We refer to our announcement on 26 November 2010.

RCE wishes to inform that Koperasi Wawasan Perkerja-Pekerja Berhad (“KOWAJA”) had on 8 June 2011 advised that KOWAJA has received approval from Suruhanjaya Koperasi Malaysia (“SKM”) to obtain funding from RCE Marketing Sdn Bhd (“RCEM”), a wholly-owned subsidiary of RCE, subject to a limit of RM200 million (the “Approval”).  KOWAJA is currently the largest borrower of RCEM. KOWAJA provides personal loans to its members who are primarily in the civil service. 

The Approval is subject to stringent operational, funding and other conditions. The funding conditions comprise pricing cap, security/collateral restrictions and structuring limitations. KOWAJA is confident of meeting the operational requirements of SKM and will work towards continuously complying with them going forward.

RCE does not expect the Approval to have any material financial impact to the Group for the financial year ending 31 March 2012 and on its ability to meet interest and principal payments in respect of its debt obligations.

However, the impact on the prospects of RCE is dependent on market conditions as well as industry and regulatory developments.   

This announcement is dated 9 June 2011.