Eng - IOI Group

Management’s Discussion and Analysis cont’dGROUP BUSINESS REVIEWOPERATIONS REVIEW cont’dThe combined operating profit of the property development and investment activities, inclusive of the fair value gain on investmentproperties of RM160.7 million, totalled RM598.4 million for FY2007, against RM368.3 million for the previous financial year.OUTLOOK & PROSPECTSIn line with the positive outlook in the Malaysian Economy and the Government’s initiative to enhance the robustness of the propertymarket by introducing favourable policies, such as the removal of RPGT, 50% stamp duty rebate for transactions of low and medium costproperties, withdrawal from EPF for monthly housing loans repayment, the broad base housing market is expected to reflate whilst thehigher end market remains buoyant. We are in a good position to capitalise on these positive developments.Cautionary statement regarding forward-looking statementsThis Annual Report contains forward-looking statements that are based on management’s estimates, assumptions and projectionsat the time of publication. These statements reflect our current views and expectations with respect to future events and aresubject to risks and uncertainties and hence are not guarantees of future performance. Some factors include, but are not limitedto, changes in general economic and business conditions, exchange rates, exceptional climatic conditions and competitiveactivities that could cause actual results to differ materially from those expressed or forecast in the forward-looking statements.IOI Corporation BerhadANNUAL REPORT 2007 54