The moral compass of the elites

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CDL CEO should focus on making back $1.9 billion in losses, says CDL director Philip Yeo​

Mr Philip Yeo (left) said CDL group CEO Sherman Kwek "should work with the whole board to make money for all CDL shareholders".PHOTOS: CDL, BT FILE
Kang Wan Chern
Mar 01, 2025

SINGAPORE - A Feb 27 statement by City Developments Limited (CDL) group chief executive Sherman Kwek alleging that the underlying reason for the public fallout at the company was his father Kwek Leng Beng’s adviser, Dr Catherine Wu, “is an attempt to distract everyone from the matter at hand”, said Mr Philip Yeo, non-independent non-executive director at CDL.

The matter is that Mr Sherman Kwek and directors acting with him bypassed the nomination committee, appointed two independent directors against legal advice, and restructured key committees to sideline executive chairman Kwek Leng Beng, Mr Yeo said in a statement released late on Feb 28.

Mr Sherman Kwek’s Feb 27 statement also asserted that neither he nor the majority of directors had attempted to oust the chairman, rejecting the older Kwek’s claim of an “attempted coup” to consolidate control of CDL’s board.

It also alleged that Dr Wu had been interfering in matters going well beyond her scope, which troubled him and the majority directors.

Mr Yeo, former executive chairman of the Economic Development Board, sides with executive chairman Kwek Leng Beng in an emerging tussle for control of CDL.

The dispute surfaced on Feb 26, when Mr Kwek Leng Beng took his son Sherman and several other board directors to court over what he said was an “attempted coup” to allegedly consolidate control of CDL’s board.

Mr Yeo said in his statement: “The CDL CEO should be focused on making back the $1.9 billion of shareholders’ losses through Sincere Properties, as well as the other losses from the UK property investments.”

CDL, under Mr Sherman Kwek’s watch, acquired Chinese property developer Sincere Property in May 2019 for 5.5 billion yuan, or S$1.1 billion then, its single largest investment in China to date.

That investment was written off one year later, resulting in a $1.78 billion reduction in CDL’s assets on the balance sheet, and leading to a net loss of $1.9 billion in 2020.

CDL executive chairman Kwek Leng Beng with his adviser, Dr Catherine Wu. Mr Kwek’s son, Sherman, cites her as the reason for the public fallout of the company.PHOTO: GEEKCON
Mr Yeo added: “Instead, he (Sherman Kwek) seems more concerned about grievances, mobilising a group of independent directors to remove an adviser to the CDL hospitality business, which has actually seen profit improvements for the past few years since Covid-19.

“The CDL CEO should work with the whole board to make money for all CDL shareholders.”

In a separate statement sent to the media on Feb 28, Mr Kwek Leng Beng rejected his son Sherman’s explanation that there was no attempt to oust the former as chairman.

“Sherman stated there was no attempt to oust me. This misses the point. Protecting good governance, including the office of the executive chairman, and not me as an individual, is critical. Stripping away any meaningful authority of the executive chairman is a coup.”


The older Kwek added: “The bottom line is that following the court hearing, the two additional independent directors cannot act and the changes to the board committees and the management of the relevant CDL subsidiaries are frozen, pending any further court order.

“It is important to highlight that Sherman and the directors acting with him provided those undertakings only because they were sued.”

Mr Kwek Leng Beng said Mr Sherman Kwek’s moves to bypass the nomination committee on two occasions are in breach of Singapore Exchange listing rules and the Republic’s Code of Corporate Governance.

“This is why we had to make the court application. It was necessary to protect the interests of CDL and its shareholders during this period of significant turmoil.”

He added: “Any real or perceived difference of opinion within the board, regarding external advisers or otherwise, should be resolved within the appropriate corporate governance framework, not by way of a board coup or directors’ resolutions in writing.”

 

[True Believer]

Instead of getting a tighter hold on his son, KLB chose a hole over his son.

 

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Catherine Wu, the Taiwanese music star who acts as the ‘eyes and ears’ of CDL’s Kwek Leng Beng​

Dr Catherine Wu and CDL executive chairman Kwek Leng Beng at GeekCon in Singapore in May 2024.PHOTO: GEEKCON

Angela Tan
Mar 02, 2025

SINGAPORE – The mood in the hotel ballroom turned awkward when Dr Catherine Wu walked in.

At a major function organised by property group City Developments Limited (CDL) in 2024 was Mrs Cecilia Kwek, wife of Mr Kwek Leng Beng, the octogenarian executive chairman of CDL with whom Dr Wu is said to have “a long relationship”.

Those close to the Kweks watched uncomfortably as Dr Wu, 65, went around greeting and shaking hands with guests and dignitaries, including government officials.

Sources close to the property group tell The Straits Times that Dr Wu started stepping up her profile in the public arena in recent years, “appearing at events where Cecilia Kwek is present too”.

Dr Wu has been thrown into the spotlight this week in a high-profile boardroom tussle at CDL between the father and the elder son.

Mr Sherman Kwek, the son who is CDL’s chief executive officer, said Dr Wu is the reason for the rift between his father and CDL’s majority board of directors, including him.

Mr Kwek Leng Beng, 84, does not have full control over the Kwek family’s stake in CDL. The family’s privately held Hong Leong Group owns about half of CDL, with Mr Kwek Leng Beng at the helm.


The younger man stressed on Feb 27 that there was no attempt by him and the other directors to oust Mr Kwek Leng Beng, once dubbed “Kwek Land Bank” for the land parcels CDL owns across Singapore.

“The primary reason for the dispute relates to a very serious issue of corporate governance within the CDL Group arising from the conduct of one Dr Catherine Wu,” he said.

She had served as a director at Millennium & Copthorne Hotels (M&C), the hotel arm of Mr Kwek Leng Beng’s business empire.

Her service was terminated in January 2024, but she returned to M&C’s board as an adviser seven months later.

Mr Sherman Kwek, 49, said she has been “interfering in matters going well beyond her scope, and she wields and exercises enormous influence”.

“Due to her long relationship with the chairman, efforts that were made to manage the situation were done sensitively, but to no avail,” he said.

Dr Catherine Wu (front row, right) and CDL executive chairman Kwek Leng Beng at the Millennium Hotels and Resorts London Townhall.PHOTO: MILLENNIUM HOTELS AND RESORTS/LINKEDIN
The pair have known each other for 33 years. Dr Wu, who is single, has said that she first met Mr Kwek Leng Beng in Taiwan in 1992 at a dinner party, and moved to Singapore that year.

“The pianist”, as she is referred to internally according to the grapevine, is from Taiwan. Her parents sent her to the San Francisco Conservatory of Music in the United States when she was 15 years old.

She obtained a master’s degree in piano performance from The Juilliard School in 1982 and a doctorate from New York University.

After earning her PhD and living in the US for 15 years, she returned to Taiwan and released several music albums, hosted a well-known music TV programme, as well as presented the 1997 Golden Melody awards.

Dr Catherine Wu playing the piano on Taiwanese variety show The Fantastic Brothers.PHOTO: TTV OFFICIAL CHANNEL/YOUTUBE
Dr Wu was mentioned in a 2017 suit filed in London by a hotel executive against Copthorne Hotels for unfair dismissal and sexual discrimination.

Mr Tan Chee Hwee, who described himself as Chinese Singaporean by ethnicity and gay by sexual orientation, worked at Kensington’s Gloucester Millennium Hotel as senior vice-president of global procurement before he was made redundant on Feb 12, 2017.

Court papers said Dr Wu was “the personal assistant” to the chairman. She was not an employee nor a consultant. She is paid by the chairman and not by Copthorne.

“Dr Wu assists the chairman. Due to his age (then in his 70s) she acts as his ‘eyes and ears’ on the ground,” according to the document.

“Dr Wu travels to... properties across the world, sometimes with the chairman and sometimes alone; the cost of her travel is paid by the chairman and not the company,” the court papers added.


Dr Wu is a fan of English actor Benedict Cumberbatch, documents revealed. She went with Mr Tan to watch The Graham Norton Show when the actor was a guest on the talk show.

The two often texted one another over WhatsApp, speculating on which male film stars might be gay.

The tribunal eventually dismissed Mr Tan’s claims in 2018 and ordered him to pay £432,001 (S$734,200) in costs.

In an interview with Lianhe Zaobao last year, Dr Wu said that over the past three decades, she had accompanied Mr Kwek Leng Beng to various hotels of the group to attend meetings and inspections, look at model rooms, supervise decorations and have meals.

However, it is known that Mrs Cecilia Kwek, whose age has not been made public, has a flair for music and art, and does interior decoration as a hobby.

(From right) CDL executive chairman Kwek Leng Beng with his son Sherman and wife Cecilia at the launch of the Chinese edition of his biography in September 2024.PHOTO: LIANHE ZAOBAO
In 1996, Mr Kwek Leng Beng said he valued his wife’s opinion, especially when it comes to the softer aspects of his business, such as the renovation of his hotels.

Dr Wu is more recently secretary-general of GeekCon International, an initiative of Dark Navy, an independent security research institute. In May 2024, she introduced the GeekCon cyber-security competition and conference to Singapore. Mr Kwek Leng Beng fully supported this cause and serves as an honorary consultant for GeekCon.

 

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Succession in focus as Kwek Leng Beng battles son Sherman over property giant CDL​

CDL executive chairman Kwek Leng Beng (left) filed court papers against his son and group CEO, Mr Sherman Kwek, on Feb 26.PHOTOS: CDL

Sue-Ann Tan
Mar 02, 2025

SINGAPORE – It was the year 2000 and the start of a new millennium. At the time, property tycoon Kwek Leng Beng’s elder son, Sherman, was all of 25.

The proud father in an interview detailed how his son was gaining exposure in Silicon Valley, at the cutting edge of entrepreneurial developments, and trying to strike out on his own.

The older Mr Kwek was 59 then, already fielding questions on who would succeed him in heading his business empire.

But fast-forward 25 years, and the father and son are now embroiled in a public battle over property giant CDL, with the father, who will be 84 in 2025, trying to fire the son, now 49, from being group chief executive of the company.

What happened in the intervening 25 years to turn father and son against each other is a complex web that is still being untangled, littered with what the older Mr Kwek calls missteps and a corporate governance issue that crossed “a red line”.

In 2000, the young Mr Sherman Kwek was already in the public eye, thanks to his famous father, who made the list of one of the world’s 50 richest Chinese people in 1995.

But he did not want to join the family business back then, which encompassed the sprawling Hong Leong Group that controlled Singapore’s two largest and most profitable property development companies – City Developments and CDL Hotels.

Instead, he wanted to set up his own dot.com business after graduating from Boston University.

In his interviews at that time, Mr Kwek was sanguine about his son not joining his business, which was also handed down to him by his father, Mr Kwek Hong Png, who died in 1994.

At a results briefing in 2011, Mr Kwek said: “I am not averse personally to getting an outsider to come and run the company... if my relatives or my son cannot perform.”

His remarks then were made even as Mr Sherman Kwek had finally joined the family business in 2010, serving as chief executive of CDL China. Mr Kwek also has a younger son, Kingston, who is a stock trader in his early 40s.

And in 2014, the company appointed a new chief executive who was not a Kwek for the very first time – an Australian, Mr Grant Kelley, who was previously with a private equity fund.

But three years later, Mr Kelley resigned, and Mr Sherman Kwek became the designated successor the following day, taking over the group CEO role in 2018.

More on this Topic
What to know about CDL’s father-and-son duo and other family members in the business
Over the next few years, to people on the outside, things seemed to be going swimmingly, with father and son showing solidarity whenever the company faced any difficulties.

But on Feb 26, the listed company called for a trading halt and cancelled its results briefing. And it emerged that Mr Sherman Kwek had reportedly become entangled in a tussle for control over CDL with his own father.

The older Mr Kwek accused his son of bypassing the nomination committee to change the composition of CDL’s board. He called it an “attempted coup” and filed court papers to address it.

A closed-door High Court hearing on Feb 26 was held to hear Mr Kwek Leng Beng’s lawsuit against his son and several board directors.

In response, Mr Sherman Kwek said he was disappointed over the “extreme actions” taken by his father and said there was no intention to oust his father as chairman.


Earlier in February, Mr Kwek tried to get his son dismissed as group CEO, saying Mr Sherman Kwek was “consolidating power through the irregular appointment of two new directors”.

But the reconstituted board objected to the attempt by the chairman to fire the CEO.

Besides the corporate governance issues, the older Mr Kwek recalled the other times his son had put the company in “a precarious position”, spotlighting Mr Sherman Kwek’s debacle with Chinese developer Sincere Property Group that led to a loss of $1.9 billion for CDL in 2020.

During his tenure as chief executive of CDL China in the early 2010s, Mr Sherman Kwek said CDL had to play catch-up with other developers such as CapitaLand, which had entered the China market earlier.

In 2019, he was very optimistic about the Sincere investment, which was the group’s single largest investment in China. He said this would transform the company in China, where it was “very painful” to buy one project at a time over the last several years.

“Now we can seriously bulk up on scale and grow with our partner with the necessary expertise on the ground,” he said.

But these dreams of conquering the China market crashed and burned when Sincere started facing liquidity challenges.

Mr Sherman Kwek also faced some of his first public challenges to his leadership as three directors resigned in the space of three months in protest over the Sincere venture.

One of them is the cousin of the older Mr Kwek, marking one of the first public family rifts in CDL’s history. Mr Kwek Leng Peck resigned as a non-executive, non-independent director after holding the post for more than 30 years.

More on this Topic
CDL CEO should focus on recouping $1.9b in losses: Philip YeoCDL through the years: From humble roots to family rift at Singapore’s property giant
Ultimately, the deal that Mr Sherman Kwek once hailed as game-changing cost CDL almost all its investment.

But all that seemed to be water under the bridge for father and son, according to the biography Strictly Business released in 2023 about the older Mr Kwek.

He said at a results briefing in 2021 that “we should not keep talking about Sincere... We must now forget about all these old subjects”.

In the book, Mr Sherman Kwek called the episode “the darkest and most painful period” of his career, while saying he will “tread more carefully in the future”.

However, these old wounds seem to have resurfaced in the current battle between father and son. The older Mr Kwek said in his media statement: “I take my role as executive chairman seriously and have always prioritised the interests of all shareholders, not just those of my family.”


And apart from when Mr Kwek Leng Peck resigned over Mr Sherman Kwek’s business decisions, this is the first time the Kwek clan has been so publicly embroiled in a family crisis related to succession.

In 1994, when the pioneering Mr Kwek Hong Png died, media reports had suggested that there could be a struggle for control between his son, Mr Kwek Leng Beng, and his Kuala Lumpur-based nephew, Mr Quek Leng Chan.

However, the family rejected any talk of succession struggles and analysts back then felt that there was no problem with succession. Mr Kwek Leng Beng went on to inherit his father’s crown and by 1995, he was Singapore’s richest man, with an estimated fortune of US$5 billion.

The image of unity was upheld, with newspapers often running stories about the successful Kwek clan and its sprawling business empire held together in Singapore and Malaysia.

In 1997, a fellow developer even said he thought of the Kweks each time his children sang Old MacDonald Had A Farm.

“Why? Because midway in the song, the lyrics go: ‘And a quack, quack here, and a quack, quack there. Here a quack! There a quack! Everywhere a quack, quack!’,” a report quoted him as saying, noting that Mr Kwek beamed at the joke and was said to have regarded it as a high compliment paid by a competitor to acknowledge his prowess at managing his empire.

When the question of his own succession arose in 2000, he had expressed reservations about the old way of doing things, where a family owns and runs the business.

These concerns were not unfounded when there were reports of public family divisions over family-run businesses. The Yeo family’s tussle over food and beverage company Yeo Hiap Seng, which pitted brothers and nephews against one another, in the early 1990s would have weighed on his mind.

In 2011, he even said he would rather get an outsider to helm the company if a successor could not be found within the family, calling it “silly” to let a family member run it if they were not able to do so.

Media reports at that time named candidates among the third-generation Kweks, which include Mr Sherman Kwek and Mr Kwek Eik Sheng, who is the elder son of Mr Kwek Leng Joo, Mr Kwek Leng Beng’s brother.

(From left) CDL’s group CEO Sherman Kwek, executive chairman Kwek Leng Beng and group chief operating officer Kwek Eik Sheng at the company’s results briefing in 2023.PHOTO: CDL
The anointing of Mr Sherman Kwek as CEO seemed to have settled the issue. But in the biography Strictly Business, it was noted that the decision on the next Hong Leong group leader still has to be made with the support of the other branches of the Kwek clan.

The very public spat between father and son has seen them pointing fingers at each other. In a statement on Feb 27, Mr Sherman Kwek said the underlying reason that led to the public fallout at the company was his father’s adviser, Dr Catherine Wu. Her official position is that of an adviser to the board of Millennium & Copthorne Hotels, a wholly owned and principal subsidiary of CDL Group.

The battle between the duo adds complexity to the issue of succession.

In the 2023 book, Mr Kwek said directly: “I nominate Sherman,” when addressing the question of who will inherit his crown.

But with the latest saga, the line of succession may no longer look so clear. Instead of the end of the story, it might just be the beginning of a brand new chapter.

• Sue-Ann Tan is a business correspondent at The Straits Times covering capital markets and sustainable finance.

 

[LITTLEREDDOT]

CDL CEO Sherman Kwek ropes in legal heavyweight Davinder Singh to fight boardroom battle​

CDL CEO Sherman Kwek has roped in Senior Counsel Davinder Singh, who will also represent the six board members in the CEO’s camp.PHOTOS: CDL, KELVIN CHNG

Angela Tan
Mar 03, 2025

SINGAPORE – City Developments Limited (CDL) group chief executive Sherman Kwek has roped in Senior Counsel Davinder Singh to his team of lawyers as he faces his billionaire father Kwek Leng Beng in Singapore’s biggest boardroom battle in recent years, The Straits Times understands.

The senior Mr Kwek, who is CDL executive chairman, is seeking to remove his son as CEO over an “attempted coup”.

Mr Kwek, 84, has accused his son, 49, and six CDL board members of trying to take control of what was once Singapore’s largest listed developer.

Mr Sherman Kwek, in turn, has denied that he tried to oust his father.

Mr Singh – who will also represent the six board members in the CEO’s camp – is widely considered Singapore’s foremost litigator, having acted many times for the country’s then prime ministers Lee Kuan Yew and Lee Hsien Loong in various civil proceedings.

He is head of his own self-named practice – Davinder Singh Chambers – and has taken on high-profile cases during his career, including defending the two prime ministers in court hearings.

He was the lead defence lawyer in a recent corruption case involving former transport minister S. Iswaran. Mr Singh also represented Hin Leong founder Lim Oon Kuin, better known as O.K. Lim, in the case of the collapsed oil trader.

Mr Sherman Kwek and six board members – Ms Jennifer Duong Young, Ms Wong Su-Yen, Mrs Wong Ai Ai, Mr Philip Lee, Ms Carolina Chan Swee Liang and Mr Desbaillets Daniel Marie Ghislain – will also be represented by one of Singapore’s oldest law firms, Lee & Lee.

His father and three other board members are represented by LVM Law Chambers.

The Kwek clan shares a combined net worth of US$11.5 billion (S$15.4 billion). This makes Mr Kwek Leng Beng the fourth-richest man in Singapore, according to Forbes in 2024. Hong Leong Group, which belongs to the clan, holds around 49 per cent of CDL.

CDL was valued at $4.6 billion before trading was suspended on Feb 26. It is now valued at $4.5 billion, after its shares resumed trading on March 3.

Prior to starting his own firm in 2019, Mr Singh worked at Drew & Napier for 37 years, rising to the position of CEO as well as executive chairman.

He represented Singapore Press Holdings in a 2005 lawsuit brought against the publisher by the then CEO of the National Kidney Foundation, Mr T.T. Durai, for defamation in an article stating he had a gold-plated tap installed in his office.

Mr Singh also acted for then Prime Minister Lee Hsien Loong in a defamation lawsuit brought against blogger Roy Ngerng in 2014, when the latter claimed that Central Provident Fund savings had been misappropriated.

Mr Singh is also the chairman of the Singapore International Arbitration Centre and a vice-chairman of the Paris-based ICC Commission on Corporate Responsibility and Anti-corruption.

CDL shares fell as much as 6.5 per cent to $4.79, their lowest since 2009, when trading resumed on March 3, after a three-day halt. The stock pared some losses and was down 2.7 per cent at $4.98 at the midday trading break.

Many analysts remained cautious in their recommendation on concerns that the board discord may affect CDL’s strategic direction.

Brokers noted that there is a queue of punters waiting to “scoop up” the shares if prices head further south towards $4.

 

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Catherine Wu resigns as adviser to CDL subsidiary Millennium & Copthorne Hotels​

Millennium & Copthorne Hotels has received the “irrevocable resignation” of Dr Catherine Wu as an unpaid independent adviser, with immediate effect.PHOTO: LIANHE ZAOBAO

Angela Tan
Mar 05, 2025

SINGAPORE - Dr Catherine Wu, who was thrown into the spotlight in a high-profile boardroom battle between Mr Kwek Leng Beng and his son Sherman, has resigned as an unpaid adviser to Millennium & Copthorne Hotels (M&C).

In a press release late on March 4, Mr Kwek Leng Beng said M&C, the hotel arm of City Developments Limited (CDL), has received the “irrevocable resignation” of Dr Wu as an unpaid independent adviser, with immediate effect.

“Now that Dr Wu has resigned, the CEO (Sherman Kwek) and his team of directors no longer have any continuing basis to make such corporate governance allegations about CDL and to justify his board coup,” said the older Mr Kwek, who is CDL executive chairman.

“It is high time that we restore investor confidence and ensure those breaches of corporate governance committed by the CEO and his team of directors, including breaches of the SGX listing rules and the Code of Corporate Governance, will never happen again,” he said.

Last week, the father accused his son and a group of directors of an attempted coup. The older Mr Kwek also alleged that there were major lapses in CDL’s board independence and governance issues.

Following a court hearing on Feb 26, the judge agreed that his son and six independent directors would voluntarily halt implementing a number of resolutions while court proceedings are under way.

The two independent directors – Ms Jennifer Duong Young and Ms Wong Su-Yen – whom the older Mr Kwek alleged were “irregularly and hastily appointed” on Feb 7 have also agreed not to take any further actions until further notice of the court.


In response, Mr Sherman Kwek has denied any attempt to oust the chairman.

He said Dr Wu is the reason for the dispute between his father and himself as well as CDL’s majority board of directors as she “wields and exercises enormous influence”.

“These matters have troubled us as directors,” said Mr Sherman Kwek.

In his March 4 statement, Mr Kwek Leng Beng said it is time to focus on the issues that CDL has to address.

These include the Sincere Property debacle which resulted in an extraordinary loss of $1.9 billion for CDL in FY2020; poorly judged investment decisions in the United Kingdom property market which led to substantial financial setbacks, culminating in a 94 per cent drop in profits during the first half of 2023; and CDL’s weak share price since Mr Sherman Kwek took the helm in 2018.

He also noted that CDL’s share price has taken a further beating following the breaches of the relevant regulations by the CEO and his team of directors.

This, he said, signalled diminished investor confidence and growing shareholder apprehension.

 

[True Believer]

Elites often live in vastly different circumstances compared to the general population. This leads to a perception
that they are out of touch with the struggles and realities of everyday life, fostering a sense of detachment.

 

[LITTLEREDDOT]

Kwek clan’s decision on family feud will be critical to CDL’s future​

Angela Tan

The dispute has become too emotional and a professional board can better focus on CDL's market challenges, say observers.ST PHOTO: GIN TAY
Mar 05, 2025

SINGAPORE - The outcome of an ongoing boardroom battle involving father and son at one of Singapore’s largest property companies is being determined by the Singapore Courts, but the future of property developer City Developments Limited (CDL) may well lie in the hands of the wider Kwek clan.

Last week, Mr Kwek Leng Beng accused his son and a group of directors of an attempted coup. The older Mr Kwek also alleged that there were major lapses in CDL’s board independence and governance issues – all of which have cast a shadow on the hotel and property group’s future.

In response, Mr Sherman Kwek has denied any attempt to oust the chairman.

Market observers were surprised that the discord between father and son culminated in court papers filed on Feb 26 against Mr Sherman Kwek and six independent directors.

They tried to get the court to grant interim injunctions to prevent them from implementing certain resolutions, restrain two independent directors from exercising their powers, and reverse several previously passed resolutions.

Some observers felt this indicated that the older Mr Kwek’s position in CDL might not be as strong as widely believed.

This is because the battle will not be won in court, said analysts who have covered CDL for decades.

True resolution will come when the Kwek clan decides to act, they said.

Currently, about 51 per cent of CDL is held by the public. The remaining 49 per cent is held by the wider Kwek clan through various investment vehicles.

These vehicles include Hong Leong Investment Holdings (HLIH), which has an 18.9 per cent stake in CDL, while HLIH-controlled Hong Leong Holdings has a 16.7 per cent stake, according to data from analytics firm Handshakes.

Other entities controlled by the Kweks hold the remaining 13.7 per cent stake, making up the 49 per cent in CDL held by the wider Kwek family.

Meanwhile, HLIH is 33.6 per cent controlled by Davos Investments Holdings, which is controlled by the older Mr Kwek’s cousins: Mr Quek Leng Chan, Mr Quek Leng Chye and Mr Kwek Leng Kee.

A further 37.3 per cent is held by various members of the Kwek clan, while Kwek Holdings holds the remaining 29.1 per cent stake in HLIH. Mr Kwek Leng Beng has a major stake in Kwek Holdings, according to Handshakes.

This means that the Kwek family, through its various investment vehicles, has the ultimate power to control votes on shareholder matters at CDL, and even board appointments.

“The family has to eventually decide whether they want to continue supporting Mr Kwek Leng Beng, whether they should professionalise CDL’s board, or whether both Mr Kwek Leng Beng and Sherman should go and someone else within the clan takes over,” said one observer.

While Mr Kwek Leng Beng’s years of experience will enable him to provide direction, his age is a factor favouring a professional board, along with the reality that family members’ interests are not always aligned.

Then, there are concerns that even if Mr Sherman Kwek were to remain as CDL’s CEO, it would be harder for him to take bold decisions after being chastised in public by his father and some directors over an ill-fated decision to invest in Chinese property developer Sincere Property Holdings in 2019. That had resulted in losses to the tune of $1.9 billion in 2020.

In that context, Mr Sherman Kwek’s subsequent decisions involving CDL will be watched closely. Will he become more conservative as a result?

For now, the dispute has become “so emotional” that the real issues facing CDL are not being addressed, observers said.

Since resuming trade on March 3, CDL’s share price has continued to ease, closing down 0.6 per cent at $4.97 on March 4 compared with $5.12 before news of the discord broke. The shares recovered to trade at $5.11 on March 5.

A professional board will be able to focus on the market-related concerns such as CDL’s declining share price, growth strategies and its high gearing, which has crept up to 69 per cent in 2024 from 61 per cent in 2023.


CDL is now trading at a steep discount of more than 60 per cent to analysts’ revalued net asset value, or how much the stock is worth after updating the value of its assets.

For the financial year 2024, CDL missed market estimates when it reported lower-than-expected earnings.

Net profit for 2024 fell 36.6 per cent to $201.3 million from $317.3 million in 2023. Revenue slipped 34 per cent to $3.3 billion.

This was despite a pickup in Singapore’s residential sales momentum. It sold 1,489 units worth around $3 billion in 2024, double that of 2023.

In 2024, CDL divested more than $600 million in global assets, falling short of its initial divestment guidance of around $1 billion.

In CDL’s results statement, Mr Sherman Kwek said 2024 has been “a year of formidable headwinds, with macroeconomic pressures and sector-specific challenges weighing on the group’s near-term earnings and portfolio calibration plans”.

Dr Sam Garg, professor of management (strategy and entrepreneurship) at Essec Business School, Asia-Pacific, said that in family feuds, both sides become more assertive, and the traditional roles within the family and corporate structure can blur.

This may lead to the formation of subgroups on the board and within the family itself. When these conflicts spill into the public domain, it creates uncertainty, spooking employees, customers, stakeholders and shareholders, he said.

“As a result, share prices typically decline, and without changes in the shareholding structure or credible pressure from institutional investors, the negative impact on stock performance can persist,” Dr Garg said.

“Over time, operations may also suffer as key senior employees are forced to leave due to their allegiances or simply because they grow weary of the ongoing conflict.”

He warned that a prolonged power struggle can destabilise the company, and in extreme cases, shareholders may seek to divest or shift their interests, further damaging the company’s reputation and stock price.

Dr Garg noted that a professionalised board with independent directors could help resolve conflicts and provide oversight if they are perceived as impartial and credible to all parties on the board.

However, the effectiveness of independent directors in small markets like Singapore can be limited, especially if the family maintains a strong grip on the company, he added.

 

[oliverlee]

Instead of getting a tighter hold on his son, KLB chose a hole over his son.

Skinny and tight holes that can play music and sing are rare. Enough for a man to trade all the land he owns for a taste

 

[True Believer]

Skinny and tight holes that can play music and sing are rare. Enough for a man to trade all the land he owns for a taste

Catherine Wu is 65-years-old, but must seem like a "sweet younger thing" to the 84-year-old sugar daddy, KLB.

 

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Sias queries CDL on role of Catherine Wu, appointment of two new directors​

Questions relating to board effectiveness and CDL’s performance moving forward were also raised.ST PHOTO: GIN TAY

Sue-Ann Tan
Mar 07, 2025

SINGAPORE – Shareholders of City Developments Limited (CDL) have submitted numerous questions after news emerged on Feb 26 of a tussle between father and son for control of the Singapore property developer, the Securities Investors Association (Singapore), or Sias, said on March 6.

These include the role of Dr Catherine Wu, the former unpaid adviser to CDL subsidiary Millennium & Copthorne Hotels (M&C), and how two new directors were appointed to the board of CDL without the necessary approvals.

CDL executive chairman Kwek Leng Beng has accused his son Sherman Kwek, who is the group chief executive, of bypassing the nominating committee to change the composition of the company’s board with the appointment of two new directors, Ms Jennifer Duong Young and Ms Wong Su-Yen. He also called it an “attempted coup” and filed court papers to address it.

But the younger man said the underlying reason that led to the public fallout at the company was his father’s adviser, Dr Wu.

Dr Wu subsequently resigned as an unpaid adviser to M&C on March 4.

Sias president and chief executive David Gerald questioned: “What was the role of Dr Catherine Wu as a director on the board of M&C from June 2022 to January 2024? Was her appointment approved by the board? Was her performance assessed by the M&C board and, if so, what were the findings?”

He asked for the reasons behind her resignation from the board and questioned if there was a “rigorous search and nomination process” for the role of independent adviser. He also queried the responsibilities of the role and whether there would be a replacement for the position.

Mr Gerald also raised questions on the appointment of the two new directors of CDL, Ms Young and Ms Wong, and asked what the process was for identifying and appointing them.

“Can the company clarify whom the two newly appointed directors met and spoke with prior to their appointment during the search and nomination process?” he asked.

He said Ms Young and Ms Wong are not first-time directors and wanted them to let shareholders know if they had requested to meet the nominating committee as part of a formal and transparent appointment process.

“Do the two directors believe that their nomination and appointment adhered to best corporate governance practices?” he asked.

Mr Gerald pointed out that while CDL has acknowledged media reports on various allegations, it has stated that it will not comment on their validity. Yet the company has committed to updating shareholders on material developments.

He noted that media reports have surfaced detailing statements made by various parties involved, such as Mr Kwek Leng Beng and his son and Mr Philip Yeo, a director siding with the older Mr Kwek. Dr Wu’s resignation also first emerged through the media.

“Would all directors commit to making all statements related to the current situation on SGXNet first? This would also ensure that any statements and disclosure made by the directors comply with Singapore Exchange listing rules, and that no material information is selectively disclosed to any parties.”

He added: “Directors making individual statements should provide personal attestations or sign-offs for greater accountability.”

Questions relating to board effectiveness and the company’s performance moving forward were raised as well.

“Given that there is an apparent split in the board, how can shareholders be assured that the board remains effective and aligned on the business goals?” Mr Gerald queried.

He also asked if the board is reviewing the group’s strategic direction, given that CDL’s share price has underperformed.

The stock plunged 6.5 per cent from its last traded price of $5.12 on Feb 25 to $4.79, a 16-year low, after it began trading on March 3, but recovered its losses to close down 2.3 per cent at $5.

It closed on March 6 at $5.05.

“Has the board introduced any interim or temporary measures during this period to safeguard shareholder value?” Mr Gerald asked.

He also noted that while CDL had highlighted strong residential sales performance in 2024, Union Square Residences has not done well in sales, with only 31 per cent of units sold since its launch in November 2024.

He wanted to know if the launches of Zion Road (Parcel A) and Newport Residences were proceeding as planned.

Another ongoing issue is the takeover of Millennium & Copthorne Hotels New Zealand, for which the group recently made an NZ$2.25 per share offer, but the directors of the New Zealand entity rejected it.

“Given the ongoing board dispute, how is the board ensuring sufficient focus on this transaction? What is the strategic value of the proposed privatisation?” Mr Gerald asked.

With regard to senior management structure, queries were raised about the reporting line of Mr Kwek Eik Sheng, who was appointed group chief operating officer (COO) in January 2022 and named by Mr Kwek Leng Beng as the person to serve as interim CEO, in place of his son Sherman.

“How does the board ensure cohesive leadership and effective decision-making during this period? What key performance indicators are in place to assess the performance of the group CEO and COO? How are key decisions made and approved during this period?” Mr Gerald asked.

Finally, he alluded to the ongoing boardroom battle that will be fought in court, for which Mr Sherman Kwek has roped in Senior Counsel Davinder Singh for his team of lawyers, while his father and three other board members are represented by LVM Law Chambers.

Mr Gerald asked: “Who is covering the costs of the legal advisers and lawyers engaged by the directors?”

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Lawyer under fire Chia Boon Teck was president of supercar club, grassroots member​

Mr Chia Boon Teck wore many hats before he was elected vice-president of the Law Society in August 2023.PHOTO: CHIA WONG CHAMBERS

Samuel Devaraj
Mar 25, 2025

SINGAPORE - The former vice-president of the Law Society of Singapore, under fire for his comments about a rape survivor, is a supercar enthusiast who once drove his Lamborghini to meetings with clients.

Mr Chia Boon Teck, the co-managing director at Chia Wong LLP, was the president of ExotiCars Club from 2009 to 2023, according to his biography posted on the law firm’s website.

As president of the supercar club, Mr Chia oversaw the calendar of events, including six major annual and monthly events, he told business-lifestyle media publication The Peak in 2016.

The veteran criminal lawyer wore many hats before he was elected vice-president of the Law Society in August 2023.

According to his now deleted LinkedIn profile, he was a commando, an investigator with the Criminal Investigation Department and a Singapore Airlines cabin crew member before settling down as a lawyer.

Mr Chia also actively participated in grassroots activities, the law firm’s website showed.

He was the chairman of the Riverina Residents’ Network and a member of the Pasir Ris West Citizen’s Consultative Committee between 2021 and 2023.

He was also the chairman of the Fengshan Tanah Merah Neighbourhood Committee between 2004 and 2006.

Mr Chia, who covers both criminal and civil matters, was admitted to the Bar in 1995. He handled a number of notable cases, including a civil matter which he took on pro bono.

In the case, Mr Chia helped a couple secure a settlement after their 12-year-old daughter was flung to her death by the family’s 16-year-old Indonesian maid in 2010.

The victim’s parents had sued the maid agency to hold them responsible for supplying an underage maid.

As part of the settlement, they received an apology from the sole proprietor and a consultant from the maid agency. The court also ordered the defendants to pay the couple $50,000.

The maid was found guilty of culpable homicide and sentenced to 20 years in jail.

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Mr Chia made the news in 2015 when he and several others made police reports against Amos Yee over comments the then teenager made about Christianity and founding prime minister Mr Lee Kuan Yew.

Yee, then 17, was subsequently arrested and charged in court with offences including utterances against Christians with a “deliberate intent to wound religious feelings”.

Not one to shy from controversy, Mr Chia had regularly posted his observations about criminal cases on his LinkedIn account. They include comments about sexual assaults.

But a post on March 22 led to accusations of “victim shaming”.

It was over comments Mr Chia made about the victim of convicted rapist Lev Panfilov, a TikToker, scriptwriter and actor with a local YouTube channel.

In his post on LinkedIn, the lawyer described the 30-year-old victim as “not exactly a babe in the woods” and commented, “Wow. Was she awake during this marathon?”, in reference to the sexual assault she was subjected to.

Panfilov was convicted on March 21 of two counts of rape, one count of sexual assault by penetration, and one count of outrage of modesty.

Mr Chia subsequently deleted the post, but it had been shared widely by then.

It led to calls for him to resign as vice-president and council member of the Law Society, which carries out functions that include maintaining and improving the standards of conduct and learning of the legal profession in Singapore.

On March 25, Mr Chia resigned from the Law Society after its president described his comments as unacceptable.