MISC Annual Report 2017

NOTES TO THE FINANCIAL STATEMENTS 289 Financial Statements 37. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONT'D.) (c) Liquidity risk Liquidity risk is the risk that the Group and the Corporation will encounter difficulty in meeting their financial obligations due to shortage of funds. The Group and the Corporation’s exposure to liquidity risk arise primarily frommismatches of the maturities of financial assets and liabilities. The Group and the Corporation’s objective is to maintain a balance between continuity of funding and flexibility through the use of bank loans and various other sources of funding. The Group and the Corporation have at their disposal cash and short term deposits amounting to RM5,795,992,000 (2016: RM6,413,568,000) and RM2,577,773,000 (2016: RM3,468,856,000) respectively. As at 31 December 2017, the Group and the Corporation have unutilised credit lines of RM2.8 billion (2016: RM3.7 billion) and RM2.8 billion (2016: RM2.7 billion) respectively, which could be used for working capital purposes.