CORPORATE GOVERNANCE REPORT 144 Annual Report 2025 • The external audit and internal audit fees for FY2025 and recommendation to the Board for approval; • The audit fees paid/payable to the external auditors of the Group including non-audit fees and nature of non-audit services; • The quality of the EA across a number of evaluation criteria, including measures of relevance and quality of its works as well as its independence and re-appointment of the EA and recommendation to the Board for approval; and • Interested person transactions falling within scope of Chapters 9 and 10 of the Listing Rules and any potential conflicts of interests. Internal Audit The Company appointed RSM as an independent internal auditor in 2025, and RSM reported directly to the AC and administratively to the CEO. The AC is responsible for the hiring, removal, evaluation and compensation of the accounting or auditing firm or corporation which the internal audit function of the Company is outsourced to. The AC reviews and approves the internal audit plan to ensure the adequacy of the scope of audit. The internal audit plan complements that of the EA and together forms a robust risk-based audit approach to facilitate the AC’s review of the adequacy and effectiveness of the Group’s risk management and internal control systems. The AC is satisfied that RSM is able to discharge its duties effectively as it: (a) is a professional advisory firm providing corporate governance, internal audit, enterprise risk assessment, technology as well as fraud risks and regulatory compliance services; (b) is adequately qualified, given that the partner/head of the internal audit and staff assigned to the internal audit of the Company are members of the Institute of Internal Auditors and it adheres to standards set by internationally recognised professional bodies, including the Standards for the Professional Practice of Internal Auditing set by The Institute of Internal Auditors; (c) is adequately resourced to carry out the Company’s internal audit, which is led by Mr Dennis Lee, who is a member of Chartered Accountants Singapore and Certified Practising Accountants Australia, with over 24 years of professional experience and has extensive knowledge in the related field; and (d) has the appropriate standing in the Company, given, inter alia, its involvement in certain AC meetings and its unfettered access to all the Group’s documents, records, properties and personnel, including direct access to the AC. The primary functions of the IA are to: (a) assess if adequate systems of internal controls are in place to protect the funds and assets of the Group and to ensure control procedures are complied with; (b) conduct regular in-depth audits of high-risk areas; and (c) identify and recommend improvement to internal control procedures, where required. The AC has reviewed the report submitted by RSM on internal procedures, the EA’s report and the internal controls in place, and is satisfied that there are adequate internal controls in the Company. The AC will review on an annual basis the adequacy and effectiveness of the internal audit function. The AC had reviewed and is of the view that the internal audit function is independent, adequately resourced and effective in FY2025.
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