Tan Sri Lee Kim Yew, founder and advisor of Country Heights Holdings Berhad (CHHB) and L1 Bank, says that digitalisation is critical to encouraging growth and future-proofing the real estate industry.
According to him, another element to future-proofing the industry is the constant growth and acceptance of technology and innovation.
Lee used today's 2023 Malaysian Housing and Property Summit titled "Reimagining Development in the Post Epidemic Age" in Kuala Lumpur to propose his notion of digitalising the property industry in the Web3 era with technologies such as blockchain and Security Tokens Offering (STO).
"With the new digital era approaching and with technologies like Siri and ChatGPT, a change is inevitable and the property industry must also adapt and transform itself. In the past and up until today, purchasing a property is a hassle, including getting a lawyer for legal and loan agreements, settling the stamp duties, and obtaining the title transfers. All of these should be simplified to better serve the buyers, instead of the other way around," he said.
Lee believes that implementing blockchain technology will provide a new level of the market opportunity in the property business.
For example, he said that tokenizing physical real estate enables the development of digital assets representing ownership in a given property or portfolio of properties.
"This can make it easier for investors to access and trade real estate assets, as they can be bought and sold on a blockchain platform in the same way that other securities are bought and sold on traditional stock exchanges. This can liberalise homeowners from the hassles involved in traditional financing and legalities," he said.
Lee encouraged fellow business leaders to embrace technological changes and collaborate to flourish in the real estate sector.
"I am confident that the property sector's outlook is bright moving forward, and the industry will thrive in the digital economy," he said.
Lee said the housing industry has collaborated with and influenced hundreds of different sectors and enterprises, ranging from concrete to piling, throughout his career as a property developer.
It has also fueled innovation in all of these associated areas, he said, citing self-healing concrete as one of the most significant inventions of the twentieth century.
Lee emphasised that history is the best teacher since it provides all of the vital skills and experiences that one needs to have a successful future.
He said that 2023 marks the 50th anniversary of his arrival in Kuala Lumpur with only RM100 in his pocket.
Lee began his real estate career with a single-story shop lot, eventually founding CHHB and transforming Seri Kembangan's largest open cast tin mine into a fully integrated resort city in a profound but turbulent journey.
CHHB also built several well-known locations both locally and globally, including MSC Cyberjaya, the Palace of Golden Horses, the 1.5 million square foot Mines International Expo and Convention Centre, malls, Excel London, and South African development projects.
Lee proposed removing the entry barrier to the Malaysian housing market for international buyers.
This is so that the local property business may benefit from capital inflows not only from the United States, China, and the European Union but also from neighbouring nations such as Singapore and Indonesia, he explained.
Additionally, Lee emphasised the significance of ongoing efforts in the property industry's branding and marketing.
He observed that when properly bundled with other local offers, the Malaysian property industry becomes quite appealing.
For example, CHHB is establishing an International Medical Hub to provide integrated living experiences and high-quality healthcare services that will appeal to both residents and tourists.