We refer to the previous announcements dated 27 May 2020, 13 August 2020, 24 August 2020 and 3 September 2020 in relation to the bills of demand amounting to approximately RM180 million issued by the Royal Malaysian Customs Department (“RMCD”) to Tan Chong Motor Assemblies Sdn. Bhd. ("TCMA"), a subsidiary of the Company.

Consequent to the issuance of the said bills, TCMA applied to the High Court to commence judicial review proceedings to challenge the RMCD’s decision to issue the said bills and to date, TCMA had been granted an interim stay of proceedings by the High Court in relation to the payment of the disputed taxes.

We wish to announce that TCMA and RMCD have agreed to resolve the technical issues amicably out of court by way of reduced bills of demand and compound amounting to approximately RM109 million, subject to the finalisation of the terms of the consent order in respect of the amicable settlement. The Company is pleased to announce that this matter has been resolved amicably and expeditiously as this will enable TCMA to focus on its core business instead of being entangled in a protracted litigation. 

This announcement is dated 29 March 2021.