ROBUST CORPORATE GOVERNANCE REGULATORY COMPLIANCE AND RISK MANAGEMENT (CONT’D) OUR APPROACH (CONT’D) OUR PERFORMANCE i. Regulatory Compliance (Cont’d) Al-‘Aqar REIT tenants are also obligated to abide by stipulated legal requirements and agreements, encompassing laws such as the Uniform By-Laws 1984, the Fire Services Act 1988 and the Lease/Tenancy Agreement. As such, to ensure requirements are upheld within the properties, the Fund conducts scheduled monitoring and instructs Maintenance Managers to provide updates through a Monthly Report. Each building’s licencing status is detailed within the report, with the renewal process managed by the lessee and falling under the oversight of KPJ HQ. Remaining well-informed of developments in the regulatory landscape is of chief importance. Beyond obtaining regular legal and secretarial updates to stay abreast of the latest changes, the Board, as well as management personnel, are encouraged to attend talks and seminars whenever necessary. Furthermore, the Manager receives notifications on relevant changes from Bursa Malaysia, the Securities Commission and the Malaysian REIT Managers Association (“MRMA”). To ensure compliance with applicable laws and requirements throughout Al-‘Aqar REIT, initiatives related to compliance are communicated through multiple channels. Internally, these initiatives are disseminated during management meetings, briefings and through announcements. Externally, information is shared via Annual General Meetings, analyst briefings, the corporate website and annual reports. Those requiring further clarification regarding these initiatives can direct their questions to a designated individual via email. ii. Risk Management Risk management at Al-‘Aqar REIT is overseen by the BARC, with support from the Enterprise Risk Management Committee (“ERMC”). Tasked with inculcating risk management into the Manager’s day-to-day operations, they also identify risk parameters, appetite, profiles, treatment options, action plans and indicators. Adhering to the Enterprise Risk Management (“ERM”) Policy and Framework, the Manager conducts quarterly risk assessments where findings are systematically catalogued in a comprehensive risk register. Additionally, the Manager conducts risk assessments on the REIT’s suppliers which cover social, labour, health and safety, tax and data protection issues. Risk owners are responsible for reporting on the current status of risks and the progression of corresponding mitigation measures. These risk owners also identify any new potential operational risks as well as develop mitigation plans, presenting them to the ERMC and at the weekly Management Committee meetings. The ERMC works to effectively communicate such risks and mitigation plans, meeting on a quarterly basis. The Fund is pleased to report that due to our consistent effort to uphold regulatory compliance, we recorded zero incidences of non-compliance. Additionally, no high risk was identified during the supplier risk assessment. (Source: Compliance & Risk) 59 SUSTAINABILLITY STATEMENTS 1 2 4 5 6 AL-`AQAR HEALTHCARE REIT ANNUAL REPORT 2023
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