Dear Shareholders,

It is our pleasure, on behalf of the Board of Directors, to present the Annual Report and Audited Financial Statements of JobStreet Corporation Berhad ("JobStreet Corp" or "the Group") for the financial year ended 31 December 2009 to you, our shareholders.

The Group's core businesses in all our key markets were affected by the global recession in 2009 althought the impact was not as severe as originally feared. The first quarter of 2009 proved the slowest quarter as businesses decelerated amidst tightened credit and lower external demand. Fiscal stimulus packages announced by goverments across the world contributed to stabilize economies from the second quarter onwards before glimpses of economic recovery were seen in the final quarter of the year. Being highly correlated to the economy, the Group's performance was likewise adversely affected, turning in a 15.6% decline in net profit attributable to shareholders.

Against the backdrop of a difficult operating environment, the Group continued to receive various recognition and awards in 2009. First, JobStreet Corp was ranked no. 7 in the annual KPMG/The Edge Shareholder Value Awards 2008 ("SVA") among eligible public listed companies in Malaysia. The SVA recognizes public listed companies in Malaysia that have delivered exceptional value for their shareholders. JobStreet.com was also ranked as Malaysia's 21st most valuable brand in the Malaysia's Most Valuable Brand 2009 Study (2008's ranking: 19th) conducted by the Association of Accredited Advertising Agencies (4As). And to top the the year off, JobStreet Corp was included in the inaugural Malaysian Corporate Governance Index 2009, a rating of top 100 PLCs in terms of corporate governance practices which include international best pratices codes.

Things apprear to be looking up for 2010 id some of the encouraging economic data released in the region recently is anything to go by. Economies appear to be progressing on their path to some level of recovery. This augurs well for the onlne recruitment industry and we are well placed to capitalize on the improving economic conditions as well as continued online migration of recruitment advertisng. As to whether we will report profit growth in 2010, it will depend on the extent of the economic recovery and how quickly our increased investments on marketing, product and sales staff result in higher revenue.

We will continue to look for potential investments in synergistic companies in the region that can help us diliver long-term profit growth. However, with generally higher equity market valuations prevailing now, we will take a coutious approach towards new investments. We are very pleased to have reached the 20% equity threshold in 104 Corporation and look forward to realizing the value associated with the dominant market position that their Founder/CEO, Rocky Yang, and his team have built in Taiwan.



2009 IN REVIEW

In a tough operating environment, the Group's top line contracted by 9.8% with revenues of RM92.3 million compared with RM102.3 million in 2008. This was not unexpected as recruitment activities of our customers are highly correlated with the direction of the economy. Although on a year-on-year basis, sales from JobStreet Essential, our online job posting service, declined by 13.7% in 2009, it registered sequential growth on a quarter-on-quarter basis beginning from the second quarter onwards reflecting improving business confidence levels. Revenue from the Group's other services such as JobStreet Impact and JobStreet Resource were not significantly affected by the economic downturn as these services have a stronger customer lock-in and a more resilient recurring revenue model. In addition, the Group's profits were also positively contributed to by higher dividend income from the Group's overseas investments in quoted securities.

During the year, the Group scored a first when our subsidiary, JobStreet.com Pte Ltd, was awarded a contract from the Government of Singapore for the implementation and subscription of a web-based online recruitment service over a two-year period. This contract testifies to the strength of our recruitment solutions while also allowing us to make a large number of government sector jobs available to our jobseekers in Singapore.

The high margins from JobStreet Essential can be a double-edged sword and, as seen in 2009, the lower Essential sales had directly and adversely impacted results from operating activities which declined by 22.3% to RM35.6 million. With respect to operating expenses, while the Group had in fact increased headcount to 436 by the end of 2009 compared to 418 at the end of 2008, the Group's overall staff costs were controlled due to lower bonuses and ESOS expense. In addition to the increased headcount, we also increased our advertising expenses during the year by 41.5%. These increases in headcount and marketing are consistent with our strategy of attempting to take advantage of the recession to increase our market share and relevance to jobseekers as they are looking for difficult to find jobs. We believe our strong balance sheet and high profit margins put us in a good position to make these long-term investments towards establishing ourselves as the dominant online recruitment company in the region.

If you recall, the Group made an allowance for the diminution in the value of its quoted investments as well as impairment on an associate totaling RM5.3 million in 2008. In 2009, the economic downturn had continued to weigh down on the prospects of the advertising industry which in turn negatively impacted the financial performance of the associate, Innity Corporation Berhad, which offers technology-based online advertising solutions. After careful deliberation, our Board had decided to increase the provision for impairment on our investment in Innity by another RM0.7 million. Our quoted investments overseas fared better though and we were able to fully reverse the allowance for the diminution in the value of those investments of RM1.7 million made in the prior year. The net effect of these two adjustments is a favourable impact of RM1 million to the bottom line in 2009.

Our 49% owned jointly controlled entity in Thailand officially launched operations in June 2009. JobStreet (Thailand) Co., Ltd ("JS Thailand") did not generate any significant amount of revenue in 2009 as the focus was on building its jobseeker database and introducing its services to potential customers by giving free trials. While Thailand holds potential for our business, it may be some time before it can turn itself around and achieve break-even. The speed of which JS Thailand is able to achieve this would also depend on the resolution of the current political conflict taking place on the streets of Bangkok or any other political unrest. Despite the gloomy setting, the Group will continue to invest in marketing and promotion activities and participate in numerous job fairs to establish its brand name in the market.

JobStreet India which remained as a jointly controlled entity with the TV18 Group ("TV18") throughout 2009, was able to reduce its losses by 60% primarily through staff attrition and lower advertising expenses. Subsequent to the year-end, the Group had on 31 March 2010 acquired the 50% stake held by TV18 for a consideration of USD126,501. This gives us full control of operations in India and after reassessing its relative strength and weakness, the Group has streamlined its operations further in India.

The pioneer tax status of our subsidiary, JobStreet.com Sdn Bhd, had expired on 27 May 2009 after an extended tax holiday of 10 years. This resulted in the Group's tax expense increasing by 49.3% despite lower operating profits in 2009. Profit attributable to shareholders amounted to RM27.7 million, a decrease of 15.6% from 2008. Given the scale of the global financial crisis and its effect on economic growth across the region, we are satisfied with the financial results.

Shareholders' equity stood at RM127.2 million as at 31 December 2009, compared to RM109.2 million in the previous financial year. Return on shareholders' equity retracted below the 30% mark at 23.4%, well below the 33.8% achieved in 2008. We do believe our business model should generate a relatively high return on shareholders' equity and will strive to maintain this in the future.

Malaysia has been and continues to be the largest market for the Group. Despite the Malaysian operations shrinking slightly by 5.3% to RM62.3 million in revenue, it still accounted for 62% of the Group's revenue after elimination of inter-company cross charges. 2009 was pretty much status quo as far as revenue contribution by country is concerned. Our operations in Singapore and the Philippines are the other material profit contributors in the Group and both have weathered the recession well. The Group's market penetration in Indonesia, while continuing to improve, was not high enough to bring about a quantum leap in revenue contribution.

The number of active users registered with JobStreet across the region surpassed the 7 million mark by the close of 2009, up 17% from 2008.

The Group invested RM5.3 million in product and technology development during the year, an increase of 10% from 2008. Amongst other upgrades, the Group rolled out SIVA11, our online recruitment management system, with a more intuitive advertisement creation process. The Group also successfully launched PitchYourTalent.com, a service which enables jobseekers to proactively showcase their talents and skills to be headhunted by prospective employers. Going forward, we will continue to listen to our customers' and jobseekers' needs, and invest in developing suitable products and services in tune with the times.



CORPORATE DEVELOPMENTS AND INVESTMENTS

During the year, the Group had announced that it will be exiting the Bangladesh market by disposing its 60% stake in JS E-Recruitment Ltd to Daffodil Computers Limited. After two years in that market without making much progress, we decided that it is in the best interest of our shareholders to pull out of the market and focus our resources in other markets.

As mentioned above, 2009 also saw the Group continuing its accumulation of shares in publicly listed 104 Corporation (Taiwan) ("104 Corp"). Our stake grew from 6.59% at the end of 2008 to 16.65% by the end of the year. Subsequent to year-end, we had in April 2010 announced that the Group has accumulated a 20% stake in 104 Corp which will enable the Group to equity account for its share of profits in 104 Corp. The investment in 104 Corp indirectly allows the Group to benefit from the growth of the online recruitment advertising markets in Taiwan and China while the Group's management remains focused on its core markets in South East Asia. For the year ended 31 December 2009, 104 Corp posted a consolidated profit after tax and minority interests of TWD171.5 million (equivalent to RM18.3 million) against revenues of TWD1.9 billion (equivalent to RM199.0 million). While its 2009 online recruitment and advertising revenues were negatively impacted by the global financial crisis, 104 Corp remains the leading online recruitment portal in Taiwan. The economic recovery as well as the company's launch of An9.com in China and a new learning portal in the third quarter of 2010 may help 104 Corp rebound from 2009 towards further growth.

We had also incorporated a new subsidiary, Agensi Pekerjaan JS Staffing Services Sdn Bhd ("APJSSS"), in the third quarter of 2009. As part of an internal restructuring exercise, APJSSS will undertake the Group's contract staffing business in Malaysia.



GOING FORWARD

2010 is set to be a good year for the Group if regional economies continue improving and as corporations resume hiring to facilitate future growth. While revenue growth is expected from the Group's core markets in Malaysia, Singapore and the Philippines, it is possible that higher costs associated with headcount expansion and a ramp-up in marketing activities may negate the positive impact of higher revenues in the short term resulting in lower operating margins.

The Group's bottom line is expected to be favourably impacted by our share of profits from 104 Corp. Further, our investments in other quoted securities overseas have consistently been paying dividends, and we hope the improving business conditions in their respective country of operations will be reflected in higher dividend payouts in 2010.



CORPORATE SOCIAL RESPONSIBILITY ("CSR")

Online recruitment services increase transparency in the job market and the efficiency of intermediation through more accurate and daily matching between jobseekers and available jobs in the market. We have also organized free Resume Clinic & Retrenchment talks and set up a Retrenchment Helpline to help mobilize jobseekers back into the workforce. In addition, the Group launched the JobStreet English Language Assessment ("JobStreet ELA"), which is a free assessment tool to help jobseekers assess their command level of the English language and see how they compare to their peers. Employers too can refer to the candidates' JobStreet ELA score and rank them accordingly.

Through our web-based recruitment management system, we also promulgate a green approach towards recruitment by making available a paperless process where the storage of resumes, job applications and processing of applications can all be done online without having to print a single hardcopy.

Throughout 2009, activities were conducted to engage our employees further. New hires undergo a mandatory orientation program and will be given six months to complete several basic in-house training courses. Several forums were also held where the Group's senior management team gave informative presentations and updates to staff. In addition, communication with our staff is enhanced through our HR portal, quarterly newsletters and employee surveys. 2009 also saw the outbreak of the Influenza A(H1N1) virus and the Group quickly responded by taking several pre-emptive measures such as distributing hand sanitizers and face masks, enforcing self quarantine and educating staff on precautionary measures to minimize the spread of the virus. Through our HR initiatives, our staff has participated in various activities for a good cause such as blood donation drives, NGO Day and fund raising events.



APPRECIATION

Again, we would like to record our sincere appreciation to all our valued customers, jobseekers, partners and shareholders for your continued support during the past year.

This has been the third recession the Group has gone through and these are very difficult periods for us when so many jobseekers come to us looking for some hope of finding a job. Even though a lot of companies aren't hiring, our employees work extra hard to get as many real jobs as possible on the site to give the jobseekers the best opportunity to get a job. That's a very difficult task and we appreciate all the hard work that each of those employees put in to service those millions of jobseekers. Ultimately, it is great to see our company, employees and business grow stronger during these trying times and we do believe we are positioned well for an exciting future together.