BRITISH AND MALAYAN HOLDINGS LIMITED ANNUAL

Letter to Shareholders

Chairman’s Statement Review of the year For the year ended 30 June 2019, the Group’s total revenue was $2,144,000 (2018: $3,912,000). The prior year amount includes recognition of gain from the sale of AFS assets. On a normalised basis, i.e. excluding the gain on AFS assets in the prior period, total revenue was $2,144,000 compared to $2,434,000 in the corresponding period, or a decrease of 12%. The decrease is due to lower trustee fees received and lower other income. The Group incurred an operating loss before tax for the year of $802,000 (2018: profit $632,000). On a normalised basis excluding the gain on AFS assets sales in the prior period the Group incurred an operating loss before tax of $802,000 compared to a loss of $846,000 in the prior period. The reduction in loss is due to lower employee benefits and other expenses offset by lower revenue. The trust business in Singapore is challenging, one that continues to see strong competitive pressures resulting in weak pricing power. Consequently, the Group is actively seeking means to combat this by exploring opportunities to enhance and diversify its revenue and income streams as well as seek strategic partnerships. Dividend During the year an interim tax exempt dividend of 1.50 cents per share was paid in March 2019. The Board is recommending a final tax exempt dividend of 2.7 cents per share to be approved at the forthcoming Annual General Meeting to be held on 25 October 2019. Outlook The outlook for the domestic trust business remains challenging in the area of domestic trusts given the competition. However, as a dependable trust jurisdiction, Singapore grows more attractive in light of tighter regulations and geopolitical uncertainties elsewhere. As such, our Trust division has the potential to benefit from cross border alliances. The creation of a holding company to house strategic partners of different disciplines not only enhances revenue potential, but has the potential to foster a knowledge-sharing platform to the benefit of existing clients and would-be clients. To-date, we are in dialog with several like-minded talented service providers, exploring and discussing opportunities. From a balance sheet perspective, BMH is cashed up and unencumbered. Should those exploratory discussions advance, the independent non-executive directors of the Board will play a critical role in ensuring that that su