Update Eco World will pursue 'right' projects overseas via JVs, says CEO

by **Cals** Sat 26 Apr 2014, 18:19

Update Eco World will pursue 'right' projects overseas via JVs, says CEO

Business & Markets 2014

Written by Jeffrey Tan of theedgemalaysia.com

Friday, 25 April 2014 16:33

KUALA LUMPUR (Apr 25): Eco World Development Group Bhd will pursue projects overseas that are 'right' via joint ventures, its President and CEO Datuk Chang Khim Wah said today.

Speaking to reporters to announce the firm's proposed corporate exercise, Chang said Eco World has been approached to embark on projects outside Malaysia.

"Why not? We will pursue such projects, but we are quite selective. These projects must be in line with the company's vision and values," Chang explained.

He did not identify the countries for these possible projects other than to say that they are the "usual countries".

As Eco World's top management are made up of former senior executives at S P Setia Bhd, these countries might be where S P Setia had made forays before.

On the domestic side, Chang said Eco World would focus on townships development for the next one to two years, underlining the firm's strength.

"We will focus on developing township. We think this is the right sector to engage in," he remarked.

Following the acquisition of development rights to eight projects of its subsidiary Eco World Development Sdn Bhd, the firm will have 11 projects at hand.

"This will keep us busy for the next 8-10 years," said Chang.

Going forward, he said, challenges facing Eco World include the domestic and global economies as they are beyond the firm's control.

"We have to maintain our level of service and keep our promises," said the Eco World head.

"We need quality land banks. Land location must be excellent," he said.

He added the market had adjusted to the abolishment of the developer interest bearing scheme, deeming it a 'bygone'.

Furthermore, Chang said, Eco World's gearing ratio stands at approximately 0.1 or 0.2, adding it might hit 0.5 in the future.

"The gearing level is acceptable for a growing company," he said.