MANAGEMENT DISCUSSION AND ANALYSIS CATEGORY AMOUNT (RM) Completed - Civil and structural NIL - Mechanical & Electrical 1,109,140 - Repainting 160,195 Sub Total 1,269,335 Ongoing - Repainting NIL - Civil and structural NIL - Mechanical & Electrical 187,000 - Expansion 3,307,200 Sub Total 3,494,200 TOTAL 4,763,535 LEASE RENEWALS Under the lease arrangement, the contractual lease term is 15 years with an option to renew for a further 15 years. The contractual lease term is divided into 5 rental terms of 3 years which shall be renewed upon expiry of each rental term. Despite the COVID-19 outbreak, the first 6 KPJ properties’ long-term leases, namely KPJ Ampang Puteri Specialist Hospital, KPJ Damansara Specialist Hospital, KPJ Johor Specialist Hospital, KPJ ASSET ENHANCEMENT INITIATIVES Asset initiatives worth up to RM4,763,535 in FY2021: Selangor Specialist Hospital, KPJ Puteri Specialist Hospital and KPJ Ipoh Specialist Hospital with total revised value of RM712 million has been renewed on 30 June 2021. The lessees of the rest of the properties have continuously committed to their rental obligations. RENTAL REVIEW Al-`Aqar’s rental review is as follows: NO. OF % OF TOTAL YEAR PROPERTIES PROPERTIES FY2022 1 4.3 FY2023 6 26.2 FY2024 15 65.2 FY2025 1 4.3 BUSINESS REVIEW 2021 is a tough year with genuine double hazard problems with the unpredictable resurgence of a full-blown pandemic and ended with flood disaster. This has caused the public hospitals to be overwhelmed with patients, struggling to cope with the surge of patients during this difficult period. On the other hand, private hospitals recorded a steep drop in revenue by at least 50% during the year due to the significant drop in nonemergency cases. CORPORATE OVERVIEW STRATEGIC PERFORMANCE THE DRIVING FORCES SUSTAINABILITY STATEMENT R 047 GOVERNANCE STRUCTURE FINANCIAL REPORTS
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