180 MALAYSIA AIRPORTS HOLDINGS BERHAD Whilst maintaining a tight reign on cost containment and cash management, activities remained ongoing to enhance the Group’s shareholder value. This included efforts towards finalisation of the Operating Agreements as well as the 99-year Land Lease Agreement for Aeropolis. 2021 also saw completion of the majority of Sama-Sama Hotel KLIA’s renovations and following this, the next natural step was to work towards monetising these assets. Other mitigations and achievements such as achieving an 11.2% core cost reduction, sustainable cost reduction of RM50m p.a. in utilities via a new arrangement with TNB JV, practicing zero based budgeting on critical needs basis, securing SAW’s EUR114.8 million utilisation fee deferral for FY2022 and continued cash recovery initiatives have contributed to the strengthening financial position which was further boosted by the establishment of a new RM5.0 billion Sukuk Wakalah programme. The preservation of Moody’s A3 and RAM’s AAA credit ratings lent further testament to the financial strength of Malaysia Airports. As part of ongoing programmes to retain and reset commercial operations at airports, a new rental model was introduced in FY2021. Besides retaining and attracting tenants, this initiative was to ensure readiness post-pandemic for when passengers return. Throughout the year, there were several “Crazy Sales” held at the airports, all done in compliance to government standard operating procedures for COVID-19. As with other companies hit by the pandemic, human capital remained a risk i.e. the Group wanted to retain the right talents and ensure morale was sustained. LEAD US, a programme for high-potential talents was set up in Q4 2021 to help allay this risk. Permeating throughout these, the Environmental, Social and Governance (ESG) Agenda was always in consideration. Some key activities included: STATEMENT ON RISK MANAGEMENT AND INTERNAL CONTROL ENVIRONMENT SOCIAL GOVERNANCE • Ensuring all relevant Acts are complied with. • Renewal of Malaysia Airports’ Level 3 certification of Airport Carbon Accreditation by ACI. • Improved energy efficiency following upgrading of KUL’s district cooling plant. • Commitment towards increase usage of renewable (solar) energy by 7 other airports. • ‘Gotong royong’ activities such as clean-up of hiking trails in Lahad Datu in collaboration with Yayasan Sabah as well as beach clean-ups. • Flood relief inclusive of cash, food baskets, availing assets as flood relief centres, and manpower for post-flood cleanup. • Breaking of fast meals during Ramadhan to stakeholders. • Engaged 98% local suppliers as part of empowering locals. • “I’m FIT” online exercise programme to help personnel boost their wellbeing whilst being on rotation of working from home. • Perpetuation of the Whistleblowing Programme as an avenue to report any concerns by stakeholders. • Continued activities and initiatives on Anti-Bribery Management System and MACC Act S17A. More details on the ESG initiatives can be found in the Sustainability Report, the Statement on Corporate Governance and the Management Discussion and Analysis and the Sustainability Overview sections of this report. S G E
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