We wish to announce that Emas Kiara Marketing Sdn Bhd (“EKM”), a wholly-owned subsidiary of MB World had served 2 Payment Claims under Section 5 of the Construction Industry Payment & Adjudication Act 2012 (“CIPAA”) against MEB Construction Sdn Bhd (“MEB”) on 18 October 2016 for a total amount of RM4,317,563.23. (“CIPAA Payment Claim”)

Both CIPAA Payment Claims are in relation to disputes over  non-payment for works done by MEB for 2 projects, namely the “Supply, Deliver and Installation of Geotextiles (Soil Improvement Works) For Section 2 of South Klang Valley Expressway” and “Supply, Deliver and Installation of Filter & Reinforcement Geotextiles For Section 3 of South Klang Valley Expressway”. MEB has responded via their solicitors on 2 November 2016 with 2 Payment Responses disputing both CIPAA Payment Claims and in turn, raising a counterclaim against the amount claimed. Both CIPAA Payment Claims have been referred to Adjudication pursuant to 2 Notices of Adjudication both dated 16 November 2016.

The Management is confident of a fairly good chance of success for both CIPAA Payment Claims and are taking all necessary measures to resist the alleged counterclaim raised by MEB.

There is no operational impact arising from both CIPAA Payment Claims.

Further announcement on the development of the above matter will be made to Bursa Malaysia Securities Berhad in due course.

This announcement is dated 17 November 2016.