2011 THIRD QUARTER FINANCIAL STATEMENTS ANNOUNCEMENT

China
In its September 2011 World Economic Outlook report, the International Monetary Fund
projected China’s economic growth to remain robust at 9.5% for 2011 and 9.0% in 2012. The
slightly lower projected growth in 2012 was a reflection of policy tightening and declining
external demand. Nonetheless, China’s growth will continue to outpace other economies.
Retail sales of consumer goods in China remained healthy, with retail sales growth of 17.0%
year on year in August 2011 (Source: National Bureau of Statistics of China). The second
quarter of 2011 saw further expansion by both international and domestic retailers in China, with
fast fashion stores continuing to account for the majority of prime leasing deals. Prime retail
rents increased in cities across China, including in Beijing, Shanghai, Tianjin, Wuhan and Xi’an.
(Source: CBRE).
CMA remains confident of our growth prospects in China and will be opening another three
malls by end this year. China’s underlying economic fundamentals remain strong, and credit
tightening policies by the government provide more acquisition opportunities for CMA. With our
extensive presence in China, CMA is well positioned to capture the opportunities provided by
the growth in Chinese consumption.
Malaysia
The Malaysian retail market performed commendably during the second quarter of this year
whereby private consumption grew by 6.4% with a moderate economy growth of 4.0% (Source:
BNM Quarterly Bulletin, Second Quarter 2011) following a weaker external environment in the
advanced economies.
Retail sales growth is expected to be driven by GDP growth, low unemployment rate, rising
disposable income and growing tourism in Malaysia. CMA is well positioned to benefit from this
spending trend as our malls are essentially focusing on necessity and day-to-day shopping
which will bode well with the current economic environment in Malaysia.
Japan
The Japan’s economy has been steadily improving since the earthquake in March 2011. Latest
GDP growth figures released by the Japanese Government forecast 2011 GDP growth to be
0.6%, and the growth in 2012 is projected to be over 2.0%. Economists expect the GDP will
expand in the 3Q 2011 for the first time in four quarters on the back of recovering supply chain
market and production and consumption. However the Yen's sharp appreciation and a
slowdown of the global economy may have some impact over the economic recovery.
CMA will continue to focus on improving the performance of the assets in Japan.
India
India’s economy grew 7.7% in the three months from April to June 2011, compared with the
same period of 2010 (Source: Ministry of Statistics and Programme Implementation). It was
India’s weakest growth in six quarters. The slowdown is expected to continue as India’s central
bank continues to raise interest rates to control inflation; inflation in July 2011 was 9.22%,
which was well above the Reserve Bank of India’s (RBI) target rate of 4.0% to 4.5%. The RBI is
predicting growth for the whole year of 8% (Source: BBC News).
In India, CMA has a first-mover advantage relative to domestic and foreign real estate
companies focusing on shopping malls, given its portfolio of nine projects. CMA India’s primary
focus in the coming months is to complete the leasing of The Celebration Mall, Udaipur and to
advance the construction of the remaining projects under development.
GROUP OVERALL PROSPECTS FOR 2011
Growth momentum seems to have stalled in US and Eurozone as the debt crisis drags on.
Asian economies are still growing, albeit at a slower pace, with China being the main growth
engine. Where opportunities arise, CMA will continue to strengthen its presence in the region.
CMA has also recently announced its maiden project in Suzhou to develop the largest
shopping mall in the city and increased its stakes in Minhang Plaza and Hongkou Plaza in
Shanghai.