The Company wishes to announce that its wholly owned subsidiary, Optimal Property Management Sdn Bhd (“OPM”), had commenced arbitration proceedings (“Arbitration”) against its Nominated Main Contractor, Handal Jayabina Sdn Bhd (“Handal”) in connection with the disputes and/or differences arising from and/or related to the Letter of Award dated 1 July 2016 and other associated contracts related to a project known as ‘Cadangan Membina dan Menyiapkan Pembangunan Akademik untuk Tetuan Kolej Universiti Islam Melaka’, where OPM is claiming a sum of approximately RM19 million. 

The date of the Arbitration has yet to be fixed since the appointment of Arbitrator is still pending.

Further material development and update on the matter will be announced by the Company from time to time.

The arbitration proceedings are not expected to have any material operational impact on the Company but the financial impact will be depending on the outcome of the Arbitration.

None of the directors and/or substantial shareholders of the Company or persons connected with them have any interest, direct or indirect, in the aforesaid arbitration proceedings.

This announcement is dated 6 May 2020.