WCT began life in 1981 as WCT Earthworks & Building Contractors Sdn Bhd. In June 2008, the company assumed its present name, WCT Bhd, to reflect the group’s diverse business.
Over the years, WCT has gained a solid reputation in the construction and property industry both locally and abroad. The period of slow economic growth in the mid-1980s as well as two financial crises — in the late 1990s and the recent economic turmoil from late 2008 — not only strengthened its market position but also propelled its expansion into project development and management, construction design, property planning and development and value engineering.
In the past 30 years, WCT has completed over 300 construction projects valued at RM16.5 billion in the UAE, Qatar, Bahrain, India, Vietnam and Malaysia. Among these are iconic projects like the Sepang F1 Circuit, the Bahrain City Centre and Yas Marina Royal Yacht Club in Abu Dhabi. WCT also owns shopping malls, premium offices, a business hotel and has equity ownership in three BOT toll highway concessions in India.
In the following interview, managing director Taing Kim Hwa, one of the founders of WCT, shares his views on the company’s business, strategies and growth outlook.
TEFD: What are the company’s competitive strengths and advantages?
Taing: WCT’s solid financial and operational performance in the construction industry since 1981 are due to our efficient construction outfit, proven track record in delivering world-class quality projects, a team of people who are hands-on, skilled and experienced, modern plant and machinery, and a culture of humility and respect to customers, clients, authorities, joint venture partners and other stakeholders.
In property development, we believe we have gained a reputation for being a reliable township developer due to the timely delivery of quality properties to purchasers. 
What are the company’s achievements in the past four years?
This year, WCT won the prestigious International Achievement award and Contractor of the Year award at the Malaysian Construction Industry Excellence Awards (MCIEA) 2010 organised by CIDB.
Last year, we successfully completed the most modern F1 circuit in the world, the Yas Marina Circuit in Abu Dhabi, within a record time of 27 months. WCT also achieved record group turnover of RM4.7 billion.
In 2008, our foray into Vietnam’s property market was met with the award of an investment certificate for the Platinum Plaza mixed-commercial development project in Ho Chi Minh City.
In 2007, WCT was inducted as a component stock of the KLCI by Bursa Malaysia Securities Bhd. WCT is currently a constituent of the FTSE Bursa Malaysia Mid 70 Index and the FTSE Bursa Malaysia Top 100 Index.
In 2006, WCT celebrated its 25th anniversary, and ventured into property investment and management by launching the Bandar Bukit Tinggi Mall in Klang. That year, our annual revenue breached the RM1 billion mark.
What have been the group’s strategies for expansion? How have these turned out?
One key strategy is to continue to leverage our achievements and expertise. As at Oct 31, WCT’s outstanding construction order book is valued at RM3.9 billion. We plan to continue expanding into the Middle East.
Recently, WCT was awarded a contract for the construction, completion and maintenance of a governmental administrative building in Doha, Qatar, valued at about RM1.36 billion. The WCT Group is also venturing into Vietnam, where demand for construction activities is expected to expand in years to come.
Another key strategy is to expand commercial development and property investment. WCT is currently undertaking a mixed-commercial development along the Damansara-Puchong Expressway in Kelana Jaya. The Paradigm shopping mall, which has a net lettable area of 700,000 square feet, is expected to commence business in late 2011.
To establish a recurring income stream, WCT is leveraging its success in property development by expanding into property investment and management. In November 2007, WCT took a significant step towards this by developing the Bukit Tinggi Shopping Centre in Klang. The shopping centre is leased to AEON (M) Bhd for an initial term of 10 years.
On Oct 7, WCT accepted the award of a build, operate and transfer concession by Malaysia Airports Holdings Bhd to undertake the privatisation of the development of an integrated complex at the New Low Cost Carrier Terminal at KLIA in Sepang. The concession period is up to 25 years which may be extended for a further 10 years. The integrated complex will comprise a transportation hub, a shopping mall and car park with 6,000 parking bays.
The proposed Platinum Plaza development in Ho Chi Minh City comprises a shopping mall, two office towers, a four-star hotel, a SOHO block and car park. WCT intends to retain the shopping mall for leasing and management. It is expected to be the largest in Vietnam when completed.
How is the company positioning itself within the industry?
WCT positions itself as an efficient, value-added and comprehensive service provider with combined expertise in the construction and property development industry covering the entire value chain of planning, design, development, construction, marketing and management.
Did the financial crisis in late 2008/09 have any impact on the group? What about the current economic turmoil in Europe?
During the financial crisis in late-2008 and 2009, the uncertain supply of major construction materials and their spiralling costs did disrupt the group’s construction activities and delayed property development launches, thus impacting on our targeted revenue and profit.
The fluctuating foreign exchange rates resulting from the current economic turmoil in Europe affects the group due to our foreign currency exposure in India and the Middle East. The uncertainties have also caused project owners to withdraw or scale back their projects.
Despite this, WCT’s sound financial state ensures we will emerge on a firmer footing.
What are the group’s plans for the future, both short term and long term? What are the plans to compete in the increasingly globalised environment?
Although the business environment is improving, we are committed to exercise prudent cost and cash flow management.
With the government’s initiatives to implement public-private partnerships to increase investments from the private sector, WCT targets to benefit from greater participation in infrastructure assets investment.
The group will continue to explore opportunities in the global market to improve our operational and financial performance. The group’s land acquisition will continue to be focused in growth corridors and designated economic zones with good infrastructure and amenities. To achieve this, we are on the look-out for land in high-growth and mature areas located in Malaysia and Vietnam.
In the medium term, WCT will focus on building more recurring sources of income by strengthening our retail and hospitality portfolios under our property investment and management division.
In the long term, the group will leverage on the sound financial and operational profile and track record built in the Gulf States and Malaysia to continue our business expansion in the global market. We will focus on three core and equally important business segments, namely construction, property development, and asset investment and management.
How would you like to see the group in 10 years’ time?
Our vision is to be the preferred global brand in construction, property development, assets investment and management while sustaining our competitive advantages and corporate culture of humility and respect.
This article appeared in The Edge Financial Daily, December 14, 2010.