The Board of Directors of Santak Holdings Limited (the company and together with its subsidiaries, the Group) announced that its factory in Johor, Malaysia (Johor factory) is closed from 18 March 2020 until 31 March 2020 in accordance with the Movement Control Order (MCO) as directed by the Government of Malaysia in response to the COVID-19 situation. The Johor factory is expected to resume operations only from 1 April 2020. This closure is expected to impact the production of precision machined parts manufactured by the Johor factory. In addition, as a result of the MCO, some of the Malaysian employees working at the Group's Singapore factory are not able to commute daily to Singapore. The extent of any financial impact is not possible to ascertain at the moment as the situation remains fluid. However, this closure is expected to have a negative impact on the financial performance of the Group in this financial year ending 30 June 2020.