ENCORP SIGNS JOINT VENTURE AGREEMENT WITH FELDA TO PROVIDE AFFORDABLE HOMES FOR FELDA’S NEW GENERATIONS

Sub: Restoration and redevelopment project for Perumahan Warga FELDA on a 46-acre land in FELDA Chuping, Perlis, worth RM88.8 million

Tuesday, 22 March 2022, Kuala Lumpur – Encorp Berhad (“ENCORP”; Bloomberg: ENCO:MK; Reuters: ENCR.KL) and Federal Land Development Authority (“FELDA”) today signed a Joint Venture Agreement (“JVA”) for the restoration and redevelopment project worth an estimated RM88.8 million, on a 46-acre land at FELDA Chuping, Perlis.

The restoration and redevelopment project is part of the “Perumahan Warga FELDA” programme initiated by the government to meet the increase in demand for affordable homes by FELDA’s second-generation.

The 2-phased masterplan development is scheduled to be completed over a period of fifty-four (54) months. The first phase, for a period of eighteen (18) months on 25 acres, will focus on the restoration and redevelopment of 224 residential units, together with 17 commercial units established on existing infrastructure and matured surroundings. The second phase development, for a period of thirty-six (36) months on 21 acres, will emphasise on the development of 13 commercial lots, 270 low to medium end residential units, a petrol station and recreational area.

The JVA was signed by Encik Hazurin Harun, the Group Chief Executive Officer of ENCORP and Dato’ Amiruddin Abdul Satar, the Director General of FELDA, witnessed by Chairman of ENCORP, Tuan Haji Sr. Mohd Ali Bin Abd Karim and Dato’ Seri Idris Jusoh, the Chairman of FELDA at an unveiling ceremony in Menara FELDA, Platinum Park Persiaran KLCC this morning.

Commenting on the JVA, ENCORP Group Chief Executive Officer, Encik Hazurin Harun said, “ENCORP has always been and will continue to be a proud partner of the Government’s affordable housing agenda in realising home ownership dream. With ENCORP’s experience and expertise in property development and construction, we continue to play a critical role in the advancement and eventual fulfilment of the socioeconomic development agenda at FELDA.”

According to the Director General of FELDA, Dato’ Amiruddin Abdul Satar, “The JVA is deemed as a special milestone of synergistic collaborations within FELDA Group and poised as significant instrument in ENCORP’s transformative efforts to accelerate its business and for ENCORP to become a formidable player within the property industry. This joint venture agreement also demonstrates FELDA’s commitment in providing opportunities to the settlers’ new generations to own affordable dream homes.”

He added “FELDA is optimistic that these residential and commercial development in FELDA Chuping which offer a complete ecosystem will support and facilitate the expansion of economic activities and contribute to the socioeconomic growth of the scheme (tanah rancangan FELDA). This positive spill over effects alongside ENCORP’s experience in property development, I am confident that ENCORP is on the rise to becoming major developer, biggest player in property development sector bringing high-quality and living development to many Malaysian family to own a home regardless of income levels.”

The development is strategically located approximately 20km from Kangar and Padang Besar, 25km from the North-South Expressway, 35km from Gua Kelam and within 5km radius from Maktab Rendah Sains Mara (MRSM) Arau, Politeknik Tuanku Syed Sirajuddin and Universiti Malaysia Perlis (UniMAP).

ENCORP debuted on Bursa Malaysia’s Main Board in 2002. In addition to construction, ENCORP is also an active player in the local property development sector. The JVA follows a string of favourable news for ENCORP which is most recognised for developing its Encorp Cahaya Alam residential and commercial development in Shah Alam and the commercial and shopping mall development of The Strand in Kota Damansara.

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About Encorp Berhad (Encorp)

Listed on the Main Market of Bursa Malaysia (Ticker: ENCORP/6076), ENCORP is principally an investment-holding company. The Group is currently involved in three core businesses – property development, property investment and construction. For more information, visit encorp.com.my

About Lembaga Tanah Kemajuan Persekutuan (FELDA)

The Federal Land Development Authority (FELDA) was established on 1 July 1956 under the Land Development Ordinance 1956 (Act 474) with the objective of eradicating poverty through land development and resettlement involving oil palm and rubber. Today, FELDA has created a phenomenon by successfully transformed the lives of 112,638 settlers (peneroka) by placing them in 317 schemes (tanah rancangan) nationwide.

The support and trust given by the Government to FELDA has propelled this statutory body into a large conglomerate with upstream and downstream activities carried out by its subsidiaries and associated companies. Today, FELDA continues to formulate comprehensive plans to further improve the social mobility of the settlers by providing extensive modern infrastructure, entrepreneurial activities and smart/precision agriculture to diversify the income of settlers and to reduce the dependency on crude palm oil and rubber prices.

With its dynamic governance, transformation in plantation management together with paradigm shift in the thinking of the settlers community, FELDA is now aiming towards becoming a Fortune Global 500 companies by 2040.
To know more about FELDA, please visit www.felda.com.my

For more information, please contact:
Encorp Berhad (ENCORP)
Muhammad Arif Bin Abdul Kahar
Executive, Corporate Communications
Tel: 03-6286 7789 / 012 934 1939
Fax: 03-6286 7799
Email: arif.kahar@encorp.com.my

Lembaga Tanah Kemajuan Persekutuan (FELDA)
Norhasimah binti Mohd Nor
Deputy Director – Strategic Communications
Tel: 03-2191 2008
Email: norhasimah.mn@felda.net.my
Dated : 22 March 2022