INSIDE THIS ISSUE CORE FACTS MESSAGES ACTIVITIES GOVERNANCE FINANCIALS ADDITIONAL INFORMATION NOTICES FORM OF PROXY

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1 2011

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3 INSIDE THIS ISSUE CORE FACTS MESSAGES ACTIVITIES GOVERNANCE FINANCIALS ADDITIONAL INFORMATION NOTICES FORM OF PROXY Awards and Accolades A Multi-Award Winning Developer Our Developments Group Five-Year Financial Highlights Corporate Information Corporate Highlights Corporate Structure Directors Profile Chairman s Statement Group Managing Director s Review of Operations Sustainability Report Calendar of Events Corporate Governance Statement Audit Committee Report Statement of Internal Control Directors Report Independent Auditors Report Income Statements Statements of Comprehensive Income Statements of Financial Position Consolidated Statement of Changes In Equity Company Statement of Changes In Equity Statements of Cash Flows Notes To The Financial Statements Statement By Directors Declaration By The Director Properties Owned Statistics of Shareholdings Notice of Annual General Meeting Notice of Dividend Entitlement and Payment Statement Accompanying Notice of Annual General Meeting Form of Proxy ( 4 ) ( 6 ) ( 8 ) ( 12 ) ( 13 ) ( 14 ) ( 17 ) ( 18 ) ( 22 ) ( 26 ) ( 37 ) ( 52 ) ( 58 ) ( 65 ) ( 68 ) ( 70 ) ( 76 ) ( 78 ) ( 79 ) ( 80 ) ( 82 ) ( 84 ) ( 86 ) ( 89 ) ( 156 ) ( 157 ) ( 158 ) ( 161 ) ( 164 ) ( 169 ) ( 170 ) ( 171 )

4 AWARDS AND ACCOLADES Mah Sing Group Bhd has always strived to deliver its best in everything be it in offering innovative, high quality products or rewarding shareholders with favourable returns for their hard-earned money was a stellar year for the Group as it won 25 awards in recognition of its outstanding product offerings as well as its stellar corporate performance. For a full listing of Mah Sing s awards and accolades, kindly visit Year 7 April April 2012 April 2012 Awards Milestone Residence@Southbay project is an award winner under the Malaysian Landscape Architecture Award Asia Pacific Property Awards 2012 Best High-Rise Architecture for Asia Pacific with Icon Residence, Mont Kiara Best High-Rise Architecture for Malaysia with Icon Residence, Mont Kiara Office Development for Malaysia with Icon City, Petaling Jaya Best Commercial Renovation / Redevelopment for Malaysia with Icon City, Petaling Jaya Putra Brand Awards Property development 8 May 2012 The BrandLaureate Award Best Brands Conglomerate Award 22 May 2012 The BCI Asia Top 10 Awards Top 10 Developers Awards

5 AWARDS AND ACCOLADES (Cont d) Year Awards Milestone December 2011 Awards in London (in association with Bloomberg Television and Google) November 2011 Leadership Awards 2011 organized by the Asia Pacific Brands Foundation Mah Sing Group Berhad was accorded the Honorary Award in the 2nd Top Team 50 Enterprise Awards November 2011 Malaysia 2011 by Persatuan Usahawan Maju Malaysia Mah Sing Group Berhad won the silver award for Best Developer Worldwide in the OPP Awards for October 2011 Excellence 2011 Mah Sing Group Berhad accorded the Best Developer in Malaysia for the third time in the esteemed September 2011 Euromoney Real Estate Awards 2011 Won 2 awards at the SC Cheah Awards (in collaboration with Property Times) September 2011 July 2011 Listed in Top 10, The Edge s Top Property Developers Award 2011 Mah Sing Group Berhad was named Best Performing Stock (Highest returns to shareholders over 3 years) July 2011 for the second year running at The Edge Billion Ringgit Club 2011 Corporate Awards July 2011 May 2011 BCI Asia Awards for Top 10 Most Active Developers Mah Sing one of the recipients Mah Sing Group Berhad received 4 awards at the Asia Pacific International Property Awards 2011 in April 2011 April 2011 its customer P.T. Astra Daihatsu Motor, Indonesia March 2011 by BUREAU VERITAS March 2011 Awards while Mah Sing Group Berhad was honoured with Best Brand in the Property Category for the third consecutive year Mah Sing Group s Annual Report 2009 awarded certificate of merit for its outstanding corporate reporting January 2011 by National Annual Corporate Report Awards FROM TOP TO BOTTOM - CLOCKWISE 1. Top 10, The Edge s Top Property Developers Award The BrandLaureate Award Best Brands Conglomerate Award 3. The BrandLaureate Awards 4. The BrandLaureate Premier Brand Icon Leadership Awards The BrandLaureate Awards 6. SC Cheah Awards (in collaboration with Property Times) 7. Best International Industrial Development in the International Property Awards in London 8. Euromoney Real Estate Awards Top 10, The Edge s Top Property Developers Award Messages Activities Governance Financials Additional CORE FACTS Notices Form of Proxy Information MAH SING GROUP BERHAD ANNUAL REPORT 2011

6 A MULTI AWARD WINNING DEVELOPER Selected 2011 & 2012 Awards Best High-Rise Architecture Asia Pacific Icon Residence, Mont Kiara Mah Sing Group Berhad Best High-Rise Architecture Malaysia Icon Residence, Mont Kiara by Mah Sing Group Berhad Office Development Malaysia Icon City, Petaling Jaya by Mah Sing Group Berhad Best Commercial Renovation / Redevelopment Malaysia Icon City, Petaling Jaya by Mah Sing Group Berhad INDUSTRIAL DEVELOPMENT ASIA PACIFIC i-parc3@bukit Jelutong by Mah Sing Group Berhad BEST INDUSTRIAL DEVELOPMENT MALAYSIA i-parc3@bukit Jelutong by Mah Sing Group Berhad MIXED-USE DEVELOPMENT MALAYSIA Southbay City by Mah Sing Group Berhad Best International Industrial Development i-parc3@bukit Jelutong by Mah Sing Group Berhad 2011 Industrial Development Asia Pacific i-parc3@bukit Jelutong by Mah Sing Group Berhad 2011 Best Industrial Development Malaysia i-parc3@bukit Jelutong by Mah Sing Group Berhad 2011 Mixed-Use Development Malaysia Southbay City Mah Sing Group Berhad 2011 RETAIL DEVELOPMENT MALAYSIA DEVELOPER WEBSITE MALAYSIA Star Avenue, D sara by Mah Sing Group Berhad by Mah Sing Group Berhad Retail Development Malaysia Star Avenue, D sara Mah Sing Group Berhad 2011 Developer Website Malaysia Mah Sing Group Berhad 2011 Highly Commended Best Developer (Malaysia) The BrandLaureate Awards Putra Brand Awards - Property Development Top 7, The Edge s Top Property Developers Awards (2011) The Edge Billion Ringgit Club Awards 2011 for Highest Compound Returns to Shareholders Over 3 Year Top 10 Most Active Developers - Mah Sing Best Developer Worldwide 6

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8 OUR DEVELOPMENTS Mah Sing Group Berhad, Malaysia s premier lifestyle developer, synonymous with trendy quality properties in prime and strategic locations. Bahru and Sabah. 6 AREA NORTHERN REGION DEVELOPMENTS 1. Legenda@Southbay Penang 2. Southbay City Penang 3. Residence@Southbay Penang 4. Southbay Plaza Penang 5. Icon Residence Penang 6. Ferringhi Residence Penang 5 T : ,2,3 4 AREA SOUTHERN REGION T : DEVELOPMENTS 1. Austin Perdana 2. Austin Suites 3. Sierra Perdana 4. Sri Pulai Perdana 5. Sri Pulai Perdana 2 6. i-parc Tanjung Pelepas 4,5 1,

9 OUR DEVELOPMENTS (Cont d) AREA CENTRAL REGION T : / !"#$%& DEVELOPMENTS 1. One Legenda Cheras 2. Damansara Legenda D sara 3. Hijauan Residence Cheras 5. Perdana Residence 2 Selayang 6. Perdana Residence Selayang 7. Garden Residence Cyberjaya 8. Garden Residence 2 Cyberjaya 10. Southville City Bandar Baru Bangi 11. M Residence Rawang 12. Aman Perdana Meru-Shah Alam Growth Corridor 13. Bayu Segamat Cheras 17. Garden Plaza Cyberjaya 20. StarParc Point Setapak 22. Star Avenue@D sara Sungai Buloh 24. i-parc2 Shah Alam ,16,18 4,12,22 23,24,25 9 5,6 7,8,17 14,15,19, ,3,13 10 Messages Activities Governance Financials Additional CORE FACTS Notices Form of Proxy Information MAH SING GROUP BERHAD ANNUAL REPORT 2011

10 OUR DEVELOPMENTS (Cont d) AREA EASTERN DEVELOPMENTS 1. Sutera Avenue REGION T :

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12 GROUP FIVE-YEAR FINANCIAL HIGHLIGHTS Revenue (in RM 000) Shareholders funds (in RM 000) Net profit attributable to shareholders (in RM 000) FINANCIAL YEAR ENDED 31 DECEMBER 2007 RM RM RM RM RM 000 Revenue 573, , ,562 1,110,108 1,570,696 Profit Before Tax 117, , , , ,628 Profit After Tax 82,258 92,948 95, , ,637 Net Profit Attributable to Equity Holders 81,126 93,168 94, , ,556 Total Assets 1,151,731 # 1,253,442 # 1,609,944 # 2,195,246 # 2,850,381 Total Borrowings 161, , , , ,617 Equity Attributable to Equity Holders 630, , , ,866 1,073,151 Total Equity 635, , , ,456 1,088,489 Return on Equity 13% 13% 11% 13% 16% Return on Total Assets 7% 7% 6% 6% 6% (0.07) 0.07 (0.21) Basic Earnings per Share (sen) 12.4 * 12.4 * 12.4 * Fully Diluted Earnings per Share (sen) 11.8 * 12.4 * 12.4 * Net Assets per Share (RM) Gross Dividend per Share 16.0% 16.0% 13.0% 15.2% 22.0% Gross Dividend yield 5.7% 6.5% 4.5% 4.2% 5.2% Dividend Payout Ratio 45.7% 40.6% 43.0% 40.1% Price Earning Ratio Share price as at the financial year end (RM) * The comparative figures for basic earning per share have been restated to reflect the adjustment arising from the bonus issue completed during the financial year # The comparative figures for total assets have been restated to reflect the adjustment following the adoption of FRSIC17 in financial year The dividend payout for 2011 is estimated based on number of shares as at 31 December

13 CORPORATE INFORMATION BOARD OF DIRECTORS STEVEN NG POH SENG Executive Director Executive Director LEONG YUET MEI Non-Independent Non-Executive Director Independent Non-Executive Director Independent Non-Executive Director AUDIT COMMITTEE NOMINATION COMMITTEE LEONG YUET MEI REMUNERATION COMMITTEE LEONG YUET MEI OPTION COMMITTEE SECRETARIES YANG BAO LING (MAICSA ) REGISTRAR Tricor Investor Services Sdn Bhd (Company No V) Level 17, The Gardens North Tower Mid Valley City, Lingkaran Syed Putra 13 REGISTERED OFFICE Penthouse Suite 1, Wisma Mah Sing AUDITORS Chartered Accountants Level 19, Uptown 1 Selangor Darul Ehsan BANKERS Affin Bank Berhad Alliance Investment Bank Berhad CIMB Bank Berhad CIMB Islamic Bank Berhad EON Bank Berhad Hong Leong Bank Berhad HSBC Bank Malaysia Berhad Malayan Banking Berhad OCBC Bank (Malaysia) Berhad Public Bank Berhad Public Investment Bank Berhad RHB Bank Berhad P.T. Bank Ekonomi Raharja P.T. Bank Permata Tbk STOCK EXCHANGE LISTING Main Market of Bursa Malaysia Securities Berhad STOCK SHORT NAME MAHSING (8583) INDEX Messages Activities Governance Financials Additional CORE FACTS Notices Form of Proxy Information MAH SING GROUP BERHAD ANNUAL REPORT 2011

14 CORPORATE HIGHLIGHTS FROM THE YEAR MONTHS HIGHLIGHTS Ventured into property development and completed 4 projects. February 2000 June 2003 October 2003 Acquired 303 acres of freehold land for development of Sri Pulai Perdana Acquired 168 acres of freehold land for development of Austin Perdana Acquired 17 acres of freehold residential land in Damansara for the high-end niche project development of Damansara Legenda, Petaling April 2004 July 2005 December 2005 March 2006 July 2006 June 2007 July 2007 January 2008 November 2008 August 2009 September 2009 October 2009 December 2009 February 2010 April 2010 July 2010 November 2010 April 2011 Acquired 315 acres of freehold land for development of Aman Perdana township project in Meru-Shah Alam Growth Corridor offering only semi-detached and bungalows. Acquired 8 acres of freehold residential land for gated and guarded development of Perdana Residence in Selayang. Acquired 261 acres of land for development of Sierra Perdana with Adventure Park theme in Tebrau-Plentong, Acquired 10 acres of land in Cheras for development of One Legenda, a high-end residential project. residential development. Acquired 87 acres of land for development of Southbay Penang, an integrated commercial and residential hub in Penang Island. Acquired 5 acres of land for commercial development of Southgate, an integrated commercial and retail hub Acquired residential development of Sri Pulai Perdana 2, the first lifestyle township to undergo CONQUAS Acquired 5.3 acres of freehold land for commercial development of StarParc Point in Setapak. Acquired 115 acres of freehold land for development of gated and guarded, medium to high-end residential development of Garden Residence in Cyberjaya. Acquired 13 acres of prime land for development of corporate warehousing project of i-parc in Bukit Purchased 26 acres of prime land in Selayang to develop Perdana Residence 2. Acquired 20 acres of prime Acquired approximately 3.38 acres of freehold land along Pykett Avenue in the heart of Georgetown to develop Icon Residence, Penang. Purchased 6 acres of commercial freehold land in Cyberjaya to develop Garden Plaza. Acquired 19 acres of industrial land to build industrial lots, Shah Alam. Acquired 18 acres of land in Shah Alam to develop Star D sara. Acquired 61 acres of freehold land in Penang Island to develop residential homes, Ferringi Residence, Penang. Acquired 35 acres of freehold land in Cyberjaya to develop Garden Residence 2. 14

15 CORPORATE HIGHLIGHTS (Cont d) MONTHS HIGHLIGHTS October 2011 Purchased 226 acres of freehold land in Rawang to develop M Residence 1. February 2012 Acquired 157 acres of land in Rawang to develop M Residence 2. March 2012 Entered into a Joint Venture Agreement of 4.26 acres of land in Sabah with an option for additional 4.41 acres of adjacent land at total GDV of RM830million to develop Sutera Avenue. May 2012 Acquired 412 acres of land in Bandar Baru Bangi for Southville City FROM TOP TO BOTTOM - ANTICLOCKWISE 1. Sutera Avenue, Kota Kinabalu 2. Mah Sing iparc, Iskandar 3. M Residence, Rawang 4. M City, Jalan Ampang Messages Activities Governance Financials Additional CORE FACTS Notices Form of Proxy Information MAH SING GROUP BERHAD ANNUAL REPORT 2011

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17 CORPORATE STRUCTURE Active Operating Subsidiaries PROPERTY DIVISION PROPERTY DEVELOPMENT 100% Mah Sing Properties Sdn Bhd 100% Mestika Bistari Sdn Bhd 100% Intramewah Development Sdn Bhd 100% Loyal Sierra Development Sdn Bhd 100% Legend Grand Development Sdn Bhd 100% Maxim Heights Sdn Bhd 100% Multi Synergy Group Sdn Bhd 100% Myvilla Development Sdn Bhd 100% Nova Century Development Sdn Bhd 100% Nova Legend Development Sdn Bhd 100% Star Residence Sdn Bhd 100% Sierra Peninsular Development Sdn Bhd 100% Supreme Springs Sdn Bhd 100% Venice View Development Sdn Bhd 70% Enrich Property Development Sdn Bhd 70% Vienna Home Sdn Bhd 100% Vienna View Development Sdn Bhd 100% Uptrend Housing Development Sdn Bhd 100% Oasis Garden Development Sdn Bhd 100% Grand Prestige Development Sdn Bhd 100% Capitol Avenue Development Sdn Bhd 100% Elite Park Development Sdn Bhd 100% Major Land Development Sdn Bhd 100% Semai Meranti Sdn Bhd 100% Tristar Acres Sdn Bhd PROPERTY MANAGEMENT 100% Liberty Property Management Sdn Bhd 100% Acacia Springs Management Sdn Bhd 100% MS Icon Property Services Sdn Bhd 100% Prima Peninsular Development Sdn Bhd 100% Quantum Noble Development Sdn Bhd PROPERTY INVESTMENT 100% Marvellous Vantage Sdn Bhd 17 PLASTIC DIVISION PLASTICS MANUFACTURING 100% Mah Sing Plastics Industries Sendirian Berhad 100% Vital Routes Sdn Bhd 65% P.T. Mah Sing Indonesia PLASTICS TRADING 100% Mah Sing Enterprise Sdn Bhd Messages Activities Governance Financials Additional CORE FACTS Notices Form of Proxy Information MAH SING GROUP BERHAD ANNUAL REPORT 2011

18 Directors PROFILE JEN TAN SRI YAACOB BIN MAT ZAIN (R) Chairman/Independent Non-Executive Director Malaysian, 76 years of age Appointed to the Board on 29 June 1994 Chairman of the Audit Committee Chairman of the Nomination Committee Chairman of the Remuneration Committee Chairman of the Option Committee Attended all 4 Board Meetings and 4 Audit Committee Meetings convened during the financial year Jen. Tan Sri Yaacob had a distinguished career spanning nearly 40 years in Angkatan Tentera Malaysia before retiring in 1993 as a Panglima Angkatan Tentera Malaysia. He had attended courses at the Australian Army General Command and Staff College, the Naval Post Graduate School in Monterey, United States of America, the Royal College of Defence Studies in the United Kingdom and the Advance Management Programme at Harvard Business School. Apart from his directorship in the Company, he is the Chairman of Affin Investment Bank Berhad, Syarikat Permodalan Kebangsaan Berhad and SPK-Sentosa Corporation Berhad. There is no conflict of interest between him and the Company nor are there any family relationships between him and any director or major shareholder of the Company. He has not been convicted for any offences within the past 10 years other than for traffic offences, if any. TAN SRI DATO SRI LEONG HOY KUM, P.S.M., S.S.A.P., D.P.M.S., J.P., Hon. Ph.D Group Managing Director/Group Chief Executive Malaysian, 54 years of age Founder and First Director Appointed to the Board, on 3 December 1991 Member of the Remuneration Committee Member of the Option Committee Attended all the 4 Board Meetings convened during the financial year Tan Sri Dato Sri Leong Hoy Kum founded the plastics manufacturing division in 1979 and listed Mah Sing Group Berhad on the Kuala Lumpur Stock Exchange in He has been on the Central Committee of the 900-member Malaysian Plastics Manufacturers Associations since He is also the Honorary President of the Young Malaysian Movement Association (YMM) since 1999 and of The Dramatic Art Society, Malaysia since Besides that, he is the Vice-President of the Table Tennis Association of Malaysia since Tan Sri Dato Sri Leong Hoy Kum is the key driving force behind the phenomenal growth and success of Mah Sing Group Berhad. Driven by his determination to maximise shareholders value and passion for property, Tan Sri Dato Sri Leong ventured into property development in Being the Group Managing Director/Group Chief Executive, he has been instrumental in shaping Mah Sing as a multi-award winning real estate specialist. His vast experience spanning 30 years as well as his entrepreneur spirit culminated in the Group expanding rapidly with projects in Malaysia s main growth corridors, namely Greater KL (Klang Valley and Kuala Lumpur), Johor Bahru and Penang. In recognition of his achievements, he was conferred an honorary Doctor of Philosophy (Ph.D.) in Business Administration by the Honolulu University, Hawaii in He was conferred the Darjah Paduka Mahkota Selangor (D.P.M.S.) which carries the title of Dato and the Jaksa Pengaman (J.P.) awards by his Highness, Sultan of Selangor in 1996 and 2001 respectively. Tan Sri Dato Sri Leong was conferred the Darjah Kebesaran Sultan Ahmad Shah Pahang Yang Amat DiMulia Peringkat Pertama Sri Sultan Ahmad Shah Pahang (S.S.A.P.) which carries the title Dato Sri on the Sultan Pahang s 77th birthday on 3rd November 2007 and the Darjah Panglima Setia Mahkota (P.S.M.) which carries the title Tan Sri in He also sits on the Board of Directors of various other private companies. He is the brother to Director, Ms Leong Yuet Mei. There is no conflict of interest between him and the Company nor has he been convicted for any offences within the past 10 years other than for traffic offences, if any. 18

19 Directors PROFILE (Cont d) MR STEVEN NG POH SENG Executive Director Malaysian, 46 years of age Appointed to the Board on 27 June 2005 Attended all 4 Board Meetings convened during the financial year Mr Steven Ng Poh Seng has more than 22 years experience in audit, accounts, corporate finance and financial investment. He holds a Bachelor of Science degree majoring in accounting from the University of Wales (UK). He is a member of both the Institute of Chartered Accountants in England and Wales and the Malaysian Institute of Accountants. He worked in a Chartered Accountancy firm in United Kingdom and upon his return to Malaysia, he served as a Manager in Malaysian International Merchant Bankers Berhad before joining SP Setia Berhad. After 8 years of service in SP Setia Berhad, he left as Head of Corporate Affairs prior to joining the Company. He is currently the Executive Director of the Company heading the Group Corporate and Investment division. There is no conflict of interest between him and the Company nor are there any family relationships between him and any director or major shareholder of the Company. He has not been convicted for any offences within the past 10 years other than for traffic offences, if any. MR LIM KIU HOCK Executive Director Malaysian, 56 years of age Appointed to the Board on 30 October 2006 Attended all 4 Board Meetings convened during the financial year Mr Lim Kiu Hock has more than 30 years experience in property development. He holds a Bachelor (Hons) Degree in Housing, Building and Planning from the University of Science, Penang. He is a member of The Chartered Institute of Building, United Kingdom (CIOB). He is also a National Committee member of International Real Estate Federation (FIABCI). He was the head of the property division of Berjaya Land Bhd for 13 years, before moving on to MK Land Holdings Berhad as Chief Operating Officer, and then on to Zelan Development Sdn Bhd, a subsidiary of Tronoh Consolidated Berhad as Managing Director. He is well experienced in handing the development of golf and seaside resorts, shopping malls development and management, residential housing schemes and privatization of projects from the government. He joined the Company as Business Development Director before being appointed to the Board. There is no conflict of interest between him and the Company nor are there any family relationships between him and any director or major shareholder of the Company. He has not been convicted for any offences within the past 10 years other than for traffic offences, if any. 19 Messages Activities Governance Financials Additional Core Facts Notices Form of Proxy Information Mah Sing Group Berhad Annual Report 2011

20 Directors PROFILE (Cont d) MS LEONG YUET MEI Non-independent Non-Executive Director Malaysian, 58 years of age Appointed to the Board on 17 November 1997 Member of the Nomination Committee Member of the Remuneration Committee Attended all 4 Board Meetings convened during the financial year Ms Leong Yuet Mei has been attached to RHB Securities Sdn Bhd as a Dealers Representative since Prior to that she was attached to KAF Discount Berhad as a Senior Accountant. Ms Leong Yuet Mei is the elder sister to Tan Sri Dato Sri Leong Hoy Kum, the Group Managing Director/Group Chief Executive. There is no conflict of interest between her and the Company nor has she been convicted for any offences within the past 10 years other than for traffic offences, if any. CAPTAIN IZAHAM BIN ABD. RANI (R) Independent Non-Executive Director Malaysian, 50 years of age Appointed to the Board on 16 April 2001 Member of the Nomination Committee Member of the Audit Committee Attended all the 4 Board Meetings and 4 Audit Committee Meetings convened during the financial year Captain Izaham served in the Malaysian Armed Forces for nearly 14 years before his early retirement in He attended various career courses conducted domestically as well as in Australia and Singapore. He was the Business Development Manager at the Kukup Golf Resort in Pontian, Johor before serving Port Dickson Golf & Country Club as the General Manager until end Captain Izaham is also a Director in a leading multinational petroleum company from the Sultanate of Oman, (MB Petroleum Services Sdn Bhd) and Epicentro Resources Sdn Bhd which deals in Defence Products and is a subsidiary of British Aerospace (BAE Systems). There is no conflict of interest between him and the Company nor are there any family relationships between him and any director or major shareholder of the Company. He has not been convicted for any offences within the past 10 years other than for traffic offences, if any. 20

21 Directors PROFILE (Cont d) MR LOH KOK LEONG Independent Non-Executive Director Malaysian, 47 years of age Appointed to the Board on 23 September 2002 Member of the Audit Committee Member of the Option Committee Attended all the 4 Board Meetings and 4 Audit Committee Meetings convened during the financial year Mr Loh Kok Leong is an accountant by profession and has been attached with various international accounting firms both in Malaysia as well as overseas for more than 20 years, out of which 3 years were dedicated as a partner of Deloitte Touche Tohmatsu Kuala Lumpur. He is currently a partner of a professional services firm, Russell Bedford LC & Company. He is a member of the Malaysian Institute of Accountants, the Malaysian Institute of Certified Public Accountants and the Chartered Tax Institute of Malaysia. There is no conflict of interest between him and the Company nor are there any family relationships between him and any director or major shareholder of the Company. He has not been convicted for any offences within the past 10 years other than for traffic offences, if any. 21 Messages Activities Governance Financials Additional Core Facts Notices Form of Proxy Information Mah Sing Group Berhad Annual Report 2011

22 CHAIRMAN S STATEMENT DEAR VALUED SHAREHOLDERS, I am pleased to report that Mah Sing Group closed 2011 with record achievements - we breached the RM2 billion sales mark for the first time and achieved a record net profit of RM168.6 million also saw us continue our expansion drive with 3 land acquisition deals, where we see burgeoning demand for newly-designed properties underpinned by a vibrant economy which has benefited vastly from the wealth of natural resources including oil palm, timber and oil and gas. Operating Environment Economic Conditions and business spending, as well as higher public sector consumption, registered a strong growth of 8.2% in 2011 as opposed to 6.3% in Private consumption grew by 6.9% compared to 6.5% in 2010, boosted by improvement in labour market conditions and higher commodity prices. The unemployment rate saw a decline to 3.1% from 3.35 in 2010, the lowest rate recorded since year GDP Growth Inflation Unemployment rate Malaysia Economic Performance Indicators Source: Bank Negara Malaysia The Economic Transformation Programme (ETP) acts as the catalyst in the transformation of Malaysia s economy. In 2011, 100 projects amounting to RM billion in total investments have been announced as at 8 September. These projects are projected to create 22

23 CHAIRMAN S STATEMENT (Cont d) The Malaysian Property Market The Malaysian property market enjoyed healthier growth of 14.3% and 28.3% in volume and value respectively in There were 430,403 property transactions worth RM billion, with the residential sector spearheading the property market activities, taking up 62.7% share of the activity at RM61.8 billion. In itself, transactions in the residential sector grew 22% and 19% in volume and value respectively, higher than the overall market growth. By the 4th quarter of 2011, the Malaysian All House Price Index rose 13.9 points (6.6% growth y-o-y) to with hotspot areas like Financial Review, Corporate Highlights and Dividend In 2011, Mah Sing Group continued to set new benchmarks from 2010 s performance Breakdown of transactions value by type in 2011 Source: NAPIC 2011 Breakdown of transactions value by states in 2011 Source: NAPIC Continued Record Sales in 2011 We continued to record sales highs in 2011 from 2010, surpassing the RM2 billion sales mark with RM2.26 billion sales. We continued to exceed our internal targets for the third consecutive year. Year on year, sales rose by 51% from RM1.5 billion in Core Facts MESSAGES Activities Governance Financials Additional Notices Form of Proxy Information MAH SING GROUP BERHAD ANNUAL REPORT 2011

24 CHAIRMAN S STATEMENT (Cont d) Record High Net Profits Backed by strong sales, we achieved a record high net profit of RM168.6 million, an increase of 43% from This brings our net profit compound annual growth rate (CAGR) between to 47%. Over the years, our continued expansion across product segments, ability to delineate and quickly respond to market trends with a and Sabah, has resulted in a growing base of customers. CAGR for Revenue - 28% Net Profit - 47% Revenue Net Profit Dividend Since the introduction of our 40% dividend payout policy back in 2006, Mah Sing Group has continued to meet our investors expectations and kept to our commitment of distributing at least 40% of our net profits since The Board is pleased to propose a first and final dividend of 22% or 11 sen per ordinary share, less income tax of 25% for the financial year ended 31 December The proposed dividend will be subjected to the approval by shareholders at the forthcoming Annual General Meeting. Corporate Social Responsibility Through the Mah Sing Foundation, the Group continued to provide support for worthy causes in the areas of education, medical assistance and charity in During the year, financial assistance was provided for numerous charitable causes for example, to the Awards And Achievements In 2011, Mah Sing Group continued to achieve accolades and recognition for our products and corporate achievements, and in certain cases, even swept awards off the international stage. Mah Sing Group was awarded the Best of Asia Corporate Governance Asia Recognition Awards and Corporate Director Recognition shareholders over 3 years) for the second year running at The Edge Billion Ringgit Club 2011 Corporate Awards. Based on the Group s performance in 2011, Mah Sing was once again listed in the Top 10 of The Edge s Top Property Developers Award 2011 for the third year running. We were also honoured with the silver award for Best Developer Worldwide at the OPP Awards for Excellence

25 CHAIRMAN S STATEMENT (Cont d) Living up to our status as a Premier Lifestyle Developer, our products were recognised globally for their outstanding innovative concepts, designs and high-quality offerings. In 2011, 3 of our projects won various awards at the Asia Pacific International Property Awards 2011 Development in the International Property Awards in association with Bloomberg Television and Google in London. Asia Pacific, marking the third time that our project will represent the region on the world level. Mah Sing s consistent approach to branding, advertising and promotion, together with positive customer experience stemming from our product s concept, quality and timely delivery has increased the overall awareness and profile of the Mah Sing brand. We were honoured with Best Brand Conglomerate Award for the fourth consecutive year by BrandLaureate, and in 2012, took home our maiden Putra Brand Awards organized by the Association of Accredited Advertising Agents Malaysia (4As). P.T. Astra Daihatsu Motor, Indonesia. The award is evident that its customers are satisfied for the services rendered. Future Prospects The Malaysian economy is expected to grow at a steady pace of 4 5% in Domestic demand is expected to remain resilient and will be the anchor for growth. Several measures that were announced in the 2012 Budget are expected to provide support to private consumption. As of March 2012, the average base lending rate (BLR) of commercial banks remained unchanged at 6.53% and there was an increase in loans to households, driven mainly by loans for the purchase of residential property, securities and passenger cars. Property demand fundamentals remain intact as job security and incomes continued to grow, despite the cooling measures undertaken by Bank Negara Malaysia (BNM) namely the introduction of 70% of loan to value ratio for third property and the introduction of the Responsible Lending Guidelines, as serious investors are still keen to pick up good properties in prime locations. support demand for properties as urbanization continues. In 2012, we will maintain our focus on the local property market and to bring to market unique offerings that offer compelling propositions to our buyers. Our strong balance sheet with net gearing of only 0.29 times ensures a continuance of active landbanking strategy to fuel long term growth. development value of RM830 million. Appreciation On behalf of the Board, I would like record our appreciation and deepest thanks to our shareholders, business associates, customers, the Government and the local authorities for their confidence and trust in the Group throughout these years, which have supported the Group in its path to scale greater heights. The management and all staff also deserve a resounding commendation for their continued passion, unwavering commitment, drive and dedication which has spearheaded our phenomenal growth throughout the years. With all the continued support provided by our internal and external stakeholders, we look forward to another year of solid growth ahead. JEN. TAN SRI YAACOB BIN MAT ZAIN (R) Chairman 25 Core Facts MESSAGES Activities Governance Financials Additional Notices Form of Proxy Information MAH SING GROUP BERHAD ANNUAL REPORT 2011

26 GROUP MANAGING DIRECTOR S REVIEW OF OPERATIONS 2011 marked another good year for the Group, with sales improving 51% from RM1.5 billion in 2010 to RM2.26 billion in 2011, surpassing our internal target of RM2 billion. This means that we have also once again outperformed the Malaysian property market which showed healthy growth of 28.3% in value. We also exceeded the previous year s performance in terms of financial performance and recognitions. Our products concept, quality, timely delivery and customer service as well as our track record and branding had strengthened buyers confidence in us, and they have voted with their wallets. We have grown from strength to strength with the number of projects in our stable growing 9 times over a span of 7 years; from 4 projects in 2004 to 36 projects as at the end of In 2012, we have added an additional 3 projects; in February 2012 we acquired 157 acres in Rawang for M Residence 2, a township project to capture the spillover demand from M Residence 1 which was previewed in December In March the existing Bangi interchange to allow direct access to the project. As at mid May 2011, the Group has a remaining gross development value (GDV) and unbilled sales of approximately RM18.42 billion from our 39 projects, and these should last the Group for the next 5-7 years. To maintain and better our position, we shall continue to enhance value for our home buyers and real estate investors - improving the quality of life, enhancing their lifestyles and enjoying long-term capital appreciation. Delivering Results Mah Sing Group Berhad delivered a solid performance in Revenue at RM1.6 billion and net profit at RM168.6 million represents 41% and 43% year-on-year (y-o-y) growth compared to the previous year. This comes on the back of our successful launches and previews of our projects during the year. (iii) Commercial projects such as Southgate in Sungai Besi and StarParc Point in Setapak. Austin Perdana also contributed to revenue and profit. Other new projects launched to the market included Star D sara, Clover In terms of property segments, the residential sub-sector was the main contributor as per previous years, consisting 61% of the sales registered Sale by type development Sale by location 26

27 GROUP MANAGING DIRECTOR S REVIEW OF OPERATIONS (Cont d) The fast take-up rate, improved operational efficiency, timely execution and delivery of quality property units ensured the Group s balance sheets remained strong with net gearing at 0.29 times. The manageable gearing level would give us the flexibility to further gear up for future land acquisitions when the opportunities arise. With the positive responses towards our launched projects, we foresee that we are able to meet our sales target of RM2.5 billion for 2012 backed a launch target of RM3 billion. Our sales achievement as at 30 March 2012 of RM676 million already covers almost 27% of 2012 s sales target. Plastics The plastics segment continued to grow steadily and contributed positively to Group revenue and profit in Revenue for the segment grew by 10% to RM202.6 million compared to RM183.6 million in Improvement was seen in sales volume of all product segments from proprietary plastics pallets, OEM parts for electrical and electronic products and automotive components. The segment reported net profit of RM12.6 million for financial year Fluctuation in profit margin was mainly affected by a surge in resin prices and higher ESOS charges during the year. PROPERTY DEVELOPMENT Besides securing strong sales, the main growth driver for Mah Sing would be to procure good land that can be value added with good concept and design to suit market needs. An additional criterion would be the land s suitability for a fast turnaround, in line with the Group s business model. In 2011 and moving into 2012, the Group acquired various pieces of land in prime locations. The Group s strong sales track record has resulted in our project development cycle being accelerated, above industry norm. Hence, the Group is keen to acquire more niche and township lands for longer term momentum and sustainable growth. Landbanking exercise in 2011 Projects Mah Sing iparc, Iskandar Tun Razak M Residence 1, Rawang Acquisition Land size (acre) Cost (RM Million) *Expected GDV 27 Comments April To be developed into an integrated industrial and business park comprising semi-detached factories, detached factories and shop offices. Enormous potential to be a centralized logistic hub as it is only 1km from the Port of Tanjung Pelepas (PTP) and 23km August mixed development at the site of the old Perkeliling proceedings are pending. October Township acquired with master layout and development order for mix development, comprising mainly link and superlink homes with some semi detached homes and shops. This allows the Group to meet immediate market demand for beginner homes. Only 10km from Highway). It only takes 20 minutes to get to the in December 2011 registered strong interest, and as at May 2012 nearly 100% of Phase 1 comprising 214 units of link homes have been taken up. Total ,458 Core Facts MESSAGES Activities Governance Financials Additional Notices Form of Proxy Information MAH SING GROUP BERHAD ANNUAL REPORT 2011

28 GROUP MANAGING DIRECTOR S REVIEW OF OPERATIONS (Cont d) Landbanking exercise in 2012 Projects M Residence 2, Rawang Acquisition Land size (acre) Cost (RM Million) *Expected GDV Comments February Leveraging on M Residence success which is just 1km away, M Residence 2 was acquired to tap the spillover demand. Project will comprise mainly semi-detached homes, complemented by some shops. With the awareness already created via M Residence@ Rawang, there is a captive market which makes up a good buyers base. Like M Residence, M Residence 2 will benefit from its Emerald as well as Emerald East and West as well as the Sutera Avenue, A major road upgrade to turn the road from the Rawang toll into a dual carriageway is in progress, and shall improve the traffic flow along this road. March 8.7** Sutera Avenue occupies one of the most prominent CBD and has direct road frontage to the Coastal Highway, one nearby includes the Sabah UMNO building, Ming Garden Hotel and Asia City. Airport which is just 3.9km away. It fits well into the company s quick turnaround strategy. We can launch the project quickly as the location is matured and infrastructure is ready. Registration of interest has commenced with the first launch of the shops targeted by 3rd quarter

29 GROUP MANAGING DIRECTOR S REVIEW OF OPERATIONS (Cont d) Landbanking exercise in 2012 Projects Southville City, Bandar Baru Bangi Acquisition Land size (acre) Cost (RM Million) *Expected GDV 29 Comments May ,152 Southville City is located along the North South Highway, and 2.6km from the Sony plant. Mah Sing is planning a new interchange on the North South Highway just 2.5km from the existing Bangi interchange to allow direct access to the project. Total ,632 * Expected gross development value of the project as announced ** Includes option land of 4 acres Upon completion, the project will be home to 17,500 people and provide a seamless, rounded lifestyle for different family sizes. The first phase of this gated and guarded project will provide affordable homes to young starter families, mainly double storey link homes whilst later phases will have properties for the upgrader market like linked semi d, semi detached and bungalows. Close to 70% of the residential component will be priced below RM1million to meet the strong market demand for bread and butter properties. Approximately 30% of the township will comprise commercial components, which will further enrich the living space in Southville City and add to the vibrancy and inclusiveness of the township, and enhance capital values over the long-run. Southville City has prime frontage of 2km along both sides of the North South Highway, providing value enhancing branding opportunities for the project. For 2012 the Group targets land acquisitions which can potentially yield RM5 billion in gross development value (GDV) potential. This may come in the form of joint ventures with land owners and participation in Government land privatization. As at May 2012, the Group has already achieved 73% of its full year landbanking target. At the moment, the Group s remaining undeveloped landbank of 1,638 acres is expected to yield approximately RM18.42 billion GDV and unbilled sales. As 98% of these lands are still between the growth and planning stages of their life cycle, they can last the Group for 5 to 7 years. Hence, the new lands we acquire must be good lands which fit our business model and are suitable for developments which meet market demand. Core Facts MESSAGES Activities Governance Financials Additional Notices Form of Proxy Information MAH SING GROUP BERHAD ANNUAL REPORT 2011

30 GROUP MANAGING DIRECTOR S REVIEW OF OPERATIONS (Cont d) UPDATES OF KEY PROJECTS Landed Residential Development Greater KL Garden Residence, Cyberjaya Launched in 1Q2010, some 220 units in Precinct 1 of Garden Residence comprising 2 and 3 storey superlinks, and 2 storey semidetached homes as well as 132 units in Precinct 2 comprising 2 and 3 storey semi-detached homes and 3 storey bungalows are expected to be handed over in June Strategically located between KL City Centre and KLIA and within the Multimedia Super Corridor in Cyberjaya, Garden Residence boasts a resort concept. Being gated and guarded with perimeter fencing for individual precincts for exclusivity, it promotes communal living through its private clubhouse and various facilities and amenities. As the first gated and guarded landed development with a host of facilities in Cyberjaya, Garden Residence has seen strong interest and price appreciation. It is now into its final phase where the Aspen bungalows consisting of 69 units of resort bungalows are at an advanced stage of construction. Garden Residence 2 (Clover), Cyberjaya Acquired in November 2010 to leverage on the spillover demand from Garden Residence, Clover@Garden Residence was previewed in August and launched in November The project comprises 225 units of mostly semi-detached homes, with limited units of superlinks and bungalows. Showhouses for Clover@Garden Residence are expected to be completed in June 2012, featuring 2 storey and 3 storey semi-detached homes. Potential buyers will be able to view bare units as well as units with interior decoration with a feel of the landscape all set within a nature inspired theme. Hijauan Residence and One Legenda, Cheras Hijauan Residence is an exclusive development of garden villas, linked semi-detached homes, semi-detached homes, garden bungalows and bungalows within a gated and guarded community next to the Hulu Langat Forest reserve. 30 units of Phase 2 Garden Bungalows were completed vacant possession in April The show unit for One Legenda s Type C bungalows were completed in July 2011, and the niche project comprising 26 units of 3 storey bungalows is expected to be completed in September These bungalows offer build-up areas of 6,000 sq. ft. on average land sizes of 8,000 sq. ft. Each individual bungalow would be equipped with an in-house lift as a user friendly feature for the elderly or disabled. Its avant garde modern minimalist architectural design provides maximum privacy and comes with its very own clubhouse facilities FROM TOP TO BOTTOM - CLOCKWISE 1. Garden Residence, Cyberjaya 2. Garden Residence 2 (Clover), Cyberjaya 3. Hijauan Residence, Cheras 4. One Legenda, Cheras 30

31 GROUP MANAGING DIRECTOR S REVIEW OF OPERATIONS (Cont d) Kinrara Residence, Kinrara Launched in 1Q2011, Kinrara Residence is a gated and guarded mixed residential project. A RM4 million Clubhouse equipped with facilities such as swimming pool, wading pool, changing rooms, gym room and a community centre was completed in 2011 for the exclusive use of residents. Approximately 180 units of double storey link homes are expected to be delivered in mid With most of the superlinks sold out, 2012 s launches will be mainly semi-detached homes and bungalows. Located next to the 3,084 acres Air Hitam Forest Reserve and centered between the KLIA airport, Putrajaya and Kuala Lumpur, Kinrara Residence is conveniently accessible via an integrated network of trunk roads and highways comprising Lebuhraya Damansara-Puchong (LDP), New Pantai Expressway (NPE), North Klang Valley Expressway (NKVE), Shah Alam Expressway (KESAS), the toll-free Puchong-Sg Besi Highway, Old Klang Road and Middle Ring Road 2. M Residence and M Residence 2, Rawang M Residence and M Residence 2 in Rawang were projects acquired within 4 months of each other, to meet the demand for beginner homes in well-planned townships. M Residence@Rawang which was acquired in October 2011 and previewed in December 2011 comprises mainly link and superlink homes, with some semi-detached and shops. The M Residence 2 township will comprise mainly semi-detached homes, complemented by some shops. This is similar to the successful Aman Perdana township, and the Group intends to replicate the success by offering semi detached homes at link house pricing. Both projects are designed to be guarded communities with perimeter fencing, boom gates with guardhouses at entrances and 24hour guard patrol as well as clubhouse facilities. With Bukit Badong Forest Reserve sited near both these two projects, its residents will be able to enjoy the extensive greens from the Templer s Park, Kanching Forest Park and Commonwealth Forest Park, which are sited within a 15 km radius. Location wise, both these projects are about 10 km from the Rawang toll. Currently, a major road upgrade to turn this road from the junction of the Rawang toll into a dual carriageway until the junction of the main road to Bandar Tasik Puteri is in progress. Upon its completion, this will improve the traffic flow along this road. Both M Residence and M Residence 2 can now be easily accessed via the Kuala Lumpur-Kuala Selangor (or Latar) Expressway FROM TOP TO BOTTOM - CLOCKWISE 1. Kinrara Residence, Kinrara 2. M Residence 2, Rawang 3. M Residence, Rawang Core Facts MESSAGES Activities Governance Financials Additional Notices Form of Proxy Information MAH SING GROUP BERHAD ANNUAL REPORT 2011

32 GROUP MANAGING DIRECTOR S REVIEW OF OPERATIONS (Cont d) Landed Residential Development Penang Island Residence@Southbay and Legenda@Southbay The superlink homes in Residence@Southbay which has been fully sold will be handed over with vacant possession in July The project also received the Best Malaysian Landscape Architecture Award 2012 organised by the Institute of Landscape Architects Malaysia. The award-winning Legenda@Southbay - Best Architecture Malaysia (Multiple Units) are 3 and 4 storey resort bungalows in a gated and guarded community. Designed with ultra low density of only 3 units per acre, this exclusive project is expected to be delivered in November High-Rise Residential Development - Greater KL M Suites and M City, Jalan Ampang M Suites comprises 2 modern blocks of 20 storeys along Jalan Ampang, just 3km from the Petronas Twin Towers. Launched at the end of 2010, construction is at the superstructure stage with completion slated for early M City located less than 5km from KLCC is Kuala Lumpur city s one and only garden city community, and the first ever to boast multi-level thematic hanging gardens in Malaysia. This is a mixed development comprising designer SoHo suites, residential suites, sky villas and boutique retail. There are various thematic hanging gardens spanning over 4 acre for every 6th floor, with concepts such as sky garden, tropical sanctuary, spring park, bamboo groove and lagoon park which has become the talk of town and a key selling point. A 4-tier clubhouse houses a gymnasium and an infinity pool with an excellent city and lake view has been planned for the enjoyment of residents. The project is also designed to achieve the Green Building Index (GBI) Gold standard by increasing the efficiency of resource usage. First previewed in June 2011, all 401 units of designer SoHo suites have been fully taken up. The second phase comprising 24 retail units was also fully sold. This comprised 15 units of 3 storey boutique retail, 4 units of single level retail, 4 kiosks and a 39,000sq.ft supermarket which was acquired by gourmet supermarket chain Village Grocer. In late 2011, the semi-furnished residential suites in studio, 1,2 and 3 bedroom configurations were launched. All these options are also available as duplex units to ensure that discerning buyers can get exactly what they need FROM TOP TO BOTTOM - CLOCKWISE 1. Residence@Southbay, Penang Island 2. Legenda@Southbay, Penang Island 3. M City, Jalan Ampang 4. M Suites, Jalan Ampang 32

33 GROUP MANAGING DIRECTOR S REVIEW OF OPERATIONS (Cont d) Garden Plaza, Cyberjaya Located in Cyberjaya opposite the LimKokWing University of Creative Technology, Garden Plaza comprises 3 Towers namely Cambridge, Oxford and Harvard. To differentiate the project from other apartment developments in the vicinity, the Group planned a mix of unique products. For example, the 450sq.ft apartments come with 3 rooms, made possible by innovative space planning. The units are fully furnished, and were officially launched in September Icon Residence, Mont Kiara Located in Kuala Lumpur s most famous expatriate enclave, the low density development boast a unique Mediterranean design which gives each of the 3 towers a uniquely different profile. With only 2 to 6 all-corner units per floor, this is resort-style living at its finest. Icon Residence Mont Kiara is designed to be Green Building Index (GBI) and Green Mark compliant and will be built in accordance with Construction Quality Assessment System (CONQUAS). Construction on site is currently ahead of schedule with substructure completed and superstructure at level 6. It was recently named both Best High Rise Architecture Malaysia (5 star) and Best High Rise Architecture Asia Pacific at the Asia Pacific Property Awards in association with HSBC Bank Malaysia Berhad and the Royal Institute of Chartered Surveyors Asia. This means that the project will represent the region on the world level, competing against other high scoring companies from Europe, Africa, the Americas and Arabia. High-Rise Residential Development - Penang Island Ferringhi Residence Situated in the established tourist location in Batu Ferringhi, Ferringhi Residence shall be the epitome of luxurious resort living. This gated and guarded community in a perfect location enjoys rolling green hills to one side and a golden shoreline to the other. Comprising high-rise resort condominiums and low-rise condo villas, segmented precincts are set apart by their respective entrance statements as well as a resort clubhouse and green features. The project is expected to be previewed in 2H2012 and works on the show units of the condo villas are expected to be ready by July FROM LEFT TO RIGHT 1. Garden Plaza, Cyberjaya 2. Icon Residence, Mont Kiara 3. Ferringhi Residence, Penang Island Core Facts MESSAGES Activities Governance Financials Additional Notices Form of Proxy Information MAH SING GROUP BERHAD ANNUAL REPORT 2011

34 GROUP MANAGING DIRECTOR S REVIEW OF OPERATIONS (Cont d) Icon Residence, Penang Icon Residence on Pykett Avenue is located at the crossroads of Burma and Anson Road, and adjacent to Penang Island s most famous street, Gurney Drive. This location is synonymous for its legacy as one of the most prime and high-end residential enclaves on Penang Island. Inspired by luxurious waterfront resort living, the units cascade downwards to form a stylish silhouette that also enhances natural ventilation, making full use of the Island s tropical breeze. Commercial Development - Greater KL Star Avenue@D Sara, Sungai Buloh Launched in April 2011, the project is only 3 minutes from the proposed MRT Station in Taman Industri Sg. Buluh and strategically located at the busy traffic junction of Jalan Sungai Buloh (Guthrie Corridor), Persiaran Cakerawala and Jalan Lapangan Terbang Subang. With an estimated catchment of 360,000 people within a 15 minutes drive and excellent visibility with more than 300,000 passing traffic daily, and the lack of a competing mall nearby, Star Avenue@D Sara is poised to be a shopping hotspot. All the STAR Shop offices were fully taken up during its sales launch, and the Avenue Street Mall retail lots are nearly 100% sold. Mah Sing Group intends to keep approximately 65% to ensure the right tenancy mix to maximize the rental yields and increase capital appreciation. Ample carpark with more than 1,500 bays on the ground floor and basement level has been allocated to cater to the expected influx of shoppers. Earthworks is currently underway at the site. Industrial Development - Greater KL i-parc@bukit Jelutong, i-parc 2@Shah Alam and i-parc 3@Bukit Jelutong Launched in 1Q2011, i-parc 3@Bukit Jelutong was named Best International Industrial Development in The project was earlier named Best Industrial Development Malaysia and Best Industrial Development Asia Pacific, and represented the Asia Pacific region on the world level. The i-parc corporate factories concept has created new demand in the industrial property segment. These semidetached factories which have also proven popular as corporate offices, are all sited in locations with exceptional connectivity to logistics hubs. i-parc@bukit Jelutong is expected to be handed over at the end of May 2012, with completion of i-parc 2@Shah Alam and i-parc 3@ Bukit Jelutong slated for 1Q2013 and 2Q2013 respectively FROM LEFT TO RIGHT - CLOCKWISE 1. Icon Residence, Penang Island 2. Star Avenue@D Sara, Sungai Buloh 3. i-parc@bukit Jelutong 4. i-parc 2@Shah Alam 5. i-parc 3@Bukit Jelutong 34

35 GROUP MANAGING DIRECTOR S REVIEW OF OPERATIONS (Cont d) Industrial Development - Johor Bahru Mah Sing i-parc, Iskandar Malaysia In April 2011, the Group acquired approximately acres of freehold land in Johor Bahru, slated for the development of Mah Sing i-parc, an integrated industrial and business park. Mah Sing i-parc is only 1km from Port of Tanjung Pelepas (PTP) and 23km from Jurong Industrial Estate in Singapore. Such close proximity to PTP would attract industries which support port and marine activities, for example those that provide bunkering facilities, ship repairs and cargo handling services. Based on preliminary plans, Mah Sing i-parc shall develop semi-detached factories with launch expected in the second half of Mixed Development - Greater KL Icon City, Petaling Jaya Icon City was conceived with sustainability in mind coupled with iconic architecture and modern infrastructure. The first phase shall comprise 30 Jewels (7 and 8 storey lifestyle shop offices), Central Park, Gourmet Street (1-storey and 2-storey retail shops), i-sovo (Small office versatile office), Icon Residenz (serviced residences) and office blocks which are open for sale. Construction is currently at the substructure stage for phase 1. Within the development, there shall also be a hotel, corporate office towers and a retail mall. Icon City is poised to be amongst the first in the Southeast Asia to be certified by the Green Building Index (GBI), Malaysia, Green Mark, Singapore and Leadership in Energy and Environment Design (LEED), USA for its various components and be the ultimate integrated development in Petaling Jaya. Icon City Petaling Jaya has recently won 2 awards at the Asia Pacific Property Awards 2012 namely the Best Office Development Malaysia (Highly Commended) and Best Commercial Redevelopment Malaysia (5-Star). The sales gallery for Icon City was launched in mid 2011 and provided an additional impetus for strong sales. The 30 Jewels priced between RM7.7 million and RM16million is nearly fully taken up. I-Sovo comprises 2 towers of spaciously designed duplexes with double- volume 23ft high ceiling that separates the work and private space. Facilities proposed to be incorporated include a business or secretarial centre with video conferencing facilities and executive club with lounge, gym, Jacuzzi pool and sauna. Gourmet Street was officially launched in 2Q2012 and has seen strong interest due to its well-defined concept whereby the ground floor must house a F&B outlet. The product is designed so that there are extra long and wide walkways making it suitable to offer alfresco dining. Icon Residenz was launched in mid May 2012 and comprises 2 blocks of 40 storey towers with 572 units of serviced residences. Every unit is a semi-detached unit in the sky with crystalline architecture, 10ft high ceiling, fully fitted kitchen and bathroom, air conditioning, built-in wardrobe, audio video intercom security system, automated waste collection system as well as comprehensive leisure facilities. There are cantilevered sky pools with jacuzzi and wading pool, sauna and steam bath, reading lounge, gym room with aerobic and yoga zone, games room, children s playground, BBQ deck, picnic terrace and landscape garden with foot reflexology FROM LEFT TO RIGHT 1. Mah Sing i-parc, Iskandar Malaysia 2. Icon City, Petaling Jaya 35 Core Facts MESSAGES Activities Governance Financials Additional Notices Form of Proxy Information MAH SING GROUP BERHAD ANNUAL REPORT 2011

36 GROUP MANAGING DIRECTOR S REVIEW OF OPERATIONS (Cont d) Mixed Development - Penang Island Southbay Plaza, Penang Southbay Plaza is the first phase of Southbay City s offering of a new unique living experience. Sitting on arguably the most accessible location in Penang, Southbay Plaza is just 1km to the Second Link Bridge which is due for completion in September 2013, 7km to the Penang International Airport, 9km to the Penang Bridge and 15km to Georgetown. It is also part of the Rapid Penang transport service route. It comprises 2 two majestic towers of residential suites connected by a retail podium and was previewed in early To fit various market needs, there are several configurations namely 2 bedrooms, 3 bedrooms, and 3+1 bedrooms. Some of the units will also be available as duplexes. The low density development with approximately 100 units per tower means that there are only 5 to 6 units per floor, served by 3 dedicated passenger lifts. The high ceilings translate into airy, radiant interiors. There will be a 2.5-acre leisure and recreational facilities deck at Level 8 and 9. Building the momentum for continued growth We believe that selected segments of the property market would still be robust this and next year, and it is a matter of fitting supply to demand. Well-designed developments in strategic locations offered by developers with good branding and track record will still attract buyers. In this regard, Mah Sing has always taken pre-emptive measures to plan our products and timing of launches to suit market needs. In many cases, our innovative product design creates new demand. We are optimistic that we can continue our strong sales momentum as our products cater to market needs and are well sited in strategic locations. Furthermore, our product mix is well diversified as we have both landed and high-rise properties, as well as exposure to residential, commercial and industrial segments. This allows us to capitalize on shifting demand trends quickly. The Group will continue to actively scout for more niche and well located mega township lands which fit the Group s business model of quick turnaround and allow for value enhancement. This may come in the form of joint ventures with land owners and participation in Government land privatization. Preferred locations will be Malaysia s hotspot areas namely Greater KL, Penang, Iskandar Malaysia in Johor Bahru and Sabah. We have the balance sheet to fund the acquisitions that fit our business model and allows us to value add. As competition from other property developers to obtain land in prime locations is inherent and could escalate the land cost, we will strive to maintain an optimal balance between landbank and capital adequacy. Through the years, we have been able to produce laudable results thanks to our passionate, motivated and dedicated staff. Their hardwork and perseverance had ensured that we constantly delivered to our stakeholders. With continuous teamwork, support and trust, we shall continue to chart our course in becoming a world-class regional developer. TAN SRI DATO SRI LEONG HOY KUM GROUP MANAGING DIRECTOR/ GROUP CHIEF EXECUTIVE 1. RIGHT 1. Southbay Plaza, Penang Island 36