This article first appeared in City & Country, The Edge Malaysia Weekly on March 1, 2021 - March 7, 2021

Despite the subdued market, owing to the pandemic and Movement Control Order (MCO), Tan Sri Leong Hoy Kum was still upbeat when we spoke to him two days before Chinese New Year. 

The optimism of the founder and group managing director of Mah Sing Group Bhd could be seen in the Zoom video call. While 2020 was challenging for the group, especially during the MCO and Conditional MCO (CMCO) periods, signs of better days can be seen on the horizon. 

“The positive response to our latest launches at end-2020 shows that sentiment in the property market is gradually improving,” says Leong. 

In December, Phase 2 of Acacia in Meridin East, Johor, achieved a take-up rate of more than 80% during its launch, while Phase 2A of Carya at M Aruna in Rawang recorded a 90% take-up rate during the weekend launch.

“Our balance sheet remains healthy, with cash and bank balances and investment in short-term funds of about RM1.13 billion as at Sept 30, 2020. Backed by our disciplined financial management and healthy balance sheet, we will continue to explore selective land banking for continuous growth, with Greater KL and the Klang Valley being the focus areas,” says Leong. 

Last year, in an effort to mitigate the challenges arising during the MCO and CMCO periods, Mah Sing implemented several cost-saving measures — retraining and redeploying staff for more efficiencies; focusing on digital marketing; cutting down on printing cost by introducing e-annual reports and e-brochures; deferring non-essential capital expenditures; exploring cost-efficient construction via value engineering; and temporarily freezing hiring.

“As part of our transformation journey, we have been leveraging digital technology to improve productivity, decision-making and workforce management,” says Leong.

According to him, digitalisation has provided better visibility and insight into customers’ needs and empowers the group to respond with agility to their changing tastes and preferences.

As for its operations, its adoption of Microsoft Teams company-wide and automation of reporting structures have proved to be a success for the group. 

The experiences from last year have prepared the company well for MCO 2.0.

“MCO 2.0 has not had a huge impact on us compared with last year. We are more prepared this time around, both physically and mentally, in shifting to remote working. As construction is one of the five key economic sectors that are allowed to operate during the MCO, our construction sites have continued to operate, adhering to the stringent standard operating procedures and guidelines set by the government,” says Leong. 

He notes that a sector report by Maybank Investment Bank Research on Jan 19 projected a recovery for the property sector in 2021, driven by a better economic outlook, historically low interest rate environment and pent-up demand. 

“Although we are in the midst of MCO 2.0, we are still cautiously optimistic that the domestic economy will be better this year. The government’s upcoming National Covid-19 Immunisation Programme has instilled confidence that the pandemic will be contained soon and has given the local economy a huge boost,” says Leong. 

He adds that Finance Minister Tengku Datuk Seri Zafrul Aziz said Malaysia continues to maintain its GDP growth forecast at 6.5% to 7.5 % this year and he is confident that the Covid-19 national vaccination programme will further drive the country’s economic recovery. 

With these factors in mind, Mah Sing targets to launch projects worth a total gross development value (GDV) of RM2.4 billion this year and has come up with a higher sales target than last year’s. The sales target will be announced when Mah Sing releases its 4Q2020 results. 

In view of the better economic outlook this year, Mah Sing is cautiously optimistic that its new launches — with affordably priced properties at strategic locations and innovative designs and layouts — will continue to attract homebuyers’ interest, says Leong. He adds that sales will be driven by attractive selling points and packages.

Mah Sing kicked off 2021 with a topping-up ceremony for M Vertica Tower A in Cheras. Homebuyers of Phase 1 can expect to move into their units in early 2023, Leong says. “There is still an opportunity to own one of the remaining units in Tower D currently, while the upcoming launch of Tower E is scheduled for 2Q2021. We expect to hold a topping-up ceremony for M Centura in 1Q2021.”

M Vertica, launched in 2018, has a GDV of RM2.2 billion. M Centura in Sentul has a GDV of RM570 million and was launched in 2017. 

Leong believes the group’s recent accomplishments and the support given by the government in its stimulus packages have laid a strong foundation for Mah Sing to reach greater heights this year. “We will continue to focus on the affordable range of products near city centres, such as M Luna in Kepong and M Adora in Wangsa Melawati, and affordable landed projects like M Aruna in Rawang and Meridin East, which have seen encouraging demand,” he says. 

First up is M Vertica’s Tower E, offering 646 serviced apartments with built-ups of 850 and 1,000 sq ft and prices ranging from RM644,160 to RM914,160. It has a GDV of RM425 million and will be launched in 2Q2021. 

Also due to be launched in 2Q2021 is 2H in Meridin East, Johor, which will have a GDV of RM245 million. There will be 473 units of 2-storey link homes with a land area of 18ft x 70ft and prices below RM450,000. 

The 1,313-acre freehold Meridin East in Pasir Gudang, Johor, was launched in 2016. So far, Mah Sing has handed over more than 900 houses. Another 400 units will be completed and handed over in 2021. 

Delphy in M Aruna, Rawang, will be launched in 3Q2021. The 96.7-acre township with an estimated GDV of RM520 million was launched in 2018. Delphy will offer 177 double-storey link houses with a land area of 20ft x 75ft and a built-up of 1,800 sq ft. Indicative prices start from RM678,800. 

In 2H2021, another 283 units of 2-storey link houses will be up for sale in Phase 1C Meridin East. The houses will have a land area of 20ft x 70ft and a GDV of RM149 million. The indicative price starts from RM500,000. 

Over in Southbay City, Penang, Mah Sing will be launching 518 units of Rumah Mampu Milik with a GDV of RM212 million. They will have built-ups of 900 and 1,000 sq ft and will be priced from RM300,000.

A key project for the group this year is M Panora in Rawang, which has a GDV of RM300 million. The 45.38-acre strata landed residential development will offer 396 double-storey super link homes (24ft x 65ft) with built-ups of 1,770 and 2,001 sq ft. The development will be launched in two phases, with the first in 3Q2021. Indicative prices start from RM600,000.  

The gated and guarded M Panora is Mah Sing’s fourth development in Rawang, following M Residence, M Residence 2 and M Aruna. M Residence was launched in 2012. Mah Sing is developing 525.08 acres of land in Rawang with a GDV of RM2.53 billion. 

“M Panora aims to provide a zen-inspired living environment by integrating natural aspects into its design. It is a low-density development with nine units per acre. Each house has a 24ft-wide frontage — a bigger car porch means two cars can fit in easily. There will also be 14 acres of greenery in the township,” says Leong. 

He notes that the land is naturally elevated and the last row of the development is 7.975m higher than the first row. “We will leverage the topography to create a five-acre linear green area with different zones, catering to the needs of M Panora residents.” 

Most of the M Panora units are northwest-facing, while the southeast-facing units are designed to reduce heat and glare from the morning and afternoon sun. The township is strategically located, with direct access to major highways such as the North-South Expressway, LATAR and Guthrie. 

“Our target markets are newly-weds, upgraders and multigenerational families with older parents. We are also targeting households with incomes of RM10,000 and above, and those staying around Rawang, Sungai Buloh, Kepong, Selayang, Petaling Jaya, Damansara and Kota Damansara,” says Leong. 

In February, Mah Sing acquired a 100-acre plot in Bandar Baru Salak Tinggi for a landed residential project called M Senyum. The development will comprise mainly 2-storey terraced houses with indicative land areas of 18ft x 65ft and 20ft x 70ft and an indicative starting price of RM399,000. M Senyum has an estimated GDV of RM656 million and will be launched in 2H2021.

“We are well aware of the difficulties and constraints in getting the appropriate financing, which have been heightened by the pandemic. This is where we come in to address and alleviate some of the concerns,” says Leong. 

Under the HOME with Mah Sing Campaign, buyers will have the option of choosing a sales package that offers a payment-free period of up to four years. The exact payment-free tenure differs for each participating project. 

“The campaign, which was launched in January and runs until end-March, is designed to look at specific pain points in customers’ homeownership journey — financial, uncertainty and product. The campaign also reflects how we constantly attend to what the market needs, and what the market needs in the new normal is definitely something we are looking into as well,” says Leong. 

Looking ahead, Mah Sing is exploring the possibility of digital construction and incorporating spacious common facilities and enhanced design features for the safety and welfare of homebuyers, he says. “It is important for us to understand how the new normal can influence consumers and customer behaviour — expectations, perceptions and demands — especially in future developments. 

“The new demands now revolve around health, cleanliness and protection within a personal circle. People’s sense of personal space and hygiene has changed and future designs will have to take into account these new social demands.”

Mah Sing has also begun employing artificial intelligence (AI) technologies to discover latent market segments and build propensity models to drive repurchase rates among its existing customers. 

“As a market-driven developer, we always listen to market feedback in order to tailor our business strategies and product offerings to homebuyers’ needs. With our quick turnaround and nimble business model, we are able to quickly adapt to changing market conditions while aligning our strategies with the latest market trend. This gives us a competitive edge over our peers,” says Leong. 

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