CapitaLand Malaysia Mall Trust | Annual Report 2020

OUR ROLE We, as the Manager of CMMT, set the strategic direction of CMMT and make recommendations to the Trustee, in its capacity as trustee of CMMT on any investment or divestment opportunities for CMMT and the enhancement of the assets of CMMT in accordance with the stated investment strategy for CMMT. The research, evaluation and analysis required for this purpose are coordinated and carried out by the Manager. As the Manager, we have general powers of management over the assets of CMMT. Our primary responsibility is to manage the assets and liabilities of CMMT for the benefit of the Unitholders of CMMT. We do this with a focus on generating rental income and enhancing asset values over time so as to maximise returns from the investments and ultimately, the distribution and total returns to Unitholders. Our other functions and responsibilities of the Manager include: (a) using our best endeavour to conduct CMMT’s business in a proper and efficient manner in the best interests of the Unitholders; (b) preparing annual business plans for review by the Directors of the Manager, including forecasts on revenue, net income and capital expenditure, explanations on major variances in previous years’ financial results, written commentaries on key issues and underlying assumptions for rental rates, operating expenses and other relevant assumptions; (c) ensuring compliance with relevant laws and regulations, including but not limited to the Companies Act 2016, the Capital Markets and Services Act 2007 (CMSA), the Main Market Listing Requirements of Bursa Malaysia Securities Berhad (Bursa Malaysia) (Listing Requirements), the Securities Commission’s (SC) Guidelines on Listed Real Estate Investment Trusts (REITs Guidelines), Licensing Handbook, written directions, notices, codes and other applicable guidelines issued by SC and/or Bursa Malaysia and the tax rulings issued by the Inland Revenue Board of Malaysia on the taxation of CMMT and its Unitholders as well as any updates and amendments to such relevant laws and regulations; (d) attending to all regular communications with Unitholders; and (e) supervising Knight Frank Property Management Sdn. Bhd. and Zaharin Nexcap Property Consultants Sdn. Bhd. (collectively, the Property Managers), which pursuant to the property management agreements, perform the day-to-day property management functions (including leasing, marketing & promotion, operations coordination and other property management activities) for CMMT’s properties namely Gurney Plaza, Sungei Wang Plaza 1 , 3 Damansara and 3 Damansara Office Tower, The Mines and East Coast Mall. The Manager also considers sustainability issues (including environmental and social factors) as part of its responsibility. CMMT’s environmental, sustainability and community outreach programmes are set out on pages 125 to 129 of the CMMT’s Annual Report 2020. Please refer to the Sustainability Management section of CMMT’s Annual Report 2020. The Manager administers the enterprise risk management and ensures that internal controls are in place to mitigate and manage the risks as set out in the Enterprise Risk Management section of CMMT’s Annual Report 2020. CMMT, constituted as a trust, is externally managed by the Manager. The Manager appoints experienced and well qualified personnel to run its day-to-day operations. 1 CMMT’s interest in Sungei Wang Plaza comprises (i) 205 strata parcels within the mall which represents approximately 61.9% of the aggregate retail floor area of Sungei Wang Plaza, and (ii) 100.0% of the car park bays in Sungei Wang Plaza. CORPORATE GOVERNANCE 83 BECAUSE TOMORROW MATTERS