Chemical Company of Malaysia Berhad Annual Report 2018

Notes to the Financial Statements 4. INVESTMENT PROPERTIES Group Company Note 2018 2017 2018 2017 At 1 January 20,020 210,370 25,800 211,320 Change in fair value recognised in profit  or loss – 200 220 380 Transfer from assets classified as held  for sale 13 – 1,000 – – Transfer to assets classified as held for sale 13 (19,800) (185,900) (19,800) (185,900) Effect of demerger – (5,650) – – At 31 December 220 20,020 6,220 25,800 Investment properties of the Group and the Company comprise a number of commercial properties that are leased to third parties and subsidiaries. Each of the leases contains an initial non-cancellable period of one month to one year. Subsequent renewals are negotiated with the lessee and on average renewal periods are one to three years. No contingent rents are charged. During the financial year, a leasehold land amounting to RM19,800,000 have been transferred from investment property to assets classified as held for sale (see Note 13) following the commitment of the management during the year to a plan to sell the investment property. The following are recognised in profit or loss in respect of investment properties: Group Company 2018 2017 2018 2017 Rental income 402 420 1,841 3,701 Direct operating expenses: - income generating investment properties 34 31 592 1,155 - non-income generating investment properties – – 52 29 140 ANNUAL REPORT 2018