Preparing for the transformation of Greater Kuala Lumpur in a prudent manner.

By Mak Kum Shi

Interview Ekovest Datuk Seri KC for SBW. 11 May 2016 chan tak kong/ the star

Ekovest Bhd managing director Datuk Seri Lim Keng Cheng shared that the company is currently expanding its infrastructure assets. It plans to propose infrastructure developments to the government.

The company is well positioned to make such proposals, as it has already sponsored the whole Greater Kuala Lumpur connectivity plan.

“Since 1993, we have been achieving profit without any losses. Our goal is to maintain it all the way,” Lim said.

“We had 17.7 million shares from the day we listed. Now we have over 800 million shares at 50 cents per share,” Lim added.

Lim faces challenges from shareholders who want to have dividends. The company is expanding its business and has targeted to reach RM10bil in market capitalisation.

Ekovest built, operates and owns the Duta-Ulu Kelang Expressway (DUKE). The company is expanding the highway in phases and is developing the Sri Damansara and Tun Razak link.

The company is also planning to build DUKE phase 3, which is the Setiawangsa-Pantai Expressway.

For its property business, the company intends to retain portions of profit from the sale of the residential components of its mixed developments for its ownership of its shopping malls.

To facilitate its expansion, the company will have to utilise its own equity. Although shareholders may not receive much dividends, this approach will enable the company to expand.

Staying conservative and prudent
The company manages its bottom line by locking in its costs. The company has the advantage of being able to do many things on its own, including retaining control over its designs and choice of materials.

It can even recycle materials, doing away with materials that escalate in costs. Such practices ensure that the company’s bottom line stays very healthy.

Lim elaborated that this is a very technical engineering issue. Owners that know the business well can control such matters, as they can advise the consultant to follow their needs without compromising the structural integrity of their developments. At the same time, they can derive savings by way of design.

The most important thing is that a property owner with a construction-based background stands a better position to ensure quality while controlling costs.

Lim made the distinction where it is the builders and not the designers who will constructing the buildings. It will be costly to the business if the designers draws something that is not buildable or is not cost-effective.

Bringing people closer to destinations
The Prime Minister’s Department’s Performance Management and Delivery Unit’s (PEMANDU) Economic Transformation Programme (ETP) Annual Report 2013 stated that the population of Greater Kuala Lumpur will need to grow from six million to ten million by 2020 to meet employment and Gross National Income (GNI) growth demands.

In view of this development, Lim shared that ten highways will be needed in the near future.

There is a need for various transportation infrastructure developments to connect to each other. After coming up with a study to connect them, regardless of the type of infrastructure systems, including MRT 1 to 3, LRT 1 to 3, Kuala Lumpur Monorail, Bus Rapid Transit, or DBKL’s Covered Walkways, they will need to be improved further.

The integration of park and ride facilities with highways and public transport is necessary to link different transportation systems together.

Ekovest’s infrastructure design philosophy is to bring people nearer to their destinations. This will help people to save time, fuel and the environment. Therefore, the company builds above existing roads, in line with its design philosophy.

“I call my highway a ‘green highway’, because building in this sense cuts down on carbon emissions. If you travel from one point to another, you save fuel. People have said, if you build highways, you create environmental issues. If you look at another way, you have 200,000 cars traveling every day, with each of them saving five litres of fuel, how many litres do I save for the country?” Lim stated.

“We have been contributing to the environment. People think infrastructure spoils the environment. The actual thing is that we are doing the right thing,” Lim added.

In addition to playing a big role in infrastructure development, it intends to have its property developments interacting with the general population. When there is a crossing, the company intends to propose a development.

This is an ICM approach, which stands for ‘Intercept, Collect the car, and Move them to public transport’.

This development concept is similar to that of KL Sentral, but it will enable more locations to replicate the concept and become transportation hubs.

Balancing between different businesses
Lim shared that the property business is used as a balancing act. When there are fewer infrastructure works, property development can be used to improve its business. The property business acts as a buffer and complements the infrastructure and construction businesses.

Citing its KL River City project along Jalan Pahang as an example, when the company plans its infrastructure development, it takes into account the impact its infrastructure will have on relevant neighbourhoods. By choosing an old neighbourhood, the impact of its infrastructure will be great.

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