SINGAPORE: A high-stakes family feud, allegations of corporate governance failures, and a legal battle between a billionaire patriarch and his son—by the standards of Asia’s often dramatic succession sagas, the turmoil at Singapore’s Kwek dynasty is extraordinary.
City Developments Ltd (CDL), the financial hub’s largest listed developer, was thrown into chaos today as its billionaire chairman, Kwek Leng Beng, 84, accused his son, Sherman Kwek, the firm’s CEO, of orchestrating a boardroom coup. The elder Kwek and CDL have since filed a lawsuit against Sherman.
At stake is control over a significant portion of the family’s US$18 billion empire, which spans real estate, hospitality, and finance. The dispute has stunned corporate circles in a region well-versed in succession battles that frequently spill into the public domain—and sometimes, the courtroom.
A Dynasty in Turmoil
The Kwek family is no stranger to the complexities of generational succession. Their fortune traces back to Kwek Hong Png, a Chinese immigrant who built the Hong Leong Group into a powerhouse spanning multiple industries. Over six decades, Leng Beng expanded the empire, transforming CDL and developing Millennium & Copthorne Hotels into Singapore’s largest international hotel chain.
However, the company’s fortunes have waned. CDL’s market value now stands at just a third of its 2007 peak, around S$4.6 billion (US$3.43 billion). This decline has only fueled tensions between father and son.
When Sherman Kwek, 49, took over as CEO in 2018, it appeared the family had orchestrated a smooth transition—avoiding the bitter infighting that has plagued other dynastic businesses. But his tenure soon became mired in controversy.
A Costly Bet on China
Sherman spearheaded a 2019 investment in China’s Sincere Property Group, a deal once hailed as “game-changing.” Instead, it turned disastrous. China’s property market crash left CDL nursing a near-total write-off of its billion-dollar investment.
The fallout was severe. In 2020, CDL posted a staggering S$1.9 billion loss, with the pandemic further compounding financial pressures. Travel restrictions crippled its hotel division, and what Kwek Leng Beng described as “poor investment decisions in the UK property market” only deepened the crisis.
As CDL’s stock continued to underperform its peers, internal fractures within the family surfaced. In 2020, Kwek Leng Peck—another influential family member—resigned from the board, citing his opposition to Sherman’s China investment.
The Breaking Point
The tensions escalated earlier this month when the elder Kwek sought to remove his son as CEO, citing “serious lapses in corporate governance.” He accused Sherman of bypassing the usual nomination process to appoint two new directors to the board, a move he claims was an attempt to consolidate power.
In response, CDL’s board split into factions, culminating in a lawsuit filed against Sherman and six other directors. Kwek Leng Beng declared the legal action necessary “to set things right,” stating:
“The reckless actions of a faction seeking to consolidate unchecked control not only undermine CDL’s governance but also put at risk the very legacy we have built over decades.”
Sherman fired back, calling the lawsuit “extreme” and expressing his disappointment over his father’s actions. Despite the turmoil, he remains CEO unless formally removed by board resolution.
A Family Battle with No Clear End
Corporate governance experts warn that family feuds like this one are rarely resolved quickly.
“Generational succession is always tricky, but even more so when businesses face headwinds and the previous generation retains power,” said Marleen Dieleman, professor at IMD Business School in Singapore.
As CDL grapples with this internal crisis, the financial world watches closely. With legal battles looming and power struggles intensifying, the once-stable Kwek dynasty now faces one of its most uncertain chapters.
