Today's CEO Outlook focuses on three property developers with different strategies for different market segments.
They are Tan Sri Jeffrey Cheah of Sunway Group of Companies, Datuk Michael Yam of Sunrise Bhd, and Datuk Mohamed Iqbal Rawther of Farlim Group (M) Bhd
. How they have dealt with the economic and political challenges of recent years is instructive.
The Asian financial crisis and the subsequent Malaysian economic recession of 1997–98 had hit the Sunway Group hard, but Cheah was bold enough to tackle the challenges head-on. He sold non-core/low-yielding assets to raise cash and undertook a huge corporate restructuring exercise.
His hands-on management style earned him the respect of the Singapore government, whose investment arm saw the potential of the group and became a partner in some of its projects.
Yam's Sunrise group is a developer of high-end condominiums and the Sept 11 terrorists attacks on the US initially caused a slowdown in demand for its Mon't Kiara units, particularly from the expatriate community. But that now seems so long ago.
Mon't Kiara in Kuala Lumpur has set the standard for many developers to emulate, while Sunrise is looking to duplicate its Malaysian success overseas.
Penang-based Farlim has not been spared the economic recession, but its China operations (mainly in industrial manufacturing including garments, brewing and elevators) had resulted in big losses for the group in recent years.
As a result, Farlim, controlled by Datuk Seri Lim Gait Tong, is divesting its China businesses and will focus on property development back home.
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