Due to the adverse market situation, the discussions with regards to the financing of the pulp have been pending and further planning is expected to resume only when the overall market situation has improved. The Company is currently reviewing the more realistic timing of the launch of the project and the availability of relevant alternative funding sources.

2. CONSTRUCTION DIVISION

Poh Lian Construction Pte Ltd (“PLC”), has more than 20 years of experience in the construction industry in Singapore. PLC has successfully established itself as a reliable contractor with a strong track record and as one of the preferred high quality main contractors for upscale residential development given the quality of its workmanship, safety emphasis and standards and environmentally friendly practices.

As a certified A1 contractor, PLC is able to tender for public sector projects of unlimited value.

PLC has completed many projects such as the IKEA Warehouse, Urbana Condominium, Beauford Condominium, Cosmopolitan and Condominium Buckley 18 Condominium. Other prestigious projects procured and under development include Newton One Condominium, Ardmore II Condominium, The Solitaire Condominium, The Trillium Condominium and Green Meadows @ Pierce Condominium.

PLC’s corporate slogan, “Take Pride, Build It Right” exemplifies its holistic approach to business and human capital management.

During the year, PLC implemented several initiatives to enhance its quality assurance and control systems. PLC was awarded with several accolades such as the Safety Award (Gold) for inculcating the best safety practices at construction sites, Green Mark Gold Plus award or adopting environmental friendly approach to construction, Best Buildable Design Award (Gold) for innovative designs as well as a    nomination for Excellent Buildable Design from numerous statutory authorities, including the Building and Construction Authority (BCA) and premier developers. PLC also received a Singapore OK certification for adopting hygienic and environmental friendly practices at construction sites.

Going forward, PLC will continue to enhance the quality of its workforce by organizing campaigns related to innovation, green work place, safety, and building excellence efforts as well as striving for industry standard certifications to maintain and improve its position as the preferred Class A1 main contractor in Singapore. PLC is BCA certified for ISO 9000 Quality Management System, ISO 14000 Environmental Management System and OHSMS Occupational Health & Safety Management System. Total construction contracts in Singapore and in the region experienced a sharp increase in early 2008 but significantly slowed down by the second half of the year. Despite the current adverse market situation globally, PLC remains profitable with a healthy order book and a relatively smooth progress on all the live projects. PLC’s order book value as at 31 December 2008 stood at S$434 million (2007: of S$357 million).

In an effort to diversify PLC’s exposure from Singapore property market, recently the Company has decided to selectively look into overseas opportunities with an emphasis on Middle Eastern markets.