Malaysia Pacific Corporation Berhad

Company History - Weaknesses to Strength

Malaysia Pacific Corporation Berhad ("MPCorp") was incorporated as "Weld Development Sdn Bhd" on 23rd May 1973 and was a member of the Hong Leong Group until 2007. It developed the first largest shopping center cum office complex in Kuala Lumpur in 1973 which is now known as "Wisma MPL".

In 1997, the company's name of "Weld Development Sdn Bhd" was changed to "Malaysia Pacific Land Sdn Bhd".

Its core business was property development and investment.

It was publicly listed upon a successful Initial Public Offer (IPO) on the Kuala Lumpur Stock Exchange (BURSA) in 1997.

For listing purposes it acquired a piece of estate land in Pasir Gudang to develop it into low and medium cost housing, named Taman Nusa Damai.

The company ran into severe financial problem in the aftermath of the Asian Financial Crisis (1998-2004) and was designated a PN17 status company. It was on the verge of liquidation in 2004.

Top Lander Offshore Inc ("TLO") was approached by Hong Leong group and former controlling shareholders to become a passive substantial shareholder under an initial rescue exercise. Unfortunately the problem was found to be worst than represented to TLO and far worse than met the eyes. As a result, TLO reluctantly agreed subject to it being granted a special waiver from having to undertake a General Mandatory Offer (GMO) as required by the Securities Commission (SC). The former Board and Management were asked to resign. Effectively a new Board and CEO were appointed on 29 Dec 2005 when TLO took control.

The company was renamed "Malaysia Pacific Corporation Berhad" (MPCorp). The change of name from "Land" to "Corporation" was intended to pave the way for the company to diversify into new businesses in the future besides property development.

The company recognized a huge impairment loss of about RM 80 million in 2006 which almost wiped out 80% of the Issued Share Capital at the material time. But it was a bitter pill it had to swallow in order to restore the Company to a clean slate.

The company immediately took steps to "re-brand" Taman Nusa Damai into a new iconic city so as to increase value to the property because by sticking to developing the said land as low and medium cost housing it would incur a huge loss and liability to the Company.

To improve value of the property whilst Johor was facing a housing overhang, Dato Bill promoted "Invest Johor" at several economic forums and seminars in Malaysia and Singapore. He propagated that the future value of Johor property will grow exponentially due to its geographic proximity to Singapore and its unique economic similarity to Hong Kong- Shenzhen's highly successful economic model.

Johor Bahru was then declared a new Special Economic Zone similar to Shenzhen and called the 'Southern Economic Corridor' similar to Shenzhen. Later, it was renamed 'Iskandar Malaysia' in November 2006.

Nusa Damai was by design transformed into a trade, sourcing and distribution 'Hub' called 'APTEC'. Strategically located nearby to sea-ports and airports, existing highways, railways and public transportation, plus an abundant supply of skilled work-force in Pasir Gudang and Masai, APTEC could "create jobs to the people and not having to bring people to the jobs" from afar.

As a result, Taman Nusa Damai was subdivided into three (3) zones, incorporating the newly added "LakeHill Resort City" and "APTEC City" effectively turning Nusa Damai into an integrated "One-Stop" iconic trade and tourism centre.

APTEC received strong supports from the Government of Malaysia. "APTEC" and LakeHill Resort City were pre-qualified for "Special Tax Incentives Status" by the Iskandar Malaysia Incentives Committee (IIC) and the Federal Government of Malaysia in 2011.

In 2012 and 2013, the Senai-Desaru Highway was completed linking the Coastal Highway to Nusa Damai LakeHill Resort City. The highway reduced travelling time from Singapore and provided easy and quick accessibility to APTEC City from both "Tuas" Second Link Bridge and Singapore-Johor Causeway CIQ, respectively.

The existing Pasir Gudang highway is presently being widened and the old defunt railway-line serving Senai and Pasir Gudang Johor port is now being revived. Once reopened the communal and goods transport railway line will pass and stop at APTEC City and Taman Nusa Damai. This would provide an easy, fast and cheap connection for visitors and business people to APTEC in the future.

APTEC anticipates a huge influx of local, Singapore-based and international suppliers, merchandisers, franchisers, retailers, consumers and tourists to APTEC. All transportation system and communications infrastructure linking to APTEC would help expedite the launch of the APTEC project.

Recently, several large local and international developers were buying up land and launching new projects in the vicinity of APTEC and LakeHill Resort City.

The Company's other asset is Wisma MPL in Kuala Lumpur. It is ideally located in the prime CBD district of Kuala Lumpur which has attracted several new proposals for redevelopment on a joint-venture basis. The plan is to increase the built-up gross floor area (GFA) from the current 530,000 S.F to 1,4000,000 S.F.

In the past few years (2008 to 2013), the company refused to take the easy route to generate cash by breaking up the Nusa Damai's APTEC City integrated concept. Consequently, it faced financial hardship during the hard consolidation period of planning and obtaining the necessary approvals.

Management did not want to destroy the design integrity of the APTEC integrated city concept by breaking it up into smaller parcels of land to sell on a piece-meal fashion as this would destroy the grand APTEC vision.

Now that the value of the assets have risen and reached maturity, the company is ready to kick-start the 'Implementation Stage' of Construction and Development Phase in 2014.

The worst will soon be over and it is highly anticipated that the Company shall be on a solid threshold of a new improved image with new development impetuous from 2014.

"LET THE PAST BE HISTORY". We shall transform "weaknesses to strength".

"LOOK TOWARDS THE FUTURE". "APTEC- Malaysia's socio-economic generator".


© 2008 Malaysia Pacific Corporation Berhad. All Rights Reserved.