The Board of Directors of PESTECH (“Board”) wishes to announce that its wholly-owned subsidiary, PESTECH Technology Sdn. Bhd. (“PTECH”) had on 17 May 2021, obtained the required endorsement from RTS Operations Pte. Ltd. (“RTS”) with regards to the affirmation of a Letter of Acceptance in relation to the contract for the design, manufacture, supply, delivery, installation, testing and commissioning, interfacing, warranty and other related works of Traction Power Supply of Rapid Transit System (“RTS”) Link Assets for RTS link between Malaysia and Singapore (hereinafter referred to as the “Project”) at a total contract value of Ringgit Malaysia Sixty Four Million Nine Hundred Fifty Four Thousand and Seven Hundred (RM64,954,700.00).

The Project will connect Johor Bahru, Malaysia and Woodlands, Singapore crossing the Straits of Johor.  The link will be a modern Light Rail Transit (“LRT”) system that will provide high volume, fast and efficient transportation system between stations. The link will have a capacity of 10,000 passengers per hour, per direction and an expected ridership of about 40,000 passengers per day upon opening.  The 4km RTS link is expected to ease the traffic congestion on the Johor-Singapore Causeway and enhance cross-border connectivity for commuters.   The procurement of this LOA through open bidding process signifies recognition of PESTECH’s capability in delivering full EPCC in rail electrification projects and plants the milestone of the Group in bringing local expertise in rail electrification to serve the ASEAN region. 

The Project shall commence immediately and the completion date of the Project shall be on 30 September 2026.

The Project will contribute positively towards the future revenue and earnings of PESTECH in accordance to the stage of project progress to be recognised in the financial years ending 30 June 2022 to 30 June 2027.

PESTECH does not foresee any exceptional risk other than the normal operational risk associated with the Project such as availability and changes in the price of raw materials. The Company will take necessary steps to mitigate the risks as and when it occurs.

None of the Directors and/or Major Shareholders and/or persons connected to them, has any interest, direct or indirect in the Project.

The Board is of the opinion that the Project is in the best interest of the Company.

This announcement is dated 17 May 2021.