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Maybank Economics Project 4 Shangri-La Asia Limited Done By: Liu Jou Hsuan, Felicia Lee, Janna Tan, Valarie Tam, Amelia Yee, Mandy Ho.
Maybank Economics Project 4
Shangri-La Asia Limited
Done By: Liu Jou Hsuan, Felicia Lee, Janna Tan, Valarie Tam, Amelia Yee, Mandy Ho.
Content
Q1
a. What is the outstanding shares and paid up capital of the firm. (can be found in Balance Sheet)
b. What is its total revenues and operating cost for the last 2 years of this company.(Can be found in
Income Statement)
Q2 a. What is the company's main business?
b. Who are its competitors. (you may want to compare how big their competitors are in terms of their
revenues and paid up capital with the company you are investigating). Based on this comparison, is
your target company bigger than its competitors?
c. How does it compete against its competitors? (eg. Does strongly advertise its brand/product, does
it control the market price or the amount of goods sold in the industry, its its product prices elastic in
demand?)
d. Do you think this company is making good profits (anything whereby its profit margin
profit/revenue X 100 is greater than 10%, maybe considered as profitably for the purpose of our
exercise).
e. Does this company have any market advantage eg. It has a patent on its products, has high
amounts of fixed assets like capital machinery, factories or any other resources and therefore can
increase its production anytime when needed.
f. Is the company's PES elastic or inelastic. What implication will this have on this company when
their is an increase in the prices of its service or product.
g. How many directors are there in the company?
Give above a to f, explain why your banking group be interested to give a commercial loan to this
company on the:
4. Short term (like an overdraft for mostly for operation need like pay salaries, buy sundry goods etc)
5. Long term.(fund their investments in the purchase of long term asset like building factory via a
mortgage or purchasing equipment and machinery using other commercial loans of your suggestion) Q1(a) What is the outstanding shares and paid up capital of the
firm? Shangri La Asia limited
The total equity in 2012 costs $6530(USD,million) and the earning per share is 11.50 cents
(USD) while the dividend per share is 20 cents (HKD). Furthermore net assets per share
attributable to the Company's equity holder is 1.90 (USD) while the net assets (total equity) per
share is 2.08 (USD)
By comparing the profits earned between 2011 and 2012, ShangriLa has made more
revenues as compared to the previous years. Its total equity, earnings per share, net assets per
share all increases while the dividends of share remains the same.
This shows that ShangriLa is able to maintain a stable profit and revenues without having any
loss. It has also made a huge profit over the past years and it has been rising.
The Authorised Capital costs 5000 (HKD,million) The par value of the share is 1.000(HKD) and
the paidup capital costs 3,132,112,799 (HKD)
b. What is its total revenues and operating cost for the last 2 years of this company?
The total revenue is $2,057,249(USD, thousands) in 2012 and $1,912,089(USD,thousands)
in 2011.
By the definition :
Operating cost in 2012 = Total revenue Profit earned =$2,057,249$382,196 =$1,675,053(USD, thousands) Operating cost in 2011 = Total revenue Profit earned =$1,912,089$283,864 =$1,628,225(USD,thousands) Comparing the operating cost in 2011 and 2012, it increased by $1,675,053(USD,
thousands)$1,628,225(USD,thousands)= $46,828(USD, thousands). The increase in cost of production may be due to the increase in the number of hotels, and as consumers demand more of their services, the hotel management would have to purchase more resources in order to meet the demand of the customers in order for their business to run smoothly and efficiently. As ShangriLa is constantly expanding its hotels, more money and effort would be expected to be put in as it is also a worldwide known company. Other reasons could be due to the further investments (composite developments) and participating in project developments around the globe.The increasing in operating cost can impact on the company’s profitability in later years if the operating cost continues to rise and more than the profit earned this may result in uneconomical operations.
Basic information about Shangrila
ShangriLa is a hotel which has different expectation of its services and staffs which include:
Mission
“To delight our guests every time by creating engaging experiences straight from our hearts” It identified the company’s main task is attractive more customers in order to achieve the business goals of expanding to be a leader in global hotel industry and to create unforgettable memories.
Vision
“To be the first choice for guests, colleagues, shareholders and business partners”. The company states that it puts its customers to be the first choice to attract more customers in order to increase the business profit. The employee, shareholders and business partner will get more benefit from the business. Moreover, due to excellent services to customers, the reputation of company will increase.
Core Value
Respect, humility, courtesy, helpfulness, sincerity. This five core value is developed by ShangriLa Hospitality. It involves the positive influences to successfully running the business. And the core value creates a relationship between customer satisfactions and employees’ behaviors.
Philosophy ShangriLa Hospitality from a caring family. It means the hotel will provide the great services and let the customer feel like they are home.
ShangriLa : Oligopoly market structure An oligopoly is a market structure in which a few firms dominate. They may work together and act like an monopoly. As ShangriLa is one of the few hotels which has built up a world known reputation, it is considered as oligopoly as there are not many hotels in the market which has high amount of profit. The degree of market concentration and percentage of consumers buying
services from ShangriLa are both very high. ShangriLa aims to attract high earners and has high class services. They spent a huge amount of money for the design and training of staffs. Therefore ShangriLa is an oligopoly as only large firms are able to spend the huge amount of money on advertising and marketing to inform more consumers of its existence. There are also barriers to entry such as economies of scale, legal prohibition of new entrants, large capital requirements, patents, copyrights and trademarks, licenses and ownership of essential resources. ShangriLa would need to spend capital on dining, services and environment of the services. Therefore by purchasing a large amount of resources, it decreases the total average cost of the resources known as economies of scale. This is what the other smaller competitors are unable to do and they eventually loses out to ShangriLa.
Q2 a. What is the company's main business?
ShangriLa’s main business ShangriLa Asia Limited is in charge of four main hotels which are ShangriLa Hotels,
ShangriLa resorts, Kerry hotels and Traders hotels and is an investment holding company.
It provides hotel management, marketing, consultancy, reservation, and related services. In
addition, the company is involved in real estate investment, development, and operation
activities. It also operates a staff training academy and leases office properties, commercial
properties, and serviced apartments. Furthermore, it also owns a golf club and licenses
intellectual property rights, as well as in office management activities. "To treat a stranger as
one of our own" characterizes the hospitality one can expect from ShangriLa. Discerning
travellers will enjoy worldclass service amidst tranquil surroundings, coupled with inspirational
architecture and design. The finest dining experiences at every hotel and resort ensure that
every palate is pampered. ShangriLa Asia Limited is an award winning hotel for the past few
years which include China’s Most Investmentworthy International Hotel Management Company
of 2011, Golden Pillow Award (China), Best Business Hotel Brand in Asia Pacific, Business
Traveller (Asia Pacific), Best Leisure and Hotel Developer in Western Europe, Euromoney’s
Real Estate Award(UK) etcetera. Consistently voted as one of the best hotels in the world, the
legendary Asian hospitality of ShangriLa began more than 40 years ago. Shangrila has
luxurious guestrooms and suites in three distinctive wings, serviced apartments and residences
in fourstorey villas.
As it’s location is very convenient, once customers have taken in the myriad of shopping
choices, from the roadside antique shops and the little noodle stalls to the glitzy designer
shopping malls along Orchard Road, the luxurious hotel ShangriLa will embrace you once you
step onto its grounds.
b. Who are its competitor? Based on this comparison, is your target company bigger than its competitors?
Its top three competitors are:
1) The HongKong and Shanghai Hotels, Limited. The Hongkong and Shanghai Hotels (HSH) deals in luxury. The group owns and operates about two dozen deluxe hotels and commercial and residential properties in Asia, Australia, and
North America.
After research, the revenue earned by The HongKong and ShangHai hotels in 2012 is $5,168(HK, million) while the revenue earned in 2011 is $5,009(HK, million). The earning per share in 2012 is $1.04 (HKD) while the dividend per share in 2012 is 14 cents (HKD).
2) New World Development Company Limited.
This hotel is focused on residential projects, complemented by a sizeable investment property
portfolio comprising shopping malls, offices, hotels and service apartments.
After research, the revenue earned by the New World Development Company in 2012 is
$3,599.5(HK, million) while the revenue earned in 2011 is $2,767.5(HK, million). The earning
per share in 2012 is $1.88 (HKD) while the dividend per share in 2012 is 38 cents (HKD)
3) Mandarin Oriental International Limited. The company, which is incorporated in Bermuda and operates as Mandarin Oriental Hotel Group, owns, manages, or has under development about 40 upscale hotels in more than two dozen countries in Asia, the Americas, Europe, the Middle East, and North Africa.
After research, the revenue earned by Mandarin Oriental International Limited in 2012 is $648.3(USD,million) while the revenue earned in 2011 is $614.2(USD,million). The earning per share in 2012 is $7.09 (USD) while the dividend per share in 2012 is 7 cents (USD). Shangri La Asia Limited – HK$15958.9mil Competitors: 1) Hong Kong & Shanghai Ltd – HK$5178mil 2) New World Development Co HK$3559.5mil 3) Mandarin Oriental International Ltd – HK$5028.5mil
2011
Names Of Hotels Earnings per share
Dividends per share
Revenue
ShangriLa Asia Limited
8.18 US cents
20.00 Hk cents
1,912089 US$’000
The HongKong and Shanghai Hotels, Limited. (HK dollar)
1.52 HK$
14.00 HK cents
5009 HK$m
New World Development
Company Limited. (HK Dollar)
2.10 Hk$
38.00 HK cents
2767.5 HK$m
Mandarin Oriental International Limited.
(US dollar)
5.92 US cents
6.00 US cents
614.2 US$m
2012
Names Of Hotels Earnings per share
Dividends per share
Revenue
ShangriLa Asia Limited
11.50 US cents
20.00 Hk cents
2,057249 US$’000
The HongKong and Shanghai Hotels, Limited. (HK dollar)
1.40 HK$
14 Hk cents
5178 HK$m
New World Development
Company Limited. (HK Dollar)
1.88 HK$
38.0 HK cents
3995.9 HK$m
Mandarin Oriental International Limited.
(US dollar)
7.09 US cents
7.00 US cents
648.3 US$m
Comparing:
After converting the revenues of the companies above to HKD, we can clearly see that ShangriLa earned more hotel revenue as compared to the other companies. Hence, this shows us that ShangriLa is a more superior company and its better to loan money to ShangriLa compared to the other companies. c. How does it compete against its competitors? There are two types of competition, price and nonprice.
Price competition is when firms cut their retail prices in order to attract more consumers. It may eventually lead to price war and firms may face bankruptcy or forced to leave the market shares. Nonprice competitions include advertising, promotions, lucky draw to attract consumers using methods which indirectly uses capital to boot one’s revenue. Price Competition Since the demand for services from ShangriLa limited hotels are inelastic and ShangriLa Limited is a part of oligopoly market, the firm is discouraged to compete with its rival firms by price competition as it may reduce profit margin and result in loss due to price wars. Therefore, ShangriLa tends to compete by using nonprice competition so as to boost sales and market shares. NonPrice Competition Brand Image and customer loyalty Philosophy and Cultures Shangrila's standard and hospitality achieved competitive advantage over rivals in attracting buyers and coping with competitive forces. ShangriLa has always believed in the unique characteristics encapsulated by Asian hospitality and they follow their own philosophy "ShangriLa Hospitality from a caring family” closely. They focus and prioritize its hospitality service to show care and delight towards their customers in exchange for their loyalty. In addition, ShangriLa focuses deeply on their cultures which includes the five principles They are implemented across all their geographic and cultural markets.
Nature Protection Campaigns And Charity Work
ShangriLa participated in many projects and volunteering works which includes “Wish For Japan (March 2011)”, whereby ShangriLa Hotel, Tokyo provided shelter and food for many in the community.
Adding on, ShangriLa also raised high amount of funds for the victims.
ShangriLa is constantly embracing the needy and it also participated in helping to conserve our Mother Earth
This is to also encourage and do a part in protecting the environments.
These moves and hard work done by ShangriLa helps to introduce its business to more people around the world and also to win over customers' satisfaction.
Through this, it also shows that they care about the people around the world and shows that they are willing to lend a helping hand.
These campaigns and hard work help to reinforce positive consumer perceptions therefore built up an established loyal customer base.
Product differentiation and brand loyalty ShangriLa Hotel is adopting the generic competitive strategy of focused differentiation strategy, aiming to target a narrow market segment or market niche. ShangriLa also aims the group of buyers with high level of income and buyers who prefer luxury services and standard. Through this way, it earns a much higher revenue than its competitors. ShangriLa’s success is its special kind of hospitality of treating each and every of their guests like family. This is based on their underlying belief of mutual respect and genuine care which is being demonstrated day after day in all their hotels and resorts. While other brands are just starting out in primary destinations (both business and leisure), ShangriLa is already looking at secondary and tertiary cities which will no doubt develop in the near future. ( this is why they are on the upper hand ). Distribution of customer loyalty card Distribution of Golden Circle loyalty card is a frequent guest programme, established to create unforgettable experiences for the most valued guest of ShangriLa. This helps to promote brand loyalty hence help to protect sales and market shares from competition. Management and Technical improvements In management perspective, Shangrila invests heavily in training, and offers a variety of programmes for all levels, as well as their own training school, the ShangriLa Academy.
The key element of strategy implemented by ShangriLa Hotel in gaining competitive advantage over its rivals is by offering services that are superior and worth paying more for.
Shangrila adopts policies to ensure colleagues’ welfare which includes medical checkups.
Furthermore, Shangrila aims to provide the needy with opportunities for upward mobility in our community.
This helps to boost their overall services and markets.
Advertisements
ShangriLa had adopted different advertisment method few years back which includes video uploaded on YouTube and television commercial one of which states that it is their nature to treat customers well and this helped to boost their reputation for the hotel. ShangriLa depended heavily on advertisements which reflects factor of sustainability, nature protection, events (weddings), tours , careers advancements etc...
Through these, they help to touch every human heart with the devotion, creativity and compassion as well as instilling their philosophy “ hospitality from the heart” into the audience. In addition, it also emphasises on their fame for having the highest standards of service, the luxury and high standard hotels. These help to create and reinforce positive consumer perceptions hence leading to customer want for, loyalty too.
One example: http://www.youtube.com/watch?v=wZeS0Un3jwk
Advertising Graph
With advertisement, this will help to create a customer ‘s want and boost sales often at the expense of rival products therefore shifting the demand curve rightwards from D0 to D1, forming a new equilibrium at E1. With a new equilibrium, E1, the price of the service increases from P0 to P1 as the quantity output extends from Q0 to Q1 hence maximising the revenue earned. Advertisement also creates an imaginary difference between products as consumers would think that the products are of a better quality even though it may be the same between firms. Consumers would be more willing to buy products with advertising. Companies without advertising may not have the same amount of profits as companies with advertising. Less consumer would know about the firms and the demand for their service would not shift out.
Summary of non price competitions
In conclusion, Shangrila uses nonprice competitions to attract consumers into their services as price competition is too risky and waste a large amount of resources. ShangriLa uses
advertising methods to attract consumers. ShangriLa has introduced a global advertising campaigns on 31 May 2010. Their aim is to spread the message that it is their nature to take care of strangers like their family. The also produced videos to promote their excellent services. The video is filmed to make consumers feel that they will be well taken care of during their times of needs. It has successfully captured consumers heart and mind. This advertising method is very unique and different from the usual hotels advertisements. By having a unique advertising strategies, ShangriLa is able to capture the hearts of consumers and more consumers would choose to stay in ShangriLa’s hotels. ShangriLa also has different types of offers catered to consumers to take care of their needs. There are offers such as weekend offers, room offers and resort offers. These offers would give discounts to consumer when booking online. Many consumers would get rooms at cheaper rate as compared to other hotels which does not have such offers. All these methods are nonprice competition to attract consumers and it is less risky as compared to price competitions as firms not only suffer huge losses when competing with a larger firm but also it wastes a lot of resources which may lead to economic slowdown due to the inefficiency of managing the resources. Therefore ShangriLa involves actively in nonprice competitions.
How does oligopoly (ShangriLa Limited ) works?
Collusion between firms
A collusion involves noncompetitive agreement between rivals that attempts to disrupt the market's equilibrium. By collaborating with each other, rival firms look to alter the price of a
good to their advantage. The parties may collectively choose to restrict the supply of a good, and/or agree to increase its price in order to maximize profits. Groups may also collude by sharing private information, allowing them to benefit from insider knowledge.
To compete means that firms will use nonprice and pricing methods in other to win over consumers and to maximise the profit earned in expense of the other firms. By changing its pricing means that firms will change their price of the output in order to attract more consumers into buying their products. Firms may increase or decrease their prices to fit the market shares and the demand of the consumers. This is known as price takers. In order to maximise the amount of profit, ShangriLa will have to collude with other large firms in order to attract more consumers. Traders participating in accommodation trading, where goods are exchanged for noncompetitive prices, are involved in collusion. Colluding traders might share private information regarding upcoming takeovers, allowing them to benefit from insider trading. ShangriLa should collude with other firms so as to gain more profits and to share the amount of profits with other firms to avoid price wars from occurring.
A price war is when a company wants to increase market share and the easiest way is to reduce prices which increases product sales. The competition firms may be forced to follow suit if its products are homogeneous. As prices get lower the quantity of sales increases and customers receive the benefits. Eventually, a price point is reached that only one company can afford. Some companies will even sell at a loss in an attempt to eliminate the competition completely.
d. Do you think this company is making good profits (anything whereby its profit margin profit/revenue X 100 is greater than 10%, maybe considered as profitably for the purpose of our exercise). Profit margin: profit $382,196(USD, as of 2012) / revenue $2,057,249(USD, as of 2012) X 100 = 18.58% (4 sig. fig.) ShangriLa is making good profits as its profit margin exceeds 10% at 18.58%. Therefore it is profitable.
e. Does this company have any market advantage? Definition of market advantage: It is a competitive edge gained through superior products, lower prices, and effective promotion. Yes. Facilities. They have a wide range of goods and services for their customers, which other Hotels do not have. For example, Child Care. Superior Staffs. All their staffs are experienced and had all underwent training. Therefore, they will accommodate to all needs of customers professionally. Accommodation. They are known for their spacious and comfortable stay amidst a natural landscape, the resort welcomes guests with beautifully decorated guest rooms. Distributions. Shangrila have extensive distributions of more than 100 hotels around Asia, therefore having market advantages. Promotions. ShangriLa constantly implements different offers to cater to the needs of different customers. For example, ShangriLa is now offering 10 different types of offer package with more than 200 offers globally to fulfill the wish of the customers. Programmes. Golden Circle, a frequent guest programme, is established to create unforgettable experiences for the most valued guest of ShangriLa. Privileges. Exclusive benefits across many different aspects of their hotel and resort offerings will be available. Consistence. All ShangriLa branded hotels need to abide by strict guidelines that ensure that the brand is consistent, however, the local culture and aspects are always respected and incorporated to a largest possible extent. Standard. The company has many criteria which includes a very strong development arm, market conditions, potential for growth and the proposed site itself. Management. ShangriLa is one of the few hotel companies that owns most of its properties. The company is selective in signing management contracts as the business philosophy and values of the owners has to match ShangriLa’s own before a deal can be struck. Consequently there is a very strong link, trust and support between management and ownership.
f. Is the company's PES elastic or inelastic? What implication will this have on this company when their is an increase in the prices of its service or product? Definition Of Supply Inelastic : PES is a measure of the responsiveness of quantity supplied to a change in price. If the percentage change in price is greater than the percentage change in quantity supplied, supply is price inelastic and the value of PES will be less than 1.
It is inelastic as there are only a fixed number of rooms in a hotel, and there are fewer number of substitutions for it and people would usually pay the amount of price just to find a place to rest.The rooms that exist are already really expensive by national standards, and the supply of rooms is limiting by the zoning code and the permitting process rather than by a lack of market demand or profit opportunities. When the price of hotel room increases, people would not choose to go for a substitution as they would prefer to pay more for a comfortable and receive better services than going to motel or sleeping on the streets. As ShangriLa targets high income earners, consumers would not consider very much about the price since they are able to afford it thus, convenience and satisfaction overweight the price of the hotel rooms. Since it has a worldwide known reputation, people would still choose to stay in ShangriLa regardless of its increase in price as they know that it has rooms which is recognisable by national standards. 4. Short term A short term loan includes an overdraft which allows bank customers to overdraw their account by an agreed amount. ShangriLa has stable company operation and Maybank can make use of this opportunity to establish a long term banking relationship with ShangriLa, while earning more profit. Maybank will be interested to give an overdraft to ShangriLa Asia Limited as we will support them financially during a short run. Hence, they will be able to manage ShangriLa better by sustaining their high standards or purchasing better equipments, which will help them earn more revenues. Also, ShangriLa has better facilities than its competitors and earned more customers satisfaction. According to the revenues earned in 2012, it earned much more
compared to its competitors. Thus, this will make our loan to ShangriLa worthwhile as both parties benefit. 5. Long term A long term loan is a type of loan that has extended time period for repayment which usually lasts between 3 to 30 years. Shangrila has existing 81 hotels and 2 clubs, while 40 more hotels are expected to be launched in the next few years. It made high profit margin of 18.85%, making high revenues each year. By giving them a long term loan, the interest rates charged would also be higher and our bank would receive high profits. As Shangrila has high expectations of its staff and is composed of the most talented professionals in the hospitality industry, their operation are very indepth and detailed. ShangriLa is also constantly expanding their market, therefore it has a stable financial system. It is also famously known worldwide therefore the risk involved from the loan would be very little. This loan would involve a small risk as they would be able to repay a loan as they receive many consumers each year due to their reputation which boost their revenues. All in all, we will be lending a long term loan to ShangriLa for about 3 years after comparing the pros and cons of the short and long term loans. By doing so, we will be able to provide ShangriLa the amount of money so that they can be able to use it for different purposes in the future, for example constructing new hotels in developed countries. The reason for giving a long term loan is because ShangriLa has successfully opened many chains of hotels and they would also be able to repay the long term loan and Maybank would be able to keep a good relationship with them so that they would take a loan from us again in the future. By constructing the hotel, ShangriLa would be able to earn more profits as there are high income earners in the developed countries and many tourist would visit the countries for sightseeing so ShangriLa would be a good choice for them to stay and revenues would be higher. At the same time Maybank would also earn more interest from the company. ShangriLa would be able to earn more revenues with the large amount of capital to increase the output and to attract more consumers. The period of 3 years is enough for ShangriLa to earn its total cost and to pay the loan back with interest rates. ShangriLa would be able to use this loan as a variable capital to employ more workers to produce a higher output and earn more profits. This way they will increase the working efficiency of their services and repay us back within the given timeframe of 3 years.
g. How many directors are there in the company? There are four executive directors, three non executive directors and five independent nonexecutive directors in the company. Executive directors: Nonexecutive Directors:
Mr KUOK Khoon Ean (Chairman and CEO) Mr HO Kian Guan
Mr LUI Man Shing (Deputy Chairman) Mr Roberto V ONGPIN
Mr Madhu Rama Chandra RAO (CFO) Mr HO Kian Hock
Mr Gregory Allan DOGAN (COO) Independent Nonexecutive Directors:
Mr Alexander Reid HAMILTON Mr Timothy David DATTELS
Mr WONG Kai Man Mr Michael WingNin CHIU
Professor LI Kwok Cheung Arthur
Legal FrameWork Should there be a problem in returning the loan, ShangriLa would be able to find ways such as: Issuing more shares and selling their existing shares to earn money, thus helping us to ensure ShangriLa is able to pay back their loan. Signing an investment bank loan.These kinds of bank loans need credit checks which are precise because large amounts of money are involved. These are also considered as secured loans because if you do not pay them back, the offshore bank accounts can sell off your investment to earn the money you owe them. Signing a term loan A term loan is a monetary loan that is repaid in regular payments over a set period of time. Term loans usually last between one and ten years, but may last as long as 30 years in some cases. A term loan usually involves an unfixed interest rate that will add
additional balance to be repaid. Selling of assets such as buildings and equipments as mortgage to our bank. As Shangrila has many assets and if they are unable to pay, they will be able to sell their assets such as their chain of ShangriLa hotels to people which are able to afford them. As ShangriLa owns office properties, commercial properties, and serviced apartments/residences, they would be able to sell them in order to earn money to repay the rent. Hence, we are able to loan the money safely to ShangriLa Hotel as we have a couple of backedup solutions if they are unable to return the loan. We will also be confident in lending loan to ShangriLa as it undergoes economic diversification, where by it combines a variety of investments which are unlikely move the same way so that in time of failure in or an economic slump this help to reduce both the upside and downside potential and allows for more consistent performance under a wide range of economic conditions. They will have other assets to repay the loan as they invest in many different areas. Therefore, this will reduce the risk of loaning hence we are more confident and willing to work with them.
Conclusion In conclusion, ShangriLa is a big company which is efficient in operation and provides good services to consumers. The company makes a huge amount of profit annually and has built a worldwide reputation. The are limited risks in loaning money to ShangriLa as they target high income earners and therefore it would benefit Maybank when giving a loan to ShangriLa. The company is also competitive and manages the business well with such superior quality.
