Message From Chairman

On behalf of the Board of Directors, I present to you, our Shareholders, the Annual Report of Cuscapi Berhad for the financial year ended 31 December 2008.

FY 2008 was a year of investment and expansion for Cuscapi. Our financial achievements were modest – Group total revenue was RM36.28 million, a decline of 6.2% from 2007's RM38.68 million, and net profit was RM0.98 million compared to RM6.71 million in FY 2007. We incurred higher operating costs associated with planned expansions. There was undeniable shrinkage in domestic revenue, attributable to market saturation and reduced spending as companies remained cautious of their investments given today's global economic situation. We recorded a double digit growth in our international revenues and our expansion efforts also reaped regional extension of our client credentials.

We strengthened our portfolio of offerings to include more comprehensive solutions and services to address market and vertical demands. We started an outsourcing venture to provide our clients a cost management offering without compromising on their operations standards and service quality. This offering is aimed at enabling our clients to grow and thrive amidst the current weak economy. We set up an international office in Singapore recently, dedicated to servicing multinational clients; and with our regional R&D centre in Suzhou, China, our capabilities are further enhanced for international growth.

As 2009 remains challenging with market volatility and uncertainties, we welcome our government's efforts to moderate the slowdown and mitigate the impact via stimulus packages. We will remain vigilant and cautious as we continue to dominate the domestic scene. We will work to infuse creative leadership, reinforce our business model, and strengthen our brand and reputation.

On behalf of Cuscapi Berhad, I welcome you to continue this journey with us. I also wish to record our appreciation to our valued clients, business associates and shareholders for their confidence and continued support. On behalf of the Board and management, I would like to thank our staff for their relentless dedication and contribution, and last but not least, my thank you to the fellow members of the Board for their support and guidance.

Dato' Larry Gan Nyap Liou
Independent Non-Executive Chairman