Malaysia's WCT to continue with Viet Nam project

WCT Engineering Bhd said it would continue with its proposed commercial development in Ho Chi Minh City despite the growing inflationary pressures afflicting the country.

However, the company may stretch out the development of Platinum Plaza, which has a gross development value (GDV) of RM1 billion, over a longer period or even scale down the project depending on the general state of the country’s economy, said its executive director Loh Siew Choh.

He said WCT remained flexible on its proposed investment in Viet Nam.

WCT’s 67% subsidiary, BSC-WCT Company Limited secured an investment certificate from the Ho Chi Minh City authority in January 2008 to begin its preparation for the development.

Platinum Plaza, covering a 9ha site, comprises a shopping mall, a hotel, two office towers and a small-office-home-office (Soho) block.

Loh said it would take the company several months to acquire a suitable site for the project and to obtain the construction permit. He said the company was looking at acquiring land from the government instead of private owners for better prices.

“WCT will build the shopping mall first. The construction is expected to commence in 2010 and finish by 2014,” Loh told the reporters after the company’s AGM here yesterday.

He said that as the project had not got off the ground, he would not be able to gauge how the rising costs would impact the project or its returns on investment.

Besides Viet Nam, the company is also exploring infrastructure-based projects in North Africa, which it believes is a new growth area.

In 2007, WCT secured several new construction projects in the Middle East, including the Meydan Racecourse project in Dubai, valued at RM4.6 billion. Construction of the racecourse is scheduled for completion in 2009, in time for the Dubai World Cup horse race in 2010.

WCT’s order book jumped 15.6% to RM5.2 billion in 2007, from RM4.5 billion a year earlier, with overseas projects making up 70% of the orders. The company is expecting more orders to come from the Middle East and remains upbeat on its performance in 2008.

Shareholders yesterday approved the company’s proposed name change to WCT Bhd. (The Edge Daily)