Sharp thinking leads to a big reward
I always put myself in the other person’s shoes and ask, logically, what would be going through my mind
ORANDO Holdings may only be 10 years old and its leading man Datuk Dr Eng Wei Chun may have been unheard of in past years, but this very perceptive developer has been making waves of late. This December, Eng will be receiving an award from the European Society for Quality Research in Las Vegas, for the recognition of producing unique and quality products. Not bad for a relatively new developer. And now, Orando has won the silver award in the Best in CSR category for the SOBA Awards.
“I would say a lot of it has to do with luck and timing,” says Eng humbly.
“There are so many successful businesspeople today, and to think that one is smart is to be stupid.” A self-proclaimed conservative businessman,
Eng is big on Chinese philosophies and laughingly says, “I don’t make money as fast as most businessmen. I make it a few steps behind.”
This year alone, Orando has won three awards – the European Quality Award from the European Business Assemble Oxford, UK, the Five Star Best Residential High Rise Development Award and the Safe Home Award for its Vila Vista project under the Asia Pacific Property Award 2014.
His sharp thinking and principles about business seem to be rewarding his company’s bottomline. Eng is a strong believer of creating value for society.
His latest and sixth development Villa Crystal @ South Crystal Park, launched in June 2014, is today 60% sold out, an excellent figure in an overall slow market.
Villa Crystal units are going for around RM515 per sq ft, or between RM700,000 and RM1.2mil. The built-up ranges from 1,155sq ft to 1,614sq ft. The bigger units come with three parking bays while the smaller ones have two.
“Each unit gets a multipurpose yard which enables the residents to convert it into something else – a tuition centre, a daycare – while not disturbing the rest of the family,” says Eng, who always comes up with his own concepts when building.
“I do not like to copy what others are doing, I do what I can handle. If we were to merely copy, there would be no value in what we have to offer.”
Resident comfort is of utmost importance and Orando Holdings selects its purchasers. Potential purchasers are interviewed and asked for the purpose of their purchase. Purchasers who want to rent it out to foreign workers are not allowed to buy.”
So far, Eng has done a good job, and he has a 97% record of residents paying their maintenance fee.
Orando’s previous high-rise residential projects include Vistaria and Villa Vista in Taman Pertama, Cheras.
How is it that Orando Holdings has fared so well?
“You need to catch the market,” he says simply. “You need to understand society and understand people. You need to know who you’re selling to. If you’re selling a property to someone whose father is buying for him, it is very different from a son buying for himself.
“I always put myself in the other person’s shoes and ask, logically, what would be going through my mind. When you can understand what goes on in the mind of the other person, you minimise a lot of damage,” he says.
With the economy looking a little gloomy and the upcoming Sales and Services Tax (SST) many have been complaining about rising costs.
“I’ve always liked to build city units, and more than ever, city units are suitable for harder times if people want to save on cost,” he says.
“Stay near your workplace and you save on travel time. Time is lifestyle. When you have more time, you can do more things and increase your production rate.
“Many people have been talking about the GST, but it is my opinion that property prices in good locations will not drop.
“Malaysia is one of the last countries to implement the GST, and I anticipate a transition period which some will be uncomfortable with. But let’s look at it objectively.
“Let’s take a family scenario where the parents still have to subsidise their son or daughter who cannot make enough from his or her salary. Do you think that child will be competitive? Definitely not.
“Similarly, this applies to our country, too. If a country always gives subsidies, we will never be competitive.
“Our country still has much to improve in terms of production. We are paid on a per day basis versus per hour basis in developing countries. If you were to apply for a bank loan, you get an answer in seven to 10 days. In Hong Kong, you get the answer within the day of your application.
“If we want to up our salaries and better our lives, we must up our production rate.
For Malaysia to be stronger, we need to have a high income to ensure our currency is stable. When the currency is stable, we can then reduce inflation. There is plenty of room for improvement here, but I sincerely believe the future is bright for us.
“We are now poised to be the leading Islamic Financial Hub in the region and I am optimistic about this. This is going to be good for us. In fact, WTO (World Trade Organisation) ranked Malaysia 18th in terms of investment friendliness.”
Generally, Eng feels that Malaysians are still conservative investment-wise compared to other countries. “If you go to London, Hong Kong or Singapore, ask their taxi drivers if they have investments? They all do, whether it’s property, stocks or bonds. Over here, the investment practice is only among city folks. Many still aren’t doing it. They are dependent on their active income and do not have a passive income.
“For a country to be developed, its people must have a combination of an active and passive income,” said Eng.
Under the leadership of Eng, Orando Holdings has been turning heads even abroad. When asked why he won the Swiss award of the European Society for Quality Research, Eng replied, “I believe it boils down to our 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.
“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.”
Eng buys a few units in each of his development so he always receives feedback and knows how to improve. “I want my residents to feel like we are all living together under one roof.”
Orando Holdings is setting its sights in London in the next three to five years.
“Now that we have won some awards, this has paved the way for us to start something there. We have also gotten in touch with some reliable consultants. It’s now time for us to do some homework. What I have in mind is a development within walking distance to the underground station, perhaps in Zone 2 or 3 of London.”
To developers looking to do the same, Eng has this to share. “I have three criteria in going abroad. First, is the law mature and protective? Second, is there a market? And third, are the risks or returns present.”
“As a developer, we must have a clear and positive mindset. We need to create something that will help create a good social environment.
“In the future, I would like to show my developments to my son and tell him this is what his father created. If you create something good, it is certainly something to be proud off.”
Among Orando Holdings’ CSR activities over the years:
— datuk dr eng wei chun
– Donation of RM600,000 to the underprivileged as well as built a Buddhist Temple, Tai Kok Wah Shi, in Cheras, Kuala Lumpur
– Sponsorship of RM30,000 to Star Step Up School Sponsorship Programme in 2013
– Donation of RM50,000 to Yayasan Sin Chew
– Donation of RM100,000 to Asrama Puteri PKAYIM
– Donation of RM50,000 to Star Step Up School Sponsorship Programme 2014.