A
small town boy originally
from Johor, Dato Louis Tan
had big city dreams to grow
a business empire similar to his
idol Sam Walton, the founder
of Walmart. In 2001 he left his
hometown with very little in his
if they wanted the property back.
That’s when I realized how important
it was to buy these shoplots in
order to continue operation,” he
explained.
In 2007, Dato Tan invested in a
...getting adequate information before buying a
property is important and buyers have to known
ahead the reason they are making the purchase.
pocket and decided to move to
Brunei and started a small bicycle
shop. He was only 23 years old.
He noticed the sudden popularity
of discount stores in West Malaysia
and realized the potential of growing
a business that will benefit the local
community even when the economy
becomes bad. He opened his first
Dollar One Store and expanded to
four outlets in the period of one
year. And then he decided to take
another risk and move to Sabah.
He said, “I came to Sabah with
nothing and no one. My father is just
an owner of a tuck shop in a small
village in Johor. I had no financial
backup, and times were tough. I had
to face a lot of obstacles but I had
a dream and I was determined to
make it a reality.”
In 2002 he started his first Kedai
Dua Ringgit (which has been
rebranded to One Stop Superstore)
in Sinsuran and to date has outlets
in Sabah, Sarawak and Johor. He
also owns Century Supermarkets
in Sabah and Sarawak, plus Orange
Convenient Stores and Laundrymart
in Kota Kinabalu which he integrated
together by providing laundry
services at selected Orange outlets
for the convenience of tourists and
locals. And he believes that working
hard, being focused and having
confidence is what got him to where
he is today.
“When I first came to Sabah, I had
little cash flow so I had to rent
shoplots to operate my business
and rent started increasing every
year, and I always had a fear that I
would be kicked out by the owner
warehouse in KKIP (Kota Kinabalu
Industrial Park), where his
headquarters is now located. From
there onwards he realized the
benefits of investing in properties
and slowly purchased shoplots
and retail outlets to operate his
business.
He said, “I felt more secure and it’s
definitely better than paying rent to
someone else every month. I bought
five warehouse lots in KKIP. And now
the market value has gone up three
folds. I started investing in shoplots
in Sandakan, Tawau and Lahad Datu
too.”
Three years ago, Dato Tan
purchased Menara Jubilee which
he now rents out to F&B outlets
and offices. The building was
purchased at RM7.2 million and
about RM500,000 was spent on
renovation. Currently his monthly
return is about 13% and that has
given him more confidence in
investing in more properties and
land.
“When it comes to investing, location
is important. I only invest in town
areas or hotspot areas where
demand is high. This way I can sell
or rent easily. 70% of the property
I own is used to run my business
and the remaining 30% is invested
to sell or rent. But renting out a
property can sometimes be tricky. I
am very choosy with my tenants and
make sure that can not only deliver
payment, but also can increase the
value of the property by bringing in
more crowd.”
According to Dato Tan, getting
adequate information before buying
a property is important and buyers
have to known ahead the reason
they are making the purchase.
Buyers looking to rent out their
property should get a minimum
Return of Investment (ROI) of 7%,
and investors looking to sell a
property should make sure that they
can get a return of 30% in a period
of one year.
He said, “Malaysia is a good place to
invest in and when it comes to ROI,
Sabah is still the best. If you have a
solid cash flow, I would advise you
to keep the property and rent it out,
but if you need the money, sell it off.
This is for commercial properties.
For residential properties however,
it’s better to buy and sell.”
He adds: “I invest in very few
residential properties but when I
do, I make sure that it is located
close to town and that it is nearby
schools. That way, it is easy for me
to keep or sell the property. But
personally, I rather buy and sell
residential properties. If there are
any problems with the property,
the tenant will always call you and
you have to deal with it, but if it is
a commercial lot, the management
of the building will take care of the
problem which makes it easier for
me.”
However, Dato Tan thinks that
investing in outlets located in
shopping malls is more risky
because the local population does
not have strong spending power. He
finds the standard rate of RM2,000
per square feet a little overpriced
and is concerned with the VƗG