Key Risks Details Key Mitigation Actions Property Market and Economic Risk › MUST may be adversely affected by economic and real estate market conditions in the U.S. These conditions may have a negative impact on the ability of tenants to pay their rents in a timely manner or to continue their leases. This in effect may cause a reduction in MUST’s cash flows as well as a decline in rents and market value of the properties. › The Manager has adopted a disciplined approach towards financial management and monitors economic developments closely. Regulatory, Compliance, Outsourcing and Taxation Risks › MUST is required to comply with applicable and relevant legislations and regulations that include SGX-ST Listing Rules, International Financial Reporting Standards, the Securities and Futures Act, the Code of Collective Investment Scheme, U.S. and Singapore tax laws, regulations and rulings. › Changes in legislations and regulations including amendments to laws and regulations, legal judgements and their interpretation may impact MUST’s distributable income. › MUST has to bear the burden of withholding tax for the Unitholders who fail to supply the U.S. withholding tax forms and certificates due to the temporary halting of distributions to Unitholders. › The Manager has established a compliance monitoring programme to assist in ensuring compliance with regulatory requirements, company policies and procedures. › The Manager actively monitors regulatory changes and their impact to the REIT, and implements appropriate strategies to mitigate the impact. › The Manager has put in place a process to collect U.S. withholding tax forms and certificates from Unitholders. Three Lines of Defence 1st Line of Defence Management Control & Internal Control System 2nd Line of Defence Risk Management Legal & Compliance 3rd Line of Defence Internal Audit Senior Management Board of Directors/ Audit and Risk Committee REGULATOR TRUSTEE EXTERNAL AUDITOR ENTERPRISE RISK MANAGEMENT / 56 / EXPANDING HORIZONS
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