CapitaLand Malaysia Mall Trust | Annual Report 2020

175 BECAUSE TOMORROW MATTERS NOTES TO THE FINANCIAL STATEMENTS As at 31 December 2020 27. SIGNIFICANT EVENT DURING THE FINANCIAL YEAR On 11 March 2020, the World Health Organisation declared the COVID-19 outbreak as a global pandemic. In response, the Malaysian Government had implemented several movement restriction orders – Movement Control Order (MCO), Conditional MCO (CMCO) and Recovery MCO (RMCO), from 18 March 2020 as part of the measures to contain the spread of the pandemic. These movement restrictions continue to remain in force as at 31 December 2020. COVID-19 has significantly impacted many businesses including the retail sector. During the MCO, tenants who are not categorised as essential services (Affected Tenants) were not allowed to operate their businesses. To alleviate the burden of Affected Tenants, CMMT has committed up to RM35 million of rental relief to support Affected Tenants. In addition, CMMT has passed on the full 15% discount on electricity to mall tenants in response to the stimulus package announced by the Malaysian Government. The effects of the pandemic remain fluid and the Manager will continue to monitor ongoing developments closely and take on a proactive approach in assessing the needs of Affected Tenants to strike a balance between rental reversions and occupancy to ensure portfolio stability.