We refer to the Company’s announcement made on 21 November 2023 (“Announcement”) in relation to the receipt of letter dated 15 November 2023 from BCM for the letter of award amounting to RM404,350,000.00 from BCM in respect of a contract for main building and external works.

Unless otherwise stated, defined terms used in this reply shall carry the same meanings as defined in the Announcement.

The Board of Directors of the Company wishes to provide additional information that KPM enforces its right to recover the pre-agreed damages pursuant to clause 14 of the LA, which stated that in the event of pre-determination of the letter of award or contract or any contract and or agreement by BCM, BCM shall irrevocably and immediately compensate and pay KPM a termination damages for a sum of RM20 million.

The solicitor has written to BCM requiring BCM to make the aforesaid payment within 7 days from 21 November 2023 failing which legal action shall be commenced against BCM for recovery of the same.

Save and except for the potential impact on the existing order book of the Group and a one-off gain of RM20 million in the Group as a result of the receipt of payment by KPM of the aforesaid termination damages from BCM, the BCM Letter is not expected to have other material financial impact on the Company and the Group for the financial year ending 31 December 2023.

This announcement is dated 23 November 2023.