Tropicana Corporation Berhad Annual Report 2019

Reflecting on the market environment in the last 12 months, consumer confidence has been impacted by global sentiments, further compounded by the spread of the Novel Coronavirus (“ COVID-19 ”) worldwide and political tensions. To this effect, Malaysia’s GDP growth is expected to decelerate to 4.2% in 2020 compared to 4.3% in 2019. The property market will remain challenging in 2020, despite Bank Negara Malaysia (“ BNM ”) lowering the Overnight Policy Rate (“ OPR ”) and decreasing the Employees Provident Fund’s minimum contribution rate from 11.0% to 7.0% until December 2020 which is expected to give consumers higher spending allocation. Our priorities moving forward are clear. Amidst the restrained economic environment, we will continue to keep our pulse on the market, taking a flexible outlook in order to be able to capitalise on opportunities once the market environment moves upwards. We are now moving forward from a position of strength, with a clean balance sheet and healthy debt levels. We have added flexibility to adapt to market changes. Our primary focus remains the same – to enhance the value proposition we bring to our customers by introducing homes within integrated developments and townships that not only correspond to their requirements, but also of their families. Realising the 2020 Roadmap Investment Properties Tropicana’s investment properties that provide the Group with recurring income consist of St. Joseph’s Institution International School Malaysia (Tropicana PJ Campus) (“ St. Joseph ” or “ SJIIM ”), GEMS International School, Tenby International and Tropicana Gardens Mall. Education Institutions Launched in August 2016, St. Joseph currently has over 800 students, with a maximum capacity of 1,770 students. With a Gross Floor Area (“ GFA ”) of 423,000 square feet, it is one of the top international schools in Malaysia, catering to the communities of Tropicana Indah and the surrounding areas. Meanwhile, located on a 5-acre land is GEMS International School which is located in Tropicana Metropark. GEMS International School is fully equipped with a full-size elevated, artificial turf football field, a sports hall, a swimming pool, numerous specialist classrooms and labs, a dance studio, a black box theatre and various shared learning spaces to stimulate students. Tenby International School, which is built on 10.4 acres of land within Tropicana Aman provides quality international education to the residents at the development and the surrounding communities. Tenby offers international student-oriented programmes for students aged from 3 to 18, including International Primary Curriculum, National Curriculum for England, IGCSEs and A-Level programmes. Currently both GEMS International School and Tenby International School continue to perform well, providing well-rounded, balanced international education for students. Opening Ceremony of St. Joseph’s Institution International School Malaysia (Tropicana PJ Campus) Shoppes and Residences (South), Tropicana Metropark, Subang Jaya Unlocking the Value of our Landbank Following the success of the corporate exercise carried out in 2019, Tropicana increased its landbank to another 734.0 acres of land in the Klang Valley and Johor with a potential GDV of RM12.9 billion. We also expanded our development footprint to Langkawi following a Memorandum of Understanding to jointly develop land at Pantai Cenang, Pulau Rebak Kechik, Pantai Kok and Pekan Nenas. Management Discussion & Analysis Tropicana Corporation Berhad Annual Report 2019 About Tropicana Our Strategic Performance Our Leadership pg 26