MASTER AGREEMENT BETWEEN TAN CHONG MOTOR ASSEMBLIES SDN. BHD. AND PERODUA SALES SDN. BHD.

1. Introduction

    

   Reference is made to the announcement dated 14 November 2025, pertaining to the Letter of Intent between Tan Chong Motor Assemblies Sdn. Bhd. ("TCMA") and Perodua Sales Sdn. Bhd. ("PSSB") ("Previous Announcement"). The Board of Directors of Tan Chong Motor Holdings Berhad ("TCMH" or "the Company") is pleased to announce pursuant to Paragraphs 9.03(2) and 9.04 of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad that TCMA had on 12 September 2026, entered into a  Master Agreement ("Master Agreement") with Perodua Sales Sdn. Bhd. ("PSSB") as more particularly detailed below. 

    

2. Information about the Master Agreement

    

   The Master Agreement sets out the general terms and conditions regulating the Electro-deposition ("ED") coating and painting line services as well as rental of assembly line and related services by TCMA to PSSB for Perodua Battery Electric Vehicle ("BEV") project ("Project") at Serendah.

    

3. Salient Terms of the Master Agreement

    

   1. The Master Agreement shall be for a period of three (3) years starting from 1^st June 2026 ("Term") with an option to further extend for another two (2) years exercisable by PSSB at least six (6) months before the expiry of the Term;

       

   2. TCMA shall provide ED coating and painting line services as well as rental of designated assembly line to PSSB ("Services") in consideration of the payments of service fees and rental charges to be made by PSSB;

       

   3. PSSB shall be responsible, amongst others, for the following:-

       

      1. procure, obtain and maintain all necessary and applicable approval(s), permission(s) or license(s) from all relevant authority(ies) as well as comply with applicable laws and regulatory requirements relating to the manufacturing of the BEV;

          

      2. maintain and adequately insure its equipment for the Project; and

          

   4. TCMA and PSSB shall each, at all times, keep confidential all information acquired from the other party under the Master Agreement.

    

4. Financial Effects

    

   The Project will have no effect on the issued share capital of the Company but it is expected to contribute positively to the revenue and earnings of the Group commencing from the financial year ending 31 December 2026.

    

5. Risk Factors

    

   The Project is subject to usual automotive production related risks, including workplace and environment hazards. However, these risks could be mitigated by TCMA's and PSSB's experience and track record in automotive production.

    

6. Interests of Directors, Major Shareholders and/or Persons Connected with Them

    

   None of the Directors and/or major shareholders of the Company and/or persons connected with them have any interests, direct or indirect, in the Master Agreement.

    

7. Statement by Directors

    

   Having considered all aspects of the Master Agreement and/or the Project, the Board of Directors of the Company is of the view that the Master Agreement and/or the Project is in the ordinary course of business and in the best interest of the Group.

    

8. Approvals Required

     

   The execution of the Master Agreement does not require the approval of shareholders of the Company or any relevant authority.

    

This announcement is dated 14 September 2026.