Shares of Singapore-listed Hotel Properties Limited (HPL) rose sharply on Monday after the company announced that its billionaire founder and managing director, Ong Beng Seng, will step down amid an ongoing corruption scandal. The stock gained as much as 4.7% during the trading session before closing up 3.5% at S$3.550—its highest level in over a week.
Ong, a Malaysian-born tycoon widely credited with bringing Formula One to Singapore, cited health reasons for his resignation. He confirmed that he will not seek re-election at HPL’s annual general meeting scheduled for April 29, saying he wishes to focus on managing his medical condition.
The 79-year-old is currently entangled in a high-profile legal case involving Singapore’s former Transport Minister, S. Iswaran, who was sentenced to 12 months in prison for corruption and obstruction of justice. Ong is expected to plead guilty to one charge in connection with providing high-value gifts to Iswaran.
Despite relinquishing his executive role, Ong remains the controlling shareholder of HPL. The company has assured investors that executive directors Christopher Lim and Stephen Lau will continue to lead day-to-day operations, signaling continuity in management and stability in the firm’s strategic direction.
Founded in 1981, HPL has grown under Ong’s leadership into a prominent developer with a portfolio of luxury hotels and residential properties across Asia, Europe, and the U.S. His exit marks a major leadership shift for the company, which now faces the dual challenge of managing reputation risk and maintaining investor confidence.
The market’s positive reaction reflects optimism around the company’s ability to move forward under new leadership while distancing itself from the ongoing scandal. As HPL navigates this transition, investors will be watching closely to see how it sustains momentum and strategic focus in the wake of Ong’s departure.
