Property Hunter Magazine Property Hunter Magazine Issue 54 - May 2014 | Page 22

/// Exclusive Interview /// EXCLUSIVE INTERVIEW Dato’ Jimmy Pang - Building for The Future I n the late 1970s, Dato’ Jimmy Pang left his hometown to embark on new adventures to fulfill his dreams. He believes it was God that brought him to a small town in the east coast of Sabah called Tawau where he worked in a property development company before venturing out on his own. His group of companies have been involved in developing the town into what it is today. Tawau has changed dramatically since Pang started developing properties there approximately 40 years ago. This is partially thanks to Pang who is the pioneer of many developments there. He was the first developer in Tawau to build strata title offices, low cost housing, budget hotels and gated residential homes. 16 years ago, Pang saw the tourism potential of Semporna and ventured there to build commercial shophouses in this small seaside town. Since then, he has built more than half of the shophouses in Semporna. Dare to be Different Pang said, “Innovation invites opposition. There’s always a risk when you introduce something new as you would definitely encounter resistance from the market’. However, history has proven that his new ideas have become trendsetters in Tawau. He adds: “When a person buys a property especially a house, most of the time they use their lifelong savings and sometimes they only buy one house throughout their entire life. It’s a big responsibility we are given as developers and that is why it is so important to make sure we have high quality products”. “People want good quality products and it is our duty and responsibility as the developer to deliver what is expected of us”. Pang is a man of quality instead of quantity and he prefers focusing on smaller niche projects. He was the brains behind the extension of the Tawau Township 2 in Bandaran Baru and other projects like Perdana 22 www.PropertyHunter.com.my Square, Perdanajaya and Corinthian Garden. There’s always a sense of pleasure and pride when Pang sees what was an empty land turned into a successful development aesthetically pleasing and functional to the local community. He explains, “Property development is not only my business, it’s my passion, and I feel great satisfaction irrespective of the size of the project or the profit margin that is made. It is important to be visionary and I believe that we should all strive to be different and forward looking. That’s how we will make this a better place for our future generation. As developers, we need to stay relevant to the needs of our buyers and this is why in our business policy, we review our strategy every five years.” The Economic Crisis Although Pang is currently at the top of his game, things haven’t always been easy. He has overcome three economic crisis and admits that the financial collapse in the 1980s nearly wipe out his company. At that time, more than three quarters of the developers were forced to stop their projects and the thing that kept Pang’s company alive was due to the grace of God and his ability to adapt and change. He recalls: “Back in the 1980s, our country’s main income was dependent on the agriculture sector and Tawau produced 80% of cocoa in Malaysia. When the economic crisis happened, the whole market collapsed and cocoa was selling below production cost. Very few people were buying properties and many were foreclosed by the banks. Some were even giving away properties as they couldn’t continue with the loans.” “Cocoa prices were suppressed for about 10 to 15 years and during this period, there were a lot of forced sale properties selling at 30% below the market price. When an auction is not successful, the prices went down another 10%, and it kept going further below market prices. Lands were also selling a prices 10 times below what is being sold today,” Pang said. as we are so diverse in terms of needs and incomes. Because there were so many second hand properties on the market that were selling at such cheap prices, developers couldn’t sell or build newer properties. This created a vacuum where no new properties were being built. When the economy recovered in the 1990s due to the stock market boom, demands for properties improved and the prices of properties immediately shot up. Another area of his concern is that due to the cooling measures, there will be a slowdown in property launches as developers will be more careful and adopt a wait and see attitude. The problem when this happens is that properties availabl