I read with interest with the headline of ‘RM150 billion GDV developer’. This sentence is like, WOW. A developer with projects with a gross development value of a few billion ringgit are considered pretty large in comparison to the thousands of developers in Malaysia today. However, what if the GDV is now RM150 billion? According to a follow-up article in thestar.com.my, there’s this rumour on the merger of UEM-Sunrise with Eco World and that it will form a company which has a GDV of RM150 billion.
Please do read the full Article in thestar.com.my . It is a comprehensive view by the writer. He presented a few scenarios as well as all the potential issues and advantages resulting from the merger. He said, “ECW is known to be a strong township developer as well as an integrated commercial development and high-rise condominiums while UEMS’ specialty is also similar to that of ECW.” We look at some charts in the article as below:
Do read the comprehensive Article in thestar.com.my
I remain neutral of these mergers until more details from the companies are made public. I mean announcements from the companies themselves. However, I always favour bigger Malaysian companies so that they have more muscle to think of overseas expansion. The world is out there. Malaysia remains a small country in comparison even if it’s one of the best countries in the world to start a business. 12th best country to do business in
Let’s not kid ourselves. When our companies remain small, even if they are nimble, even if they are profitable, truth is, any bigger competitor from overseas who’s less nimble, less profitable could still buy them. There are a lot of such examples yeah. Happy following and I do wish both companies; UEM-Sunrise and Eco World all the best yeah. (whether or not the merger actually happen)
Header image is courtesy of Photo by Oleg Magni from Pexels.
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