Source : Business Times – 23 Jun 2009
WHEN Wee Hur Construction was set up in 1980 by Goh Yew Lian, his two brothers and two brothers-in-law, Singapore was in the midst of the construction boom.
There were few big players in the industry back then. And with a start- up capital of around $50,000, Wee Hur clinched a window patching job – worth a grand total of $480.
What a difference the past three decades have made. Now the biggest job in the company’s portfolio is a $120 million condominium – Trilight, at Newton, which it will complete in 2011. And from a two-employee outfit, Wee Hur has grown to have a work force of more than 100 full-time staff.
It has also weathered many industry booms and busts. The most recent boom was in 2007-2008, when Wee Hur reported record FY2008 turnover of $126 million. Net profit rose 12.6 per cent to $8 million.
The company continued to do well into the first three months of this year. Net profit was $4.3 million, up from $0.7 million a year earlier, as turnover jumped to $45.4 million, from $23.1 million.
‘We are now working on projects we secured in the past two years,’ says Mr Goh. ‘Now is harvest time for us. A lot of our projects this year are at the mature stage. They will contribute more revenue because a higher percentage of the work is completed.’
As of now, Wee Hur is unaffected by the recession. In fact, it is benefiting from falling raw material costs. In addition, the better response to project launches in the past few months means construction can start on some projects clinched earlier.
‘Recent demand has been quite high,’ says Mr Goh. ‘Private projects that were put on hold last year due to high costs want to restart construction now.’
As at the first quarter, Wee Hur’s order book was $350 million, including such projects as Parkview Eclat in Grange Road, Stanchart building and DBS Asia Hub@Changi Business Park and Compassvale Pearl public housing project at Sengkang. These should last the company at least until 2011.
It is also seeing more enquiries from private developers this quarter. ‘We will continue to find new jobs to replenish our order book,’ says Mr Goh. ‘For the next two to three years we are quite optimistic.’
Having a wide range of experience helps. Wee Hur has built schools, industrial, commercial and residential projects – even a church and a temple.
It was also the first construction firm involved in the Sentosa integrated resort, clinching an $11 million deal to build a five-storey temporary corporate office for Resorts World Sentosa. ‘This was not a big project, but we are proud to have completed it within four months,’ Mr Goh says.
While many construction firms have faltered over the years, Wee Hur has stood firm. Mr Goh attributes this to a strong team of core personnel and staff who have been with the company around 20 years.
‘When we undertake a job, we do it well so we can get recommendations,’ he says. ‘For example, we have been working with Ascendas since 1994. This is evidence of our reliability.’
People are vital to Wee Hur – which is why it has resisted cutting pay or laying off staff despite the lacklustre economy. The company continues to be on the lookout for competent people, such as project managers and safety officers. ‘Our most important asset is people who can look after all stages of a project,’ Mr Goh says.
Looking ahead, Wee Hur is considering expanding into property development. ‘Now that prices have corrected, it is an opportunity to go in,’ he says. ‘This is natural growth for a construction business. We will however continue to work on our core business, which is building.’
The focus will be on Singapore, although Wee Hur is open to selective opportunities overseas. ‘We will mostly select clients from Singapore when venturing overseas, and eye niche markets where we do not have to compete with the local contractors,’ Mr Goh explains.
Despite its solid performance in the latest quarter, Wee Hur is not complacent, he says. ‘We are constantly sailing against the current. We need to continue to push on.’
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