1. Introduction

HEB is pleased to announce that on 10th March 2026, SMHB Sdn Bhd (“SMHB”), an associate company of HEB, entered into a Consultancy Service Agreement (“CSA”) with MMC Infra Padi Sdn Bhd (“MIPSB”) in relation to the provision of engineering consultancy services (“Services”) for the Development of the Project to support five (5) seasons in two (2) years paddy cultivation at Kawasan Muda under the Jeniang Water Transfer Scheme Project Phase II (“Project”).

2. Information on the Services

Pursuant to the CSA, SMHB shall provide professional engineering consultancy services for Phase 1 of the Project, including review and updating of existing studies and designs, detailed engineering design and independent checking, full construction and site supervision, contract administration and all related professional services necessary for the implementation of the Project.

3. Financial Effects

The Services are expected to contribute positively to the revenue, earnings and net assets of the HEB Group for the financial years ending 31 December 2026 to 31 December 2030.

The Services will not have any impact on the share capital and/or shareholding structure of HEB.

The Services are expected to be funded via internally generated funds and/or external borrowings.

4. Risk Factors

The risk factors include, but are not limited to, execution risks, dependency on timely approvals from relevant authorities, variations in construction cost affecting fee computation and performance risks during the construction supervision period.

Nevertheless, the HEB Group has extensive experience in water resources, irrigation and dam-related engineering projects. The Board believes that the Group is capable of managing and mitigating these risks in the ordinary course of business.

5. Approval Required

The CSA, being entered into in the ordinary course of business of the HEB Group, is not subject to the approval of shareholders of HEB or any relevant authorities.

6. Directors’ and/or Major Shareholders’ Interests

None of the Directors and/or major shareholders of HEB and persons connected to them has any interest, direct or indirect, in the CSA.

7. Directors’ Statement

The Board of Directors of HEB, having considered all aspects of the CSA, is of the opinion that the acceptance of the CSA is in the best interest of the HEB Group.

This announcement is dated 10th March 2026.