pg. 215 Corporate Governance Report Integrated Annual Report 2025 ESG-related controls are incorporated through energy and water monitoring processes, documentation for green initiatives, periodic ESG data reviews and compliance with emerging sustainability reporting requirements. IT and cybersecurity controls include user access management, password protocols, system authorisation controls, data protection measures and backup procedures to safeguard information integrity and minimise technologyrelated disruptions. Together, these control activities reinforce disciplined execution across all functions and support the REIT’s ability to operate within its approved Risk Appetite. Effective Information Flow and Communication of Controls Effective information and communication processes form a core pillar of Al-Salām REIT’s internal control and risk management framework. The Manager ensures that relevant, accurate, and timely information flows seamlessly across all levels of the organisation to support operational decisionmaking, risk oversight, and strategic governance. INTERNAL REPORTING AND MANAGEMENT COMMUNICATION The Manager maintains structured and transparent channels for communicating risk, operational, and performance information to Management, ERMC, BARC, the Board, and the Trustee. Key reports including quarterly financial results, operational dashboards, tenant movement and occupancy updates, rental collection and arrears summaries, compliance tracking, and internal audit findings are presented to the relevant committees and the Board to support oversight of performance, emerging trends, risk exposures, and compliance with regulatory and Trust Deed requirements. During the financial year, the ERMC convened on 2 May 2025, 30 July 2025, and 23 October 2025 to review these matters. The Board also reviewed the matters during its meetings held on 23 January 2025, 31 January 2025, 12 February 2025, 15 May 2025, 13 August 2025, and 12 November 2025. Communication with the Trustee and Unitholders The Manager maintains open and continuous communication with the Trustee to ensure Al-Salām REIT’s full compliance with the Trust Deed, SC REIT Guidelines, and regulatory requirements, providing timely updates on material transactions, operational developments across healthcare properties, regulatory changes, and risk matters requiring Trustee oversight. The Trustee also receives structured quarterly reporting on financial performance, asset conditions, governance matters, and compliance monitoring, During FY2025, four Quarterly Trustee Meetings were held, with meetings for Q1 and Q2 conducted on 29 October 2025, Q3 on 17 December 2025, and Q4 on 28 January 2026. Communication with unitholders is upheld through annual reports, sustainability statements, Bursa announcements, distribution notices, and investor briefings, ensuring transparency on Al-Salām REIT’s performance, strategy, risks, and ESG initiatives. Unitholders are given opportunities to engage directly with the Board and Management during AGMs and other engagement platforms, reinforcing accountability and open dialogue. In 2025, the AGM was held on 25 June 2025 and the EGMs on 25 June 2025. External Communication and Stakeholder Engagement Al-Salām REIT communicates regularly with external stakeholders including regulators, analysts, rating agencies, and the broader market through corporate announcements, investor presentations, meetings, and media engagements. These channels support transparency and ensure that stakeholders receive reliable information on financial results, portfolio performance, leasing activities, market conditions, and capital management strategies. For the year 2025, the REIT held a total of four analyst briefings and four investor engagement sessions, with analyst briefings conducted on 21 February 2025 (4Q2024), 9 June 2025 (1Q2025), 11 September 2025 (2Q2025), and 10 December 2025 (3Q2025), and investor site visits held on 16 January 2025 (Maybank), 11 August 2025 (PNB & EPF), 29 September 2025 (Maybank), and 30 September 2025 (BIMB). STATEMENT ON RISK MANAGEMENT & INTERNAL CONTROL
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