Malaysia Pacific Corporation Berhad

Media Release

Malaysia Pacific to start work on expo centre
Business, The Star, 22 December 2007

KUALA LUMPUR: Malaysia Pacific Corp Bhd (MPC) expects to commence work on a wholesale and exhibition centre in Nusa Damai, Johor, next year once it has confirmed its strategic partner and obtained government support for the project.

President and chief executive officer Bill Ch'ng said the Asia Pacific Trade and Expo City (Aptec) was currently in the conceptual stage. The property development and real estate investment company would plan Aptec in detail once the partner and government support were in place.

“We hope to get started on Aptec as soon as possible in 2008. A detailed planning will take about six months.

“The construction of Aptec will be divided into four phases and take three years to build,” he told reporters after the company AGM yesterday.

Aptec would serve as a permanent display centre of consumer products, largely from China as well as those from this region, and sold to retailers at wholesale prices.

Ch'ng envisioned the 25-acre Aptec as a comprehensive city comprising an expo centre, a hotel, a shopping mall, residences and offices.

Aptec was part of the LakeHill Resort City development in Nusa Damai. Due to its location within the Iskandar Development Region (IDR), LakeHill would bring long-term income and profit to MPC. The project had an estimated gross development value of about RM6bil, to be developed between eight and 10 years.

The launch of LakeHill was delayed as MPC had been waiting for approval to qualify for IDR status or incentive special package status.

Ch'ng said the first phase would be launched in the first quarter next year, comprising 200 bungalows. Following the launch, the company would see a significant sales improvement next year.

Meanwhile, MPC director Larry Seow Thiam Fatt said an investigation into the impairment losses incurred in the financial year ended June 30, 2006 was still going on and hoped everything would be concluded within the next quarter.

The impairment losses of RM74.61mil incurred in the previous year's result were presently reduced to RM34.88mil after taking into account the revaluation gain and reversal of real property gain tax provision of RM6.05mil, which was no longer required.

In its annual report, MPC said it appointed Messrs Axial Capital Sdn Bhd on Aug 20 to commence investigative audit on the reason behind the large impairment losses incurred last year and would advise the board on any follow-up actions needed.

“Based on the preliminary findings of Axial, the circumstances surrounding the complex transactions and the way payment was made on the Johor property in 1996 have opened much queries,” it said in the annual report.

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