Dear Shareholders,

2017 Economic & Sector Review
The Malaysian economy recorded a robust Gross Domestic Product (GDP) growth of 5.9 percent in 2017, compared to 4.2 percent in the previous year. While buoyed by global sentiment, this performance was also boosted by strong
exports and private sector demand. At the same time, the Ringgit strengthened against the US Dollar and rose to be the second-strongest performing currency in Asia.

Even in the midst of a strengthening economy in 2017, the property sector remained subdued, and the downtrend
continued. The soft property sector in 2017 was largely due to perception from the purchasers’ perspective. Not only did they have to grapple with stringent loan requirements imposed by the banks, buyers were also affected by the unfavourable market sentiment. This was further compounded with the serious mismatch between the prices of new property launches and what purchasers can afford.

Given the uncertainty and cautious sentiment, it was hardly surprising that property developers deferred planned launches, tampered original sales targets, and recalibrated their focus towards affordable and mid-market landed offerings in a bid to capture buyer attention. This led to a keenly competitive landscape amongst the few new launches, as developers strived to outdo each other in giving buyers the best-value-for-money products. The report by National Property Information Centre (NAPIC) lent credence to the slower 2017, with approximately 5 percent fewer property transactions for the 9 months’ period in 2017 as compared to the similar period in 2016.

2018 Property Sector Outlook
The Malaysian property market is expected to remain flat in 2018, with buyers continuing to exercise caution in
committing to high value transactions such as property purchases. However, residential landed Mainland Penang properties are expected to generate interest from potential buyers, as their offerings meet the considerations of most
homebuyers with the amenities provided and at more affordable prices.

Also, the high prices of houses on the island create a platform for Mainland Penang to fill the gap in property ownership. A major pull factor for Mainland Penang is that it allows buyers to possess landed homes for their families in fully integrated townships rather than in apartments with limited living space.

Tambun Indah is proud to be ranked within the top 30 property developers in The Edge Property Excellence Awards 2017.

On behalf of the Group, I would like to express sincere thanks to the authorities, our business partners, and valued customers for their cooperation and support to the Group during the year. To our shareholders, thank you for your kind support and confidence in us.

On behalf of the Board, I would also like to express my gratitude to management and staff for their dedication,
effort and contribution during the year. I am grateful to the members of the Board for their enduring commitment towards achieving sustainable growth and enhancing shareholders’ value.

Thank you.
Lai Fook Hoy