Junta bombs Myanmar village again where earlier strike killed 200

Myanmar’s junta on Thursday again bombed a village in northern Sagaing region where jet fighters had attacked only a week earlier, killing some 200 residents, according to sources.

Sagaing has been a hotspot of resistance to junta rule. The April 11 air raid on the opening ceremony of a public administration building in Kanbalu township’s Pa Zi Gyi village was one of the deadliest attacks on civilians in Myanmar since the military seized power in a February 2021 coup and drew condemnation from across the globe.

On Thursday, despite the blowback from the international community, the junta carried out another airstrike on Pa Zi Gyi. 

Initial reports said no one was injured in the latest bombing, as most of the village’s residents were either killed or still in hiding from last week’s attack. But sources told RFA Burmese that many of the remaining buildings were damaged.

Aircraft made three passes over Pa Zi Gyi, beginning at around 2:30 p.m., said a resident of Pa Zi Gyi, who spoke to RFA on condition of anonymity, citing security concerns.

“They dropped bombs and also fired at the village, but no villagers were hurt,” he said. “We had evacuated them all by then. They just fired at an empty village.”

As many as 5,000 people from Pa Zi Gyi and seven nearby villages were forced to flee their homes amid the latest attack, sources said.

Six bombs

Ko Myo, a resident of Kanbalu township, said the fighter jet “dropped six bombs” on the village on Thursday.

“The explosion was quite strong,” he said. “Smoke is rising into the sky from the village. I think the houses are burning now.”

Ko Myo confirmed that no one was hurt in the attack as the villagers had already fled to safety.

“This attack looks like one of the junta’s area-clearing operations,” he said, adding that troops arrived at the village at around noon on Wednesday, but only entered it Thursday afternoon.

“Their jet fighter flew over twice and an Mi-35 helicopter flew over once for scouting while they were entering the village. I think it was to check if there was any resistance in the village to protect their soldiers.”

Kyo Myo said that the military column that entered the village was Shwebo Training Unit-13, which had come up from the city of Mandalay, around 195 kilometers (120 miles) to the south. RFA has not been able to independently verify the claim.

‘Precision’ attack

Attempts by RFA to reach Aye Hlaing, the junta spokesman for Sagaing region, regarding the situation in Pa Zi Gyi village went unanswered Thursday.

However, the military confirmed in a statement last week that it had carried out a “precision” attack on Pa Zi Gyi on April 11 because members of the PDF had gathered there and “committed terrorist acts.” It vowed to continue to clear resistance forces from the area.

Junta Deputy Information Minister Major Gen. Zaw Min Tun told the military-controlled broadcast channel MRTV that those killed in the April 11 strike were members of the PDF, not civilians, and that the large number of casualties was the result of a rebel weapons cache exploding during the operation.

But rescue workers have disputed that account. They say the attack on the site was deliberate and thorough, beginning with a jet fighter bombing run and followed by an Mi-35 helicopter strafing the area, much like the strike on Thursday.

Desperate for water, food

Since last week’s attack, more than 600 residents of Pa Zi Gyi who have been sheltering under tarps in the nearby jungle are in desperate need of food and drinking water, said a villager who declined to be named for fear of reprisal.

“It’s difficult for them to even cook rice [when they have it] as they have to fetch water from streams some distance away,” the villager said. “If they are sick, there is nothing to help them … They can’t sleep well, as they have to be vigilant. They have to stay ready to run, as they don’t know when the junta will attack them.”

Among the displaced are the elderly, sick, children and pregnant women, he said.

A child sleeps on a mat in the jungle in Sagaing's Kanbalu township in Myanmar, Tuesday, April 18, 2022. Credit: Citizen journalist
A child sleeps on a mat in the jungle in Sagaing’s Kanbalu township in Myanmar, Tuesday, April 18, 2022. Credit: Citizen journalist

Nay Zin Latt, a representative of Kanbalu township for the deposed National League for Democracy, told RFA that the refugees are “constantly anxious and scared.”

“Since they were attacked by planes, they tremble and hide every time they hear the sound of the airplanes,” he said. “It’s a very terrible situation they are in. But it’s worse for the children, the elderly and those with poor health, as the current weather is very harsh, even for a healthy person.”

Members of the Kanbalu anti-junta People’s Defense Force paramilitary said that the situation in and around Pa Zi Gyi is “very tense.” They said the military is focusing on assuming control of the area on the ground and in the air.

“That’s why they are carrying out area clearing operations here – I think they came to scare our people,” said one official with the Kanbalu PDF. “They came in strong with two [troop] columns.”

The official noted that the junta has increasingly relied on airstrikes as the conflict in Sagaing rages on.

“But you can’t win the entire war just by controlling the air,” he added.

Thursday’s attack came as more than 1,000 villagers from northern Shan state’s Nawnghkio township were forced to flee fighting between the military and the Mandalay PDF. 

The two sides have been engaged in clashes for much of the past two weeks and those who fled on Thursday brought to 4,000 the number of people displaced from the township since the latest fighting began.

According to a statement issued Wednesday by the United Nations Office for the Coordination of Humanitarian Affairs, more than 1.8 million people have fled their homes due to armed conflict in Myanmar. In October, the United Nations announced that at least 500,000 people have fled fighting in Sagaing since the coup.

Translated by Myo Min Aung. Edited by Joshua Lipes and Malcolm Foster.

LG U+ Modernizes Network to Offer New Enterprise Services with Cloud-Native Solutions from Casa Systems

Leading South Korean operator working with Casa Systems and its partner E-Tech System to deploy the Home eNode B Gateway (HeNB GW) and Security Gateway (SeGW)

ANDOVER, Mass., April 20, 2023 (GLOBE NEWSWIRE) — Casa Systems (Nasdaq: CASA) today announced that LG U+ selected its virtualized Home eNodeB Gateway solution to help the South Korean operator modernize its network infrastructure and unlock new services and revenue streams as part of its broader network and service strategy. Casa Systems worked with distribution partner, E-Tech System, a leading provider of IT infrastructure and Mobile solutions and services in South Korea.

With nearly 20 million subscribers on wired and wireless services, LG U+ is one of the largest mobile operators in South Korea with a clear focus on differentiating through modern network infrastructure and advanced services. Featuring operational simplicity and the ability to quickly add new node deployment, Casa Systems’ virtualized HeNB-GW and SeGW solution will enable LG U+ to simplify its network, improve the 4G service coverage and service quality, and more easily capitalize on the growing market opportunity.

“We believe that the next generation of network services will be transformational for small and medium businesses and enterprise customers through new reach, performance, and capabilities. LG U+ will keep investment into small cells teaming up with Casa Systems and E-Tech System. The virtualized solution of Casa’s HeNB-GW and SeGW has the advantage of providing operational agility by requiring less space and power,” said Jonghyuk Lee, Access Team Leader at LG U+.

Based in South Korea, E-Tech System provides optimized IT solutions and professional technical services designed to improve the competitiveness and value of customers’ businesses. The company has expertise with a wide range of network hardware and software vendors and recognized that Casa Systems’ innovative software design addressed both the service flexibility and network operational requirements of LG U+. Casa Systems and E-Tech System are working on new opportunities to serve operators in the region and expect the LG U+ deployment to be the first of many engagements.

“LG U+ is at the forefront of deploying 4G and 5G mobile services, so we are excited to support their strategy with our network expertise and professional services,” said Mr. Shin Ho-Sik, Head of Network Service Provider ARM at E-Tech System. “Since so many of the solutions on the market are still tied to legacy chassis-based architectures and network designs, this collaboration with LG U+ proves Casa Systems’ virtualized HeNB-GW solutions to the market – an important milestone for Casa Systems and E-Tech System. Casa Systems has a robust portfolio of virtualized, cloud-native solutions for mobile core and RAN services. We see tremendous opportunity for operators in our markets to leverage Casa Systems’ solutions and deliver new advanced services and solutions to their customers.”

With Casa Systems’ virtualized HeNB-GW, LG U+ will handle the aggregation of the control and user plane traffic between large clusters of small cells and the core network while the SeGW provides secure connectivity with full visibility into performance and flexible, multi-vendor support.

“As LG U+ looked to scale the reach, performance and security of its corporate services, it recognized the value of Casa Systems’ fully virtualized HeNB GW and SeGW solution featuring unmatched performance from a small footprint, enabling them to cost-effectively scale services,” said Gibson Ang, Vice President of Technology at Casa Systems. “E-Tech System is a leader in the industry with a long history of delivering innovative software-based solutions and services to its customers. We look forward to working with E-Tech System on this and opening new doors for other deployments in Korea that would benefit from our 4G/5G cloud-native solutions.”

About Casa Systems, Inc.
Casa Systems, Inc. (Nasdaq: CASA) delivers the core-to-customer building blocks to speed 5G transformation with future-proof solutions and cutting-edge bandwidth for all access types. In today’s increasingly personalized world, Casa Systems creates disruptive architectures built specifically to meet the needs of service provider networks. Our suite of open, cloud-native network solutions unlocks new ways for service providers to build networks without boundaries and maximizes revenue-generating capabilities. Commercially deployed in more than 70 countries, Casa Systems serves over 475 Tier 1 and regional service providers worldwide. For more information, visit http://www.casa-systems.com/.

About E-Tech System
Established in 2009, E-Tech System is an IT-specialized company that cooperates with major domestic and foreign IT manufacturers such as Cisco, Dell, Broadcom, VMware, Oracle, and HP to provide various system infrastructure such as networks and servers, as well as core infrastructure and services such as security, virtualization, and OS platforms. E-Tech System also provides professional IT services such as consulting, installation, and maintenance for the establishment and operation of IT infrastructure.

CASA SYSTEMS PR CONTACT
Alicia Thomas
Casa Systems, Inc.
+1.817.909.8921
alicia.thomas@casa-systems.com

GlobeNewswire Distribution ID 8812382

Is the Taiwan Strait open to international vessels under international law?

In Brief

On April 16, the guided-missile destroyer USS Milius sailed through the Taiwan Strait, sparking an outcry from mainland China and the People’s Liberation Army.

The U.S. military, however, said the move was “consistent with international law,” and that the Milius had “asserted navigational rights and freedoms” in order to uphold “the rights, freedoms, and lawful uses of the sea.” 

China’s Ministry of Foreign Affairs has in the past stated that international law does not employ the term “international waters,” and that China opposes the use of such terms “to manipulate issues related to Taiwan while threatening China’s sovereignty and security.”

Asia Fact Check Lab (AFCL) found China’s statements to be misleading. The United Nations has applicable agreements that clearly define “international waters” and under which international ships and planes are allowed to freely pass through parts of the Taiwan Strait that lie outside a 24-nautical mile zone from any coastline. 

 

1.jpg
The USS Milius passing through the Taiwan Strait. (Photo from U.S. 7th Fleet website)

In Depth 

The U.S. Navy’s Seventh Fleet issued a statement after the USS Milius passed through the Taiwan Strait, saying that the ship had “asserted navigational rights and freedoms in the South China Sea near the Spratly Islands, consistent with international law,” and noting that the area the Milus passed through “lies outside the territorial waters of any coastal state.” 


China’s military spokesman Sr. Col. Shi Yi criticized the United States for “openly publicizing” the USS Milius’ actions, stating: “The PLA’s Eastern Theater has organized troops to closely monitor the course of the U.S. ship” and that its forces wer “on constant high alert to defend China’s sovereignty, national security and regional peace.”

MFA spokesman Wang Wenbin said at a press conference on April 17 that the U.S. decision to send the Milius through the strait was a show of force that threatened China’s security and undermined regional stability. 

Wang responded to similar American claims regarding freedom of navigation and overflight on the high seas at a press conference in June 2022 by emphasizing that all of the Taiwan Strait was under China’s jurisdiction. 

Wang said at the time that according to the United Nations Convention on the Law of the Sea (UNCLOS) and Chinese laws, “the waters of the Taiwan Strait, extending from both shores toward the middle of the strait, are divided into several zones including internal waters, territorial sea, contiguous zone, and the Exclusive Economic Zone. China has sovereignty, sovereign rights and jurisdiction over the Taiwan Strait…”

“There is no legal basis of ‘international waters’ in the international law of the sea. It is a false claim when certain countries call the Taiwan Strait ‘international waters’ in order to find a pretext for manipulating issues related to Taiwan and threatening China’s sovereignty and security.” 

Is there an agreed upon definition of “international waters”? 

Yes. The United Nations Convention on the Law of the Sea is an international agreement on maritime law, which stipulates that every country’s “territorial waters” extend 12 nautical miles from their respective coasts. In these waters, a country enjoys full jurisdiction. 

A further 12 nautical miles beyond that is considered a “contiguous zone,” where they reserve the right to prevent and punish infringement of domestic laws. 

Both zones are open to ships simply seeking to pass through on their way to other destinations, claiming so-called “innocent passage,” and both are closed to any vessel which threatens the security and interests of the respective nation. 

Beyond the 24 contiguous nautical miles, UNESCO allows for a country to claim an exclusive economic zone (EEZ) of up to 200 nautical miles (370 kms) from its coastline. Within the EEZ, a country has “sovereign rights for the purpose of exploring and exploiting, conserving and managing the natural resources.” 

Song Chengen, a Taiwanese international scholar of law, notes that the phrase “international waters” carries a precise legal meaning in disputes concerning navigation rights and territorial jurisdiction, referring to all waters not designated as territorial. Because countries cannot limit freedom of navigation or overflight within the EEZ, this zone is therefore international waters. 

2.jpg
Diagram of Mainland China and Taiwan’s territorial waters in the Taiwan Strait. (Produced by AFCL.)

Is part of the strait considered international waters under UNCLOS? 

Yes. The Taiwan Strait is about 220 nautical miles (410 km) at its widest and 70 nautical miles (130 km) at its narrowest points. Even accounting for China’s and Taiwan’s separate claims of territorial waters and contiguous zones, a wide strip of water still lies outside each claimants’ allotted space. Therefore, terming this strip freely navigable international waters stands in line with the U.N. convention.  

Under UNCLOS, could China block international ships from passing through the strip of international water in the strait?

No, it could not. 

Article 58 of UNCLOS explicitly permits other countries to enjoy the right of free navigation and overflight within the EEZ. Song Chengen notes that while a country enjoys economic privileges in an EEZ within its jurisdiction, the country cannot interfere with the free passage of ships through the zone itself. 

Lin Ting-hui, deputy secretary-general of the Taiwan Institute of International Law, said that China’s claim need not solely rely on an interpretation of the U.N. convention. 

Do the United States and Taiwan adhere to definitions of international water similar to UNCLOS?

Yes. While never endorsing the United Nations Convention on the Law of the Sea, U.S. law defines territorial waters and contiguous waters in a manner consistent with the UN Convention. 

The U.S. Navy and Marines abide by the domestically issued Handbook for American Commander’s Movement on the Seas, first issued in 1900 and last revised in 2022. Similar to the UN Convention, the latest revision of the Handbook maintains that all waters outside 24 nautical miles of a country’s coastline are freely navigable international waters. The report then specifically mentions the Sōya, Ōsumi, Miyako and Taiwan straits as open to international traffic.

In June 2022, while responding to media inquiries about the Taiwan Strait’s exact legal status, State Department spokesperson Ned Price said, “The Taiwan Strait is an international waterway, meaning that the Taiwan Strait is an area where high-seas freedoms, including freedom of navigation and overflight, are guaranteed under international law.”

Taiwan also shares a similar definition of international waters, with its National Academy for Educational Research – the country’s official source for technical terminology – defining “international waters” as “any waters which abide by the principle of open seas, for example: contiguous zones, exclusive economic zones or open seas.” The term is widely used ranging across such fields as shipbuilding, geography, machinery and maritime shipping.

3.jpg
Crew on the USS Milius passing through the Taiwan Strait. (Photo from U.S. 7th Fleet website)

Conclusion

AFCL found that regardless of whether one views the Mainland and Taiwan as independent political entities or as a single sovereign state, international maritime law dictates that the strait is wide enough to be used freely by all international vessels and aircrafts. 

Asia Fact Check Lab (AFCL) is a new branch of RFA established to counter disinformation in today’s complex media environment. Our journalists publish both daily and special reports that aim to sharpen and deepen our readers’ understanding of public issues.

Beijing police hold hospital chief, construction contractor over deadly fire

Chinese police are holding senior hospital executives in criminal detention in connection with a fatal blaze at a Beijing hospital that left 29 people dead amid public anger over footage of people escaping the burning building using bed sheets.

The tragedy has put the country’s abysmal public safety record once more under the spotlight.

Video clips posted during Tuesday’s fire showed people lowering themselves down the walls of the building using bed sheets tied together as ropes, with black smoke billowing out from different parts of the white-tiled low-rise building, while others appeared to have reached relative safety on a nearby roof.

One clip sent to RFA Cantonese captured the panic-stricken shouts and screams of people still in the building, as smoke spewed out from around broken and burned-out windows.

Police are currently holding the president of Beijing Changfeng Hospital, Wang Xiaoling, several members of the hospital’s senior management team as well as two construction contractors blamed for starting the blaze, state news agency Xinhua reported.

“The above-mentioned persons have been criminally detained by police in accordance with the law, and the case is under further investigation,” it quoted Beijing municipal police department’s chief detective Sun Haitao as saying.

“The police will work with relevant departments to further an in-depth investigation, gather evidence [at the scene] and crack down according to the law,” Sun said.

In 2010, authorities in Shanghai detained eight people after a fatal fire in an apartment block in Jing’an district was blamed on sparks caused by “unlicensed welders” hired by a state-owned construction company. 

Citywide investigation promised

Yin Li, Communist Party secretary for the Beijing municipal government, made a public apology for the blaze and promised a citywide investigation into “hidden dangers” in public facilities.

The fire, which affected mostly elderly and highly vulnerable patients, had “caused huge loss of life and damage to property,” Yin told a news conference in Beijing on Wednesday.

ENG_CHN_HospitalFire_04192023-03.JPG
An investigator inspects the damage at the Changfeng Hospital in Beijing on April 19, 2023, after a fire broke out a day earlier. (Greg Baker/AFP)

A report on the apology posted to the Beijing News official Weibo account garnered more than 1,000 comments, but “selected comments” mode was turned on, suggesting that many more had been filtered out from public view.

The Beijing Fire Brigade told a news conference that that fire was started by “sparks generated during the internal renovation and construction of the hospital’s inpatient department, which ignited the volatile organic compounds in the flammable paint on the site,” but said its investigation is still ongoing.

A Beijing resident who gave only the surname Wang for fear of reprisals, said many were shocked by the scale of the tragedy.

“The hospital was full of elderly people, patients in hospital,” Wang said, adding that she believes “many people” are likely responsible for the blaze. “There were probably hidden dangers in this hospital — some of which were likely accidental, and others inevitable.”

A Beijing resident who gave the surname Yang said officials were likely more concerned with gaining the approval of their superiors rather than answering to the general public.

“If the information isn’t made public, there will be injustice in the way this is handled from start to finish,” he said.

Delay in reporting?

Some reports said state media had remained silent on the blaze for hours after it began.

“All the big reports about the incident only were released eight hours after the fire started, suggesting that local authorities wanted to make sure the fire was under control and that there was enough information on the incident – and how to communicate it to family members and the general audience – before further news was released and went viral on social media,” Manya Koetse, founder of the social media monitoring site What’s on Weibo.

A brief survey by Radio Free Asia found that state-backed media outlet China News Agency was the first to publish a report on the fire at around 9.00 p.m. on Wednesday, some eight hours after the fire started, although a number of posts were made to social media earlier in the day.

Hong Kong’s Ming Pao newspaper carried a similar report, titled “Online Short Videos Crazily Deleted; Official Announcement Made Eight Hours After Incident.” Government censors had “continuously” removed videos and photos of the blaze from social media platforms, it said.

“It wasn’t until about eight hours after the incident that the government issued a press release of more than 100 words on the incident,” the paper said.

“Meanwhile, videos, screenshots, and photos of people climbing from hospital beds to flee the scene were continuously deleted from Weibo and other Chinese social media platforms,” the report said.

Suppressing keyword searches

One comment seen by Radio Free Asia on Weibo said “Weibo is over, and the flow of breaking news is totally restricted,” while another said: “Their suppression of trending keywords and information is world-class.”

Another complained: “The media have all become copier machines for [official] press releases.”

An article taking issue with officials’ handling of the fire and its aftermath had been widely censored from social media by Wednesday, according to What’s On Weibo, but was still visible on the Hong Kong-owned website iFeng.

ENG_CHN_HospitalFire_04192023-04.JPG
Residents gather outside the barricaded building following a fire breaking out at a hospital in Beijing, Wednesday, April 19, 2023. (Andy Wong/AP)

“At noon on April 19, Beijing held a briefing on the accidental fire at Changfeng Hospital that started at noon on April 18 but wasn’t made known to the public and the families of the victims until the evening of April 18,” said the blog post, which was still available on the iFeng.com news site.

“Fire is the most difficult accident to cover up,” the post said. “The flames are soaring, the smoke is billowing, and the calls for help are horrific. It is enough to detonate public opinion.”

Nevertheless, “mysterious forces” had intervened to ensure the incident was kept quiet for a full eight hours, the post said.

“What is even more incomprehensible and emotionally unacceptable is that the family members of these hospitalized patients in Changfeng Hospital didn’t learn about the fire until they saw the news in a pop-up window,” it said.

“Some departments and certain people completely lost the most basic human empathy when they decided to suppress the news of the accident,” the post said.

Of those who have died so far, 26 were patients at the hospital, one was a family member, while two were healthcare workers. Most of the patient victims were elderly, with an average age of 71.2 years, officials said.

It said the local Fengtai district fire department had been called at 12:57 p.m. on Tuesday, and that the blaze was out by 1:33 p.m., with rescue work continuing till 3:30 p.m.

Some victims died after being transferred to other hospitals, while several doctors and nurses also sustained burns during the fire, the Global Times reported.

Translated by Luisetta Mudie. Edited by Malcolm Foster.

Prisoner escapes from North Korean detention center, shoots 4 officers

A North Korean prisoner escaped from a detention center after hitting a guard on the head with a hammer, then shot four police officers with a stolen handgun as he hid nearby in a warehouse and an apartment building, residents told Radio Free Asia. 

The incident, which ended with the prisoner killing himself, is an unusual account of a mass shooting crime in North Korea, and a rare glimpse into the country’s system of detention centers.

The prisoner had been helping the guard while they worked on an electricity repair project, according to a resident of Chongjin City in North Hamgyong province. After striking the guard with the hammer, the prisoner then stole his handgun and ran from the detention center.

Because last month’s incident took place on a Sunday, most guards were resting in their bedrooms, the source said. The guard who had been hit – the only one on duty that day – eventually regained consciousness and reported the escape, the resident said. 

“Immediately, the entire social security department and neighboring military units were mobilized for the operation to arrest the escaped prisoner,” she said.

The prisoner had been a military sniper at the Supreme Guard Command, a resident of North Hamgyong’s Orang County who was also familiar with the story, told RFA.

His older brother made a statement criticizing the system and was sent to a prison camp. The younger brother – the prisoner – was forcibly discharged from the military due to guilt-by-association, the second source said.

The younger brother became a vagrant, sometimes working unofficial jobs, and eventually committed a crime while he was unemployed. He was ordered sent to a labor camp, but was temporarily sent to the detention center while he underwent a preliminary investigation, the Orang County resident said.

Search operation

After escaping, he hid in the warehouse of an inn next to the social security department, the Chongjin City resident said. 

Still wearing his prison uniform, he waited for nightfall. But when two social security agents tried to search the warehouse, he shot them, the Chongjin City resident said. He then fled to the basement of an apartment building, where he shot two more social security agents. He then fatally shot himself.

Travel and vehicle traffic were completely restricted for local residents during the search operation, the Chongjin City resident said. 

“Residents have different opinions about the incident,” the Orang County resident said. “Most residents think he deserves to be punished given the nature of the crime.

“But acquaintances who know the family situation of the prisoner said that this would not have happened if he had not been forcibly discharged from the military.. The younger brother had nothing to do with the crime committed by the older brother.” 

Translated by Claire Shinyoung Oh Lee. Edited by Matt Reed and Malcolm Foster.

VCI Global Limited Announces Memorandum of Agreement to Acquire a 70% stake in LOCUS-T Sdn Bhd

KUALA LUMPUR, Malaysia, April 20, 2023 (GLOBE NEWSWIRE) — VCI Global Limited (NASDAQ: VCIG) (“VCI Global”, or the “Company”) today announced it has signed a Memorandum of Agreement (“MOA”) which summarizes the principal terms of its proposed 70% acquisition of LOCUS-T Sdn Bhd (“LOCUS-T”) by V Capital Kronos Berhad (“V Capital Kronos”), a wholly owned subsidiary of VCI Global for a purchase consideration of Ringgit Malaysia Thirteen Million Four Hundred and Forty Thousand (RM13,440,000.00) (equivalent to approximately US$3,028,391, based on the exchange rate of US$1.00: RM4.4380 as at April 20, 2023). As part of the principal terms of the acquisition, V Capital Kronos will also be granted a first right of refusal to purchase the remaining 30% stake in LOCUS-T from its existing vendor should they decide to sell.

LOCUS-T is a marketing agency which specialises in digital marketing industry with a focus offering on marketing technology and solutions, such as Google SEO (Search Engine Optimization), Google Ads, Facebook Ads and Website Design based in Malaysia. It has over 20 years of experience and has served over 7,000 SMEs and MNCs clients since inception. It currently has an active client portfolio of over 1,000 SMEs and MNCs clients and is one of the few agencies in Malaysia carrying both the Google Premier Partner and Meta Business Partner.

“The acquisition of LOCUS-T allows us to immediately tap into its existing large portfolio of clients which range from Small Medium Enterprises and Multinational industry leaders such as Amway, 7-Eleven, Sports Planet, SP Setia just to name a few. With the huge portfolio of clients, VCI Global will be able to cross-sell our business and technology consultancy business to LOCUS-T’s existing clients and vice versa. This acquisition is highly synergetic to our existing consultancy business as it will also assist VCI Global’s existing clients to leverage on LOCUS-T’s digital marketing capability to grow our existing client’s business,” said Dato’ Victor Hoo, Chairman and Group Director of VCI Global.

In addition, the acquisition will also bring about a new suite of consultancy service in the digital marketing space complementing VCI Global’s existing business and technology consultancy business alongside creating a new business segment and revenue stream for VCI Global. As the world move towards digitalization, more and more businesses will embrace digitalization hence this acquisition will further enhance and reinforce VCI Global’s service offering to further promote client stickiness as the Company strengthens its service offering to add value to its existing and potential clients.

About VCI Global Limited

VCI Global is a multi-disciplinary consulting group with key advisory practices in the areas of business and technology. The Company provides business and boardroom strategy services, investor relation services, and technology consultancy services. Its clients range from small-medium enterprises and government-linked agencies to publicly traded companies across a broad array of industries. VCI Global operates solely in Malaysia, with clients predominantly from Malaysia, but also serves some clients from China, Singapore, and the US.

For more information on the Company, please log on to https://v-capital.co/.

Cautionary Note Regarding Forward-Looking Statements

This press release contains forward-looking statements that are subject to various risks and uncertainties. Such statements include statements regarding the Company’s ability to grow its business and other statements that are not historical facts, including statements which may be accompanied by the words “intends,” “may,” “will,” “plans,” “expects,” “anticipates,” “projects,” “predicts,” “estimates,” “aims,” “believes,” “hopes,” “potential” or similar words. Actual results could differ materially from those described in these forward-looking statements due to certain factors, including without limitation, the Company’s ability to achieve profitable operations, customer acceptance of new products, the effects of the spread of Coronavirus (COVID-19) and future measures taken by authorities in the countries wherein the Company has supply chain partners, the demand for the Company’s products and the Company’s customers’ economic condition, the impact of competitive products and pricing, successfully managing and, general economic conditions and other risk factors detailed in the Company’s filings with the United States Securities and Exchange Commission. The forward-looking statements contained in this press release are made as of the date of this press release, and the Company does not undertake any responsibility to update the forward-looking statements in this release, except in accordance with applicable law.

CONTACT INFORMATION:

Issued by Imej Jiwa Communications Sdn Bhd and ICR Inc. on behalf of VCI Global Limited
For media queries, please contact:

Imej Jiwa Communications Sdn Bhd
Chris Chuah
Email: chris@imejjiwa.com

ICR Inc.
Investor Relations
Michael Bowen
Vciglobal.ir@icrinc.com

Public Relations
Brad Burgess
Vciglobal.pr@icrinc.com

GlobeNewswire Distribution ID 8812251