114 115 Annual Report 2021 TROPICANA CORPORATION BERHAD SUSTAINABILITY AT TROPICANA COVID-19 Pandemic: Protecting Each Other Officially recognised as a pandemic by the World Health Organisation (“WHO”) in 2020, COVID-19 has resulted in far-reaching repercussions on a national and global scale. With the enforcement of lockdowns continuing well into FY2021, organisations were forced to reconsider conventional business practices, optimise financial capital and prioritise occupational, safety and health to provide stakeholder assurance. Our response to the outbreak has been swift and all-encompassing as we expanded our focus on business continuity to include supporting general society through donations and contributions towards communities, governing agencies and healthcare facilities. Closer to home, our employees were kept safe via initiatives that ensured a healthy working environment; both at our headquarters and project sites. Safeguarding Our People and the General Community As industry leaders, we strive to set precedence in the way we respond to protecting our workforce and communities. Not only did we invest on equipment to maintain sanitary working conditions, the majority of our COVID-19 contributions were distributed with the intent to protect the health and safety of the general public. Ranging from medical equipment to living essentials, we worked tirelessly with organisations and charities to ensure that we perform our due diligence in fighting the war against this pandemic. Supporting the National Vaccination Drive While the pandemic devastated livelihoods and businesses on a global scale, the creation of a vaccine from reputable healthcare organisations brought a ray of hope for all of us. Not only would full immunity gained through vaccinations allow economies to reopen, it would also reduce the likelihood of severe illnesses in the event of an infection by the COVID-19 virus. As a responsible corporate citizen, Tropicana pledged our support to the efforts borne by the Malaysian Government when the National COVID-19 Immunisation Programme (“PICK”) was established by providing a vaccination facility at Tropicana Gardens Mall Convention Centre. This facility acted as one of the five large vaccination centres (“PPV”) across Malaysia. Further, we hosted the Program Vaksin Selangor (“SelVax”), a joint measure between Selgate Healthcare and PICK to provide free vaccinations to the people of Selangor at our PPV. At the time of reporting, we are pleased to disclose that more than RM1 million was contributed as part of this operation to support manpower, logistics and utilities costs. To create a conducive working environment, we assured our employees of their safety by extending vaccination accessibility across the Group. All Tropicana staff employed within our headquarters (“HQ”), Tropicana Gardens Mall, Tropicana Golf & Country Resort, W KL Hotel, Courtyard by Marriott Hotel and Property Management who had not received their vaccine, were signed up for the Group’s internal vaccination programme to achieve 100% vaccinated workforce status. Workplace Health & Safety Contributions Community Contributions • Clinic Waste Disposal - RM1,445 • Disinfecting Services - RM19,240 • Hand Sanitisers - RM1,515 • Auto Stand Mobile Sanitisers - RM18,810 • Misting Equipment and Chemicals - RM39,348 • Face Masks - RM57,600 • Face Shields - RM475 • Medical Suit - RM18,770 • Medical Equipment - RM7,725 • Thermal Screening - RM4,857 • Rapid Test Kits - RM79,822 • Medical Equipment · · Wheelchairs – RM2,200 · · PPE – RM16,210 · · Hospital Beds – RM30,000 · · Hospital Equipment – RM96,200 • Community Assistance · · Charitable Organisations – RM679,900 Cost = RM249,607 Cost = RM824,510 Sustaining Our Supply Chain Although we remained agile throughout the pandemic, projects that were in the midst of construction were inevitably affected by several factors triggered by logistical setbacks and shortages for material and labour supply that ultimately caused delays in key deliverables. To overcome these challenges, Tropicana adopted swift and decisive approaches that minimised resource shortages, operational disruptions and health threats as reasonably practicable as possible. Department Group Procurement Building Materials Impact to Operations • Longer lead time: · · Limited transport and freight services · · Lack of permit to operate and/or perform deliveries during lockdown • Labour shortage: · · Strict border regulations and closure · · Key services affected – security and cleaning services • Longer lead times: · · Limited transport and freight services · · Reduced product range from manufacturers · · Reduced product supply from manufacturers • Cost of materials: · · Rising prices due to shortages or delays · · Disruption to production line Mitigation Measures • Impact minimised as major services were awarded prior to FY2020 • Close monitoring of labour shortage between the Group and vendors • No major disruption to operations for advanced stage and newly launched projects • On-going projects: Close collaboration with project team and main contractors to ensure sufficient materials and lead time in product delivery Operational disruptions at our project sites Repercussions of the pandemic cascaded down our supply chain to include construction operations at our project sites. While our procurement practices were closely monitored to minimise disruption to daily Group operations, the movement control order (“MCO”) enforced by the Malaysian Government during the peak of the pandemic halted the construction of our projects that ultimately led to completion delays. Our impacted operations were exacerbated by labour and material shortages as well as delays in approvals and project inspections by external governing agencies. To protect the interest of our stakeholders, Tropicana took the necessary measure of obtaining Extension of Time (“EOT”) for several of our ongoing projects from the Ministry of Housing and Local Government (“KPKT”) to ensure that our projects would be completed with minimum losses to cost and time while maintaining the quality of our deliverables. The Group stands by our conviction to preserving public health and safety without compromising the quality of our products and services. Creating a Safe Working Environment Throughout FY2021, we continued our efforts to create a safe workspace for our employees while also promoting sound hygiene practices to curb the spread of the virus. Mandatory wearing of masks and temperature screenings at our operating areas remain at the forefront of our initiatives, supported by frequent sanitisation exercises and periodic screenings using rapid test kits (“RTK”) on our workforce. We maintain a swift management approach in the event of a positive case detected at our operating areas by enforcing quarantine measures, social distancing practices, thorough sanitisation and close contact monitoring. Up to RM1.07 million Contributed to COVID-19 Causes
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