KUALA LUMPUR: BCB Bhd, which aims to sell RM400 million worth of properties in the current financial year ending June 30, 2016 (FY16), is optimistic that the weakening of the ringgit and softening property market will not affect its business significantly.

BCB group managing director Datuk Tan Seng Leong ( pix) said the softening in the property market has been especially noticeable in the second half of this year and may last until the first half of next year, with a lot of construction work slowing down, leading to oversupply of building materials.

“Building materials, especially M&E (mechanical and electrical) parts need to be imported from overseas, especially China. With the ringgit down, prices have gone up. For this, we’re concerned. But the good thing is steel bar prices have come down because of an oversupply,” he told SunBiz in an interview recently.

BCB’s principal activities include property development, real estate management, hotel management, project management, road construction, manufacturing of concrete products and trading of building materials.

Tan said the group is fortunate that it awarded its contracts for ongoing projects much earlier and some projects have been completed and therefore it has not felt the brunt of the weaker ringgit.

“For the new projects, we’re cautious but steel bar prices have gone down, which is an advantage,” said Tan, who is also a vice-president of the Associated Chinese Chambers of Commerce and Industry of Malaysia.

BCB is upbeat that its projects in the Klang Valley as well as existing ones in Johor will contribute positively to its earnings. Tan explained that secondary towns are seeing good growth, citing Batu Pahat as an example.

“Batu Pahat is an industrial-based town and a vibrant secondary town. It is not much affected by this crisis but has benefited from it. Industrial-based areas are export-orientated. Those exports benefit a lot from the exchange rate (weaker ringgit),” he said.

Batu Pahat contributes about RM100 million to sales of the group.

Tan said BCB has achieved sales of RM180 million so far, in line with its target to sell RM400 million worth of properties in FY16. Sales stood at RM400 million in FY15. “It (RM400 million in FY16) is a conservative target because the (property) market, especially for the second half of this year and the first half of next year, is soft for all developers, and buyers are cautious.”

For FY16, the group will launch the second phase of HomeTree in Kota Kemuning next year. It launched the Elysia Park Residence in Medini, Johor, in August.

What advice can you offer to entrepreneurs/ youths who want to start their own business?

Young entrepreneurs today are highly qualified, but your ability is more important than your certificate. You must have good networking and, most importantly, a good attitude. You also need determination.

You must also have a sense of responsibility. As a group managing director, I’m responsible to my shareholders, staff and customers. Second, I’m also responsible to my parents, family and children. Third is the responsibility to yourself where good health is needed in order for you to perform. Fourth, is corporate social responsibility (CSR).

How do you maintain work/life balance?

I enjoy working but I have to balance my life with good health and spend quality time with my family, not forgetting CSR.

How has mentorship made a difference in your professional and personal lives?

During my time, there was no mentor. I didn’t really have one. But today you can see a lot of mentors.

What do you want to accomplish in the next five years?

BCB will continue to transform and grow in other major cities.

Most admired business leader?

Why? Hong Kong billionaire Li Ka-shing is very successful and he’s one of the richest Chinese in the world. In every cycle, when there’s a downturn, he made money.

Malaysia’s greatest brand?

Shangri-La (hotel), which is wellknown internationally. Not many people know that Shangri-La is from Malaysia and that’s one of the things that made Robert Kuok the richest man in Malaysia.

A must-read for every business owner/manager is …?

The Art of War by Sun Tzu. It’s a good book and the principles can be applied to life, work, business and management.

The biggest challenge you’ve faced?

When I transformed the township of Kluang which had 500 squatters then. I turned “impossible” to “possible”. I compensated them. Today, it has become a commercial and financial centre.