We have recently learnt that some media have misinterpreted the departure of a company’s senior management and released misinformation about our company's business status and massive layoffs, we would like to clarify with the following statement:

We would like to deny the accusation with regard to layoffs exercise executed by our company.

Our company has always been in a healthy operating condition. RAM, the largest local rating agency, rated our company's bonds as AA3 (has a strong capacity to meet its financial obligations, is resilient against adverse changes in circumstances, economic conditions and/or operating environments). In order to cultivate the Malaysian market and have a unified interface within all sectors, the organisation has carried out an internal organisational restructuring exercise where Malaysia and Singapore region was combined together with Forest City to become “Malaysia-Singapore Region”.  This integration will help our company to gain greater support from the Group, improve the management efficiency, strengthen the management control and enhance the operations. The newly formed “Malaysia-Singapore Region” will be comprised of regional management, project management, real estate, sales and marketing, property management and 7 subsidiaries, and will be running two top rated hotels, two award-winning golf courses (the third one under construction), one IBS plant, one water park, one international school and multiple clubs. As of the time of the statement, our company has already handed over more than 15,000 units with premier quality, the total service area of our property management is close to 6 million square metres. The total staff strength remains more than 1500, of which 80% are local Malaysians. With the integration, we are also carrying out the consolidation and optimization of office equipment and assets, such as vehicle management, worksite management, etc.

In the new year, as a key development project of the Malaysia-Singapore Region, Forest City will focus on building industrial capabilities. The infrastructure and facilities we have built in the past few years will lay a solid foundation for industries such as artificial intelligence and smart manufacturing. At the same time, the integrated Malaysia-Singapore Region will not only continue to do well in the existing works, but also will strive to expand the development opportunities of new projects in real estates and other related business, and "strive for progress while maintaining stability."

As an organisation with real estate development and construction as our core business, our company requires to reshuffle employees' job scope and prioritize the resources according to the annual business development direction and the cyclical characteristics of industry development (including investment, construction, sales and property management, etc). This is not a peculiar phenomenon in the real estate industry, on the contrary, it is an important measure to be taken for the long-term sustainable development of the company.

In addition, we would like to emphasize again that we reserve the right to pursue the lawsuit or make any legal actions against any institution or individual who arbitrarily publish or repost the false information of our company.

Last but not least, thank you once again for your interest and attention given to our company.