Financial Statements Notes to the Financial Statements 32. FINANCIAL INSTRUMENTS (continued) (iv) Credit risk (continued) Trade receivables (continued) Exposure to credit risk, credit quality and collateral The maximum exposure to credit risk are represented by the carrying amounts of financial assets in the statements of financial position. Credit risk concentration profile The exposure of credit risk for trade receivables as at the end of the reporting period (by geographical distribution) were as follows: Group 2024 2023 Note RM’mil RM’mil Singapore 819 748 Malaysia 599 540 India 652 624 Greater China 156 127 Southeast Asia 114 107 Türkiye and Europe 1,033 787 Others 55 50 3,428 2,983 Impairment losses (449) (441) 13 2,979 2,542 There is no significant credit risk concentration as at 31 December 2024 and 31 December 2023. Recognition and measurement of impairment losses The Group uses a provision matrix to measure the lifetime expected credit loss (“ECL”) allowance for trade receivables. In measuring the ECL, trade receivables are grouped based on shared credit risk characteristics such as customer types, geographic region and days past due. Customer types include self-pay customers, insurers, third party administrators and government bodies. Loss rate is calculated using a “roll-rate” method based on the probability of a receivable progressing through successive stages of delinquency to being written off. In calculating the ECL rates, the Group considers historical loss rates for each category of customers, based on actual credit loss experience over the past four years. This is adjusted by scalar factors to reflect differences between economic conditions during the period over which the historic data has been collected, current conditions and the Group’s view of economic conditions over the expected lives of the receivables. The scalar factors for self-pay customers are based on actual and forecast real income growth rates of respective countries. The scalar factors for corporate and government customers are based on default probability risk rates of the customer. IHH Healthcare Berhad | Annual Report 2024 194
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