NOTES TO THE FINANCIAL STATEMENTS For the Financial Year Ended 31 December 2023 (cont’d) 4. INVESTMENT PROPERTIES (CONT’D) (a) The investment properties of the Group and of the Company are leased to customers under operating leases with monthly rental payments. The leases contain initial non-cancellable periods ranging from 1 to 3 years. As at the reporting date, the future minimum rental receivable under the non-cancellable operating leases are as follows: Group Company 2023 2022 2023 2022 RM’000 RM’000 RM’000 RM’000 Within 1 year 1,721 1,215 6,228 2,326 Between 1 and 2 years 1,993 601 7,860 1,131 Between 2 and 3 years - - - 24 3,714 1,816 14,088 3,481 (b) Certain investment properties have been pledged to a licensed bank as security for banking facilities granted to the Group and to the Company as disclosed in Note 26 to the financial statements. (c) Fair value measurement There are no Level 1 investment properties during the financial years ended 31 December 2023 and 31 December 2022. There was transfer for investment properties from Level 2 to Level 3 due to change of valuation method in the previous financial year ended 31 December 2022. The valuation technique are as follow: Level 2 Level 2 fair value of lands and buildings have been generally derived by using sales comparison approach. Sales price of comparable properties in close proximity are adjusted for differences in key attributes such as property site. The most significant input into this valuation approach is price per square foot of comparable properties. Level 3 The fair value of the investment properties of the Group and of the Company were estimated by the Directors based on the recent transacted prices in the market of properties with similar condition and location. If the Group’s and the Company’s investment properties carried at fair value, it will classify as at Level 3 fair value item for the purpose of fair value hierarchy disclosure. There were no transfers between levels during the current financial year. Fair value measurement of the investment properties were categorise as follows: Group Company 2023 2022 2023 2022 Level 3 Level 3 Level 3 Level 3 RM’000 RM’000 RM’000 RM’000 Leasehold buildings 34,766 31,268 164,674 121,769 194 MY E.G. SERVICES BERHAD Registration No. 200001003034 (505639-K) NVESTMENT PROPERTIES
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