Looking ahead, the research house expected buying interest to recover in the second half of this year, spurred by incentives introduced by the government.
Under the Short-Term Economic Recovery Plan (Penjana), which was announced in June, the government reintroduced the Home Ownership Campaign (HOC). Under the HOC, stamp duty exemption will be provided on the transfer of property and loan agreement for the purchase of home priced between RM300,000 and RM2.5mil.
Millennials now make up over a third
of the workplace and overwhelmingly value flexibility in where, when and
how to work. And top talent has been increasingly clustering in dense
urban areas and has been unwilling to commute to suburban office parks
We found that data availability and transparency in the real estate sector is less than what we were used to when we were
Great response: Visitors looking at the scale model displayed at the Ideal Property Group exhibition booth at the StarProperty.my Fair at Queensbay Mall in Bayan Lepas, Penang.
GEORGE TOWN: Ten developers generated RM144mil in sales during the four-day StarProperty.my Fair 2016 held at Queensbay Mall.
About RM60mil came from the properties marketed by Zeon Properties Sdn Bhd, which are Ewein Zenith’s City of Dreams, Aroma Development’s Starhill, Devoteshens Sdn Bhd’s My Sakura 28, Tawakar Group’s 98 Residence, Stallion Group’s Vos, and Bionic Land’s Prominence.
The sale of projects from Ideal Property, Asia Green, CI Medini and Aspen Group generated the remaining RM84mil.
Ideal Property general manager (sales & marketing) Nancy Teo said the turnout was not disappointing.
“Given the current economic challenges, we are satisfied with our sales, which was about RM15mil for the past four days.
“There are several hundred potential buyers with whom we need to follow up after the fair.
“They have indicated their interests to view our show units,” she said.
Asia Green creative director Mei Tan said the buyers for QuayWest and The Clovers were those who wanted to upgrade their lifestyle with a new house.
“We sold RM6mil worth of properties during the four-day fair.
“The QuayWest and The Clovers are respectively 50% and 80% sold,” she said.
CI Medini’s marketing director Datuk Seri Jacky Ker said the company generated about RM50mil in sales at the fair with the sale of 70 units of multi-storey shop units in the Ion Axxes project.
Developers such as IJM Land Bhd, Mah Sing Group Bhd, Sunway Bhd and Eco World Development Group Bhd also received overwhelming responses for their projects.
Mah Sing senior chief operation officer Seth Lim said a big pool of visitors were young families.
“Some of the buyers looked into getting a second property or explored investment opportunities.
“We are happy with the response as we were able to secure a few hundred registrations,” Lim added.
EcoWorld general manager Khoo Teck Chong said the group received hundreds of enquiries for the Eco Bloom project in Simpang Ampat.
“Taking advantage of the low interest rates in the market, we also plan to launch the RM8bil Eco Horizon and Eco Sun mixed-development projects in Batu Kawan next year,” Khoo added.
IJM Land senior general manager Datuk Toh Chin Leong said the group planned to launch the Waterside Residence project for the second phase of The Light Waterfront scheme next month.
“The sales of our current projects like the Trehaus in Bukit Jambul and Permatang Sanctuary in Bukit Mertajam should help us achieve the targeted RM240mil revenue for Penang.
“Last year, the revenue contribution from Penang was RM168mil.
“Next year we will launch the Senjayu in Jawi, 3 Residence at Karpal Singh Drive and The Terraces Condominium in Bukit Jambul,” Toh added.
Experts share nuggets of wisdom with house-hunting visitors at the fair
PENANG, acknowledged by CNN as one of the best places to retire in the world, continues to attract numerous interest in its property sector, said Zeon Properties group chief executive officer Leon Lee.
He said Penang partnering Temasek Holdings in developing the Penang Technology Park would create 30,000 job opportunities in the near future, and this would in turn boost the property demand.
“The state recorded 10% growth in arrivals via the Penang International Airport in 2014 from six million to 6.6 million in 2015. And it is expected to increase to eight million this year.
“A growing economy, international recognition from our various accolades, improved state policy and welfare as well as the moderate cost of living will continue to attract people.
“On the island, 67% of the land is occupied by hills and forest reserves which cannot be used for development. This is why property prices will continue to soar,” he said in his talk on ‘Penang Property Outlook: Why Invest in Penang?’ at the StarProperty.my Fair 2016 in Queensbay Mall.
Meanwhile, Prof Joe Choo said first-time home buyers should weigh their decision carefully in picking the property.
In her talk on ‘Feng Shui Tip to Enrich Your Life’, she advised those buying their second property for business or to upgrade to ensure that it faced the same direction as the first one because that was the direction where they made their money.
Property investors were also urged to bear in mind the ‘stay, work and play’ motto before buying properties.
Freemind Works founder and property investment coach Kaygarn Tan said an ideal investment should come from city living that integrates the way in which people live, work, shop and play.
He cited Bayan Lepas as a good example in his talk ‘How to Get Better than Average Rental Yield’.
“We have Queensbay Mall and the Bayan Lepas Free Trade Zone in the area.
“So getting a property here is a good option as the elements of work, play and shop will surely complement the living aspect.
“Remember, all the components must co-exist within a 5km-radius,” he said.
Meanwhile, Diligent Planners Sdn Bhd founder Vince Chia said young people should get their first home even if it had to come from the secondary market.
He said houses priced between RM200,000 and RM250,000 in the secondary market were considered good options.
“Servicing a bank loan of less than RM250,000 should be considered comfortable for a fresh graduate with a RM3,000 monthly income.
“After all, you will probably be staying alone at first. You can upgrade in a few years’ time.
“If you are getting a ‘start-up’ home, forget about getting a house worth more than RM700,000.
“It’s a burden,” he said in his talk titled ‘Easy loan approval like 1-2-3’.
Full-time property investor and trainer Rachel Lim encouraged the visitors to look at the rental and capital appreciation of properties before investing.
“Do not simply jump into an investment but instead look for fundamentally good properties.
“It is a ‘bargain sale market’ during an economic slowdown. We should be excited, grab the opportunity and buy good properties,”
she said in her talk on ‘Boom or Burst 2017 Malaysia Property Market.
REI Group of Companies CEO and co-founder Dr Daniele Gambero spoke on ‘Penang Transportation Master Plan: The Secret Unveiled: 10 Years Gold Mine for Smart Propenomy Investors’.
LRT project boost for property near FIZ - Properties around industrial zone soaring in value due to upcoming LRT project
“One of them is the Trehaus project which comprises condominium villas and semi-detached villas,” she said.
PROPERTIES located within the proximity of the Free Industrial Zone (FIZ) which has been earmarked for the LRT line were the most sought-after at the StarProperty.my Fair 2016 in Penang.
C.M. Ong, 32, who works in Bayan Lepas, said he was looking for a high-rise unit near the FIZ as an investment which could generate better yield in rental.
“It is good to consider a location where there will be major infrastructure developments.
“The area is also close to the Queensbay Mall.
“I understand that the property value in FIZ has shown a steady increase for the past five years due to the number of fresh amenities in the area,” he said yesterday.
He was checking out the condominiums in Tropicana Bay Residences in Bayan Mutiara by Tropicana Ivory Sdn Bhd.
Air freight clerk Naseem Ali Shaik Othman, 38, said the Triuni Residences within The Sanctuary masterplan by the Runnymede Group of Companies offered the best of both worlds as an urban resort condominium.
“The appeal is the location in Batu Uban, where it is easily connected to the Bayan Lepas area and George Town. We like the urban setting, the sea view and resortstyle amenities,” he said.
The father of four said the gated and guarded safety feature would also provide a safer environment and community to raise a family.
Administrator Nor Syahira Roslan, 23, said her preferred location was Bukit Jambul as it was close to her parent’s house.
“I would prefer a landed property as it offers better privacy.
“The value of a landed property, as I understand, also appreciates faster and is more stable.
“The Bukit Jambul area has a wide range of landed properties up for sale.
“One of them is the Trehaus project which comprises condominium villas and semi-detached villas,” she said. - The Star
Apr 9, 2016 ... High cost under new law may affect property investors ... Aug 17, 2015 . ...
Property prices will hold . ... Oil Prices: What's Behind the Drop?
Oct 1, 2016 ... Lim expects house prices to be flattish or slightly weak depending on locations ....
Penang has dislodged Kuala Lumpur's Golden Tringle as the top investment
choice GEORGE TOWN: Penang has now overtaken the Klang.
Liew and his son Tian Xiong (left) at the interview. The biggest shareholder of Eco World Development Group is Tian Xiong, who at 22 in 2013 became the major shareholder of the company.
Entrepreneur who drives the smaller Eco World group is still a much talked-about figure in corporate world
AT 57 years of age, Tan Sri Liew Kee Sin can easily count himself to be one of the most talked about personality in Malaysia’s corporate circle – by the Government, the private sector and property investors.
Amidst the unravelling of events over the past four years, including his exit from SP Setia Bhd, Liew continues to be among the corporate figures today that enjoy the adulation of some and the wrath of others.
Since leaving SP Setia a year ago, Liew has been furiously on the ball, trying to “regain” what he has lost. He has kept a fast and furious pace, though buffeted on every front by unabating current.
Although he has previously overcome challenges thrown at him, the pressure this time is different, in severity and magnitude. It’s a pressure cooker in Eco World Development Group Bhd (EWB), he admits.
“The momentum is on-going. It forces me to be the face of Eco World,” he says.
The positive side to all these is that he has about 300 out of a staff count of 800 who joined him from his previous company. This round of rebuilding includes his son, Tian Xiong, 24. That may also account for him being more driven than before.
While he has made a success of the 4,000 acres in S P Setia’s flagship development in Shah Alam years ago, today’s climate of high house prices and stagnant wages mean his team would have to work doubly hard. So far, however, most of his projects in the Klang Valley and Johor seem to enjoy take-up rates of 80% and above.
His latest launch in Batu Kawan, Penang, has prices hovering in the RM700,000-RM800,000 bracket.
Credited with making something out of 4,000 acres in Shah Alam, Liew is trying to do the same in Semenyih, Selangor, and Batu Kawan, Penang, on a smaller scale. Liew says his objective is to set a new benchmark in terms of concepts, ideas and designs for branding purposes.
Next month, he will be launching 1,130 units in London City Island with a gross development value (GDV) of £617mil, at a time when house prices are frothy, with wages stagnant. The May 7 elections is another dampener. The Employees Provident Fund (EPF) has just sold a building at a profit and may be selling another.
The weakening ringgit works for and against him. For local investors, a property abroad is a good hedge against exposure to any possible future weakening of the ringgit. The downside is that the pool of buyers shrink with the weaker ringgit.
However, the target market for the London City Island project goes to Hong Kong, Singapore and London.
Even as he is keeping his finger on sales, other challenges faces Liew and the Eco World group.
Eye on SPAC
In October last year, Liew and his team proposed to list Eco World International Bhd (EWI) as a SPAC (special-purpose acquisition company). But the Securities Commission has yet to approve the application.
While awaiting the SC’s nod for the the proposed SPAC, in January, he and his right hand man Datuk Voon Tin Yow in their personal capacity, via a private vehicle, entered into a joint venture with UK-based Ballymore on a 75:25 basis to develop three projects in London – with the first slated to kick off next month.
The plan was to inject the three properties into EWI, which will be the vehicle for the proposed SPAC. Shareholders of EWB would not be left out as they would be offered up to a 30% stake in EWI.
It was a neat plan – at least on paper.
But the snag is that a SPAC is a blank cheque listing. It is supposed to list without pre-identified and ready assets, which is an issue when it comes to EWI. This is despite Liew’s plan to inject the private purchases “at cost plus holding costs” – meaning Liew and Voon do not profit from the asset injection.
“But this goes against the spirit of SPAC guidelines as set by the SC. A SPAC is a blank cheque listing ... a cash box looking for assets,” says a merchant banker.
“To go global, we must react quickly to market conditions, better design concepts and learn. We have the skill set,” he says. He learned a lot managing and marketing Battersea. No matter how challenging a project, “you gotta break it down to smaller bits”.
Nevertheless, Liew hopes to see some development with respect to the SPAC application within the next month or so.
Keeping EWB and EWI on separate lanes will help him to manage the gearing of both companies and reduce dilution for shareholders of EWB that includes his son, who is the major shareholder.
Liew says he also does not want to park the London assets under EWB because they are too big for its balance sheet.
Although his stake has diluted from 35.05% in 2013 to 13.52% on March 27, 2015, he is still the major shareholder.
Visionary though he may be, time was on his side when Liew built his previous “priced possession”, which is S P Setia. He built S P Setia over the years at a more even pace while the momentum and task he faces today with regards to the Eco World Group has been nothing short but blistering.
Within two years, the company has accumulated 5,396 acres with a GDV of about RM55bil. Debts was up at RM1.15bil as at Jan 31, 2015, from RM215mil in September 30, 2014. (Sept 2013: RM52mil). EWB completed a rights issue raising RM800mil and will undertake a placement. At the end of the corporate exercise, EWB’s gearing will be less than 0.6 times and it will be sitting on a pile of cash that will be used for working capital to develop the massive land bank here.
Liew says he received a lot of offers to work with landowners.
“People ask, why so aggressive? It’s because of the brand. We want to charge ahead in Malaysia. We are using up about 800 acres a year.”
Dealt a good hand
Although Liew has been dealt a good hand in his working life, he may be losing another priced project, all within two years.
As he goes about tying up loose ends on the Battersea chairmanship, a legacy from S P Setia days, and finishing the restructuring in EWB by the end of this month, questions about conflicts of interest have surfaced.
The Battersea Power Station is a 40:40:20 project with S P Setia and Sime Darby holding equal share and EPF remaining 20%.
“When I resigned from S P Setia in April 2014, the Battersea board suggested I wait till September 2015. At that time, there was no Eco World Ballymore (Holding Co Ltd, a developer of the three projects) yet.”
The private vehicle belonging to Liew and Voon – Eco World Investment – has a 75% stake in EcoWorld-Ballymore while UK-based Ballymore Group owning the rest.
At about June of last year, he declared to the board of Battersea of his interest to go into property development in Britain. He was told to wait.
Six months later in January this year, Liew and Voon went public with their 75% stake in the UK-Malaysia joint venture. At that point, he felt “obligated to resign” but was told to wait.
“We have three projects which may seem to be competing with Battersea Power Station although in terms of price point, they are priced differently.”
The latest Battersea Phase 3A units are priced at £1,700 per sq ft while the EcoWorld-Ballymore units are being sold at about £1,000 per sq ft. About 90% of the EcoWorld Ballymore units will be less than £1mil.
Ironically, a vexing issue confronting Liew these days is his chairmanship of Battersea. The roots of the situation he is caught in today can be traced to his entrepreneurship that created Malaysia’s biggest property company that he lost control to Permodalan Nasional Bhd – after a protracted corporate exercise which started in 2011.
Liew, however, is still capable and motivated to use his set of skills to further create value for himself and those around him. But the dichotomy is between duty and interest.
“I do not want to offend anyone anymore. But I (also) feel duty bound,” says Liew.
The Battersea project, which is Liew’s brainchild when he was in S P Setia, has several key milestones in the next one year.
Phase one of the project will be handed over to buyers next year. Work on Malaysian Square – the pride and joy of Malaysia – has just started. Work on London’s underground Northern Line extension, which connects to Battersea, begins this year. These milestones will help the investment to appreciate.
The British authorities are concerned about the reconstruction of the four white chimneys and the restoration of the power station brickwork. So Battersea has quite a bit of important obligations to meet in the next one year and it cannot afford any slip-ups.
“I am under a lot of pressure ... Morally, I should resign. But when I buy (my land in London), I also declare (to the board). I am duty bound to declare on the grounds of good governance. At the same time, I am also duty-bound as chairman because this year is crucial for the Battersea.
“I am trying to get out of this (situation) because I want to reduce the areas of conflict between myself, the Government and everybody else. I have lost S P Setia and I should gentlemanly give up (Battersea),” says Liew.
Time will only provide an answer.
With London mayor Boris Johnson ending his term in 2016 – and considering Liew has a good working relationship with him – there are are more than several reasons for shareholders of Battersea to continue to retain him for another year as chairman. Before works such as the construction of the underground station and reconstruction of white chimneys take off, there is a lot of interaction with the London authorities, something that is not easy to cultivate.
Interest versus duty
Whatever the outcome of his Battersea chairmanship, there are at least two broad contentious issues here. His fiduciary responsibility and duty of care is one. Liew has taken that duty seriously and returned value for that which was entrusted to him. The second issue is his skill set. Life has obviously given Liew a good card, despite his losses.
Now, the question that arises is if he should wait if opportunities come, complete all ties with Battersea and S P Setia before embarking on new ventures that may not come knocking every day?
Every day, directors are offered various opportunities which conflict with their fiduciary duty. Often times, the fiduciary duty of directors, parallel to trustees, can be onerous. But the law is the law.
Yet, in many ways, Liew’s situation is parallel to a 1978 case of Queesland Mines Ltd v Hudson. The company Queensland Mines was an iron ore mining company that established as a joint venture between A Ltd and F Ltd. Hudson was the managing director of A Ltd and had negotiated with the Tasmanian government for mining licences.
Just before the licences were issued, Hudson’s joint-venture partner ran into financial difficulties and was unable to proceed with the venture.
Hudson resigned, taking the licences with him, and formed his own company. At considerable risk and expense, Hudson exploited the licences and earned profits. Queensland later filed a suit against Hudson for what it claimed was abusing his position to divert opportunties for himself.
However, the courts ruled that although the opportunity to make profits came to Hudson through his position at Queensland Mines and was something that the board was made aware of, Hudson was not in a position of conflict.
The position Hudson was prior to 1978 is the predicament Liew faces today. In both these cases, the contention boils down to timing and turn of events.
If one were to consider the big picture and balance out the events surrounding Liew in the last four years, should he not be allowed to exploit the resources due to him because of his skills and expertise? Or should he be shackled by time and ties, despite having added value to those he has been entrusted with? That would be unfair to Liew.
The legacy issue – passing the baton to the right person
AT the spanking new Eco World International Centre in the Gardens office block in Kuala Lumpur recently, a photo session was in progress. There was a light-hearted camaraderie in the air.
Tan Sri Liew Kee Sin and his top management were present, all of them in their white Nehru-collared shirt with green trimmings.
The photo session was as much symbolic as telling. It was as if to say: “These are the people I will need to grow Eco World Development Group Bhd (EWB).”
With a staff strength of about 800, about 300 of them were from Liew’s previous company S P Setia Bhd. Despite the market conditions working against the property sector and crushing issues confronting him, Liew was his usual warm, confident self.
A lot of this has to do with the people around him. Liew was named chairman in March and his right-hand man Datuk Voon Tin Yow, previously from S P Setia, joined the group officially as executive director.
A notable addition was newbie Liew Tian Xiong, 24, bright-eyed and smiling. He first surfaced in 2013 and has been seen as a proxy of his father. The presence of that young man has changed the landscape for Liew.
Passing the baton
It is a legacy issue. As one considers the property sector, a number of the country’s developers have in one way or another paved their sons and daughters to join Dad.
There is Datuk N.K. Tong, 47, group managing director of Bukit Kiara Properties Sdn Bhd who joined Datuk Alan Tong, who is known as Condo King for his work in Sunrise Bhd’s Mont’Kiara.
It was the elder Tong who saw the potential of the area, then Segambut and bought 100 acres there. Over the years, Mont’Kiara has progressed to become a thriving suburb and is currently considered as “an aspirational location” among the young.
Ken Holdings Bhd group managing director Sam Tan, 35, joined his father Datuk Kenny Tan. That was 2004, and he was 24.
Over at the Sunway group, Sarena Cheah, 40, the daughter of Sunway Bhd founder Tan Sri Dr Jeffrey Cheah and anointed successor, will assume full control of the group’s key property unit effective May 1. She may well have been the youngest to join Dad, when she was just 20, in 1995. She started out in the corporate finance and group internal audit divisions.
Passing the baton cannot be done overnight. There is a lot of planning to do. There is also the task of moulding and nurturing the right person for the job and looking over the shoulder of the young person to ensure they are constantly on the straight and narrow. If there are more than one, then there is the selection process of who will take up the position of annointed successor.
After the painful lesson of having lost S P Setia, Liew would clearly circumspect legacy and stewardship issues.
Which takes this story to next level.
Who is working for who?
The years of passing the baton may be painful, for both parties. This explains why the years of preparation are so crucial before the final moment of actually handing over the reins. In each of the three cases – N.K., Sam and Sarena – the children joined Dad and allowed themselves to be moulded.
Which takes us to the next question.
Is Tian Xiong working for Dad, or is Dad working for Tian Xiong?
Every parent wants the best for their children and Liew is no exception.
By joining the company now, Tian Xiong will have “the history” of the company. But will he be able to take on turbulent times?
He ponders: “It’s a pressure cooker here.”
If the staff do not accept him, he will never be the “real boss”, says Liew.
Of late, Liew has been keeping the young man closely by his side.
The rationale, says Liew is that, whatever Tian Xiong had learned in EWB in the last two years, he would take years to learn outside. So he better learn fast and learn now.
Stewardship
It is not just passing the baton. It is stewardship.
Says Tian Xiong after Liew steps out of the room: “Every night, from 9 to 10pm, he would nag me about how I dress, my tie, what time I get into office, how long I took for lunch and what I did after lunch. And other larger office and market issues.
“He also told me that I have to earn it, that it is not going to drop on me, that I have other siblings,” says Tian Xiong.
On whether he was pressured into returning to Malaysia from Melbourne where he graduated in 2012 with a Bachelor of Commerce from the University of Melbourne, Australia, he says he returned on his own free will.
The young man first surfaced in 2013 as a buyer for a little known company Focal Aims Holdings Bhd. His emergence “caused a tsunami” because during that period, there was many questions as to Liew’s move.
Tian Xiong started out in corporate finance department for the first two years and is currently in corporate marketing.
S
P Setia's head honcho Liew resigns, looking forward to mentoring in Eco
World. Ten months after S P Setia Bhd unveiled its succession plan,
head honcho Tan Sri Liew Kee Sin has announced his intention to resign
as president and chief executive officer. Also quitting the ... Liew
would leave the property giant on April 30 while Teow would stay on
until July 31. Liew and Teow would continue to be involved in the
Battersea Power Station project in London until ..
Tan
Sri Liew Kee Sin, President Executive officer of SP Setia Berhad, with
the Malaysian Ernst & Young Entrepreneur of the Year 2011 award
yesterday at the J W Marriot Hotel in Kuala Lumpur. Liew stands out for
his ...
Some 20,000 visitors made their way to the Malaysia Property Exhibition (Mapex) 2014 at the Subterranean Penang International Convention and Exhibition Centre (SPICE) in Relau, Penang, in search of their dream home.
From landed properties to high-rise units, the Mapex City 2014 showcased projects by reliable developers with prices which ranged from RM346,000 to RM15mil.
Event organising chairman Ng Chin-U said the three-day exhibition held from last Friday to Sunday saw developers generating RM48mil worth of sales.
It was the second Mapex this year. The first, which was held during Chinese New Year in February at the G Hotel Penang, saw about 30,000 visitors and a total sales of RM130mil recorded.
Ng said buyers might be adopting the wait-and-see approach as the Budget 2015 was just around the corner.
“The cooling-off measures on the property market may be one of the factors as well, as generally buyers are more careful,” he said.
Cooling-off measures include 70% loan policy for third property purchases, requiring the housing loan limits calculated based on net income instead of gross and loan tenure reduced from 45 years to 35 years.
Ng added that those who missed the exhibition this time around could look forward to next year’s Mapex, which is scheduled to be held during Chinese New Year in February.
Organised by the Real Estate and Housing Developers’ Association (Rehda) and Henry Butcher Malaysia (Penang), the exhibition was participated by a total of 16 exhibitors who took up 30 booths.
Penang Chief Minister Lim Guan Eng who opened the exhibition on Saturday, urged Bank Negara to reinstate the developers interest-bearing scheme (DIBS) for first-time buyers as well as increase and extend the scheme by Syarikat Jaminan Kredit Perumahan (SJKP) to buyers of affordable homes costing from RM72,500 up to RM400,000.
“Ever since DIBS was abolished, many first-time buyers of affordable housing could not obtain bank loans to buy their own homes.
“Up to 70% of the housing loan applications for low-cost and low medium-cost homes have been rejected by private banks,” he said.
He added that legal fees should be part of the DIBS package and stamp duty should be waived to lower the initial entry cost for first-time home buyers.
Rehda Penang chairman Datuk Jerry Chan said the exhibition was largely focused on Penang properties.
He said Rehda Penang had been trying to help first-time house buyers.
Besides that, Chan said that during the recent Mapex, organisers donated RM50,000 to six charitable organisations namely DHome Mental Health Association, The Salvation Army Penang Children’s Home, Grace Harmony Home, Children Protection Society , Penang Cheshire Home and St Nicholas Home Penang.
Also present during the opening were state Housing, Town and Country Planning Committee chairman Jagdeep Singh Deo, state Agriculture and Agro-based Industry, Rural Development and Health Committee chairman Dr Afif Bahardin, state Religious Affairs Committee chairman Datuk Abdul Malik Abul Kassim and state Tourism Committee chairman Danny Law.
The developers who took part in the exhibition were Eco World Development Sdn Bhd, SP Setia Bhd Group, IJM Properties Sdn Bhd, Asas Mutiara Sdn Bhd, Chong Company Sdn Bhd, Sunway Grand Sdn Bhd, BSG Property, Ivory Properties Group Bhd, Ideal Property Group, Airmas Group, Tambun Indah Land Bhd, Tropicana Macalister Avenue (Penang) Sdn Bhd, MTT Properties & Development Sdn Bhd, Palmex Industries Sdn Bhd, Inspirasi Elit Sdn Bhd and Plenitude Bayu Sdn Bhd.
Kwong Wah Yit Poh and Property Guru were the Chinese media partner and online partner respectively.
Ten months after S P Setia Bhd unveiled its succession plan, head honcho Tan Sri Liew Kee Sin has announced his intention to resign as president and chief executive officer.
Also quitting the company is chief financial officer Datuk Teow Leong Seng.
Liew’s departure was expected by industry observers but Teow’s
resignation came as a surprise as he was named deputy chairman in the
property player’s succession plan earlier, analysts told StarBiz.
Liew would leave the property giant on April 30 while Teow would stay on until July 31.
Liew and Teow would continue to be involved in the Battersea Power Station project in London until September 2015 given the prominence of the international project.
Liew would also remain managing director for Qinzhou Development (M) Consortium Sdn Bhd,
a Sino-foreign joint venture company to develop the China-Malaysia
Qinzhou Industrial Park in the republic until the same period.
It is also speculated that present chief operating officer Datuk Voon Tin Yow, who was appointed the company’s acting president and chief executive officer, might also resign later.
In a statement, S P Setia said Voon’s appointment would be effective from May 1, 2014 until April 30, 2015.
Voon would be supported by executive vice-president Datuk Khor Chap Jen who would be appointed acting deputy president during the same period, it said.
S P Setia chairman Tun Zaki Tun Azmi
said: “Whilst the board and I are greatly saddened by the departure of
Liew, Teow and Lee, we are confident that the group will continue to be
in steady hands under Voon and Khor.”
Observers expected its biggest owner Permodalan Nasional Bhd (PNB) to take more proactive measures in managing its talents as well as setting the company’s direction going forward.
It was earlier reported that Datuk Jamaludin Osman of I&P Group Sdn Bhd
– PNB’s property arm – was among the candidates tipped to take over
Liew’s stewardship. There were also talks of a possible asset injection
by PNB into S P Setia.
Liew said: “Given the solid footing
which the company is on, I believe the time has arrived for me to step
down after 18 years as CEO.
“With my children all growing up and
starting out on their own career paths, I am looking forward to
spending more time with them, mentoring and guiding them.”
Liew’s eldest son, Tian Xiong, is a major shareholder and director in Eco World, another property firm set up by former S P Setia top brass.
S P Setia fell five sen to close at RM2.88 while Eco World was up one sen to RM4.15.
Analysts said the market has priced in Liew’s retirement from S P Setia
and they expected the company’s operation to remain intact for the time
being.
Bloomberg data showed that its forward
price-to-earnings (P/E) was 13.4 times compared to 16.06 times
currently. Its average P/E ranged from 17 times to 20 times from
financial year ended Oct 31, 2011 (FY11) to FY13.
Liew is
instrumental in growing S P Setia from a RM200mil entity in 1998 into a
multi-billion ringgit international property company.
With him at the helm, S P Setia achieved sales of RM8.24bil in FY13, almost double from what it registered in FY12.
The group has 4,782 acres of undeveloped land bank worth RM102bil while its unbilled sales stood at RM9.6bil as at FY13.
- Contributed by Ng Bei Shan The StarBiz/ANN
Who’s who in Eco World
Fresh from graduating as a Bachelor of Commerce from Melbourne
University late last year, Liew Tian Xiong, 22, is not short of
persuasive skills that a sales person possesses as he introduces EcoSky
to StarBizWeek when we visited Eco World Development Sdn Bhd’s sales
gallery.
In fact, one of the key performance indicators he has to meet, is to
sell off 30 units of its KL project, EcoSky, which will then determine
whether he gets his bonus.
Besides sales and marketing, he is also involved in project planning, land acquisition and liaising with land consultants.
Asked on people who influenced him, the affable young man says: “I
have probably learnt from my father throughout my whole life. He taught
me to keep my head down and listen to people, and to keep asking
questions.”
He says he has learnt from both CEO Datuk Chang Khim Wah and COO
Datuk S. Rajoo and what he is going through, is essentially a fast track
management training programme.
Chang says: “There is a lot of things (for him) to learn. He’s doing
groundwork like sales and marketing, planning and reading legal
documents although he is holding the director’s card.”
“Tan Sri Liew (Kee Sin) told me that I can scold him (Xiong). I was
scolded by Tan Sri Liew back then, so it’s pay back time now,” Chang
jokes.
However the relationship among the management team when StarBizWeek met up with them is warm and fervent.
Chang quips: “We even play futsal with him (Xiong)… ”
The experienced management personnel like Chang and Rajoo had known
each other for about two decades, but Xiong, at his tender age, seems to
be gelling well with them.
Xiong’s younger brother, Tian Rong, 20, is also with the company as a
contract staff. He is pursuing an economics degree from University
London College and is having a stint in the company.
The man who helms Eco World, Datuk Chang Khim Wah, 50, joined S P
Setia in 1994 and had been there for about 20 years. Prior to that, he
was a consultant engineer in Australia. He was one of the members
instrumental in setting up S P Setia’s Johor Baru division and went on
to set up an office in Singapore and Jakarta.
He concedes that the team has S P Setia’s DNA in terms of team effort
and competitiveness. His relationship with Liew was depicted as an
understanding that required little words.
“We don’t speak long sentences (but) we understand each other,” he shares.
Chang’s counterpart, Rajoo, 50, assumes the position of COO in Eco
World. He spent his first seven years in S P Setia in the Klang Valley
helping the development of Bukit Indah Ampang and Pusat Bandar Puchong
and subsequently in some of the township developments in Johor where he
then worked closely with Chang.
After that, he was overseeing S P Setia’s projects in the northern
region for seven years and had carried out 13 projects with a gross
development of more than RM2bil in the Pearl of the Orient.
Heah Kok Boon, 46, the chief financial officer of Eco World, is a
chartered accountant who has over two decades of experience in the field
of corporate finance, corporate fund raising, investments, merger and
acquisition as well as other finance-related areas.
He was with S P Setia’s corporate affairs department for six years prior to his current role.
When introducing the major shareholders behind Eco World, Chang says Leong and Rashid are the two major shareholders.
“These two names are more than enough (for Eco World’s credibility),”
Chang says, joking that Xiong has no shares in the property outfit.
One of its major shareholders and directors, businessman Tan Sri
Abdul Rashid Abdul Manaf, 65, was trained as a legal practitioner from
Middle Temple London.
He was chairman for the board of S P Setia Bhd from March 12, 1997 until Oct 25, 2012.
Another director, who is a corporate figure, is Datuk Eddy Leong Kok
Wah, 58. He holds a master of business administration from University of
Hull, United Kingdom, and is also a member of Institute of Bankers
(UK). He has an extensive career in the banking industry and is
currently an executive director of Salcon Bhd and also sits on the board
of a few other companies. He was in S P Setia’s remuneration committee
from Sept 21, 2005-Feb 28, 2013.
