Eng: Every project is my child. My team and I try our best to deliver the best results and value to our buyers.
DESPITE his success as a property developer, Datuk Seri Dr Eng Wei Chun is content to remain humble and describes himself as “just a small businessman”.
Eng, the co-founder and managing director of Orando Holdings Sdn Bhd, has been honoured with multiple awards in Malaysia and Europe for marketing and business excellence, while property developments such as Villa Crystal and Lavile Kuala Lumpur residential high-rises have won various accolades.
The 50-year-old Eng is also a well-known philanthropist who has sponsored and donated to various charities and causes.
“I am not from a rich family, and so, never thought of becoming a property developer,” he told StarBiz recently.
After graduating at the age of 22, Eng began his career in the property and construction sector as a quantity surveyor.
“I was very fortunate – the economy was doing well (before the 1997 Asian financial crisis),” Eng recalled.
His career took off quickly, and Eng took on heavier responsibilities as he was promoted to the company’s project manager at age 25, and two years later, to project director.
Still, Eng harboured ambitions to run his own enterprise, and in 2000, at the age of 28, he started JBM Engineering Sdn Bhd which specialised in water works.
“I started as a very small contractor, with capital of only RM100,000. We were really lucky – a lot was based on trust, and our suppliers gave us good credit terms,” he recalled.
Five years later, the company formed a successful joint venture with an international construction group which won a RM150mil project.
Subsequently, Eng sold JBM Engineering and served another three years as group director, before leaving to focus fully on Orando Holdings’ property development business.
Under his leadership, Orando successfully completed several property projects, namely, Taman Yarl landed housing development, Sri Angkasa Homes, Vistaria Residensi, Sky Vista Residensi Vila Vista and Vila Crystall, all in the Klang Valley with close to 900 units.
The group’s recent project, namely the Lavile Kuala Lumpur freehold mixed-use development in Maluri, Cheras, is nearly sold out.
Lavile Kuala Lumpur has four residential towers and 1,278 condominium units in one, two or three-bedroom layouts sized from 750 to 1,067 sq ft on a 3.79-acre freehold parcel.
Meanwhile, Eng is excited about the group’s first overseas venture which involves the Houghwood Golf parkland course at St Helens, Merseyside in the United Kingdom.
The golf course’s website bills it as featuring magnificent panoramic views over the Lancashire plain and the Welsh hills, and large greens built to United States Golf Association-specification, which are probably the finest in the area.
“We bought the golf club and plan to build and operate a hotel there. We hope to start the project this year, pending town council approval,” said Eng.
Eng said he is attracted by the United Kingdom’s diverse and international investor base, and hopes the golf club development would bring recurring income to the group.
A research report by London real esate firm Benham and Reeves in July 2022, had noted that overseas investors continue to look to the United Kingdom housing market, with London, Liverpool, Salford and Manchester in the top 20 list for foreign investment.
The report marked out Liverpool, in the Merseyside county, as a frontrunner for foreign investment, with £1.4bil (RM7.5bil) worth of homes owned by overseas buyers.
It pointed out that factors that has drawn overseas investors towards the Unite Kingdom property market is price growth in recent years.
Also, parts of the United Kingdom that are proving popular have seen increased investment into transport, infrastructure, regeneration of centres and new developments.
These include the likes of Liverpool, Manchester and Salford.
Setting the standards
Regarding his property development strategies, Eng said there is no “one size fits all concept” and a lot would depend on the location and acquisition cost of the land.
“Every project is my child. My team and I try our best to deliver the best results and value to our buyers,” he said.
Back in 2014, when asked about him winning the Swiss award of the European Society for Quality Research, Eng had told The Star that he believed it boiled down to Orando’s branding – “us not directly competing with anyone, us going for the niche market and quality and our catchy slogan – “Build houses with Swiss watch quality”.
This slogan refers to status, quality and appreciation value.
“We create status by giving residents a good lifestyle and a feeling of privilege. We do this by creating a grand lobby, three-tier security, and interviewing purchasers,” Eng had said.
“Quality is done through stringent standards. All materials used in my development must be Sirim-certified, and I put up the brand names for all residents to see and for these companies to always be vigilant.
As for appreciation value, I do not sell at future prices. I sell at current prices so purchasers get to enjoy financial returns,” he had explained.
Eng had also previously said a property should be built for value appreciation and to maintain a lifestyle.
“I sell (properties) based on lifestyle and I also need to take care of their (buyers) asset, to make sure it doesn’t become a liability to them,” he had said.
To do this, getting the location for the property is key. Next, it is about ensuring a practical design for your property.
“A lot of developers want nice design, but it may not be practical for the future. So you must be practical. With a small maintenance fee that you charge to your buyers, how can you maximise the practicality of your facilities? You need to know how to do that,” he explained.
Eng had emphasised on the need to develop properties that will become viable investment tools. He called it taking care of buyers’ wallets too.
Eng believes his approach to property sets him apart in the industry.
Orando had won the Platinum prize for Best in Marketing and Best in CSR in the above RM25mil revenue category at The Star Outstanding Business Awards (SOBA) 2017.
Facing challenges
While Orando’s current land bank consists of less than 30 acres at strategic locations in the Klang Valley, Eng says there are presently no development plans in the pipeline.
“However, if market conditions are more conducive, we may launch some projects in the next 12 to 24 months, he says.
“Personally, I view the markets as being very uncertain currently. Business (in the property and construction sector) has not recovered to pre-pandemic levels. Construction costs are very uncertain, and I cannot forecast what my profit margins will be,” he explained.
Eng pointed out that there are a lot of business uncertainties due to inflationary pressures, elevated costs of building materials, a rising interest rate environment, shortage of foreign labour as well as increasing competition.
“It is much more competitive nowadays. A long time ago, I can sell a block of units in two days. Now, it is fantastic if you can sell off a block of units in two months,” he said.Eng pointed out that as a lot of building materials are imported, the weaker ringgit versus the US dollar would continue to impact construction costs, profit margins and increase business risks.
“Higher interest rates will also impact purchasing power and discretionary spending,” he said. Regarding his strategies on riding through financial crises, Eng said he believed in yin and yang which is known as a Chinese philosophical concept that embraces paradox, dynamics, and change.
“I was a young student during the recession in 1985. I understand the pain of financial crises because our family was in the B40 segment. To me, a financial crisis is a like a tsunami,” he said.
Eng counselled patience as a key value for entrepreneurs.
“As a business owner, don’t bite off more than you can chew. You must have reserves for any contingency. Also, in the commercial world, you must deliver value. Don’t just do something that is commonly practised in the market. You need to deliver a product or service which cannot be easily replaced,” he said.
Meanwhile, Eng hopes that going forward, Malaysia would become a more attractive destination for foreign direct investments.
“As a small businessman, I hope for government policies that would be more friendly to foreign and domestic investors, which can result in stronger economic growth,” he said.
