The Board of Directors of KSM wishes to update on the latest business developments in its Hotels and Resort Division.

The recent outbreak of COVID-19 in many countries, which is a rapidly evolving situation, has disrupted global travel and supply chains, and has adversely impacted global commercial activity. Two cities where the Company has operations, the New York City and the City of Toronto have issued directives to enforce citywide lockdown.

In line with the directive, the operations of DoubleTree by Hilton Hotel Alana – Waikiki Beach (Hawaii), SpringHill Suites New York Midtown Manhattan (New York) and Delta Hotels by Marriott Toronto Airport and Conference Centre (Toronto) are temporarily suspended until further notice. The closure of the aforesaid hotels is also one of the measures to protect the guests and employees, support social distancing and control costs.

For Tanjong Puteri Golf Resort in Johor, it continues to service guests who are staying at the resort prior to the Movement Control Order (“MCO”) imposed by the Government of Malaysia. All non-essential resort services and facilities have been suspended in accordance with the MCO.

It is currently unknown when operations are planned to resume. Overall, these factors will reduce the net cash flows generated in 2020. The Hotels and Resort Division may require financial support from the holding company, KSM.

The rapid development and fluidity of this situation precludes any prediction as to its ultimate impact, which will have a continued adverse effect on economic and market conditions and trigger a period of global economic slowdown. Given the evolving circumstances, it is not possible for the Company to quantify or determine the extent of the impact on its business and financial position. The Company will undertake appropriate measures to mitigate the impact from the current situation and any developments.

This announcement is dated 1 April 2020.