(Kuala Lumpur) Country Heights Holdings Berhad (CHHB) and L1 Bank founder and advisor, Tan Sri Lee Kim Yew, believes that digitalization is key to further spurring the growth and innovation in the property industry.
Tan Sri Lee Kim Yew was invited as a speaker during The 2023 Malaysian Housing and Property Summit titled “Reimagining Development in the Post Pandemic Era” at Berjaya Times Square Hotel Kuala Lumpur. During his panel discussion, he was joined by Datuk Seri Fateh Iskandar, CEO of Glomac Berhad, Mr. Nabeel Hussain, Deputy Managing Director of Savills Malaysia, and Sr Haji Adzman Shah Mohd Ariffin, CEO of ExaStrata Solutions Sdn Bhd.
Tan Sri Lee Kim Yew started off the panel discussion by highlighting that history is the best teacher, as from history, one will receive all the valuable lessons and experiences to be used to think for a successful future. Tan Sri Lee Kim Yew also reminisced that 2023 is the 50th anniversary of his arrival in Kuala Lumpur with just RM100. He recalled starting in the property industry with single-storey shoplots, and eventually founded Country Heights and transformed the largest open cast tin mine into a fully integrated resort city, in a meaningful yet turmoil journey.
Besides that, CHHB has also developed various other renowned sites locally and internationally, including MSC Cyberjaya, Palace of Golden Horses, the 1.5mil sq. ft. Mines International Exhibition and Convention Centre (MIECC), shopping centers, Excel London, as well as development projects in South Africa.
Tan Sri Lee Kim Yew stressed that throughout his journey as a developer, the housing industry works very closely and has influenced hundreds of other industries, from concrete to piling, and has spurred the innovation of all these related industries, with a notable example being the self-healing concrete, one of the most significant inventions in the 20th century.
Tan Sri Lee Kim Yew also cited the importance of a stable unity government, as it can affect the property industry. He emphasized that the property industry accounts for a significant portion of the national GDP and growth, and that all developers have worked very closely with the government to provide not just homes, but also the utilities and infrastructure, such as electrical substations and roads. Efforts of the developers must be appreciated by the Government, and Malaysian housing associations such as FIABCI must play the vital role in communicating with the authorities.
Besides, Tan Sri Lee Kim Yew also highlighted that developers rely heavily on the banking system, and he sees a high potential in transforming this fate. He urged developers to stay united to strengthen their position on financial capabilities.
As younger generations nowadays have an increasing awareness of their lifestyles, the Malaysian property industry can have a strong advantage in this area, especially when tied together with the current demand for high living standards with lower costs. With this in mind, Tan Sri Lee Kim Yew suggested the removal of the entry barrier for foreign buyers to enter the Malaysian property market. This is so that the local property industry can achieve further growth with the capital influx not only from the US, China and the EU countries, but also from neighbouring countries such as Singapore and Indonesia.
Furthermore, Tan Sri Lee Kim Yew also stressed the importance of continuous efforts in the branding and marketing of the property industry. He noted that the Malaysian property industry becomes very attractive when packaged correctly with other local offerings. For instance, CHHB is working on developing an International Medical Hub to offer integrated living experiences and high-quality healthcare services which can capture the attention of both locals and foreigners.
Moreover, another key to future-proofing the property industry mentioned by Tan Sri Lee Kim Yew is the continuous development and adoption of technology and digitalization in the property industry. He took the opportunity to introduce his idea of digitalizing the property industry in the Web3 era with technologies such as blockchain and Security Tokens Offering (STO).
With the new digital era approaching and with technologies like Siri and ChatGPT, a change is inevitable and the property industry must also adapt and transform itself. In the past and up until today, purchasing a property is a hassle, including getting a lawyer for legal and loan agreements, settling the stamp duties, obtaining the title transfers, etc. All of these should be simplified to better serve the buyers, instead of the other way around. By adopting blockchain technology, Tan Sri Lee Kim Yew believes that it will open up a different level of market opportunity in the property sector.
For instance, tokenizing physical real estate allows for the creation of digital securities that represent ownership in a specific property or portfolio of properties. This can make it easier for investors to access and trade real estate assets, as they can be bought and sold on a blockchain platform in the same way that other securities are bought and sold on traditional stock exchanges. This can liberalize homeowners from the hassles involved in traditional financing and legalities.
Tan Sri Lee Kim Yew welcomes fellow captains of the industry to embrace technological advancements and work hand-in-hand to excel in the property sector. Together with the rest of the esteemed speakers at the summit, he is confident that the property sector’s outlook is bright moving forward, and the industry will thrive in the digital economy.
