1. INTRODUCTION 

The Board of Directors of KTI Landmark Berhad (“KTI” or “the Company”) wishes to announce that the Company’s wholly-owned subsidiary, K.T.I Sdn Bhd (“KTISB”), had on 14 October 2025 accepted a Letter of Intent (“LOI”) from the Ministry of Tourism, Culture and Environment of Sabah (“KePKAS”) on the proposed appointment of KTISB by KePKAS together with the Board of Trustees of Sabah Parks, Sabah Tourism Board and Sabah Cultural Board, to develop a new Office Building named Wisma Kementerian Pelancongan, Kebudayaan dan Alam Sekitar (“Wisma KEPKAS”) located at Jalan Wisma Budaya, 88000 Kota Kinabalu, Sabah (“Project”).

2. SALIENT TERMS 

The duration of the Project is 36 months with the total estimated development cost of RM70,000,000.00.

The scope of works includes the following:- 

(i) Demolition of the existing Wisma Budaya; and 

(ii) Construction of a new Wisma KEPKAS on a site measuring approximately 1.1 acres. 

3. RISK FACTORS

The Board is not aware of any material risk factors arising from the Project other than the risks and uncertainties that are generally associated with the construction industry, such as changes in political, economic and regulatory conditions, shortage of labour and building materials, increase in labour and material costs and natural disaster that may affect the financial and operational conditions and the profitability of the Group. However, with the experience and expertise in similar construction projects, these risks are expected to be effectively mitigated.

4. FINANCIAL EFFECT

The Project will further increase and enhance the existing order book of the Group.

The Project will have no effect on the issued share capital and the shareholding of the substantial shareholders of the Company but it is expected to contribute positively to the earnings and net assets per share of the Group for the financial year ending 2026. 

5. APPROVALS REQUIRED

The LOI and the Project are not subject to the approvals of the shareholders of KTI or the approvals of any other relevant regulatory authorities.

6. INTEREST OF DIRECTORS, MAJOR SHAREHOLDERS AND/OR PERSONS CONNECTED WITH THEM

None of the Directors and/or major shareholders of KTI and/or person connected with them have any interest, whether direct or indirect, in the LOI and the Project.

7. DIRECTORS’ STATEMENT 

The Board of Directors of the Company, having considered all aspects of the LOI and the Project is of the opinion that the LOI and the Project are in the best interest of the Company and its shareholders.

This announcement is dated 14 October 2025.