ECOMOMIC
SUSTAINABILITY
Our company is dedicated to achieving economic sustainability through responsible financial practices and long-term growth strategies.
ECONOMIC
WCE is committed to upholding the values of sustainable business operations which aims to create economic value by delivering a high-quality expressway to our road users as well as sustainable economic value to our various stakeholders.
VALUE CREATION FROM PROJECT
Our key revenue generator for WCE is the West Coast Expressway Project (“WCE Project”). The WCE project was planned and designed to enhance connectivity to the existing expressways (such as PLUS, SKVE, NKVE, NNKSB, LATAR, KESAS and etc.) and provide road users with alternative routes while travelling. The entire expressway with 21 interchanges will enhance traffic flow in the West Coast region through a reduction in travel time and associated logistics costs. It is also a catalyst for economic growth through the enhancement of trade activities and the expected emergence of new township developments along the new growth corridor.
The WCE Project is divided into 11 sections whereby 4 sections have been opened for traffic and commenced tolling. Whilst it is normal for such highway concessions to incur net losses in its early years due to cessation of capitalisation of interest and amortisation of infrastructure development expenditure, the Group remains confident of the long-term viability of the project. This is premised on our projections made in the project financial model and reports from the independent traffic consultant, which indicate stable income and traffic growth over the concession period.
Most importantly, WCE Group’s focus is to expedite the completion of the WCE project, to commence highway operations and enhance overall financial health of the Group. In essence, prioritisation of construction progress and sustainability hinges on robust and improving direct economic performance. The Group is targeting to open the following 4 sections before the end of 2023:
To ensure the long-term financial sustainability of the WCE Project, the Group has the requisite funding in place via the Government Support Loan, Commercial Debts, Reimbursable Land Cost Financing and Equity Injection for the remaining project cost.
In order to supplement its primary business, the WCE Project, the Group will continue to look for other business opportunities, particularly in the construction industry and ancillary businesses along the expressway.
MARKET PRESENCE
Through the development of the WCE Project, a wide range of economic value is created and distributed to our stakeholders. The project creates job opportunities during both the construction and highway operation stages, which enables the development of supply chains and other socio- economic contributions. Beneficiaries include shareholders, local communities, financiers and investors, government and public users. The diagrams below show value created and distributed to stakeholders.
SUSTAINABLE PROCUREMENT
Effective and transparent procurement practice is important to the Group to ensure fair and non-discriminatory competition. Project sub-contractors are selected via tender processes and governed through its Tendering Management Standard Operating Procedures. For good governance and enhanced transparency, WCE has adopted online tender practices from invitation, submission to evaluation processes, increasing the efficiency and timeliness of completing the procurement processes.
A Tender Committee was set up to govern the evaluation and selection of sub-contractors, incorporating combination of technical, financial and pricing criteria. We emphasise on selecting sub-contractors with good performance track records and particular focus on compliance towards regulatory and environmental best practices. An annual performance review on all sub-contractors were carried out to ensure quality in terms of delivery of products and services to the Group. In addition, we are committed towards the selection of local subcontractors, where possible, to stimulate economic activities and growth along the highway alignment, and develop strong relationships with our business partners that are built on mutual trust. During the FY2023, all purchases of materials and services, and appointment of sub-contractors are local.
ANTI-BRIBERY AND ANTI-CORRUPTION
Conducting business activities responsibly is the foundation of any successful business. We are committed to conduct business in an ethical manner and this has been communicated to all employees, directors and business associates.
WCE has in place several compliance-related policies concerning business ethics, bribery and corruption. These include Code of Ethics & Conduct and Anti-Bribery and Corruption (“ABC”) Policy, both set out the principles and standards of behaviour that are expected of employees of the Group when dealing with customers, suppliers, business associates and external parties.
WCE’s Code of Ethics & Conduct sets out the principles and standards of business ethics and conduct of the Group. It addresses various key areas of concern including conflict of interest, insider information and securities trading, protection of assets and funds, business records and control, compliance to the law, personal gifting, health and safety and sexual harassment. All Directors and employees are expected to adhere with our policies and maintain ethical manner when performing their duties.
Our ABC Policy sets out guidelines and assigns responsibility for the development of controls and conduct of investigations related to allegations of bribery and corruption. In our ABC Policy, WCE adopts a zero tolerance stance to Bribery or Corruption. All Employees, Directors and Business Associates of WCE are prohibited from soliciting, receiving, procuring, offering, or giving bribes in any form whatsoever, and are required to adhere to the laws of Malaysia and countries where we have operations.
Any employees and third parties suspecting misconduct or wrongdoing, are encouraged to report through our Whistle Blowing Policy which is available in our website. During the year, there were no instances or complaints (FY2022: Nil) on suspected corrupt or unethical behaviour reported to us.
