Tensions Rock CDL AGM as Singapore’s Kwek Family Feud Resurfaces

A heated rift within the Kwek family — Singapore’s wealthiest — burst into the open at City Developments Ltd. (CDL)’s annual general meeting on Wednesday, with boardroom disagreements taking center stage and revealing lingering tension between family members and directors of the real estate giant.

What was meant to be a routine meeting turned into a confrontation, with Philip Yeo, a veteran board member, publicly criticizing how two new directors were appointed earlier this year — a move that reportedly opposed the will of Executive Chairman Kwek Leng Beng.

Leadership Tensions Unfold

The feud traces back to February, when tensions between Kwek Leng Beng and his son, Sherman Kwek, the company’s CEO, became public. Kwek Sr. had accused Sherman of attempting a boardroom coup after two directors were rapidly added to the board — Jennifer Duong Young and Wong Su-Yen — bypassing the standard nomination process.

Yeo, who has served on the board since 2009, expressed his disapproval:

“There must be consensus. It should not be by a majority of directors pushing, and disregarding the chairman,” he said, drawing applause from shareholders in attendance.

Directors Defend Fast-Track Appointments

Wong Su-Yen defended her rushed appointment using a medical analogy, saying emergency action was needed in the interest of the company.

“If I wait, and I cannot find the parent, the child may die,” she said, comparing it to a life-saving decision by a doctor without parental consent.

But Yeo and others argued the appointments undermined governance, citing additional concerns about some directors placing themselves on the board of Millennium & Copthorne Hotels, a CDL subsidiary, without approval from Chairman Kwek.

Family Dispute Played Out in Court

Following the fallout in February, Kwek Leng Beng, along with Yeo and two other directors, filed a lawsuit in Singapore against Sherman Kwek and a majority of the board. The case was later dropped in March with a public statement indicating all parties would “put aside their differences for the greater good of CDL.”

However, Wednesday’s meeting revealed the cracks remain visible.

Shareholders Back Independent Directors

Despite the drama, all five independent directors up for reappointment — including the controversial pair — were re-elected by an overwhelming majority. The Kwek family collectively holds nearly 50% of CDL shares, giving them substantial sway over voting outcomes.

Financial Performance Adds to Pressure

CDL has faced a difficult financial year.

• 2024 profit fell by 37% to S$201.3 million, missing analyst forecasts.

• Interest expenses hit S$589 million, eating into profits.

• CEO Sherman Kwek admitted, “It sometimes feels like I’m working for the bank.”

He added that divestments in 2025 are expected to exceed the S$600 million recorded in 2024, though falling short of the company’s S$1 billion target. He also signaled renewed plans to list CDL’s UK assets through a real estate investment trust (REIT), a move previously shelved.

Public Fallout Leaves Shareholders Disillusioned

About 450 people attended the AGM at a CDL hotel in Singapore, with overflow rooms and a live webcast to handle the unusually high turnout. For many investors, the public family feud and board infighting raised deep concerns.

“The meeting was quite a disaster,” said shareholder Gary Saw, who works in tech.
“Family businesses will have family dynamics, but this shouldn’t be happening in a professionally run company.”

CDL’s shares have lost over 70% since their 2007 peak and underperformed most Singapore real estate stocks since Sherman became CEO in 2018. The stock is down around 4% in 2025 so far.