201 32. FINANCIAL INSTRUMENTS (continued) (vi) Market risk (continued) (a) Foreign currency risk (continued) Exposure to foreign currency risk (continued) Singapore Dollar Malaysian Ringgit United States Dollar Company RM’mil RM’mil RM’mil 2024 Trade and other receivables 7 – – Cash and cash equivalents – – 6 Trade and other payables – (2) – 7 (2) 6 2023 Trade and other receivables 45 – – Cash and cash equivalents – – 6 Trade and other payables (2) (2) – 43 (2) 6 Sensitivity analysis Any reasonable movement in foreign currencies exchange rates will not have a material impact on the performance of the Group and the Company. (b) Interest rate risk This relates to changes in interest rates which affect mainly the Group’s fixed deposits and its loans and borrowings. The Group’s fixed rate financial assets and loans and borrowings are exposed to a risk of change in their fair values while the variable rate financial assets and loans and borrowings are exposed to a risk of change in cash flows due to changes in interest rates. Short term receivables and payables are not significantly exposed to interest rate risk. The Group has no significant concentration of interest rate risk that may arise from exposure to Group’s fixed deposits and its obligations with banks and financial institutions. Risk management objectives, policies and processes for managing the risk The Group’s policy is to manage its interest cost using a mix of fixed and variable rate debts as well as by rolling over its fixed deposits and variable rate borrowings on a short-term basis. In respect of long term borrowings, the Group may enter into interest rate derivatives to manage its exposure to adverse movements in interest rates. Interest rate swaps, cross currency interest rate swaps and interest rate caps have been entered into to achieve an appropriate mix of fixed and floating rate exposures within the Group’s policy. The nominal value and fair value of the interest rate swaps, cross currency interest rate swaps and interest rate caps are disclosed in note 21.
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