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IN 1965, Mah Sing group managing director Tan Sri Leong Hoy Kum founded Mah Sing, a plastic trading firm. Subsequently, he founded the plastic manufacturing division in 1986 and the business grew rapidly with proprietary and original equipment manufacturer (OEM) products for the automotive and electrical and electronic industries.
The company was listed on Bursa Malaysia in 1992. The company then faced thinning margins and in a bid to protect his shareholders’ value, Leong forged a new path for Mah Sing by entering the property industry in 1994 with their maiden project, a 45-acre development comprising link homes in Ulu Yam, Selangor.
Today, Mah Sing is one of the few fully integrated property developers with high-rise and landed residential developments, integrated commercial centres and niche industrial parks.
TheEdgeProperty.com: Building and selling homes — what was it like then and now?
Tan Sri Leong Hoy Kum: In this era, it is important for any business to understand the importance of change. It is crucial to innovate or adopt new and effective methodologies in order to be able to cater to market needs. There have been many changes since Mah Sing first stepped into the industry and we continuously strive to be better.
Back in 1994, the cost of land, materials and labour was lower resulting in lower prices of homes compared to today. Buyers back then saw houses as a necessity. Moreover, they were only able to rely on printed materials and property agents, therefore purchases were usually made based on word of mouth or recommendations.
Now a home is more than just a home; it is a form of investment. Buyers today are very well informed as they can easily access information about the property market, projects and related issues. There are seminars, forums and online portals that allow investors to share their knowledge with each other.
Buyers today know the important factors to look out for. Homebuyers prioritise convenience, amenities and facilities while investors look for connectivity, a strategic location and future developments which may increase the value of the property.
Currently, the market is looking at affordable homes. We are primed to support the need for affordable housing with 89% of our planned residential launches priced below the RM1 million range in 2016 (68% below RM700k and 50% below RM500k).
How many homes have you built?
Mah Sing has 46 projects (35 ongoing and 11 completed) throughout Malaysia. The majority are in Greater Kuala Lumpur and the Klang Valley with a total of 22 ongoing and 10 completed projects while the others are in Johor Bahru (Iskandar Malaysia), Penang Island and Kota Kinabalu, Sabah. Our properties range from high-rise and landed residences to integrated commercial centres and niche industrial parks. The group has more than 31,000 members in our customer loyalty programme, M Club.
What was your most memorable project and why?
They are all very memorable! My team and I built these developments from the ground up and when you are involved in a project, you invest a good portion of your time and passion. All of my developments are special to me.
Among our key projects are the “Iconic Series”. Our Iconic Series of projects are architectural masterpieces with one goal — to reshape the Kuala Lumpur skyline. They represent innovativeness and are known for their revolutionary design and exceptional quality. We have four Iconic Series projects. The first was The Icon Tun Razak @ Jalan Tun Razak followed by Icon Residence @ Mont’Kiara, Icon City, Petaling Jaya and M City, Jalan Ampang.
Buyers are getting younger. How do you engage them?
As mentioned, it is important for any business to be able to adapt to changes and try new and effective ways of doing things.
The younger generation is more involved in social media and many use online platforms to obtain information. Therefore, to reach out to a younger target audience, our marketing strategy includes social media as an important medium.
What are your investment tips for first-time homebuyers?
There are various considerations before determining an ideal property investment. Before selecting a property, a buyer must understand his or her financial capabilities to avoid a purchase that may be a burden in the future. Upon determining a comfortable price range, a buyer can then select projects and compare factors like connectivity, convenient facilities, amenities, location and more.
Select a property from a developer that has a good track record as this raises the chance of timely delivery and high quality. It is also important to look into possible future developments around the property as these may contribute to value appreciation in the future.
How key is social media to your business — are you on social media?
We are very active on social media via Facebook, YouTube, Instagram as well as the instant messaging application, WeChat. Our diverse use of social media has been recognised and we have been awarded with the Social Media Excellence Award for Best in Lifestyle Development for two consecutive years.
We explore various forms of online marketing strategies to introduce a product such as unique catchphrases and images on Facebook, entertaining videos on YouTube, and more. One of our many successful campaigns was our Chinese New Year video featuring local YouTube celebrities, Reuben Kang and Cathryn Lee. It went viral. It has more than two million views and 25,000 likes on Facebook and YouTube.
Your property outlook for 2016/2017?
Mah Sing recently opened its first neighbourhood lifestyle mall, Star Avenue Lifestyle Mall, in Sungai Buloh. Our sales target for 2016 is RM2.3 billion. Greater KL and the Klang Valley are expected to contribute 69% to sales this year, with Johor expected to contribute 21% followed by Penang at 9% and Sabah at 1%. Our 2016 launches include:
Greater KL and Klang Valley
• Lakeville Residence, Taman Wahyu — final tower of serviced apartment. Total: 327 units. Built-ups from 977 sq ft to 1,345 sq ft. Indicatively priced from RM598,000.
• Cerrado serviced apartments in Southville City @ KL South. Two phases with 1,616 units. Built-ups from 656 sq ft to 825 sq ft. Priced from RM388,000.
• D’sara Sentral, Sungai Buloh — launch of final serviced apartment block. Total: 197 units. Built-ups from 781 sq ft to 1,385 sq ft. Indicatively priced from RM580,000.
• M Residence 2 in Rawang — landed cluster homes (last phase of M Residence 2). Total: 120 units. Built-ups from 2,205 sq ft. Indicatively priced from RM660,000.
Penang
• Ferringhi Residence 2 in Batu Ferringhi — resort condominiums. Total: 632 units. Built-ups from 1,208 sq ft to 2,910 sq ft. Indicatively priced from RM719,816.
Iskandar Malaysia, Johor Bahru
• The Greenway @ Meridin East township in Pasir Gudang — 2-storey link homes. Total: 492 units. Built-ups from 1,595 sq ft to 1,648 sq ft. Priced from RM356,000.
What is your aspiration for the Malaysian property sector?
Being in the industry for 22 years, I have seen plenty of changes in the property sector. Quiet neighbourhoods have grown into bustling townships while property developers have incorporated more convenient features into their projects.
I believe there will be more conducive and convenient developments. We want to live up to our brand promise to build high-quality and sustainable homes. We want to plan our projects while keeping in mind affordability, sustainability, security, connectivity and convenience.
We hope to uplift the lifestyle of buyers with high-quality facilities and features as well as help everyone to own a home via attractive sales plans.
● Tan Sri Tan Seng Leong (BCB Bhd): Look out for signs of recovery
● Tan Sri Lee Kim Yew (Country Heights Holdings Bhd): Land is the key to accumulate wealth
● Tan Sri Liew Kee Sin (EcoWorld): Achieve greater heights by embracing technology
● Tan Sri Lim Kim Hong (I-Bhd): Well-planned projects less affected by negative factors
● Tan Sri Lim Kang Hoo (Iskandar Waterfront Holdings Bhd): Act on opportunities from the HSR link
● Tan Sri Lim Hock San (LBS Bina Group Bhd): The keys to success are product, location and pricing
● Tan Sri Mohamad Salim Fateh Din (MRCB): Malaysia’s property market will continue to be dynamic
● Tan Sri Eddy Chen (MKH Bhd): We need more liveable homes
● Tan Sri Ong Leong Huat (OSK Property): Build homes according to buyers’ wants and needs
● Tan Sri Lim Soon Peng (Titijaya Land Bhd): Affordability — key to homebuyers’ needs today
● Tan Sri Danny Tan Chee Sing (Tropicana Corp Bhd): Engage customers through social media wisely
This story first appeared in TheEdgeProperty.com pullout on Aug 26, 2016, which comes with The Edge Financial Daily every Friday. Download TheEdgeProperty.com pullout here for free.
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