MANY entrepreneurs often tell the tale of dropping out of school — their hopeful parents had sent them to in order for them to get good future — and ending up becoming billionaires or multi-millionaires after pursuing their dream in property ventures at a very young age.
Some of them made their money transforming ex-tin mining areas into luxurious integrated resort-type developments, plantations or rubber estates to affluent townships, and unexplored hilltops to luxurious world-class destinations.
THE MAN WITH MIDAS TOUCH — THE GENTING STORY
The Genting story is synonymous with the rise of its namesake hill resort, Resorts World Genting (formerly known as Genting Highlands Resort), on the peak of the 1,800 metre Gunung Ulu Kali in Genting Sempah.
The idea of a hill resort came upon Genting founder Tan Sri Lim Goh Tong in 1963 when he was working on a hydro-electric power project in crisp cool mountain air in Cameron Highlands. It was during that time he envisioned a cool mountain holiday resort within the reach of all Malaysians.
Through his private company Genting Highlands Bhd, which was set up in 1965, Lim successfully obtained approval for the alienation of 4,856ha and 1,133ha of land from the Pahang and Selangor state governments, respectively, between 1965 and 1970.
To ensure sound and prompt construction of the hotel-cum-resort, Lim devoted all of his time, capital and resources, including the reserves of his family’s company, Kien Huat Bhd, towards the making of the “dream resort”.
He sold an 810ha of rubber estate to raise RM2.5 million and invested all the money he had made from iron mining, sub-contracting and hardware businesses, to turn the unexplored hilltop into one of the world’s most successful casino resort development.
The whole Genting project was completed in January 1971. In the next 30 years that followed, Lim continued to develop and expand the project beyond its original idea of a hotel with basic tourist facilities.
In his autobiography “My Story”, Lim recounted his struggles through dense jungles, climbing over many steep mountains and crossing numerous streams and rivers before reaching the summit.
I-CITY — KEEPING IT RIGHT FROM BEGINNING
The story of I-Berhad is about an entrepreneur’s vision for a Smart City in Malaysia, in adding another dimension to what is customarily offered by the Malaysian property development industry.
“Property development is more than just buying a large parcel of land, sub-dividing it and then selling carved-out plots for a higher price per square metre. You have to create a vision for buyers to have a sense of ownership. There must be a total solution for their housing needs,” I-Berhad founder Tan Sri Lim Kim Hong told NST Property.
Lim, born to a family of 10 children, dropped out of school by the time he turned 12 to support his family after the passing of his father.
Armed with a dream to become an entrepreneur, Lim started as an apprentice at a furniture-making shop in Muar, Johor, and later became a carpenter. But that was never going to be enough. He subsequently signed up as a mattress dealer for Dunlop and, within a short period of time, became the biggest dealer in the country.
Still, Lim was not going to rest on his laurels. In his early 20s he decided to venture into several pioneering projects including manufacturing his own spring mattresses in Malaysia and China under the Dreamland brand and trading stainless steel pipes and fittings.
Dreamland was the country’s first spring mattress which “revolutionised” the local bedding market and the sleeping habits of Malaysians, earning Lim the de-facto title of “Mattress King”.
Dreamland was listed in 1987. In 1993, Lim decided to cash out and sold the company for RM350 million cash.
His entrepreneurial nous expanded with Lim venturing into the property development space. Armed with a large war chest, he bought some prime land in Kuala Lumpur and a 36ha parcel in Section 7 in Shah Alam, Selangor.
Today, the self-made billionaire is the executive chairman of I-Berhad, which is currently developing the RM10 billion i-City project in Section 7 and the RM840 million 8 Kia Peng residences in Kuala Lumpur.
“If you are innovative enough, there are opportunities to generate growing and even recurring income from a property project. However, don’t bite more than you can chew. You have to be cautious,” said the 67-year-old.
RUBBER ESTATE TO AFFLUENT NEIGHBOURHOOD
Taman Tun Dr Ismail on the western fringe of Kuala Lumpur bordering Selangor was originally a 286ha old rubber estate land.
Development plans for Taman Tun Dr Ismail began in 1973 when UDA (Urban Development Authority), the government’s arm for urban planning and redevelopment, and SEA Housing Corp Sdn Bhd, a prominent private development company headed by well-known philanthropist the late Lee Yan Lian, teamed up and formed UDA-Seapark Sdn Bhd to develop the rubber estate.
Construction started in 1974. The township today consists of a range of developments, such as townhouses, condominiums and commercial units with its own landscaped park. It also has community facilities such as schools, colleges, recreational parks, banks and a medical institution.
UDA-Seapark built 6,500 houses and commercial units at a gross development value of RM1.35 billion back then.
Property values there have soared since its early days with a one-storey terraced house that sold for RM34,000 in 1975 now selling for an average RM1 million. These are houses that are nicely renovated and located in a prime area in Taman Tun Dr Ismail, such as near community facilities.
A double-storey house worth about RM65,000 back then can fetch between RM1 million and RM1.5 million, depending on its condition. Bungalows and semi-detached units are also worth a few million ringgit today, said a real estate agent.
“Prices have dropped because of sentiment. If the house is well maintained and has some form of renovation, it surely can fetch a little higher but potential sellers should weight it out. If they are in no hurry to sell, then just wait a year or two as the price will surely improve.
“Taman Tun Dr Ismail is still on investors’ radar and owner-occupiers’ mind despite it being around for a very long time. They like the area because of its strategic location. It is well-connected to roads and highways. There are also a lot of shopping areas nearby, and it has the KL address,” he said.
INCOME-GENERATING DEVELOPMENTS
Resorts World Genting, i-City and Taman Tun Dr Ismail have been contributing to the country’s economy and created thousands of jobs for the locals.
Resorts World Genting and i-City have both attracted foreign direct investment, brought in international brands and created a new tourism destination for Malaysia.
Visitor arrivals for Resorts World Genting are set to grow sharply and are expected to reach 30 million annually by 2020. The all-new revamped resort development has the 20th Century Fox opening this year, boosting income for the developer and the nation.
As for i-City, it has led the way in how digital technology can enhance community living. The i-City was the first development in the country that provides fibre-to-the-unit while also pioneering the concept of broadband as one of the utilities provided by the developer. In 2016 it became the first property developer to embrace Industry 4.0, with the launch of its Internet-of-Things ready-homes.
At the same time, i-City is also making its mark in the tourism sector, targeting five million tourists a year. Additionally, i-City has already gained international acclaim with CNN recognising it as one of the 25 brightest and most colourful places in the world.
The developer has in place a RM10 billion master plan. According to Lim, the tourism master plan was only about one-third completed as at end-2017. When fully completed, the entire i-City landscape will be an intelligent and international city comprising a regional shopping mall, corporate office towers, cyber office suites, serviced residences, hotels, apartments, meeting, incentive, conference and exhibition hub, medical and wellness hub, leisure attractions, as well as a data and innovation centre, a landmark and the Ultrapolis as envisioned.
He said adopting a different strategy for i-City has placed the multi-billion ringgit development on strong footing.
Emphasis was on proven records, brand imaging, special features that are integrated such as MSC Malaysia Cybercentre, tourism destination, international park and own township services, as well as the forming of strategic alliances with international brands.
Lim said the success of i-City is attributed to its ability to transform the capital city of Selangor into a desired location.
Just a decade after the project was conceptualised, i-City has brought in international names like Central Pattana Plc, DoubleTree by Hilton, Best Western, Al-Rajhi and ServCorp, making the development more exciting, he said.
Today i-City is recognised nationally as one of the five growth areas of Shah Alam.
Central Pattana, Thailand's largest retail property development and investment company, has co-invested with I-Berhad RM500 million to develop the Central i-City shopping centre, which will open this November.
In 2020, the DoubleTree by Hilton will open its doors with 300 elegantly-decked rooms fitted with state-of-the-art technology.
To augment the attractiveness already on offer, i-City has roped in a number of global technology-based names to support its Smart City initiatives, including Cisco and Huawei. i-City has also recently announced its collaboration with Visa International to facilitate the plan to make the entire development a cashless city.
“Apart from transforming this part of Shah Alam into a tourism destination, our socio-economic contributions include being the first MSC Malaysia Cybercentre in Shah Alam as well as transforming the capital city into a regional shopping centre with the impending unveiling of the Central i-City shopping centre.
“We are confident that the Central Mall will have a catalysing effect in creating jobs and entrepreneurial opportunities for the local community, similar to Central Pattana’s experiences in Thailand,” said Lim.
“Most people who have made their fortunes would retire at the age of 55 or 60. I am still working, probably with even greater zeal today than before. I do this as an example for the people. I want them to build their wealth. I believe they can do it if they set their minds to it,” he added.