Pursuant to paragraph 8.23(1) (ii) and paragraph 3 of the Practice Note No. 11 of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad, the Company wishes to announce that during the first quarter ended 31 March 2016, it has provided financial assistance in the form of USD8,000,000 loan to its associate AirAsia Inc.

The financial assistance is in the ordinary course of business and to facilitate the running of the operations and financial affairs of AirAsia Inc.

The financial assistance provided does not have a material effect on the share capital, shareholding structure or net assets of the Company.

This announcement is dated 26th day of May 2016.