We refer to the announcement dated 19 January 2018 in relation to the Letter of Approval for a Special Incentive Package from MIDA for the development of an E-Commerce Fulfilment Hub in Shah Alam, Selangor.

The Board of Directors of Freight wishes to inform that FMGLM has received an approval letter dated 1 June 2021 from MIDA on the revision of conditions for tax incentive granted via Investment Tax Allowance under P.U (A) 113 Income Tax (Exemption) (No. 12) Order 2006, Income Tax Act 1967 to carry out Integrated Logistics Services activities and E-Commerce Fulfillment Hub activities as an expansion project (“Approval Letter”).

Among the revised conditions stipulated in the Approval Letter is that FMGLM is required to make investments in capital expenditure related to Integrated Logistics Services activities, including E-Commerce Fulfillment Hub activities of at least RM245 million.

The Company will proceed to finalise the plans for the development of Integrated Logistics Services activities and E-Commerce Fulfillment Hub activities in accordance with the conditions of the Approval Letter. The tax incentive is expected to contribute positively to the future earnings of the Group.

This announcement is dated 30 June 2021.