A L - S A L Ā M R E I T A N N U A L R E P O R T 2 0 2 1 88 SUSTAINABILITY STATEMENT The Whistleblowing Policy provides a formal channel for employees and other stakeholders to report occurrences of malpractice within the organisation. A disclosure can be made in writing, verbally or via electronic means to the Integrity Officer. If a report is made verbally, it must be followed by a report in writing or via email. When a whistleblowing report is made, an investigation officer will be appointed by the Direct Report. The Direct Report is either the Audit Committee, the Board, or Executive Director, and is selected based on the severity of the report. All findings are reported to the appointed Direct Report. In accordance with the Whistle-Blower Protection Act 2019, all reports received through the whistleblowing channels are treated with confidentiality and impartiality, with no employee or third-party subject to consequence or retaliation for making a report in good faith. In FY2021, the Manager did not receive any whistleblowing reports. Al-Salām REIT is committed to conducting business in compliance with the Malaysia Anti-Corruption Act 2009. As part of this commitment, the Manager has adopted an ABAC Policy which communicates and details the Manager’s principles and guidelines on money laundering, gifts, entertainment and hospitality expenses. This policy is communicated internally via briefing and training, and externally via the corporate website. However, in this reporting period, the REIT did not conduct training related to anti-bribery and corruption due to COVID-19. In FY2021, no employees were dismissed due to noncompliance with the ABAC Policy. To further enhance the REIT’s commitment to anti-bribery and corruption, the Manager established a due diligence procedure for new tenants, and conducted risk assessments on approximately 50% of internal operations in this reporting period. Operations that had undergone the assessment included procurement and outsourcing, acquisitions/divestment, recruitment and training, and valuations. The findings of the risk assessment are compiled in an Integrity Risk register. SUSTAINABLE TRUST FUND Financial Performance Delivering long-term sustainable returns to the REIT’s investors is its priority. The REIT also generates economic value and contribute towards nation development by creating direct and indirect employment opportunities. The COVID-19 pandemic has taken a toll on businesses. One of the main challenges faced by REITs stemmed from the difficulty of tenants to pay their rent due to poor business performance or the complete termination of tenancy agreements due to business closure. To address these impacts and manage the REIT’s cashflow, the REIT implemented a freeze on hiring throughout its operations. the REIT also received assistance from the government through the Perlindungan Ekonomi & Rakyat Malaysia (PERMAI) Assistance Package. With this package, a special tax deduction was received for providing at least 30% rental discounts to REIT tenants. This initiative not only aided the REIT, but also safeguarded the welfare and alleviated the financial stress of its tenants. Leveraging on these control measures, the REIT generated a total of RM71,543,083 in revenue despite market conditions, and retained a profit of RM14,643,732. Indirect Economic Impact Indirect economic impacts are defined as the additional consequences of the direct impact of financial transactions, and addresses the impacts of a company’s infrastructure investments and services supported. As a REIT with multiple types of properties within the REIT’s portfolio including office spaces, shopping malls and a supermarket, the REIT has observed various positive indirect economic impacts stemming from its operations. These include the creation of service/maintenance-related jobs within the supply chain, and the stimulation of regional economic development, particularly the growth of restaurants, small to medium enterprises and residential areas. The Manager has also participated in an urban regeneration project at Bandar Dato’ Onn Johor Bahru, in collaboration with Waqaf An-Nur Corporation Berhad. This project aims to regenerate and restore a wetland area by planting a variety of plant species, including flowering plants, herbs and aquatic plants. Once the project has been completed, it is hoped that the area will serve as an edu-tourism centre for the surrounding community.
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