Sunny Tew

Explanatory Note for item 7 above:-1. Proposed change of auditorsBDO Raffles are not seeking re-appointment as external auditors. Rule 1203(d) of the SGX Listing Manual requires the Company to set out thereason for the change of auditors.The specific reason for BDO Raffles not seeking re-appointment is due to the spousal relationship between an audit partner of BDO Raffles (whohas recently joined BDO Raffles) and the Chief Financial Officer of the Company. As such, both the Company and its external auditors, BDORaffles are of the view that in the interest of promoting and maintaining transparency and good corporate governance, the external auditorsshould not seek re-appointment to avoid a potential situation where a conflict of interest may arise. Accordingly, the Company needs to appointnew auditors to replace BDO Raffles.1. ConfirmationsPursuant to Rule 1203(a), in connection with the proposed change of auditors, BDO Raffles has confirmed that they are not aware of anycircumstances or reasons, including professional reasons, why the new auditors should not accept appointment as auditors of the Company.Pursuant to Rule 1203(b) and (c), the Board of Directors has confirmed that there are no disagreements with BDO Raffles on accountingtreatments within the last twelve (12) months. In addition, the Board of Directors has also confirmed that it is not aware of any circumstancesconnected with the change of auditors that need to be brought to the attention of the Shareholders.The proposed change of auditors has been reviewed and recommended by the Audit Committee.