Tan Sri Mohamad Salim Fateh Din (MRCB): Malaysia’s property market will continue to be dynamic

A SUCCESSFUL entrepreneur with a pioneering spirit, Tan Sri Mohamad Salim Fateh Din, the managing director of Malaysian Resources Corp Bhd (MRCB), is a business innovator who has owned and managed businesses in construction, property investment and property development.

One of the most significant projects developed by MRCB is KL Sentral. It is a RM18.4 billion gross development value (GDV) development that collectively garnered more than 17 awards. MRCB has five transit-oriented developments (TODs), including one on the 1.87-acre German Embassy land in Kuala Lumpur with a GDV of RM1.5 billion.

MRCB is one of the first property developers in the country to embark on the green development concept. Among its hallmark green projects are Menara Shell and the Ascott Sentral serviced apartments — both located at its flagship KL Sentral development. Another green project development it is currently developing is PJ Sentral Garden City located in Petaling Jaya.

Before joining MRCB, Salim had pioneered the “Super Store Petrol Station” concept for leading oil companies Shell, Esso, BP and Caltex. He was also responsible for designing the latest distribution centre for Malaysian leading retailer, Giant, by modernising and improving its food-processing systems while reducing logistics costs and delivery turnaround time.

TheEdgeProperty.com: Building and selling homes — what was it like then and now?

Tan Sri Mohamad Salim Fateh Din: Buyers are more knowledgeable and discerning nowadays. They have a high level of accessibility and ease in obtaining information about the latest property developments. Building and selling homes no longer just entails the “push” strategy like in the past.

Now, customers are more selective and precise in identifying their needs for their dream homes because of the availability of information online at their fingertips. In order to thrive as a developer in today’s market conditions, we simply have to understand the customers’ current needs and anticipate their future wants, while keeping abreast of trends in the market.

How many homes have you built?

At MRCB, my focus is more on urban development particularly TODs. MRCB pioneered TODs in Malaysia, and through its multi-award winning green flagship development, Kuala Lumpur Sentral CBD, it remains the unassailable leader of TODs in Malaysia.

The 72-acre, RM18.4 billion Kuala Lumpur Sentral CBD development is anchored by a world class transportation hub, integrating high-quality commercial and residential projects designed to maximise access to public transport. We have other TODs that we are currently developing —Cyberview City Centre, Penang Sentral and Kwasa Sentral. Our property development revenues are underpinned by our 410-acre urban landbank which has an estimated gross development value (GDV) of RM50 billion.

What was your most memorable project and why?

My most memorable project was Menara Shell in Kuala Lumpur Sentral CBD. There were many companies that bid for the design, construction and commissioning of Menara Shell. We won the bid because of our strength in customising the building for the client. We specially designed the tower in the form of diamonds being stacked together because Shell was involved in diamond mining activities back in its early years.

We also complied with green standard requirements, which were still very new in the market then and fulfilled a lot of Shell’s sustainability requirements. Together with Shell, we wanted to be among the first to adopt new energy efficiency benchmarks and create cost savings for the tower. Menara Shell was awarded the Leadership in Energy and
Environmental Design (LEED) Platinum standard certification from the US Green Building Council and a Malaysian Green Building Index (GBI) certification.

The tower has achieved 35% energy savings, up to 50% reduction in water consumption and 3,700 tonnes in carbon emission reduction. In addition, the tower is also designed as an earthquake-ready building.

Menara Shell was a winner at the FIABCI Malaysia Property Awards
2015 under the Office Development category and the FIABCI World Prix d’ Excellence Awards 2016 in Panama City.

Buyers are getting younger. How do you engage them?

Younger buyers embrace a fast-paced lifestyle and spend a lot of time on digital platforms. Social media and online media platforms have become important marketing or promotional tools to engage with them. As such, we have also secured win-win partnerships with relevant parties that have demonstrated acumen in online marketing.

Our marketing communication strategy is more interactive, allowing bolder and louder interactions that will draw the attention of younger buyers and capture their hearts. We also carry out focus group sessions with this target market to understand their lifestyles, needs, wants and reactions to our upcoming products. This allows us to understand their wish lists and incorporate any relevant findings in our new products.

How key is social media to your business — are you on social media?

Social media is increasingly becoming a major frontline tool in our marketing or promotional efforts. We can no longer rely on advertising and communication via mainstream traditional media alone.

MRCB is actively engaging with its potential and existing buyers on all the major and most popular social media platforms. These platforms are monitored daily and uploaded with content as and when required. We also upload videos of our products on YouTube. Personally, I am not very active on social media, but I believe no business can do without social media in this day and age.

What are your investment tips for first-time homebuyers?

As a first-time buyer, it is important to buy from reputable and reliable developers with proven track records in delivering quality homes on schedule, at good locations and addresses.

Purchasers of properties from reputable developers will most likely benefit from higher value appreciation of their assets. Furthermore, only reliable and conscientious developers will provide sufficient amenities and facilities that are sustainable and practical for community living for many years to come.

Your property outlook for 2016/2017?

The 2016/2017 property outlook is still positive. There are a lot of foreign interests wanting to invest in Malaysia with several ongoing developments in the Klang Valley and the state of Johor, particularly from China. They are attracted no doubt by Malaysia’s excellent long-term prospects and the government’s far-sighted investment in transportation infrastructure. For instance, Bandar Malaysia has become a huge boost for property market sentiment in encouraging more local developers to joint venture with foreign partners to develop new property products.

In general, property development projects in strategic locations with excellent transportation connectivity and amenities will continue to sell well and will be very successful. At MRCB, we are looking at enhancing construction delivery of our products, maintaining good quality and raising new technology and green standards in property development, as well as focusing on our strong expertise in TODs.

What is your aspiration for the Malaysian property sector?

The Malaysian property market is still competitively priced compared to other markets in the region, and it is still very attractive for purchasers and investors. I am confident that our local property market will continue to be one of the region’s most dynamic and vibrant in the long term. I would like to see more innovative buildings and homes adopting green features that promote energy efficiency and create a conducive environment to live, work and play in. I also want to see Malaysian developers setting the standard in developing iconic projects that the nation can take pride in.

● 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 Leong Hoy Kum (Mah Sing Group Bhd): The ability to adapt to change is crucial

● 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.