Mah Sing Tan Sri Dato’ Sri Leong Hoy Kum
The Red Which Took The Market By Storm
By: Jotham Lim
Introduction
Since being incorporated in 1994, Mah Sing has garnered a reputation as one of the market leaders in the property development sector here in Malaysia. Mah Sing has always been recognised for its prominent visibility, value-for-money products and fantastic customer service. Its properties can be seen across the entirety of Malaysia, and when in search of new properties with great value, it is hard not to consider Mah Sing properties.
However, a company’s success can only be as great as its leadership. We reached out to Mah Sing in an attempt to pull back the curtains and take a sneak peek at the man behind the corporate giant - Tan Sri Dato’ Sri Leong Hoy Kum.
Milestones
It is hard to imagine the current Mah Sing coming from humble beginnings as a plastics trading firm in 1965. Number plates back then used to be made out of metal, but Mah Sing was able to corner the market once there was a switch to using plastic instead. Before venturing into the property sector, Mah Sing was considered the largest number plate manufacturer in Malaysia, owning and operating one of the most massive arsenals of plastic moulding machinery in ASEAN.
Digging deeper, we were curious to know why there was a switch to developing property instead. Following their success in the plastics industry, Tan Sri Leong had decided to venture heavily into property investment. However, they faced difficulties acquiring great deals as they were few and far between, and golden deals were often snatched up fairly quickly, most of them even before announcing their official launchings.
While most would shake their heads in dismay, Tan Sri Leong instead found an opportunity worth capitalising upon. He was given a chance to buy a lot in Selangor at a great price and he didn’t hesitate to acquire it. Tan Sri then placed the plastic company in the hands of his then executive director and became the first and only employee of the property arm of Mah Sing Group.
For five years, there wasn’t much growth but then came a big break in Johor with the launching of Mah Sing’s maiden township in 2000–Sri Pulai Perdana. Tan Sri did something never seen before in Malaysia, establishing the first-ever gated community comprising linked homes as opposed to traditional semi-detached homes, featuring an exotic Roman courtyard and a 12-acre neo-classical Central Park, the first of its kind in Johor Bahru.
From there came a period of rapid expansion with Icon commercial space in Jalan Tun Razak, the development of industrial space with the i-Parc series, and an expansion into Eastern Malaysia with Sutera Avenue in Sabah. Mah Sing has now strengthened its foothold in the Klang Valley with multiple developments from Rawang all the way down south to Bangi.
A Different Perspective
Right before meeting Tan Sri Leong in person, I had the pleasure of chatting with a few close associates to get a different perspective on the man in question. It was great to be able to meet Datuk Ho Hon Sang, Chief Executive Officer, who had this to say:
“Tan Sri is first and foremost a very dear friend of mine. He will often surprise us with pleasant comments and kind remarks out of nowhere, which catch us off guard. It is very nice and motivating to know that hard work is appreciated and understood.”
“Tan Sri is someone who upholds promises and remembers what he says and acts upon it without fail. The fact that his memory can go far back into the history of all the pieces of land bought, the names of previous owners, and the number of times the land exchanged hands still amazes me every time.”
“I enjoy the working relationship I have with Tan Sri Leong. Tan Sri always wants to take a step further and add value for Mah Sing customers. Hence, he has high expectations of employees, even though they are reasonable and achievable within the guidelines and frameworks set. The staff are well prepared and wouldn’t want to be caught off guard.”
Lyanna Tew, Senior General Manager of Strategic Communications, Sustainability and Corporate Responsibility, also pitched in:
“I have been working with Tan Sri for 13 years. If I were to summarise him in a single sentence, I would say he is committed and doesn’t take no for an answer. It’s not far-fetched to say he is one of the most diligent people I have seen. He expects the staff to have the same level of commitment. Despite his cool outward appearance, he likes to take huge calculated risks. It has always been that way, even back during the plastic industry days when he would borrow large amounts of money to buy 10-20 units of machinery at a time. People would think he was mad, but even now, when he buys large pieces of land for the land bank, things turn out okay because he has a knack for finding certainties amongst a sea of ambiguity.”
“In 2005, he took on five projects simultaneously, which we thought was impossible. Yet, the company grew to up to 47 projects currently while maintaining a healthy balance sheet. Imagine the level of discipline needed to maintain high performance and growth at breakneck speed. Regular companies generally need to gear up and worry about taking on massive debt. However, Tan Sri is exceptionally particular about gearing and will always maintain a healthy pool of resources in order to take advantage of opportunities that come our way.”
Q&A With Tan Sri Leong
After a brief exchange of pleasantries between Tan Sri and the editorial team, we proceeded with the interview. Meeting Tan Sri Leong for the very first time was a pleasant surprise. He was fairly approachable, friendly, and humorous despite being a prominent member of the industry. He was openly honest about his views on matters and willing to share whatever he knew:
Congratulations on Mah Sing’s 25th Anniversary! What can be expected out of this special occasion?
First and foremost, I would like to thank the customers and stakeholders who have made Mah Sing what it is today. For our anniversary, we launched a RM500,000 bank campaign as a way to give thanks to the customers who have supported us thus far. There are plenty of incentives from our work purposes. We heavily invest in infrastructure, developing plenty of ramps and highways to reduce travel time and congestion. Research shows that the new interchange at Southville City is able to cut off travel distance. The total facilities and benefits go along well with our business model, which warrants a high turnaround rate. We are professionally managed and entrepreneur-run. We aim to launch a project within six to nine months after acquisition. Early launches let us determine if we are offering the right product for the market. We can then change to suit the needs of consumers. Being flexible, fast, and quick to adapt gives us an edge over the market. To answer the readers’ question, yes, we have several landed properties inside and outside the Klang Valley. We welcome readers to look at a few of our projects in Penang, Rawang, Johor, and Southville City.
What challenges are you currently facing in the market?
Many have heard time and again that we are facing a glut. However, the perceived glut is not due to a lack of demand for quality affordable homes. This is evident from property overhang statistics. The lack of demand for homes is due to a lack of the right product for the right customers. Home affordability is a key issue. We are performing quite well despite the response, hitting sales targets. The HOC campaign reported good bookings, which can be attributed to our research team that took the effort to understand the needs and wants of consumers and deliver the correct product. We have sufficient resources to prepare for unexpected problems and tackle opportunities that come our way. I believe there is good news for shareholders who have placed their faith in the company.
You mentioned home affordability. Can you share more insights?
When we speak of affordability, we are thinking in terms of price and quantity. A RM350,000 condominium in the Klang Valley is affordable in terms of price alone. However, if it is located in an undesired location without proper access to public transportation, it is frequently less mentioned. Another aspect is the value you get. Affordable homes need not be featureless. They should be designed with excellent facilities. There is a trade-off in putting a certain level of density, which many are willing to make. Basic economics of supply and demand can easily duplicate a design and pricing structure. We pay close attention to costs and accordingly deliver workmanship with a four-star rating from the CIDB (Construction Industry Development Board). Developers who comply with best practices and display proficiency in management and technicalities are important. At the end of the day, main contractors and subcontractors are in the same boat. It is important to take care of this central pillar of development.
What do you foresee happening in the near future?
To prepare for the perceived glut, we continue to monitor some general numbers. Unsold units in rural locations inflate statistics, but there is demand for easy access to public transport systems. We have plans to significantly change directives and direction. We are not launching thousands of units like we did in the past. For example, last year we launched units in Bangi that were snapped up in short order. Nowadays, we release hundreds of units and have internal guidelines to regulate sales. For high-rise projects, we release floors in stages to gauge interest. A creative record and close attention are given to every project.
Do you have a favourite or interesting project?
One of my favourites is the Icon Residence located in Mont Kiara. The inspiration for the layout and planning came from Santorini, Greece, where houses are like little boxes placed on a hill. We believed we could emulate this concept and bring the challenge to replicate it in Malaysia. Each unit has a different layout and is highly customisable. It was a considerable risk to embark on such a high-class neighbourhood, but it surprisingly turned out well. The core idea was to emulate the design concept and bring a challenging task to replicate it. We delivered every unit with different layouts, highly customisable to better meet the checklist requirements. It was a considerable risk to embark on, but everything turned out surprisingly well.
Conclusions
It is evident from Tan Sri Leong’s words and manners that he has extensive knowledge of the sector’s demands. His staff members sing praises of his vision, creative drive, and strategic risk-taking. He has created a foremost developer in the industry. Alas, due to constraints, the interview was short. Further insights and stories will be shared another day. The editorial team is looking forward to what is in store. Indeed, Mah Sing is a force to be reckoned with, and we believe they will continue to make waves in the industry and decide to ride the tides.