32. RETIREMENT BENEFIT OBLIGATIONS (CONTD.) A one percentage point change in the below key assumptions would have the following effects to the retirement benefit obligations: Increase in one percentage Decrease in one percentage Sensitivity Level 2022 RM’000 2021 RM’000 2022 RM’000 2021 RM’000 Assumptions Discount rate 42 68 (44) (72) Salary increment rate (171) (419) 132 392 The average duration of the retirement benefit obligation at the end of the reporting period is 2 years (2021: 3 years). 33. DEFINED BENEFIT PENSION PLAN Defined benefit pension plan is by a subsidiary, Edgenta UEMS Ltd. (“UEMS Taiwan”). UEMS Taiwan has a retirement plan covering all its regular employees who opted for defined benefits plan. Benefits under the plan are based on the length of service and estimated base pay at the time of retirement. The pension assets and liabilities are valued on annual basis by independent actuary, taking into account gains and losses. The plan assets, comprising cash and cash equivalents, are deposited with the Bank of Taiwan and are managed by the government of Taiwan. The plan assets do not have quoted market prices in active market. Amount recognised in the statement of comprehensive income: Group 2022 RM’000 2021 RM’000 Interest cost on benefit obligation 10 4 Employer’s contribution (131) (127) Interest income (3) (2) Total included in employee benefits expense (Note 8) (124) (125) Net actuarial (gain)/loss recognised for the year (121) 127 (245) 2 33. DEFINED BENEFIT PENSION PLAN (CONTD.) Amount recognised in statement of financial position: Group 2022 RM’000 2021 RM’000 Present value of defined benefit obligation 1,238 1,675 Fair value of plan assets (529) (672) Defined benefit obligation 709 1,003 Changes in present value of defined benefit obligation: Group 2022 RM’000 2021 RM’000 At 1 January 1,675 1,657 Interest cost 10 4 Benefit paid (281) (225) Actuarial (gain)/loss (102) 138 Exchange differences (64) 101 At 31 December 1,238 1,675 Changes in fair value of plan assets: Group 2022 RM’000 2021 RM’000 At 1 January (672) (720) Employer’s contribution (131) (127) Benefit paid 281 225 Actuarial gain (19) (11) Interest income (3) (2) Exchange differences 15 (37) At 31 December (529) (672) The principal assumptions used in determining defined benefit obligation of the Group are shown below: Group 2022 2021 Discount rate 1.33% 0.54% Salary escalation 3.00% 2.06% p.344 p.345 UEM EDGENTA BERHAD INTEGRATED ANNUAL REPORT 2022 1 2 3 4 5 6 7 8 9 FINANCIAL STATEMENTS Notes to the financial statements For the year ended 31 December 2022 Notes to the financial statements For the year ended 31 December 2022
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