SCIB Clarifies Recent Corporate Governance Subject, Emphasises Stronger Oversight and Professionalism of New Board Members

Enhanced Board Governance and Audit Compliance Mark SCIB's Path Forward

KUCHING, SARAWAK, 4 DECEMBER 2023 – Industrialised building systems specialist, Sarawak Consolidated Industries Berhad ("SCIB" or the "Company"), addresses recent corporate governance subjects, including the public reprimand by Bursa Malaysia Securities and the last-minute departure of a former auditor, with a firm commitment to enhanced corporate oversight and professionalism.

The Company acknowledges the public reprimand by Bursa Malaysia Securities, which was specifically directed at two former board members for breaches related to the Main Market Listing Requirements. SCIB clarifies that these individuals are no longer part of the Company, having departed prior to the reprimand. This transition has paved the way for the appointment of new board members who bring with them a reinforced focus on governance, compliance, and operational integrity.

The late submission of SCIB's Annual Report 2021, primarily due to complexities in auditing overseas construction contracts, highlighted areas for improvement in our financial reporting processes. This was further complicated by the untimely resignation of our external auditors. SCIB has since taken significant measures to ensure such delays and challenges do not recur.

This includes the timely publication of our FY2023 Annual Report on 31 October 2023, demonstrating our renewed commitment to timely and transparent financial disclosures.

Mr. Ku Chong Hong, Group Managing Director of SCIB, stated: “We at SCIB take our responsibility for corporate compliance and governance very seriously. The recent challenges have been a learning opportunity, leading to stronger internal controls and audit processes. Our new board members have been instrumental in this turnaround, ensuring that SCIB not only adheres to but exceeds the standards expected by our regulators and stakeholders.”

With these changes, SCIB has entered a new era of corporate governance. The Company is now poised to build upon the Company’s recent successes, including achieving profitability in FY2024 Q1, backed by a board and management team dedicated to upholding the highest standards of professionalism and integrity.

SCIB remains committed to maintaining transparent and open communication with all stakeholders and is confident in the Company’s path forward as a leader in the industry, guided by principles of accountability and excellence.