KUALA LUMPUR: Eco World Development Group Bhd may consider venturing into the United Kingdom, Australia, Singapore, China and Vietnam, emulating SP Setia Bhd’s success in these markets since 2007.
“If the opportunity comes along, why not? We have the expertise to venture overseas. We do like certain countries,” said its president and chief executive officer Datuk Chang Khim Wah.
Eco World is run by former executives of SP Setia, who include Chang, Tan Sri Abdul Rashid Abdul Manaf, Datuk Eddy Leong Kok Wah, Datuk S. Rajoo and Heah Kok Boon.
They have all been instrumental in helping SP Setia diversify overseas.
The other key member of Eco World is Liew Tian Xiong, the son of former SP Setia boss Tan Sri Liew Kee Sin.
Chang said Eco World will evaluate each opportunity to venture overseas on its own merit.
He was speaking after announ-cing Eco World’s proposed corporate exercise to widen its landbank and gross development value (GDV).
The exercise will see the group acquiring development rights to eight projects from subsidiaries of Eco World Development Sdn Bhd.
Upon completion of this exercise in October, Eco World’s landbank will increase from 530ha to 1,773ha, and the GDV will increase by more than threefold to RM43.5 billion.
“With this (corporate) exercise, we are aligning ourselves with growth,” said Chang.
According to analysts, Eco World must invest beyond the boundaries of a country on the premise of diversifying its portfolio so as to achieve the continuous growth it wants, like what SP Setia did.
“The local property market is doing well, but it has its ups and downs and this could be quite a challenge for Eco World to achieve its desired goal. A company as big as Eco World should not just focus its efforts in Malaysia,” they said.
There are a few Malaysian property developers who have ventured abroad to earn more than one-third of their revenue and net profit from projects outside of Malaysia.
They include SP Setia, UEM Sunrise Bhd, Sunway Bhd, Berjaya Land Bhd, Mah Sing Group Bhd, Sime Darby Bhd, Magna Prima Bhd and Bukit Kiara Properties Sdn Bhd. By Sharen Kaur
