Managing Financial Crisis During Economic Downturn 1997 - 1999 : Experience of Agenda Istimewa Sdn. Bhd. a Developer of Kesuma Lakes Township
Agenda Istimewa Sdn Bhd, the developer of Kesuma Lakes Township, was doing reasonably well during 1996 and 1997. Everything look bright and good until the South East Asia Financial crisis hit Malaysia in the 4th quarter of 1997. Year 1998 was a chaotic year, the property prices drop by 20% - 40%...
Saved in:
| Main Author: | |
|---|---|
| Format: | Project Paper Report |
| Language: | English English |
| Published: |
1999
|
| Subjects: | |
| Online Access: | http://psasir.upm.edu.my/id/eprint/7930/1/GSM_1999_37_.pdf http://psasir.upm.edu.my/id/eprint/7930/ |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| Summary: | Agenda Istimewa Sdn Bhd, the developer of Kesuma Lakes Township,
was doing reasonably well during 1996 and 1997. Everything look
bright and good until the South East Asia Financial crisis hit Malaysia in
the 4th quarter of 1997. Year 1998 was a chaotic year, the property prices
drop by 20% - 40%, the sales not only drop but went into negative
(withdrawal), sales forecast, cash flows projection and all other financial
commitment could not be meet.
The consumer confident drop drastically.
The effective interest rate went up to as high as 16% per annum and the
future of the company look bleak. Nevertheless Agenda Istimewa Sdn
Bhd embark on a strategy to overcome the adversity. By adopting
proactive measure to react to the market condition. The company adopt
the defensive strategy by doing hard selling. They cut prices to generate
turnover, they force the contractors and creditors to accept contra sales
and try to conserve cash by managing the project and financial. With the
support from the top management, the flexibility of product mix and
quick charge in market towards better condition. They seems to
turnaround but still more obstacles to cross. For the next 12 months they
are short of 25 million for the next 12 months in cash flow and they need
to plan and do something now |
|---|