Building and construction industry veteran Phua Lam Soon is a firm believer in the power of strategic alliances. The gregarious 59-year-old strives to leverage the benefits inherent in collaborations to catalyse innovation and solve complex challenges.

“Two heads, or more, are always better than one,” quipped the co-founder and Chief Executive Officer of SGX-listed construction services and property development company Boldtek Holdings Ltd.

“Many local towkays shy away from partnerships as they prefer to operate solo. I, on the other hand, am a jovial character, and enjoy working with partners. If a business associate comes to me with an idea, and I find it feasible, I would be keen to work it out together and see how big the idea can grow.” 

Boldtek began operations in May 1985, when Phua established Logistics Renovation & Building Construction to provide building renovation services to the private sector. 

In 1992, the company made its breakthrough with its first public sector project. Its customer base tripled between 1993 and 1997 to include Port of Singapore Authority, Housing & Development Board, JTC and the People’s Association.

Boldtek was successfully listed on SGX Catalist in January 2013.

In September that same year, the Group set up precast manufacturing operations through a joint venture in Johor’s Iskandar region, with a view to improving its operational productivity and cost efficiency. Products from this precast plant serve the Group’s public and private residential, industrial or commercial projects in Singapore, as well as external customers in Singapore and Malaysia.

In the same year, Boldtek also acquired a plot of land in Senai Industrial Park, Johor, with the intention of building light and medium industrial factories. The successful acquisition marked its first foray into overseas and industrial property development.

“2013 was a milestone year when we listed the company with my business partner Eric Ng,” Phua recalled. “That same year, we built our precast factory in Iskandar region, and acquired the land in Senai Industrial Park to build 20 freehold industrial factories. All of that was completed at lightning speed with a lean team.” 

Today, Boldtek has business interests in general building, precast manufacturing, property development and investment, in both Singapore and Malaysia. It has a track record of more than 30 years in the construction business in Singapore.

Its wholly owned subsidiaries, Logistics Construction and Boldtek Projects, are principally engaged in providing building construction services and interior decoration/fitting-out services in Singapore. Its indirect wholly owned subsidiaries, Le Premier Singapore and Le Premier Malaysia, are engaged in property development and investment. 

The Group also has two indirect subsidiaries, New Soil Technologies and MSC Engineering. Together with its partners, New Soil undertakes soil investigation and treatment works, while MSC supports the Group’s building and construction activities.

For the financial year ended 30 June 2021, Boldtek swung to a net profit of S$0.61 million from a net loss of S$4.0 million in the previous period, while registering a 13% year-on-year growth in revenue to S$60.3 million.

Pooling Expertise

“Over the years, Boldtek has worked with many partners, and an important lesson we’ve learnt is to choose a partner carefully,” Phua pointed out. 

In 2020, Boldtek established a joint venture with SGX-listed food catering company Neo Group Ltd for property development, property investment and property management operations. 

Their first project - freehold residential project Zyanya - was officially launched on 16 December 2021. “It was a win-win strategy - the pooling of financial resources and management expertise in project developments significantly reduced the risks undertaken by both parties,” Phua pointed out.

“I’ve known Mr Neo for many years, and we share a common tenacity to get things done. Hence, he trusted me with the planning and development of Zyanya,” he added, referring to Neo Group Founder and CEO Neo Kah Kiat. 

Phua did not stop there. In October 2021, the Group inked a non-binding memorandum of understanding (MOU) with Beijing Urban Construction Group (BUCG) to tap on each other’s technical expertise, as well as explore potential collaborations in public/private infrastructure and construction projects in Singapore.

China-incorporated engineering heavyweight BUCG is a general contractor, designer, or consultant in industrial and civil construction, infrastructure, real estate, highway and road, as well as subway and metro system projects. It is renowned for the construction of Beijing Daxing International Airport, which cost approximately US$17 billion.

“When we announced the partnership with BUCG on the evening of 29 October, it caught the attention of several investors who called us up the very next morning,” Phua recalled. 

“They wanted to find out why a PRC mammoth company like BUCG would want to sign a MOU with a smallish Catalist company like Boldtek,” he laughed.

“But it is precisely these types of partnerships that are pivotal to the Group’s long-term, sustainable growth. We have plans to co-operate on several projects in the public sector - BUCG’s strength in civil engineering works would definitely help us expand our capabilities and undertake more challenging projects ahead.”

One project that BUCG could participate in is the addition and alteration works to Singapore’s existing Air Traffic Control Centre. Boldtek was awarded this S$37.3 million contract by the Civil Aviation Authority of Singapore (CAAS) in August 2021. 

Following this contract win, the Group’s order book stands at approximately S$144.1 million, with various projects extending till 2023.

“BUCG is a large player, and they would definitely be keen to explore the bigger infrastructure projects in Singapore and around the region,” Phua added. “Their expertise includes building airports, so they are very keen to collaborate on this CAAS project.”

Robust Fundamentals

However, even as it expands, Boldtek continues to target sustainable earnings, particularly through long-term projects. “We remain very hungry for growth, but we want to achieve growth with calculated risks,” Phua commented.

To strengthen the Group’s financial position so it can continue to pursue quality projects with partners, Boldtek unveiled a share placement exercise in December 2021 to raise S$4.4 million from seven placees.

So far, Boldtek’s robust fundamentals have helped the Group mitigate the worst of the COVID-19 pandemic, which has wreaked havoc on Singapore’s construction sector. A number of industry players have ceased operations or declared bankruptcy as lockdowns suspended projects and fuelled cost increases in labour and materials.

“We were lucky in that Boldtek has prepared itself in advance for major disruptions,” Phua noted. “We were also one of the few construction companies who raised capital from the market to weather the storm. In total, we have raised approximately S$6 million from our rights issue and share placement.”

Apart from the Group’s day-to-day operations, Phua is also focused on Boldtek’s Environmental, Social and Governance (ESG) strategy, which revolves around its biggest asset - human capital. 

“Good, talented people are difficult to find in the construction industry. Millennials view the construction industry as unglamorous, tough and low-skilled, and many are unwilling to join us,” he said. 

“On our part, Boldtek is willing to train people from scratch and nurture them to become supervisors and managers. While many of our staff have been with us for more than 10 years, we always remind ourselves of the need to bring in fresh talent to create vibrancy in the company.”

Phua’s eldest son Yi An, 26, is a good example. Fresh out of university with a Civil Engineering degree, he began his career in Boldtek subsidiary NewSoil Technologies, and is learning the ropes under the supervision of Executive Director Eric Ng.

“Fortune favours the brave,” Phua pointed out. “I always tell my people to go out and take calculated risks. If you try, there’s a 50% likelihood of success. But if you don’t, the possibility of success is zero.”
 

Boldtek Holdings Ltd

Boldtek, through wholly owned subsidiaries Logistics Construction and Boldtek Projects (formerly Apex Projects), provides building construction and interior decoration/fitting-out services in Singapore. It has a track record of more than 30 years in the construction business in the city-state. The Group also operates a precast manufacturing plant in the Iskandar region, Johor, Malaysia. Its indirect wholly owned subsidiaries, Le Premier Singapore and Le Premier Malaysia, are engaged in property development and investment. It has another two indirect subsidiaries, New Soil Technologies and MSC Engineering. The former undertakes soil investigation and treatment activities, while the latter supports its building and construction activities.

The company website is: www.boldtekholdings.com

Click here for the company's StockFacts page.

For the six months ended 31 December 2022 financial results, click here.

 

About kopi-C: the Company brew

Text: Jennifer Tan-Stanisic
Photo: Company file

kopi-C is a regular column on the SGX Research website that features C-level executives of leading companies listed on Singapore Exchange. These interviews are profiles of senior management aimed at helping investors better understand the individuals who run these corporations.

For previous editions of kopi-C: the Company brew, please click here.  

For more information, or if you would like your senior executives to be featured on SGX Market Dialogues, please send suggestions to jennifer.t@sgx.com.