On behalf of the Board of Directors of Tri-Mode ("Board"), TA Securities Holdings Berhad ("TA Securities") announced that the Company has on 31 October 2023 entered into a binding term sheet ("Term Sheet") with Central Spectrum (M) Sdn Bhd ("CSSB" or "Vendor") for the proposed acquisitions of 3 parcels of leasehold lands located in Pulau lndah Industrial Park ("PIIP"), Klang, Selangor Darul Ehsan for an aggregate cash consideration of approximately MYR 42.00 million ("Purchase Consideration"). PIIP has been developed in 3 phases by CSSB and Tri-Mode has previously acquired a few parcels of industrial lands from CSSB under Phase 3C. The Company intends to acquire additional parcels of industrial lands to be developed by CSSB to further expand its existing warehouse and logistic capacity in the future to meet potential demand from its customers.

Phase 3 of PIIP is divided into 3 sub-phases, with Phase 3A and Phase 3C fully sold and the final Phase 3B currently reserved for future development. In view of the abovesaid interest of Tri-Mode, CSSB had provided 3 letters of offer for the Proposed Acquisitions to the Company on 26 June 2023 ("Letters of Offer"). The Company had on 7 July 2023 accepted the Letters of Offer and paid the booking fee equivalent to 5% of the purchase price for each Land (as defined below), amounting to approximately MYR 2.10 million in aggregate to pre-book the Lands ("Booking Fee"), which will be open to the public for sale in the future.

The Company's acceptance of the Letters of Offer and payment of the Booking Fee were made on the condition of CSSB's acceptance of certain amendments on several provisions in the Letters of Offer proposed by the Company. The strategic location of the Lands provides access to numerous well-established transportation networks, such as train, sea and flight, further solidifying its potential as a major logistics hub. The Lands with its strategic location are potentially a valuable addition to the landbank of the Group as it provides the Group with an opportunity to expand its warehouse and logistics capacity to meet the demand of its current and future customers.

Furthermore, the Proposed Acquisitions are in line with the Group's objective to create greater economic value and further enhance its presence in the Port Klang region. The sector also benefitted from improvements in real estate and business service activities. For the second half of 2023, the Malaysian economy is expected to expand at a moderate pace.

Slower external demand will continue to weigh on economic activity particularly for the export-oriented sectors. The commendable performance was driven by domestic demand and improved labour market in line with the transition to the endemic phase. These resulted from an increase in economic activities which include household spending, investment and tourism.

Subsequently, encouraging expansion in all economic sectors primarily the services and manufacturing have also provided continuous impetus to the significant economic growth in 2022. Furthermore, the growth was attributed to robust external dem and, especially among Malaysia's major trading partners. The government has allocated total of MYR97 billion for development expenditure to implement quality development projects which emphasize on high-impact investments to further boost the economic growth.

The transport subsector accounts for 18.1% or MYR 17.6 billion mainly for construction of roads and highways as well as upgrading of existing roads, airports and ports.