On behalf of the Board of Directors of WCT Berhad (“WCT”), I am pleased to present the Annual Report and Audited Financial Statements of the Group and the Company for the year ended 31 December 2009.

OPERATING ENVIRONMENT OVERVIEW

The past year has been a challenging period for the construction industry worldwide in the aftermath of the global financial crisis and the deep global recession that ensued.  The world economic output fell by 2.2% in 2009, according to the World Bank.  During the second half of last year, the global economy began its slow and uneven recovery, supported mainly by the various large stimulus programmes.

Despite last year’s global recession, Malaysia’s economy performed significantly better than expected cushioned by the Government’s stimulus programmes to boost domestic demand and improve liquidity.  Overall, the domestic economy contracted by 1.7% with inflation averaging at 0.6% last year.

FINANCIAL HIGHLIGHTS

The Group registered satisfactory performance notwithstanding the past year’s operating conditions.  It succeeded in achieving revenue of approximately RM4.7 billion, an increase of 23% over its previous year’s revenue of RM3.8 billion. It recorded a profit after tax of RM147 million, an increase of 44% over its previous year’s profit after tax of RM102 million.

For the year under review, the Construction and Property segments contributed approximately RM4.5 billion (96%) and RM139 million (3%) respectively to the Group’s revenue.

OUTLOOK

While the global economy is projected to grow by 2.7% this year, Malaysia’s GDP has been projected to grow by between 4.5% to 5.5% on the back of increased exports and the Government’s fiscal and monetary measures.  Inflation is expected to be modest at between 2% to 2.5% in 2010.

The implementation of the Government’s economic stimulus packages and infrastructure spending under the 9th Malaysian Plan will continue to support the domestic construction sector.  

Amidst the gradual and uneven global economic recovery, the Group will continue to exercise prudence in managing its resources.

STRATEGIC PARTNERSHIP

In October 2009, the Group forged a partnership with Iskandar Investment Berhad to jointly develop “1Medini Residences”, the first residential development in Medini, Iskandar Malaysia.  The said development has a Gross Development Value of RM600 million and comprises high-rise condominiums.  It is planned to be launched in mid-2010.

DIVIDENDS

The Company paid an interim dividend of 5.0 sen per ordinary share of RM0.50 each less 25% tax on 28th September 2009 in respect of the year ended 31 December 2009.  The Board of Directors is recommending a final dividend of 5.0 sen per ordinary share of RM0.50 each less 25% tax.   If approved at the forthcoming Annual General Meeting, the total dividend payout for the financial year 2009 will be 10.0 sen per ordinary share of RM0.50 each, less tax  (2008: 9.5 sen per ordinary share of RM0.50 each, less tax).

COMMITMENT TO THE ENVIRONMENT

To demonstrate the Group’s commitment towards the environment as well as to align our environmental management practices to the international ISO 14001 standard, the Group has embarked on the process of developing and implementing the relevant management system with the objective of attaining the ISO 14001:2004 certification by this year.

DIRECTORATE

Mr Wong Sewe Wing, a founder and an Executive Director of the Company, has retired on 16th January 2010 after serving the Group for 29 years.  On behalf of the Board, I would like to extend our sincere gratitude and appreciation to Mr Wong for his dedication and contribution to the Group.

ACKNOWLEDGEMENT & APPRECIATION

On behalf of the Board of Directors, I would like to express my sincere gratitude to our customers, shareholders and business partners for their continuous support and confidence in the Group throughout the year.  I would also like to convey my appreciation to the regulatory and government authorities for their invaluable assistance and guidance.  Last but not least, to the management and staff, my heartfelt thanks for your dedication and commitment to WCT Group.

Dato’ Capt. Ahmad Sufian

Chairman

30 March 2010