Paramount CEO says group will stay invested in Eco World International despite Malaysian pivot

• Paramount bought the stake in EWI for RM170.61 million cash, from tycoon Tan Sri Quek Leng Chan's GLL EWI (HK) Ltd in May last year.
• EWI announced the planned pivot from foreign markets to Malaysia last month, citing headwinds it faced in the UK and Australia since the onset of the Covid-19 pandemic.

KUALA LUMPUR (June 5): Property developer Paramount Corp Bhd (KL:PARAMON) is keeping invested in Eco World International Bhd (KL:EWINT), in which it bought a 21.45% stake last year to speed up its overseas expansion, despite EWI’s recent decision to shift its focus to the Malaysian property market instead.

Paramount bought the stake in EWI for RM170.61 million cash, from tycoon Tan Sri Quek Leng Chan's GLL EWI (HK) Ltd in May last year.

EWI announced the planned pivot from foreign markets to Malaysia last month, citing headwinds it faced in the UK and Australia since the onset of the Covid-19 pandemic. The move will see the group changing its name to EWI Capital Bhd, and terminating its existing collaboration agreement with its single largest shareholder Eco World Development Group Bhd (KL:ECOWLD).

While acknowledging the shift in EWI’s focus to expand its footprint in Malaysia, Paramount's group chief executive officer Jeffrey Chew Sun Teong noted that EWI’s overseas projects in the UK and Australia remain part of its portfolio and still provide value aligned with Paramount’s strategic goals to have exposure in overseas markets.

“Our objective has always been to keep some assets outside of Malaysia. So, the fact that EWI have decided to also maybe launch (projects) in Malaysia—they did not say they are going to get rid of all the projects in the UK and Australia—so, it still does not divert from our original intention of having assets and property developments outside of Malaysia, and it (the investment in EWI) still meets our objective in that sense,” Chew told reporters Thursday during a briefing on the group's latest quarterly performance.

“At the moment, we are quite satisfied with the original objective. There is no compelling push factor for us to do anything different at this stage. We still view it as a good investment… The rationale and objective of our original investment in EWI still remain very much intact," Chew said.

In the meantime, Paramount continues to benefit from EWI’s exposure to international markets, which provides operational insights and learning opportunities in countries like the UK and Australia, Chew said.

The group also does not see any direct competition with EWI in Malaysia, as both firms target different geographical markets and buyer profiles, he added.

In addition to the investment in EWI, Paramount’s overseas exposure includes several residential estate projects in the UK, US and Australia, in which it has invested RM5.6 million since July 2024.

It also has a condominium project in Bangkok, Thailand, dubbed Na Reva Charoennakhon. The 29-storey condominium was developed by Navarang Charoennakhon Company Ltd (NCCL)—in which Paramount holds 49% stake via Paramount Global Sdn Bhd. The project has a gross development value of 1.2 billion bath (RM156.11 million) and was completed in April 2024. Paramount has invested RM30.3 million in the form of debt and equity in NCCL.

“We hope that in five years, we can get 20% of our profits from outside of Malaysia," said Chew.

Meanwhile, Chew said the group may benefit from lower input costs for its projects, due to the excess steel supply redirected into the Asia region, following the doubling of US tariffs for imported steel and aluminium to 50% now.

Paramount's share price dipped one sen or 0.93% to close at RM1.06 on Thursday, bringing the group a market capitalisation of RM660 million.

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