FWAP entails the setting-up and management of centralised and integrated living quarters or hostels for the purpose of housing the foreign workers.

MY E.G. SERVICES BERHAD ("MYEG" OR THE "COMPANY") PROPOSED DIVERSIFICATION OF THE EXISTING PRINCIPAL ACTIVITIES OF MYEG AND ITS SUBSIDIARIES TO INCLUDE THE FOREIGN WORKERS ACCOMMODATION PROGRAMME ("PROPOSED DIVERSIFICATION") 1. INTRODUCTION The Board of Directors of MYEG ( Board ) wishes to announce that the Company proposes to diversify the existing principal activities of MYEG and its subsidiaries ("MYEG Group" or the "Group") to include the foreign workers accommodation programme. Further details of the Proposed Diversification are set out below. 2. DETAILS OF THE PROPOSED DIVERSIFICATION Currently, MYEG Group is principally involved in the development and implementation of the Electronic Government Services project and the provision of other related services for the Electronic Government Services project, as well as investment holding. Leveraging on MYEG s business activities in the foreign worker-related domain, the Group intends to capture a wider spectrum of foreign worker-related business and plans to diversify its business activities to include the foreign workers accommodation programme ( FWAP ). FWAP entails the setting-up and management of centralised and integrated living quarters or hostels for the purpose of housing the foreign workers. The Board believes the Proposed Diversification complements the Group s existing foreign workers permit renewal business as the future rental income derived from the FWAP is expected to provide a new source of recurring income stream for MYEG Group and would contribute positively to its earnings in the future. For avoidance of doubt, the Group will not undertake any construction activities on its own, as the Group will outsource such nature of activities to contractors and professional consultants such as designers and engineers. On 20 July 2016, MYEG had via its wholly-owned subsidiary company, namely MY EG Sdn Bhd ("MYEGSB"), incorporated MY EG Lodging Sdn Bhd ("MYEG Lodging") as a 55%-owned subsidiary. MYEG Lodging was incorporated primarily to oversee MYEG's FWAP. The principal activities of MYEG Lodging are to build, own and operate hostels for foreign workers. Further details of MYEG Lodging are set out in Section 2.1 of this announcement. On 16 August 2016, the Company announced that MYEG Lodging had entered into three tenancy agreements with the Melaka State Development Corporation ("PKNM") for the rental of three hostels comprising 512 accommodation units by MYEG Lodging to serve as hostels to foreign workers. The three hostels are located in Alor Gajah, Merlimau (Kawasan Perindustrian Merlimau) and Londang (Kawasan Perindustrian Londang), all in Melaka. The aggregate lease consideration payable by MYEG Lodging to PKNM is RM195,000 per month and the term of the tenancy period shall be valid for three years. To date, the two hostels in Kawasan Perindustrian Londang and Merlimau are fully operational while the remaining hostel in Alor Gajah is expected to commence operation by the third quarter of FYE 30 June 2018. On 21 June 2017, the Company announced that it has accepted an offer from Johor Corporation ("JCorp") (being the state's investment arm) to lease a piece of land located in Johor Bahru from JCorp for a total lease consideration of RM10.76 million. The term of the lease period shall be valid for 30 years (including an option for lease renewal for another 30 years). Subsequently, on 27 October 2017, MYEG Lodging had received the executed lease agreement from JCorp, of which such agreement serves to formalise the aforementioned offer. 1

As at the date of this announcement, MYEG Lodging is currently in the planning stage to set up two blocks of hostels at the aforesaid land under the FWAP and such project is expected to commence construction by the third quarter of FYE 30 June 2018. The construction costs for the two hostel blocks in Johor Bahru are expected to total approximately RM48.0 million and funded via internally generated funds. It is envisaged that moving forward the Group may set up and manage more centralised and integrated living quarters or hostels to cater for its FWAP. The Group is negotiating for additional sites and has a long-term target of opening up to 200 sites in Peninsular Malaysia The associated costs for the sites are intended to be funded via a combination of internally generated funds and debt financing, the quantum of which can only be determined at a later stage after taking into consideration the actual funding required upon identification of suitable sites; design and construction costs and, where applicable, the progressive development of various components of the sites. As the Group has aggressive plans to seek and secure more opportunities for its FWAP, the Board expects the FWAP to potentially contribute 25% or more of the net profits of the MYEG Group or cause a diversion of 25% or more of its net assets ( NA ) in the future. As such, the Board proposes to seek the approval of the shareholders of the Company for the Proposed Diversification in accordance to Paragraph 10.13(1) of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad ("Bursa Securities") ("Listing Requirements"). Notwithstanding the Proposed Diversification, the Board will continue with the existing principal activities of the Group in the same manner. 2.1 Information on MYEG Lodging MYEG Lodging was incorporated on 20 July 2016 in Malaysia. The total issued share capital of MYEG Lodging is RM500,000 comprising 500,000 ordinary shares. The principal activities of MYEG Lodging are to build, own and operate hostels for foreign workers. The directors of MYEG Lodging are Dato' Tengku Zainuddin Bin Tengku Zahid, Datuk Nor Adnan Bin Zainal Abidin and Mr Chong Chien Ming. The shareholders of MYEG Lodging and their shareholdings are set out below: No. of shares % MYEGSB 275,000 55.0 Bright Brillion Co Ltd 150,000 30.0 Dato' Tengku Zainuddin Bin Tengku Zahid 50,000 10.0 Mohd Farhan Dziaudin Bin Mohd Daud 25,000 5.0 500,000 100.0 MYEGSB is a wholly-owned subsidiary company of MYEG, while the ultimate shareholder of Bright Billion Co Ltd is Mr. Quek Tee Kiam. 2

2.2 Key management personnel The Group has the following key management personnel who have experience in dealing with project or property management services:- (i) Mr. Ngan Tian Choon, aged 34 years, is the Project Manager of MYEG Lodging. He graduated in 2007 with a degree in Civil Engineering from Universiti Putra Malaysia. He joined Jurutera Perunding Tegap Sdn Bhd in 2007 as an Engineer. He joined Titijaya Land Berhad in 2010 as a Project Executive and was involved in the planning, design and construction of various residential and non-residential projects. After serving for five years, he joined Symphony Life Berhad in 2015 as a Project Manager, in which he assisted in the property management, as well as planning and design of residential and retail mall. Subsequently in 2016, he joined IOI Properties Group Berhad as a Project Manager and was involved in the planning of mixed development projects. He joined MYEG Lodging in 2017 as a Project Manager, a position he continues to hold up until now. He is responsible for overseeing the overall FWAP planning and implementation of the hostel project management. He has approximately seven years of experience in dealing with project or property management services. (ii) En. Rozman Mohd Ariffin, aged 42 years, is the Assistant Project Manager of MYEG Lodging. He graduated in 1999 with a degree in Mechanical Engineering from Technical University of Berlin. He joined Dynacraft Industries Sdn Bhd as a Supervisor for Tools and Die Maintenance Department in 1999. He joined Kuala Lumpur Metropolitan University College in 2002 as a Facilities Manager and was involved in the day-to-day building and asset issues, and also in overseeing the maintenance, repair and renovation works. After serving for 8 years, he joined Raine, Horne & Zaki Property Management Sdn Bhd in 2010 as a Building Manager, in which he was tasked to ensure the smooth operations of the management office as well as to coordinate the operational matters relating to the building management. Subsequently in 2011, he joined an engineering consulting firm, namely Iktisas Ingenieurs Sdn Bhd, as a Project Administrator and was involved in the project monitoring and project risk management. He joined MYEG Lodging in 2016 as an Assistant Project Manager, a position he continues to hold up until now. He is responsible in the land search and development of hostels to cater to the FWAP. He has approximately fifteen years of experience in dealing with project or property management services. 3. RATIONALE The current principal activities of MYEG Group entail the development and implementation of the Electronic Government Services project and the provision of other related services for the Electronic Government Services project, as well as investment holding. Majority of the Group's revenue is derived from the aforesaid principal activities as a single business segment based on its audited financial statements for the FYE 30 June 2017. In FYE 30 June 2017, MYEG Group initiated the FWAP (also known as MyHom programme) through MYEG Lodging, with the primary objective of improving the welfare of foreign workers in Malaysia and mainly targets the labour force across industrial areas nationwide. 3

The FWAP venture is underpinned by the Human Resource Ministry s announcement in May 2017 that it will amend the Standard Minimum Housing and Amenities Act 446 (1990), making it mandatory for employers to provide basic minimum standard housing for foreign workers by 2018. The FWAP will provide accommodation services that can be rented by companies for their foreign workers or directly rented by foreign workers. At present, under the FWAP, MYEG Lodging has leased three sites in Melaka to operate as hostels, of which two sites are in operation and the remaining one site expected to commence operation in FYE 30 June 2018. MYEG Lodging has also leased a piece of land in Johor Bahru and is currently in the planning stage to set up two blocks of hostels. Based on the Group's audited financial statements for the FYE 30 June 2017, the revenue and net profit attributable to the FWAP as compared to the Group's total revenue and net profit are as follows: FWAP RM 000 FYE 30 June MYEG Group RM 000 % Revenue 675 371,215 0.18 Net profit/ (loss) (1,187) 201,511 (1) N.A. Note: (1) Based on the net profit or NA attributable to owners of the Company. The future rental income derived from the FWAP is expected to provide a new source of recurring income stream for MYEG Group. It is also envisaged the Group may undertake to set up and manage more centralised and integrated living quarters or hostels to cater for its FWAP. As such, the Proposed Diversification is undertaken in accordance to Paragraph 10.13(1) of the Listing Requirements, as the Board expects the FWAP to contribute 25% or more of the net profits of the MYEG Group or cause a diversion of 25% or more of its NA in the future. The Board is of the opinion that the Proposed Diversification provides an opportunity for MYEG Group to broaden its source of income from its FWAP which is typically recurrent and stable in nature. The Board believes the diversification into such programme, which is deemed to be an extension of the commercial services that are complementary to the online renewal of foreign workers' permit, may enhance the Group's future prospects as it represents an opportunity to expand its income stream. The FWAP also opens up other ancillary services such as remittance services as MYEG would be in the position to expand its income streams further through transaction fees and foreign currency exchange spreads if successfully implemented. 4. INDUSTRY OVERVIEW, OUTLOOK AND PROSPECTS The Proposed Diversification will enable MYEG Group to diversify into the FWAP, which entails the setting up and management of centralised and integrated living quarters or hostels for the purpose of housing the foreign workers. As such, the Group will, to a certain extent, be operating under the broad spectrum of the property and construction industry as well as under the influence of the foreign labour market conditions. The industry overview, outlook and prospects pursuant to the Proposed Diversification are as follows: 4

4.1 Overview and outlook of the Malaysian economy The Malaysian economy recorded a stronger growth of 5.8% in the second quarter of 2017 (1Q2017: 5.6%). Private sector spending continued to be the main driver of growth. On the external front, growth was further supported by the robust expansion in real exports of goods and services (9.6%; 1Q2017: 9.8%) following strong demand for manufactured and commodity products. Real imports moderated slightly to 10.7% (1Q2017: 12.9%) following more moderate expansion in investment. Domestic demand grew by 5.7% in the second quarter of 2017 (1Q2017: 7.7%), supported by continued expansion in both private sector expenditure (7.2%; 1Q2017: 8.2%) and public sector spending (0.2%; 1Q2017: 5.8%). Private consumption recorded a growth of 7.1% (1Q2017: 6.6%), supported by the improvement in private sector wages amid continued strength in employment growth. During the same quarter, consumer sentiments continued to improve, providing further impetus to household spending. Public consumption growth moderated to 3.3% (1Q2017: 7.5%) following slower growth in the spending on emoluments, and supplies and services. Given the continued strong performance in the second quarter of 2017, the Malaysian economy recorded a strong growth of 5.7% in first half of 2017. At this point, compared to the beginning of the year, there are considerable improvements in the operating environment of the economy. Looking ahead, it is likely for the Malaysian economy to expand by more than 4.8% for the whole year of 2017. Private consumption will be underpinned by continued wage and employment growth, with support from various policy measures to raise disposable income. Investments will be driven by the implementation of new and ongoing infrastructure projects, and higher capacity expansion in the manufacturing and services sectors. The stabilisation of commodity prices is also expected to lend support to investments in the mining sector. On the external front, exports are expected to benefit from the improvement in global growth, especially among Malaysia's key trading partners. Overall, the economy is expected to record a stronger growth in 2017. (Source: Economic and Financial Developments in the Malaysian Economy in the Second Quarter of 2017, Bank Negara Malaysia) 4.2 Overview and outlook of the property and construction industry The real estate and business services subsector edged further to 7.3% in the second quarter of 2017 (2Q2016: 6.9%) with real estate segment expanding 5% (2Q2016: 4.7%). In the same quarter, the business services segment recorded 8.5% (2Q2016: 7.9%) supported by professional services, particularly in engineering, legal and accounting services. The construction sector continued to register a strong growth of 8.3% in the second quarter of 2017 (2Q2016: 8.9%) reinforced by higher civil engineering activities. Civil engineering subsector strengthened by 14.9% (2Q2016: 19.1%) mainly due to higher activities in the transportation, power plant and O&G-related projects. In the same quarter, the specialised construction activities subsector expanded further to register 9% (2Q2016: 7.9%) supported by painting, interior design and electrical works. In the same quarter also, the non-residential subsector rebounded 6.7% (2Q2016: -0.6%) underpinned by industrial-related projects, particularly in Klang Valley, whilst the residential buildings subsector moderated at 2.1% (2Q2016: 9.2%) attributed to lower construction of affordable housing projects, particularly in Klang Valley and Perak. (Source: Quarterly Update on the Malaysian Economy - 2nd Quarter 2017, Ministry of Finance Malaysia) 5

The Real Estate and Housing Developers' Association ("REHDA") is optimistic of Malaysia's property sector outlook in the first half of 2018 in tandem with the improvements in the country's economic conditions. According to its president, namely Datuk Seri Fateh Iskandar, the said optimism was also based on forecasts of a stronger gross domestic product growth by Bank Negara Malaysia and economists. The survey showed that for consumer's purchasing power segment, 17% of respondents expressed optimism on the segment's outlook in the first half of 2018 as compared with 9% for second half of 2017. On property market performance, 26% of respondents were optimistic over the property segment outlook for first half of 2018 against 8% for second half of 2017. The survey covered 153 REHDA members in Peninsular Malaysia, with assessment being conducted on the market performance in the first half of 2017, as well as, outlook for second half of 2017 and first half of 2018. Moving forward, according to Datuk Seri Fateh Iskandar, 48% of respondents planned to launch 17,535 units in the second half of 2017 and first half of 2018, with most states either maintaining or lowering their house prices at RM500,000 and below, except Selangor and Kuala Lumpur. However, it was added that 76% of respondents anticipated that sales of their new launches would stay at 50% or below, mainly due to end-financing problems where about half of the loan rejection are for properties priced at RM500,000 or below. It was also added that to boost sale, the developers had taken various measures such as assisting buyers with the first 10% downpayment, review selling prices, as well as, enhancing innovation and creativity of their products. Meanwhile, according to Datuk Seri Fateh Iskandar, 40% of the respondents revealed that their organisations were highly affected by the current economic scenario, where the top three cost complements are land, material and labour, as well as, compliance cost, with 51% of the respondents felt that the cost of doing business has increased up to 10%. Datuk Seri Fateh Iskandar further added that to overcome the challenges, several cost-cutting measures had been proposed including freezing new recruitment and waiving or reducing the foreign workers levy. Overall, majority of the respondents were neutral towards the economic or business outlook as well as the property market for second half of 2017 and first half of 2018. (Source: Press article entitled "REHDA optimistic of H1 2018 property sector outlook", 20 September 2017, www.thestar.com.my) Value added of the construction sector recorded a robust growth of 7.4% during the first half of 2017 (1H2016: 8.5%), primarily attributed to strong civil engineering activities. Accordingly, total value of completed construction works increased 10.4% to RM68.9 billion involving 18,977 projects (1H2016: 11.4%; RM62.4 billion; 20,026 projects). The private sector contributed 63.6% of the total value of construction works. The civil engineering subsector was the major contributor to the total value of construction works constituting 35.3%, followed by non-residential (31%), residential (28.8%) and specialized construction activities (4.8%) subsectors. In 2017, construction sector is expected to expand 7.6% (2016: 7.4%), mainly underpinned by new and existing civil engineering projects, particularly in utilities, transportation and petrochemical segments. (Source: Economic Report 2017/18, Ministry of Finance Malaysia) The construction industry is forecast to grow at 7.5% in 2018 (2017: 7.6%), supported by on-going infrastructure projects. (Source: Press article entitled "2017/2018 Economic Report Highlights", 27 October 2017, www.nst.com.my) 6

4.3 Overview and outlook of the foreign labour market conditions Several measures were introduced by the Government to further improve the labour market conditions, including amongst others, the management of foreign workers. The Government has introduced the Employers Undertaking beginning January 2017. The Employers Undertaking ensures that employers are fully responsible on their foreign workers from the time of application, recruitment and until the end of their employment term. This will enhance the employer's commitment and compliance on foreign workers wellbeing, indirectly reducing reliance on foreign workers. Further, the Government has undertaken measures to streamline the recruitment of foreign workers by placing it under a single administration at the one stop centre coordinated by the Ministry of Home Affairs Malaysia. The streamlining efforts were aimed to eliminate the role of outsourcing companies and other intermediaries in the recruitment of foreign workers. This minimizes recruitment cost and curbs human trafficking. Beginning April 2017, applications for foreign workers in the manufacturing, construction, services as well as plantation and agriculture sectors excluding domestic helpers must be made through online systems as follows, (i) Foreign Workers Integrated Management System (eppax) for the intake of foreign workers from source countries except Bangladesh; and (ii) Foreign Workers Application System (SPPA) for the intake of workers from Bangladesh. (Source: Economic Report 2017/18, Ministry of Finance Malaysia) The Government is amending a law to make it mandatory for employers to provide an integrated and centralised labour quarters for the foreign workers by 2018. According to Datuk Seri Richard Riot Jaem (being the federal Minister of Human Resources), the Human Resources Ministry of Malaysia will table the amended Standard Minimum Housing and Amenities Act 446 (1990) in Parliament in January 2018 as part of efforts to provide better living conditions for foreign workers as well as address various social ills. At present, the existing law stipulates that only plantation companies must provide living quarters for the foreign workers. If the amended law is passed, employers from all sectors such as manufacturing, security, food and beverage, and others will have to provide living quarters for the foreign workers. Datuk Seri Richard Riot Jaem further added that such initiative shall ensure the welfare and safety of the foreign workers as well as preserve the social harmony among the community, and to adhere to international standards involving the management of foreign workers. (Source: Press article entitled "Human Resources Ministry aims to make housing for foreign workers a mandatory", 18 May 2017, www.nst.com.my) 4.4 Prospects of the Proposed Diversification The Proposed Diversification allows the Group the opportunity to expand its source of income stream as well as to generate a steady and recurrent rental income from the FWAP. The Group had earlier undertaken the FWAP since FYE 30 June 2017 with the primary objective of improving the welfare of foreign workers in Malaysia and mainly targeted towards the labour force across industrial areas nationwide. With the diversification, the Group will seek further opportunities to potentially undertake to set up and manage more centralised and integrated living quarters or hostels in the future as part of its FWAP. 7

Further, the diversification into the FWAP allows the Group to potentially reap synergistic benefits by leveraging on its existing principal activities mainly comprising the provision of Electronic Government Services project and related services. By providing foreign workers accommodation, the Group can establish itself as a one-stop solutions centre for foreign workers given its range of Electronic Government platform offerings and related services such as the online renewal of foreign workers' permit, foreign workers' insurance scheme and foreign workers' rehiring programme. As such, the Group can potentially cross-sell its aforesaid offerings and services to the foreign workers and in turn derive additional revenue from this synergy. The Board, after having considered all the relevant aspects, including the above prospects as well as the outlook for the foreign labour market condition as set out in Section 4.3 of this announcement, is of the opinion that, barring any unforeseen circumstances, the Proposed Diversification is expected to enhance the future prospects of the Group. (Source: Management of MYEG) 5. RISK FACTORS 5.1 Business risk Arising from the Proposed Diversification, MYEG Group will be subject to risks inherent in the property and construction industry as well as the foreign labour market conditions, including general economic downturn, entry of new players, changes in foreign labour policy, socio-political instability, changes in demand and supply of properties, adverse changes in rental prices, difficulty in obtaining tenants, increase in labour and/ or building material costs, changes in credit conditions and changes in the legal and environmental framework within which the industry operates. Nevertheless, the Group shall endeavour to keep abreast with the latest development in the property and construction industry, regulatory framework governing the interest of foreign labour and general economic conditions to enable the Board to take appropriate measures it deems fit to ensure such risks are mitigated. However, there can be no assurance that any changes to the abovementioned factors, which are beyond the control of the Board, will not materially affect the Group's business and financial conditions. 5.2 Competition risk MYEG Group may face competition from existing competitors and/ or new entrants operating in similar business relating to the provision for housing of foreign workers. Nevertheless, the Group will continue to take proactive measures to remain competitive in this business by inter-alia, constantly keeping abreast with the latest market conditions, and continuing efforts in maintaining a competitive edge in terms of cost efficiency, service quality and reliability. However, there can be no assurance that the Group will be able to compete effectively with existing and new entrants in similar business relating to the provision for housing of foreign workers in the future which may materially affect the Group's financial performance. 8

5.3 Financing risk The FWAP can be considered a capital intensive business, depending on the size and location. MYEG Group may finance the project costs of these hostels via internally generated funds and/or debt financing at the material point in time. The availability of, or the ability to secure adequate financing may be critical to the Group's ability to embark on and complete the project management of the hostels. The incurrence of debt financing, if any, to finance the project costs will result in new interest or principal servicing obligations to the Group as well. Besides increasing the gearing level, the new debt financing incurred could result in operating and financial covenants being imposed that could restrict, to a certain extent, its operations and its ability to pay dividends to its shareholders. If MYEG Group does not have adequate resources to finance the FWAP, this will have an adverse effect on its future to set up more centralised and integrated living quarters or hostels under this programme. In mitigating such risks, MYEG Group will actively review the debt portfolio taking into account the level, structure, nature of debt financing and seek to adopt an optimal mix of financing that is cost effective. While every effort is taken to ensure that no adverse effects would arise from the interest or principal servicing commitments, there is no assurance that this will not have any material impact on the Group's financial performance in the future. Nevertheless, the Group may potentially reduce the gearing level via the future earnings and cash flows to be generated from the FWAP. 5.4 Dependency on key management personnel As in any other business, MYEG Group's success in the FWAP depends largely on the abilities, skills, experience, competencies and continued effort of its key management personnel as set out in Section 2.2 of this announcement. Recognising the importance of the key management personnel involved, the Group will adopt appropriate approaches, including incentives, remuneration packages as well as provide a good working environment to promote productivity and retain their services. However, there is no assurance that the loss of any such key management personnel will not adversely affect the Group's ability to succeed and compete in the FWAP. 5.5 Dependence on external contractors and/ or professional consultants In undertaking the FWAP and as set out in Section 2 of this announcement, MYEG Group will outsource the building or construction scope of works to contractors and/ or professional consultants such as designers and engineers, as it does not have any inhouse property development or construction arm to undertake such activities. In this regard, the Group will be dependent on the support of external contractors and/ or professional consultants to ensure the smooth execution of the project development of the hostels. Although the Group will not be dependent on any single external contractors and/ or professional consultants, any inability on the part of the said contractors and/ or professional consultants to amongst others, supply/ deliver quality services and building materials and/ or execute the construction in a timely manner, will inevitably disrupt the progress and/ or quality of the Group's FWAP. Notwithstanding that, the Group will apply stringent checks and measures on its selection of the external contractors and/ or professional consultants for its projects as well as practicing careful planning and conduct close monitoring of the project progress to ensure the smooth and timely completion of its projects. 9

5.6 Political, economic and regulatory considerations With the participation of the Group in the FWAP, its business, prospects, financial condition and level of profitability are now subject, to a certain extent, the developments in the economic, political and regulatory environment of Malaysia. Such risks include, economic uncertainties, changes in rules and regulations particularly those governing the interest of foreign labour, interest rate fluctuation, unfavourable monetary and fiscal policy, changes in political leadership and changes in tax laws. Notwithstanding that, the Group will constantly keep abreast with the political, economic and regulatory developments through various media, events and/ or seminars, and shall continuously adopt prudent financial management and efficient operating procedures to limit the impact of the aforementioned risks. However, there can be no assurance that any adverse development in the economic, political and regulatory environment in Malaysia will not have any material adverse effect on the business operation and financial performance of the Group. 6. EFFECTS OF THE PROPOSED DIVERSIFICATION 6.1 Issued share capital and substantial shareholding structure The Proposed Diversification will not have any effect on the issued share capital and substantial shareholding structure of the Company as it will not involve any issuance of new shares. 6.2 NA and gearing Barring any unforeseen circumstances, the Proposed Diversification is not expected to have any immediate material effect on the net assets and gearing of the Group for FYE 30 June 2018. However, the NA and/or gearing of the Group will depend on the manner of funding for the FWAP, as well as the future profit contribution from this programme. 6.3 Earnings and earnings per share Barring any unforeseen circumstances and save for the set-up cost (such as lease payment and construction costs) as well as interest cost servicing that the Group may incur depending on the manner of funding for the FWAP, the Proposed Diversification is not expected to have any immediate material effect on the earnings of the Group for FYE 30 June 2018. The Proposed Diversification is expected to contribute positively to the future earnings of the Group when fully implemented. 7. APPROVALS REQUIRED The Proposed Diversification is subject to the following approvals: (i) (ii) the shareholders of MYEG at an extraordinary general meeting to be convened; and any other relevant authority, if required. The Proposed Diversification is not conditional upon any other proposals undertaken or to be undertaken by the Company. 10

8. INTERESTS OF DIRECTORS, MAJOR SHAREHOLDERS AND/ OR PERSONS CONNECTED TO THEM None of the Directors and/ or major shareholders of MYEG and/ or persons connected to them have any interest, whether direct or indirect, in the Proposed Diversification. 9. DIRECTORS' STATEMENT The Board, after having considered all aspects of the Proposed Diversification, is of the opinion that the Proposed Diversification is in the best interest of the Company. 10. ESTIMATED TIMEFRAME FOR COMPLETION Barring any unforeseen circumstances, the Proposed Diversification will take immediate effect upon obtaining the approval from the shareholders of MYEG at the EGM to be convened. This announcement is dated 9 November 2017. 11