AL-SALAM REIT ANNUAL REPORT 2020

42 AL-SALĀM REIT MANAGEMENT DISCUSSION AND ANALYSIS OPERATIONAL REVIEW (ASSET PERFORMANCE) Retail Segment - KOMTAR JBCC RESPONSE TOWARDS COVID-19 PANDEMIC Al-Salām REIT aims to keep all buildings continuously operating in a safe and orderly manner. The main objective of the ongoing COVID-19 pandemic response is to reduce transmission to the tenants and also to the visitors. Al-Salām REIT actively coordinates and manages issues arising from the COVID-19 pandemic and has implemented a programme to regularly clean and sanitise all high-risk areas. CHALLENGES AND PROSPECTS The outlook for the retail sector for FY2021 appears challenging. The continued presence of the COVID-19 pandemic and the reimposition of a strict MCO in January 2021, will dampen the nascent recovery of the sector. While consumers may opt for digital channels for their daily consumption needs, most or many will still flock to the malls for experiential shopping such as dine-in, wellness, healthcare, social events and activities. Hence, the strategy to progressively increase the overall experiential tenant mix and to undertake AEIs to create a conducive environment for experiential retail. However, the strategy hinges on a recovery in consumer confidence to patronise shopping malls. This requires a speedy and effective resolution to the present pandemic. It is hoped that the distribution of vaccines by the first quarter of FY2021 will provide a swifter and permanent resolution to the COVID-19 pandemic and thus enable a recovery in the economy as well as consumer confidence. Additionally, reopening of the Singapore – Johor Causeway should improve the mall’s performance. We look forward to such development in FY2021. The Management of KOMTAR JBCC also intends to collaborate with e-commerce platform providers to enable omni-channel access to current/future tenants of the mall moving forward. The mall manager had commenced work on an e-commerce portal to consolidate all the tenant retailers in the group and built to accommodate other local and international retailers. Sanitisation works taken place in KOMTAR JBCC