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) (iii) Market risk (Cont’d) (c) Market price risk Market price risk is the risk that the fair value or future cash flows of the Group’s financial instruments will fluctuate because of changes in market prices (other than interest or exchange rates). The Group is exposed to equity price risk arising from its investment in quoted instruments. These investments are listed on Bursa Malaysia and are classified as financial assets at FVTPL. Management of the Group monitors investments in quoted instruments on a portfolio basis. Material investments within the portfolio are managed on an individual basis and all buy and sell decisions are approved by Risk Management Committee of the Group. Market price risk sensitivity analysis At the reporting date, if the various stock indices had been 1% higher/ lower, with all other variables held constant, the Group’s profit before tax would have been RM102 (2022: RMNil) higher/lower, arising as a result of higher/lower fair value gains on held for trading investment in equity instruments. (c) Fair value of financial instruments The fair value of the financial assets and financial liabilities of the Group and of the Company which are maturing within the next 12 months approximated their carrying amounts due to the relatively short-term maturity of the financial instruments or repayable on demand terms. The table below analyses financial instruments carried at fair value and those not carried at fair value for which fair value is disclosed, together with their fair values and carrying amounts shown in the statements of financial position. Fair value of financial instruments carried at fair value Total fair value Carrying amount Level 1 Level 2 Level 3 RM’000 RM’000 RM’000 RM’000 RM’000 Group 2023 Financial assets Other investments: - unquoted investments - 29,735 198,984 228,719 228,719 - quoted investment 10 - - 10 10 - limited partnership - - 4,729 4,729 4,729 Short-term investments - 3,504 - 3,504 3,504 254 MY E.G. SERVICES BERHAD Registration No. 200001003034 (505639-K) INANCIAL INSTRUMENTS
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