ANNUAL REPORT

Middle East Development Singapore ltdannual report 2007 23CORPORATE GOVERNANCESTATEMENT(iv)(v)(vi)in recommending remuneration package, to take into account pay and employment conditions within the industry and incomparable companies, as well as the company’s relative performance and the performance of individual Directors;to consider the appropriateness of having a share option scheme for the Company as well as the categories of employees whoshould be part of the scheme; andto review the drafts of all service contracts to be entered into between an Executive Director and the Company before giving itsrecommendations to the Board.The members of the RC shall not participate in any decision concerning their remuneration. No Director will be involved in determininghis own remuneration.The RC has full authority to engage any external professional advice on matters relating to remuneration as and when the need arises.LEVEL AND MIX OF REMUNERATIONPrinciple 8: The level of remuneration should be appropriate to attract, retain and motivate the directors needed to run the companysuccessfully but companies should avoid paying more than is necessary for this purpose. A significant proportion of executive directors’remuneration should be structured so as to link rewards to corporate and individual performance.The Company has in place, procedures which facilitate a formal and transparent process by which the remuneration of all ExecutiveDirectors and at least the top five executives (in terms of aggregate remuneration and not being directors) is fixed.The Company had entered into separate service agreement with Dr Oussama, Mr Huang Wooi Teik, Mr Wong Seong Khuen, Mr Ng TianHuat and Mr Kim Leng Choon for a period of one year with effect from 18 January 2007, renewable year to year.DISCLOSURE ON REMUNERATIONPrinciple 9: Each company should provide clear disclosure of its remuneration policy, level and mix of remuneration, and the procedurefor setting remuneration in the company’s annual report. It should provide disclosure in relation to its remuneration policies to enableinvestors to understand the link between remuneration paid to directors and key executives, and performance.