33. DEFINED BENEFIT PENSION PLANS (CONTD.) (b) Unfunded defined benefit plans EAL and MEEM operate unfunded retirement plans covering all their regular employees to comply with the requirement of the Saudi Arabian Labour Law. Benefits under the plan are based on the length of service and estimated base pay at the time of resignation, retirement, death and termination of the employees’ service for reasons other than misconduct, negligence or incompetence. The pension assets and liabilities are valued on annual basis by independent actuary, taking into account gains and losses. Group 2024 RM’000 2023 RM’000 At 1 January 2,491 – Acquisition of a subsidiary – 1,901 Charge for the year 764 520 Payments for the year (583) (51) Actuarial gain (399) – Exchange differences (193) 121 At 31 December 2,080 2,491 The details of net employee benefits expense recognised in income statement are as follows: Group 2024 RM’000 2023 RM’000 Current service costs 764 520 The principal assumptions used in determining defined benefit obligation of the Group are shown below: Group 2024 % 2023 % Discount rate 5.40 4.55-4.75 Salary increment rate 4.05 4.75-5.00 A quantitative sensitivity analysis for significant assumptions as at 31 December 2024 and 2023 are as shown below: Sensitivity Level Increase in one percentage Decrease in one percentage 2024 RM’000 2023 RM’000 2024 RM’000 2023 RM’000 Assumptions Discount rate (111) (153) 124 172 Salary adjustment 135 182 (123) (165) The average duration of the defined benefit obligation at the end of the reporting period is between 6.2 to 10.5 years (2023: between 6.2 to 10.5 years). Notes to the Financial Statements For the year ended 31 December 2024 UEM EDGENTA BERHAD 346 Integrated Annual Report 2024
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