Sustainability report 2017

Corporate Social Responsibility

Giving back to the Community.

Social & relationship capital

It’s Our Place – Corporate Social Responsibility (CSR) is a crucial part of us and how we operate, and Hektar wholeheartedly believes that we are responsible for a better present and future. Our objective is to give back to society, to encourage responsibility and social awareness, and to ensure that we leave only positive impact on the communities we are in through our activities and daily operations. We acknowledge the importance of addressing environmental and social concerns from our staff, tenants and business partners to foster a long-term sustainable community. Hektar REIT shopping centres are recognised by shoppers as “their“ place, a place where the neighborhood spend their time to dine, shop, meet, gather, celebrate, share thoughts, give and unite. It is also the place to be with families, to be with new friends and to reminisce with childhood friends, to meet business partners and potential clients, to spend precious time with the elders and to build new relationships. Therefore, Hektar is committed to making a change for a better world and is confident in stepping forward with that objective in mind.

Charity and community

Hektar REIT organises a number of charitable events during the multi-racial festivals celebrated throughout the year. Festival events and promotions were held in celebration of our colorful tradition at each mall to promote our giving back to the community. During Ramadan fasting month, the management of Mahkota Parade brought festive cheer to a total of 15 families, by making a friendly visit to these underprivileged families in Jasin, Melaka and Alor Gajah whilst bringing along contributions consisting of daily supplies, groceries and ‘Duit Raya’ money packets as part of our CSR initiative. During the Deepavali festive season, Mahkota Parade also took a step further by working together with Majlis Gabungan Belia Melaka and UTEM students by visiting underprivileged families and contributing daily groceries and money packets to bring hope and a helping hand during the Festival of Lights. Similarly, Central Square collaborated with Sri Agathiar Sanmarka Sangam, and has successfully collected a total of RM4,023 of donations during the Deepavali campaign, which were distributed to underprivileged families across Kedah and its neighboring states.

In Subang Parade, the team collaborated with a local bookstore during the Holy month of Ramadhan for a family-friendly event which included a free talk session for adults and an interactive game session for the children. Children from the Rumah Amal Cahaya Kasih Bestari had the opportunity to participate in this event, which was also made memorable through an Iftar or breaking of fast dinner at one of Subang Parade’s F&B outlets.

Hektar REIT also ensures that the shopping centres play an important role in community outreach programmes and social awareness programs by contributing space for these events as well as providing marketing assistance. In May 2017, Wetex Parade was honoured to have the support of Jabatan Kebajikan Muar in organising ‘The Beauty of Autism’ event by contributing event space. Its objective was to educate the community about autism and to promote autism awareness. Wetex Parade also held ‘Muar Live Barter’ event, a one-of-a-kind event that encourages shoppers to exchange their items with something they need whilst, at the same time, assist Kiwanis Muar Johor, a not-for-profit organisation (NGO). Through the Muar Live Barter, Kiwanis Muar Johor successfully collected food and household items for their daily consumption on 30 November 2017.

In January 2017, Segamat town in Johor Bahru was hit by flood causing substantial damage to many homes. Wetex Parade quickly partnered with Bulan Sabit Merah Muar to provide emergency aid to the affected families. Wetex Parade served as a collection centre for donation items and with contribution from the public, the team managed to gather much-needed basic necessities ranging from food, hygiene kits, blankets, mats and non-food items for those affected by the floods. All donations were handed over to Bulan Sabit Merah Muar on 27 January 2017. Bulan Sabit Merah Muar (BSMM) have subsequently delivered the items to Kg Berata Segamat and Sekolah Agama Gemerah Segamat on 28 January 2017. All items were handed over directly into the hands of the flood victims.

Up in Sungai Petani, Central Square has also made us proud by being involved through contributing space and marketing assistance to the MBO Cinemas Nationwide Blood Donation Drive in August 2017, the result of a partnership between MBO Cinemas, one of Central Square’s anchor tenants, and St. John Ambulance Malaysia which was also supported by Pusat Darah Negara. This annual event produced a collection of 5,907 pints of blood, a vast improvement from the 4,682 pints of blood collected in the year of 2016. The objective of this blood donation drive was to save more than 15,000 lives and Central Square is proud to play its role in bringing this objective to fruition.

Hektar also supports local organisations and establishments, and is proud to have played our part by partnering with China Press for Youth Camp Muar, an event that was organised by Pertubuhan Belia Nian Shao Qing Muar to develop self-confidence and selfrespect among youths. The event was held in April 2017. Within the same month, a blood donation drive was also held at Wetex Parade, in collaboration with Hospital Pakar Sultanah Fatimah Muar. It resulted in a total collection of 53 bags of blood. In all Hektar shopping centres, ‘reading corners’ have also been placed to encourage literacy and sharing between community members.

Environment

We aim to reduce our direct adverse environmental impact by encouraging resource conservation and lowering the general energy consumption wherever possible via strong managerial control and boosting of operational efficiency for our tenants and ourselves. We have also invested in energy savings initiatives that have shown encouraging results and savings as detailed under “Energy Efficiency & Energy Management”. Our shopping centres have also participated in the Earth Hour initiative to create awareness among our visitors and tenants.

This year Subang Parade partnered with the Leo Club and held a recycling challenge campaign which involved participation by primary and secondary schools within Subang Jaya. The campaign was a tremendous success, with the event having received positive feedback from the participating schools, students and parents. Subang Parade sponsored cash vouchers worth RM2,000 as a reward for the winners.

Honouring our obligations to tenants

The success of our business is inextricably linked to the prosperity of local communities and in particular, the occupiers of our properties, our tenants. Tenants are the core of Hektar REIT’s business. Our business is reliant upon our tenants to successfully operate their businesses and, as such, underperformance on their part would adversely affect our ability to profitably operate our business. We depend on our tenants’ capability to carry out their businesses in a manner that will generate income which will allow them to meet their obligations to us, including paying rent, maintaining adequate insurance coverage, as well as maintaining their premises. We aim to create environments that inspire success to increase value for our tenants. We seek to improve the tenant’s business by carrying out on-going programs including asset enhancement initiatives to ensure that our retail properties are well maintained and comfortable for our visitors. We also invest extensively in the repair and maintenance of the common areas, facilities and car park areas across our portfolio. These investments are done with a view to enhance the shopping environment and provide a sustainable operating platform for the tenants’ businesses. Hektar also enhances tenants’ competitiveness by providing the latest industry insights and business suggestions to our tenants, besides encouraging tenants to upgrade their store outlook.

Economics

At Hektar REIT, we believe it’s our duty to support the local communities and we do so in an array of ways. One of our growth strategies is to provide customers with a vivacious tenancy mix, offering a wide range of retail brands both local and international. We do not just provide a platform for our local retailers to sell their goods and services but also help them grow and raise brand awareness amongst the community through our vigorous marketing efforts and community outreach programs.

The REIT also offers various retail options (Casual Leasing, Stand Alone Counters, Lots) for tenants to select from, enabling them to grow alongside with the REIT from a small Stand Alone Counter to a full Lot.

We are also committed to engaging local suppliers in all aspects of our mall operations. In addition, all our malls provide numerous career opportunities to the local community.

Human Capital Relations

Health and well being

Hektar REIT aims to set itself apart and create its own standards when it comes to human resource management and corporate social responsibility. The staff’s well-being is important to Hektar to ensure a balanced lifestyle for the employees as well as promote healthy interaction among employees. Hektar pays attention to social and family events and organises casual outings, sports day, annual dinners and also encourages and supports the employees to participate in the Persatuan Pengurusan Kompleks Malaysia tournaments. Some employees are also offered gym and other club membership as well. Training is also provided for employees, such as compulsory training including updates on policies and procedures, and self-development programs based on employee’s performance or interest, including overseas retail conferences to familiarise related staff to latest trends and practices.

Safety

At Hektar, we have maintained zero fatality from workplace incidents since we began our operations more than 11 years ago. We undertake great measures to ensure that our customers, tenants and employees are safe and taken care of at our premise. The safety aspect is paramount in all that we do particularly when designing retail space, and conducting works.

Labour relationships

Members of Hektar’s top management are required to undergo a cross-experiential program, where they are placed under different departments and centres to further understand the job process and working environment of their staff. In Hektar, we offer equal gender opportunities, for both genders to hold executive and even top management positions. Currently, the gender ratio for our employees is 58% female and 42% male employees.

We also understand that a happy employee is more productive, therefore a balanced lifestyle is crucial. Hektar provides parental leave, medical insurance for employee and their families and also allows early release prior to festive days to ensure that their employee’s morale is always high.