The Company wishes to announce that the High Court of Malaya at Shah Alam today granted an order for the winding-up of the Company’s indirect wholly-owned subsidiary, Scomi Rail Bhd (“SRB”).

The details of the winding-up order are as follows:

(a) The winding up petition ("Petition") was presented by Voyage Logistics International (Malaysia) Sdn Bhd ("Petitioner") to the High Court of Malaya at Shah Alam on 20 February 2018 and was served on SRB on 22 February 2018.

(b) The amount claimed under the petition is RM947,823.14 together with interests thereto (“Debt”) due to non-payment for freight forwarding and logistics services provided by the Petitioner to SRB.

(c) SRB and the Petitioner had agreed to an instalment plan to repay the Debt which was, pursuant to such repayments, reduced to a final instalment of RM119,823.00. SRB however defaulted in the repayment of this final instalment. In the interim, SRB had applied for a judicial management order as announced in the Company’s announcements dated 7 December 2018, 24 January 2019, 5 March 2019, 28 March 2019 and 19 April 2019, during which a moratorium was in effect against the winding-up of SRB. SRB had withdrawn its application for a judicial management order on 6 May 2019. Pursuant to the withdrawal of the aforementioned application, the High Court of Malaya at Shah Alam had granted the order for the winding-up of SRB.

(d) SRB is not a major subsidiary of the Company.

(e) As to date, the Company’s original cost of investment in SRB is approximately RM15,000,000.00.

(f) The winding-up of SRB will not have any significant financial and/or operational impact on the Company for the financial year ending 30 June 2019.

(g) No material loss is expected to arise from the winding-up of SRB.

(h) The Company does not intend to contest the winding-up order on SRB.

This announcement is dated 6 May 2019.