Tensions Rise at City Developments Limited Over Governance and Influence Amid Succession Planning
Singapore [ 2/27/2025 ]
City Developments Limited (CDL) CEO Sherman Kwek has identified Catherine Wu, a former personal assistant to his father, executive chairman Kwek Leng Beng, and a longtime board adviser, as the central figure in an escalating dispute over corporate governance and decision-making authority at one of Singapore’s largest real estate conglomerates. The revelation sheds light on internal friction within the Kwek family-led company, which has long been regarded as a pillar of stability in Asia’s property sector.
Background: A Family Empire and Key Players
CDL, a global real estate giant with holdings spanning hospitality, residential, and commercial assets, has been steered by the Kwek family for decades. Sherman Kwek, 47, took over as CEO in 2018, succeeding his father, Kwek Leng Beng, 82, who remains executive chairman. Catherine Wu, a trusted confidante of the elder Kwek, served as his personal assistant for over 20 years before transitioning into an advisory role, where she reportedly wielded significant influence over board discussions and strategic decisions.
Sources close to the matter describe Wu as a “gatekeeper” to Kwek Leng Beng, with deep ties to the company’s historical operations. Her continued presence in advisory capacities, however, has reportedly clashed with Sherman Kwek’s efforts to modernize CDL’s governance and assert his leadership amid turbulent market conditions.
The Heart of the Dispute
According to insiders, tensions came to a head during recent board meetings focused on CDL’s post-pandemic recovery strategy and succession planning. Sherman Kwek, advocating for aggressive divestments of non-core assets and a pivot toward sustainable development, faced pushback from factions aligned with Wu, who allegedly emphasized caution and loyalty to legacy investments.
In a rare public statement, Sherman Kwek acknowledged the discord: “Differences in strategic vision are natural, but when longstanding personal relationships overshadow the company’s best interests, it becomes a governance issue. Ms. Wu’s role has created unnecessary complexity in decision-making processes.” He stopped short of directly criticizing his father but emphasized the need for “clear, unified leadership” as CDL navigates economic headwinds.
Wu, who has not publicly commented, is said to retain strong support among certain board members and senior executives nostalgic for the elder Kwek’s leadership style. Critics argue her influence has slowed CDL’s adaptation to digital transformation and ESG (environmental, social, and governance) trends critical to attracting younger investors.
Broader Implications for CDL
The dispute underscores challenges faced by family-run Asian conglomerates as they balance tradition with modernization. CDL’s shares have dipped nearly 8% over the past year, reflecting investor concerns about leadership cohesion and the company’s delayed entry into proptech and green building initiatives.
Corporate governance experts warn that unresolved power struggles could further erode confidence. “CDL risks falling behind if it doesn’t resolve these internal dynamics,” said Lim Wei Ting, a Singapore-based analyst. “The market wants clarity on who’s driving the wheel Sherman or the old guard.”
Next Steps and Industry Reaction
The CDL board is expected to convene an emergency meeting to address the rift, with some members advocating for Wu’s formal exit from advisory roles to streamline decision-making. However, Kwek Leng Beng’s stance remains unclear; the patriarch has historically avoided public conflicts and may seek a mediated compromise to preserve family unity.
Meanwhile, competitors like CapitaLand and Hong Kong’s Sun Hung Kai Properties are capitalizing on CDL’s distractions, snapping up prime assets in Southeast Asia’s booming industrial and data center sectors.
Looking Ahead
As the Kwek family navigates this delicate chapter, all eyes are on whether Sherman Kwek can consolidate his authority and steer CDL toward a more agile future or whether Catherine Wu’s enduring influence will anchor the company to its past. For now, the boardroom drama serves as a stark reminder of the complexities of transitioning leadership in Asia’s dynastic business empires.