1.  Introduction

     The Board of Directors of SGB wish to announce that the Company has today entered into a loan agreement with SBI Spectrum Sdn Bhd ("SBI") in relation to the provision of

     financial assistance to the Company amounting to RM1.0 million ("Loan") ("Financial Assistance"). SBI is a substantial shareholder of the Company. Mr Sammy Tse Kwok Fai

     (“STKF”), who is the Executive Director (“ED”) of SGB is a substantial shareholder of SBI. Both SBI and STKF are deemed interested in the Financial Assistance.

2. Financial Assistance – Principal Salient Terms

    The principal salient terms of the Financial Assistance are as follows:

    (a) The Financial Assistance is for the purpose of meeting the working capital requirements of the Company.

    (b) Interest on the Loan is at eight percent (8%) per annum (“Interest Rate”);

    (c) The Financial Assistance is for a tenure of 6 months ("Repayment Date") from disbursement.

    (d) Unencumbered shares of Scomi Energy Services Bhd (“SESB” - an associate company of SGB) with market value of up to RM2.0 million are charged as collateral for the Loan,

         being two (2) times cover over the Loan, as a security for the repayment of the Loan (“Security”).

3. Financial Effects on the Financial Assistance

   (a) Share Capital, Substantial Shareholders' Shareholding and Net Assets ("NA")

         The Financial Assistance will not have any effect on the issued and paid-up share capital, substantial shareholders' shareholdings and consolidated NA of SGB.

   (b) Earnings

        The Financial Assistance is not expected to have any material effect on the consolidated earnings of SGB other than the interest expense.

4. Directors' and Substantial Shareholders' Interests
    Save as disclosed above (under Section 1) insofar as the directors of SGB are aware, none of the other directors, persons connected with the other directors or other substantial 

   shareholders of SGB, has any interest, direct or indirect in the Financial Assistance.

5. Statement by the Directors
    Having considered all aspects of the Financial Assistance, the Board of Directors of SGB is of the opinion that the Financial Assistance is fair and reasonable and is in the best

    interest of the Company.

6. Other Matters
    The Financial Assistance is not subject to any approval from the regulatory authorities or the shareholders of SGB.

    This announcement is dated 2 July 2020.