Further to our announcements dated 17 April 2019, 14 December 2018 and 13 November 2018, the Company wishes to update that the Company received the complete Final Award of the Tribunal dated 11 January 2024 in the arbitration proceedings between Multazam Development Sdn. Bhd. (“Claimant”) and FGV Plantations (Malaysia) Sdn. Bhd. (“Respondent”) from the Asian International Arbitration Centre (“AIAC”) on 6 February 2024.

In summary, the Tribunal awarded as follows:

1. RM86,341.45 be paid by the Respondent to the Claimant (after setting-off/deducting the balance amount unpaid in respect of the value of works done by the Claimant as at the date of the termination of the contract (that is, RM556,591.45) against the Liquidated and Ascertained Damages of RM470,450.00 to be borne by the Claimant) with interest at the rate of 5% per annum from the date of the Award until full satisfaction.
2. RM12,517,317.10 be paid by the Claimant to the Respondent (being RM16,267,317.10, comprising the Respondent’s additional costs for completion of the works and the Respondent’s loss of profit, set-off/deducted against the value of the Performance Bond of RM3,750,000.00) with interest at the rate of 5% per annum from the date of the Award until full satisfaction.
3. Nett costs of RM294,000.00 be paid by the Claimant to the Respondent.
4. Costs of the Award amounting to RM418,935.17 be apportioned between the Claimant and the Respondent on an 80:20 basis, as follows:
   • RM335,148.14 be borne and paid by the Claimant, and
   • RM83,787.03 be borne and paid by the Respondent.
5. In the event either party fails to pay the Costs of the Award in accordance with the apportionment above, the unpaid portion of the Costs of the Award which ought to have been borne by the party responsible for such portion shall be deemed as payment due to the other party.

The Final Award has no operational or financial implication to the Respondent and if the amounts awarded to the Respondent thereunder are recovered from the Claimant, such amounts received may be expected to contribute positively to the Respondent’s earnings.

This announcement is dated 7 February 2024.