NOTES TO THE FINANCIAL STATEMENTS For the financial year ended 31 December 2022 (cont’d) FINANCIAL STATEMENTS 46. FINANCIAL INSTRUMENTS (CONT’D) (b) Financial risk management objectives and policies (cont’d) (iii) Market risk (cont’d) (a) Foreign currency risk (cont’d) Foreign currency sensitivity analysis (cont’d) The following table demonstrates the sensitivity of the Group’s and of the Company’s profit before tax for the financial year to reasonably possible change in the AUD, USD, SGD, IDR and PHP exchange rates against RM, which all other variables held constant. (cont’d) 2022 2021 RM’000 RM’000 Group (cont’d) Effects on profit after tax: (cont’d) PHP/RM Strengthen by 1% (2021: 1%) 25 25 Weakened by 1% (2021: 1%) (25) (25) IDR/RM Strengthen by 1% (2021: 1%) # 2 Weakened by 1% (2021: 1%) # (2) 2022 2021 RM’000 RM’000 Company AUD/RM Strengthen by 1% (2021: Nil) (818) - Weakened by 1% (2021: Nil) 818 - SGD/RM Strengthen by 1% (2021: 1%) 1 1 Weakened by 1% (2021: 1%) (1) (1) (b) Interest rate risk The Group’s and the Company’s fixed rate deposits placed with licensed banks and borrowings are exposed to a risk of change in their fair value due to changes in interest rates. The Group’s and the Company’s variable rate borrowings are exposed to a risk of change in cash flows due to change in interest rates. The Group and the Company manage their interest rate risk of its deposits with licensed financial institutions by placing them at the most competitive interest rates obtainable, which yield better returns than cash at bank and maintaining a prudent mix of short and long-term deposits. 239
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