Financial Services

RCE Capital's core business is consumer financing in the form of personal loans to government servants through strategic tie-ups with cooperatives, undertaken by its wholly-owned subsidiary RCE Marketing Sdn Bhd ("RCE Marketing"). RCE Marketing operates under a distinctive distribution-collection system whereby funds are channelled to the cooperatives which in turn extend loans to their members who are mainly in the civil force. Repayments are done via the Salary Deduction Scheme where instalments on the loan are deducted from the salary of the borrower on a monthly basis. This programme was initiated by the government and is administered by Angkatan Koperasi Kebangsaan Malaysia Berhad (ANGKASA), the country's centralised collection agency for participating cooperatives. The automated repayment mode on top of the low employment turnover rates in this particular customer base provide a low-risk operating environment for RCE Marketing, thus allowing it to enjoy lower delinquency rates.

Apart from consumer financing, RCE Capital also provides short-term financial solutions to corporate clients via RCE Factoring Sdn Bhd ("RCE Factoring"). RCE Factoring was acquired at the start of 2007 as part of RCE Capital's objective to be a key player in the specialised financial services industry as well as to complement its existing consumer financing business. As the Company's commercial financing arm, RCE Factoring offers factoring and confirming facilities to small and medium enterprises (SMEs) primarily involved in trading, construction and manufacturing.

Property Investment

RCE Capital currently holds 7.9% stake in AmFIRST Real Investment Trust ("AmFIRST REIT") through its wholly-owned subsidiary, RCE Synergy Sdn Bhd. AmFIRST REIT is one of the largest commercial space REITs in Malaysia and currently owns a portfolio of six buildings in Klang Valley with exposure to the office, retail and hotel sectors. Three of these, namely Bangunan AmBank Group, Menara AmBank and AmBank Group Leadership Centre, are located within the KL Golden Triangle while the remaining buildings - Menara Merais, Kelana Brem Towers and The Summit Subang USJ - are situated outside the capital city.