Capital World Limited Provides Interim Material Update on Legal Proceedings and Group Status

Date: 25 November 2025

Company: Capital World Limited (Incorporated in the Cayman Islands)

Key Highlights from the Interim Material Update

• Ongoing and significant legal claims against the Group, including new developments in multiple lawsuits.
• Aggregate claims of approximately RM8.9 million in progress from retail unit purchasers.
• Updates on the Group’s involvement in investigations and ongoing material sales, but no further progress reported for now.
• Shareholders are strongly advised to monitor developments closely due to potential impact on share value.

A. Update on Legal Claims Against the Group

1. Chong Kim Chuan Litigation

A purchaser, Chong Kim Chuan, is seeking a total claim of RM327,953.09 (excluding additional damages, costs, and interest) from Capital City Property Sdn Bhd (CCPSB), a subsidiary of Capital World Limited. The claim comprises:

• Refund of the purchase price paid: RM286,212.28
• Interest paid to financier: RM41,740.81

The claim arises from CCPSB’s alleged failure to deliver vacant possession of a property unit within the stipulated 52 months from the Sale and Purchase Agreement (SPA) date (14 March 2021).

The company is defending the claim and has appointed legal counsel. Court proceedings have been scheduled and rescheduled several times, with the next case management set for 1 December 2025.
Important for shareholders: The outcome of this case could set a precedent for other similar claims and could have financial implications, especially if more purchasers make similar demands.

2. Pey Boon Siong and 19 Other Purchasers

In a more substantial legal development, Pey Boon Siong and 19 other purchasers have initiated 20 separate lawsuits against the company at the High Court of Malaya at Johor Bahru. The aggregate damages claimed total approximately RM8.9 million. The claims relate to:

• Liquidated damages for delayed delivery of vacant possession of retail units at Capital City Mall
• Outstanding rental arrears
• Alleged depreciation in property value

All 20 suits have now been transferred to the Sessions Court of Johor Bahru, where the trial is actively in progress. The company’s legal team is currently cross-examining the plaintiffs’ witnesses.

To ensure the trial proceeds in a timely manner, court dates have been set for 15-17 December 2025, 24-26 February 2026, and 30-31 March 2026.
Important for shareholders: The significant sum involved, RM8.9 million, could materially affect the company’s financial position if the plaintiffs prevail. This ongoing litigation is a key risk factor and may be price-sensitive.

3. Other Ongoing Legal Cases

As of this update, there are no further developments regarding several other legal cases involving:

• Anna Ling and 124 other purchasers
• Pung It Teong and Tan Yee Ting
• Teh Swee Neo, Lee Yong Hen and 97 other purchasers
• Saravaneshwari A/P Subramaniam

Important for shareholders: While there are no updates, the continued existence of these cases should be closely monitored, as future adverse outcomes may impact the company’s liabilities and share price.

B. Update on the Group’s Status

No further updates have been provided regarding the following matters:

• Assistance in investigation by the Malaysian Anti-Corruption Commission (MACC)
• Sales of development right and beneficial ownership of the 5 towers of Capital City Project
• Progress on completion of the Sales and Purchase Agreement with MK Mustafa

Important for shareholders: These ongoing issues may have material impact on the company’s operations and financial performance. Any future updates could be price-sensitive and should be watched closely by investors.

Shareholder Advisory

The Board has advised shareholders to carefully consider this and any subsequent announcements before taking any action regarding their securities in the company. Shareholders uncertain about their course of action are encouraged to consult professional advisers.

Conclusion

The ongoing litigation and other unresolved matters present significant uncertainty for Capital World Limited. The scale of the claims, especially the RM8.9 million lawsuit, and continued legal exposure could have a direct and material impact on the company’s financial stability and share price. Investors should remain vigilant for further announcements and assess their risk exposure accordingly.

Disclaimer: This article is based on company disclosures dated 25 November 2025 and is provided for informational purposes only. It does not constitute investment advice. Investors are strongly advised to review all relevant company filings and consult with their professional advisers before making any investment decisions. The Singapore Exchange Securities Trading Limited assumes no responsibility for the content of this article.

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