Bursa Announcements

Certificate Of investment to Establish Tcie Vietnam Pte Ltd And To Implement Investment Project

Type	Announcement
Subject	CERTIFICATE OF INVESTMENT TO ESTABLISH TCIE VIETNAM PTE LTD AND TO IMPLEMENT INVESTMENT PROJECT
Contents	The Board of Directors of Tan Chong Motor Holdings Berhad ("TCMH") is pleased to inform that TCIE (Labuan) Pty Ltd, a wholly-owned subsidiary of TCMH, has on 10 December 2009 received a Certificate of Investment dated 7 December 2009 (“Investment Certificate”) from Danang Industrial and Export Processing Zones Authority, Vietnam to establish a wholly-owned subsidiary named TCIE Vietnam Pte Ltd (“TCIE Vietnam”) to undertake the following businesses (“Investment Project”): (i) Manufacturing and assembly of buses, trucks and passenger cars. (ii) Sale of buses, trucks and passenger cars produced and/or assembled by TCIE Vietnam. (iii) Provision of after-sales services for the maintenance and repair of TCIE Vietnam’s products. (iv) Sale of spare parts for the maintenance and repair of the TCIE Vietnam’s products. The total investment capital for the Investment Project is USD15.0 million of which USD6.0 million will be capital contribution (charter capital) from TCIE (Labuan) Pty Ltd. The charter capital of USD6.0 million shall be contributed within 24 months from the date of the issuance of the Investment Certificate. In conjunction with the issuance of the Investment License, TCIE Vietnam has committed to purchase/lease a piece of land measuring in area of 129,500 m2 in Expanded Hoa Khanh Industrial Zone, Lien Chieu District, Danang City, Vietnam for a total price of USD3.04 million to implement the Investment Project. The duration of operation of the Investment Project as stipulated in the Investment License is from the date of issuance of the Investment Certificate to 25 March 2054. The establishment of TCIE Vietnam is part of a long term plan of the Group to gain a regional footprint in markets with low auto penetration, abundant labor and low costs. TCIE Vietnam is expected to commence business operation in the third quarter of 2011. The establishment of TCIE Vietnam has no material effect on the earnings, net assets and gearing of TCMH Group for the financial year ending 31 December 2009. This announcement is dated 11 December 2009.

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