LIAP #18- BUSINESS OF PROPERTY DEVELOPMENT
Life is A Project #18: Business of Property Development
During the 1980s, Malaysia experienced a significant construction and property boom. This period saw many of my peers in the engineering field leaving the government sector to join the private sector, either as employees in consultancy and construction firms or as business owners. It was a time of opportunity and bold decisions.
I began my career with the Public Works Department (JKR) in 1976 under a government scholarship that required me to serve for ten years. However, in 1984, before fulfilling the full term of my contract, I made a life-changing decision: I resigned from government service, settled my contractual obligations, and joined a government-linked company (GLC) in the property development sector. That marked a major turning point in my career and, in many ways, my life.
This move was more than a change of employer—it was the beginning of a transformation in mindset. I shifted from the structured, process-driven world of a government engineer to the dynamic, results-oriented world of business. Within a decade, I rose to become the CEO of a listed company on the Kuala Lumpur Stock Exchange (KLSE), leading businesses in plantations, fast food, and property. That journey itself was, and remains, my personal project.
To the man on the street, property development often appears to be a straightforward business—build something and make a lot of money. And yes, in part, that’s true. But my experience in a GLC showed me that property development can also serve broader political and national interests while still pursuing financial returns. In contrast, private property developers often begin with profitability as their primary goal, using property as a springboard for bigger corporate ambitions. It’s not just about bread—it’s about building empires.
My background in managing government construction projects proved invaluable when I transitioned into the property development industry. In the government, project management was largely focused on delivering physical infrastructure within budget and specifications. Funding was predetermined, and once the project was completed, it would be handed over to another department. Job done, move on.
In property development, however, the scope is far broader. A development project encompasses not just construction, but also marketing, sales, financing, customer engagement, and risk management. Construction is often outsourced to consultants and contractors. Our role as developers was to orchestrate the bigger picture—identify market opportunities, plan viable projects, secure financing, and deliver properties that meet both business objectives and customer expectations.
One of my first and most critical personal projects was to change my mindset—from that of a government engineer to that of a project manager in a commercial setting. It wasn’t just about building anymore—it was about building what the market wanted, at the right time, in the right place, and at the right price.
In this business, location is king. The mantra I quickly learned was: location, location, location. Is the project in or near the Central Business District (CBD)? Is it accessible by highways or connected to public transport systems like the LRT or MRT? These are fundamental questions that influence the success of a project.
Working closely with property consultants, we conducted market studies to determine what type of property to develop—be it residential, commercial, or mixed-use. This required detailed analysis of supply and demand, pricing trends, and demographic shifts. Once the product was defined, we moved on to appointing architects and engineers to design the development, and then to tendering the construction work.
Another crucial phase was financing. Property development requires substantial upfront investment. We had to secure bridging loans to cover pre-sales marketing, sales launches, and construction activities. At the same time, we had to work with bankers to ensure end-financing packages were available for our customers—without which, sales would stall. Each interaction with financial institutions became a business project in itself.
Risk management was, and still is, central to success in this industry. There are many uncertainties—regulatory changes, market fluctuations, construction delays, cost overruns, and shifts in buyer sentiment. To succeed, you need not just a competent team, but also the financial strength to weather setbacks and capitalize on opportunities.
So, what are the lessons learned?
1. Mindset matters – Shifting from a government environment to a business one requires a complete reorientation in thinking, from process to performance, from certainty to calculated risk.
2. Adaptability is key – Every project is different, and each stage—from planning to sales to delivery—requires a different set of skills and strategies.
3. People and partnerships are everything – Consultants, contractors, bankers, buyers—managing relationships well is just as important as managing the project.
4. Good projects start with good planning – A successful property development begins long before construction starts. Site selection, market analysis, product positioning, and financing plans all lay the foundation.
5. Risk is unavoidable, but manageable – With proper planning, clear processes, and adequate financial backing, many risks can be mitigated—though never entirely eliminated.
Looking back, property development was more than just a career for me. It was a continuous learning journey, shaped by shifting contexts and evolving challenges. But the biggest project of all was internal: reshaping myself to meet new roles, new demands, and new visions of success.
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