Dear Shareholders,

On behalf of the Board of Directors of Tambun Indah Land Berhad (Tambun Indah or the Group), I am pleased to present to you the Annual Report 2011 and the audited financial statements for the financial year ended 31 December 2011 (FY2011).

FY2011 was a good year for the Malaysian property market as a whole. According to data from the Valuation and Property Services Department of the Ministry of Finance, the number of transactions rose 14.3% to 430,403 in FY2011 while values climbed 28.3% to RM137.8 billion, driven mainly by the residential property segment.

The Penang property market also enjoyed uptrends throughout the year, with rising demand for both developments on the island as well as on the mainland, where most of Tambun Indah