This article first appeared in The Edge Malaysia Weekly on May 15, 2023 - May 21, 2023
Last Wednesday (May 10), Melaka-based tourism-themed developer Yong Tai Bhd announced that Datuk Wira Boo Kuang Loon had served notice to relinquish his position as CEO with immediate effect.
However, the 51-year-old, who still has a 5.01% stake in Yong Tai, remains an executive director.
On the same day, prominent businesswoman Datuk Leong Sir Ley — via her investment vehicle Domain Capital Sdn Bhd — surfaced as a major shareholder of Yong Tai after acquiring a 23.8% stake off market.
Leong is the founding chairperson and CEO of Sheng Tai International (STI), a diversified development and hospitality company which, interestingly, also has a few notable projects in Melaka, including The Sail Melaka in Kota Laksamana.
The 48-year-old will be joined by STI director Tan Yoong Wei, who will assume the position of Yong Tai’s chief operating officer.
Meanwhile, See Tai Soon, who is a financial and business adviser of his own private companies, was also appointed as an executive director of Yong Tai.
Like many other companies, Yong Tai was not spared the adverse effects of the Covid-19 pandemic, which hit the tourism and property sectors very hard.
Encore Melaka, a spectacular state-of-the-art theatre, was seen as the jewel in the crown of Yong Tai’s signature project Impression City.
The group holds a 30-year concession to stage the Impression Series — Encore Melaka, a show that highlights the city’s rich history and cultural heritage.
A Melaka boy, Boo is the mastermind behind Encore Melaka and Impression City.
His dream and ambition was to change the tourism and economic landscape of his home state and in 2018, he projected that the Encore Melaka live performances could generate RM140 million annually in ticket and merchandise sales, and a net profit of RM50 million to RM60 million.
Sadly, none of his projections have come true. Since the curtains were raised in July 2018, the occupancy rate and ticket sales have been sub-par.
Encore Melaka was not a commercial success even before the pandemic hit with its poor performance dragging Yong Tai into the red.
Although Boo deserves credit for attempting to do more for the state, a mega tourism project such as Encore Malaysia proved far too ambitious for a market such as Malaysia’s.
With the reopening of borders — especially China’s recently — tourist arrivals ought to pick up substantially. Yong Tai’s new leadership will now have to showcase their ability to turn the company around.
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