A. PARTIES

The Company wishes to inform that the subsidiary of the Company, Nationwide Express Courier Services Berhad (“NECSB”) was served with a Writ of Summons dated 9.12.2021 and Amended Statement of Claim dated 14.12.2021 by MTR Freight Sdn Bhd (”MTR") on 23.12.2021.

B. BACKGROUND

MTR had provided freight services for NECSB and NECSB subsidiaries until March 2021. NECSB had requested for novation of accounts of NECSB subsidiaries in which NECSB took over the subsidiaries accounts by subsequently making part payments to MTR. The total sum of the alleged outstanding payment to MTR is RM8,403,746.19.

C. ORDERS SOUGHT

MTR is seeking for the following orders:

1. sum of RM8,403,746.19 being the Current Outstanding Sum due to MTR;

2. interest upon judgement sum at 5% per annum from 29.11.2021 when MTR issued demand to NECSB for the Current Outstanding Sum until the date of judgment;

3. interest upon the judgment sum at 5% per annum from the date of judgment until the date of full settlement;

4. cost; and

5. such other reliefs as this Honourable Court deems fit and proper.

D. FINANCIAL AND OPERATIONAL IMPACT

In the event that MTR is successful in its claim, the financial impact on the Company is limited to the amount of damages awarded by the Court and limited to its stake in NECSB.The operation of the Company and its group is not materially impacted by the said claim.

E. NECSB is seeking the necessary legal advice to resolve and/or defend against the legal suit.

F. FUTHER UPDATES

The Company will make the necessary announcement on the material development of this legal suit as and when necessary.

This announcement is dated 6 January 2022