Eco World International Shifts Business Direction To Now Focus On Malaysia

Eco World International Berhad (EWI) has announced a significant change in its strategic direction, proposing to expand its operations to include property development and investment in Malaysia. This marks a departure from its previous focus solely on international projects.  

EWI was established in 2013 to undertake property development projects outside of Malaysia and is 29% owned by Eco World Development Group Berhad (EcoWorld Malaysia). A Collaboration Agreement between EWI and EcoWorld Malaysia in 2016 established a geographical carve-out, preventing EWI from operating in Malaysia and restricting EcoWorld Malaysia to projects within the country, except through EWI.  

To date, EWI has focused on projects in the UK and Australia, completing 10 projects in the UK and 2 in Australia with total sales of RM19 billion as of February 28, 2025. However, the company said has faced challenges in these markets, including the impact of the Covid-19 pandemic, supply chain disruptions, high energy prices, tight labor markets, and high mortgage rates. In response, EWI has pursued a stock monetization strategy, returning excess cash to shareholders through capital reductions and dividends, and has been debt-free since March 2024.  

Looking ahead, EWI said it plans to explore opportunities in Malaysia, citing its stable economic outlook, promising prospects, favorable accounting rules, and the management team’s familiarity with the local market.  

To facilitate this new direction, EWI proposes to terminate the Collaboration Agreement with EcoWorld Malaysia, removing the geographical restriction and enabling EWI to invest and develop properties in Malaysia. Consequently, the Brand License Agreement between the companies will also be terminated, and EWI proposes to change its name to “EWI Capital Berhad” to avoid market confusion and establish its own brand identity.  

These proposals will be presented to shareholders for approval at Extraordinary General Meetings (EGMs) of both EWI and EcoWorld Malaysia.  

EcoWorld Malaysia, as a major shareholder, is expected to benefit from EWI’s new strategy, which aims to protect and enhance the company’s long-term value. The termination of the Collaboration Agreement will also allow EcoWorld Malaysia to pursue opportunities abroad directly. Both companies anticipate potential synergies and collaboration opportunities in the future, such as development management services or joint ventures.  

To address potential conflicts of interest arising from both companies operating in the same market, Tan Sri Liew Kee Sin and Datuk Heah Kok Boon have resigned as directors of EWI.  

Dato’ Teow Leong Seng, President & CEO of EWI, stated that the company aims to balance exploring new opportunities in Malaysia with maintaining its presence in the UK and Australia, monetizing existing assets and leveraging its strong financial position. Dato’ Chang Khim Wah, President & CEO of EcoWorld Malaysia, expressed support for EWI’s new direction and the potential for future collaboration