Leong has come a full circle

THE Year of the Rooster will be a special one for Mah Sing Group Bhd group managing director and chief executive Tan Sri Leong Hoy Kum (pic) . He turns 60 in August, about 10 days before Malaysia celebrates its 60 years of independence.

“Turning 60 gives me time to reflect on a new identify for the company and plans ahead for a new generation of buyers,” he says in an interview.

Leong explained that the significance of change after a 60-year period is profound in Chinese culture.

“To the Chinese, when a person reaches the age of 60, he or she has completed a full cycle of life,” he says.

According to Chinese culture, the history of the 60th birthday is based on Chinese astrology, whereby 12 animals symbolise astrological signs.

As the Chinese calender is based on the 12 signs and five natural elements, namely metal, fire, water, earth and wood, it results in a 60-year cycle.

Following the 60th birthday, it is believed that a person begins a new life.

“So Mah Sing will also be reborn as I embark on new changes for the company,” says Leong.

The company has put in place business, visual and cultural changes that will complement the launch of its new logo this month as part of a revamped corporate image going forward.

Having been in the property industry for over two decades, constant change is a necessity, says Leong.

“Being in the property industry for 23 years and being a businessman for an even longer time, I have always believed that the only constant... is change.

“Change will happen and we have to accept this in order to progress as an individual or a company. My life and business philosophy is to practice continuous learning and change for the better.”

Humble beginnings

A global brand today, Mah Sing actually started out as a tiny plastic manufacturer.

“My father started the company as a humble plastic trading company. It was his dream to expand the company across Malaysia and Singapore,” says Leong.

According to him, the name Mah Sing can also mean “horse” and “star,” which was depicted in the company’s initial logo.

“When I took the lead to spearhead Mah Sing and founded Mah Sing Plastics, one of the first changes I made was to introduce a new logo,” says Leong, adding that the company’s current logo was actually designed by a close friend.

“After we talked about how the logo should look like, he drew it out on a napkin, and the rest is history!”

Leong recalled that he started “managing” his father’s business when he was still schooling.

“I started in Form Six. I would study in the morning and manage the business after that.”

Wanting to develop the business further, Leong gave up the opportunity to study mechanical engineering in Australia and instead went to Japan to study plastic technology.

“At the time, the best plastic technology came from either Japan or Germany. But I decided not to go to Germany because I felt that language would be a barrier.”

On his return from Japan, Leong set up the manufacturing business in his early 20s and went on to list the company on the Kuala Lumpur Stock Exchange in 1992.

Although the plastic business is still part of the group today, Leong realised that margins in plastics manufacturing were too narrow.

“It was then that we decided to diversify into another business. Our first development project was in Ulu Yam in 1994, where we built single-storey link homes. That year was also the birth of our i-Parc series.”

During the initial years, Leong says Mah Sing would co-develop projects via joint ventures (JVs), due to insufficient funding.

“We didn’t have much cashflow at the time. So whenever we did a JV, I would tell my partners that I was energetic, disciplined and a gentleman – because I always delivered.

“But more than anything, I told them that I was willing to fight!”

Leong recalled that the years 1994 to 2000 were considered a “period of learning”.

“Rome was not built in a day. We learnt a lot through those years.”

In 2000, the group started its maiden township development, Sri Pulai Perdana in Skudai, Johor where it introduced the concept of gated and guarded living for link homes.

“In 2004 we turned our attention to the Klang Valley and focused on the medium upper to high end markets with projects such as Damansara Legenda,” says Leong.

In 2007, Mah Sing entered the Penang market and launched Southbay City. The company also ventured into its first commercial project with The Icon, Jalan Tun Razak.

“Despite the design challenges of a narrow land frontage, we created a real gem. Its curvilinear facade makes it stand out from its surroundings. In fact, it was also the first en bloc sale of a commercial property in Malaysia,” Leong says.

The company continued to expand across the Klang Valley with projects such as Icon City in Petaling Jaya, M Residence in Rawang and Southville City in Bangi. It also ventured into Sabah in 2012 with Sutera Avenue in Kota Kinabalu.

The company has 46 development projects under its belt currently, with 13 already completed and the remaining 33 in various stages of development.

Over the years, the company has bagged a slew of awards and accolades and boasts a healthy balance sheet.

“Since our venture into property development, we have grown from a humble developer to an established brand that is known to the public today.

“As the company grew, our dividend payout also grew. We have managed to protect and create good shareholder value, which can be seen in our uninterrupted minimum 40% annual dividend payout for the past 10 years.

“Our shareholders’ funds increased from RM630mil in 2007 to RM3.2bil as at Sept 30, 2016, an increase of more than five times.”

The group’s combined remaining gross development value and unbilled sales is spread out across four property hotspots, namely Greater Kuala Lumpur (62%), Iskandar, Johor (23%), Penang island (10%) and Kota Kinabalu (5%).

Leong says Mah Sing is on the lookout for more land in Greater Kuala Lumpur and Penang.

“In fact, every weekend, I go shopping for new land. For the long term, we are open to opportunities overseas in Australia, London and South-East Asia, such as Indonesia.”

With his children already being groomed and a solid succession plan in place, Leong sees himself in the role of a consultant to the company someday.

An area he’d like to devote more time to is the company’s Mah Sing Foundation – the group’s corporate social responsibility platform.

Established in 2005, the foundation celebrates the achievement of Mah Sing’s long-term and continuous commitment to being a responsible and active participant in building community partnerships, both locally and abroad.

“This is something I’d like to do more of, especially when I retire or semi-retire. This is a foundation that I won’t retire.”

Leong says the foundation contributes to society via medical assistance, financial assistance and relief schemes, education assistance comprising subsidies and donations as well as encouragement of social and sporting activities.

“To date, the foundation has contributed more than RM10mil to the social and economic development of the community, both locally and abroad.

“We will continue to contribute because it makes me happy to see others happy.”