NOTES TO THE FINANCIAL STATEMENTS For the Financial Year Ended 31 December 2023 (cont’d) 45. FINANCIAL INSTRUMENTS (CONT’D) (b) Financial risk management objectives and policies (Cont’d) (i) Credit risk (Cont’d) In addition, the Group also determines the concentration of credit risk by monitoring, on an ongoing basis, its trade and financing receivables based on the countries where the customer has operations. The credit risk concentration profile of trade and financing receivables at the end of the reporting period is as follows: Group Company 2023 2022 2023 2022 RM’000 RM’000 RM’000 RM’000 Malaysia 586,381 617,285 2,832 1,030 Outside Malaysia 6,240 6,500 6,240 6,500 592,621 623,785 9,072 7,530 (ii) Liquidity risk Liquidity risk refers to the risk that the Group or the Company will encounter difficulty in meeting to financial obligations as they fall due. The Group’s and the Company’s exposure to liquidity risk arises primarily from mismatches of the maturities of financial assets and liabilities. The Group’s and the Company’s funding requirements and liquidity risk are managed with the objective of meeting business obligations on a timely basis. The Group and the Company finance their liquidity through internally generated cash flows and minimises liquidity risk by keeping committed credit lines available. ANNUAL REPORT 2023 245 (ii) Liquidity risk FINANCIAL STATEMENTS
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