Tropicana Corporation Berhad Annual Report 2021

120 121 Annual Report 2021 TROPICANA CORPORATION BERHAD SUSTAINABILITY AT TROPICANA Continuous Assessment • Suppliers are periodically assessed for their performance and compliance based on the criteria outlined in the Group’s SOP 4 To enhance brand recognition of our Tropicana products, we conducted a variety of events for the general public. This included physical events hosted at our sales galleries as well as virtual events during the lockdown period. These initiatives aligned with our broader goal of bringing communities together through social activities while also providing insight on the journey of homeownership and property trends in the country. Projects Programme Name Date Participants Physical Events No. of Attendees (Estimated) Tropicana Aman T. Urban Farms - Muskmelon Harvest 5 December 40 Groups A Holly Jolly Christmas 18 – 19 December 75 Groups Tropicana Metropark Joyous Christmas Celebration 18 – 19 December 30 Groups Tropicana Gardens A Holly Jolly Christmas 18 – 19 December 25 Groups Virtual Events Total Views (Estimated) Tropicana Grandhill The Charm and Benefits of Investing in a Tourist Hotspot 5 September 2.3k Tropicana Metropark Maximise Your Property’s ROI and Home Interior Design Tips 26 September 1.7k Tropicana Aman Triple Win Strategies for Modern Life - Career, Family, Self-Growth 10 October 2.6k Tropicana Gardens Dive Deep into a Matured Mixed Development: Location, Convenience and Amenities 24 October 1.3k Tropicana Cenang My First Travel Destination Post Pandemic: Perfect Choice for Holiday Home 7 November 1.9k Procurement Practices To maintain product quality, we emphasise on effective procurement measures that facilitates effective engagement with suppliers who align with the Group’s commitment to product quality and service excellence. Fair Selection and Continuous Assessment We strive to procure our resources and building materials from suppliers who share the same commitment to product quality and adherence to regulatory standards. Taking into consideration their job history, cost of service and ability to meet deadlines, we enforce stringent selection and evaluation methods to ensure that our suppliers are contracted based on merit. Supporting the Local Market The impact of the COVID-19 pandemic reverberated across many industries, especially those that depend on the global supply chain. Construction materials, labour services and building fixtures are commonly sourced from international markets to optimise cost and meet volume demand. To overcome this challenge, we managed procurement costs through sound contract management by maintaining product pricing and continuously monitored resource availability to manage lead delivery time of the products we procured. Cognisant of our operational needs, the Group remains steadfast in procuring 100% of our products from the local market. We continue to endorse the hiring of local suppliers as a means to stimulate the recovery of Malaysia’s economy while ensuring the Group maintains a steady supply of products required to maintain our operations. The Group remains uncompromising in our stance for product quality and service excellence which extends to the suppliers we engage with. In the event that contracted suppliers fail to meet performance benchmark set by the Group, the following consequence is applied: • Probation Supplier – Suspended from tender participation for a specified period • Not Acceptable Supplier – Removal from Approved Suppliers List (“ASL”) list Amount Spent on Local Suppliers (RM) Selection • Product sourcing via the Approved Suppliers List (“ASL”) Survey • If products are unavailable on the ASL, the Group will conduct an open market research for alternatives • Upon the identification of suitable replacement vendors, the new vendors will be required to complete the Vendor Survey Form (“VSF”) Selection • Shortlisted vendors are surveyed and selected based on financial security, labour costs, compliance, product pricing and quality 1 2 3 0 10 20 30 40 50 Millions FY17 FY18 FY19 FY20 FY21 5,486,647 12,950,634 16,067,161 18,051,445 10,428,942 47,129,475 33,482,110 30,836,568 8,171,861 9,469,581 Group Procurement Building Materials

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