Pursuant to the Paragraph 10.09 of the Main Market Listing Requirements of the Bursa Malaysia Securities Berhad (“Listing Requirements”), the Company hereby announce that the total raw water intake fee incurred by the Company’s subsidiary, Perbadanan Bekalan Air Pulau Pinang Sdn. Bhd. (“PBAPP”) for the financial year ended 31 December 2022 was RM10,196,381, which was calculated based on the annual actual water production volume for 2022 at the rate of 3 sen per cubic meter (“cu.m”) imposed by the State Government of Penang (“Water Intake Fee”).

The above Water Intake Fee is regarded as recurrent related party transaction (“RRPT”) pursuant to the Paragraph 10.09 of the Listing Requirements by virtue of the substantial shareholdings held by State Government of Penang through the State Secretary, Penang (“SSI”) in the Company and the relationship between State Government of Penang and SSI. SSI is a major shareholder of the Company, holding 55% of the total issued shares of the Company as at 31 December 2022. The RRPT involves the payment of Annual Water Intake Fee by PBAPP to the State Government of Penang, of which SSI is deemed to have an interest.

Please refer to the attachment for announcement details.

This announcement is dated 28 February 2023.