MISC Integrated Annual Report 2020

5. (LOSS)/PROFIT BEFORE TAXATION (CONT’D.) (a) Impairment provisions Group Corporation 2020 2019 2020 2019 RM’000 RM’000 RM’000 RM’000 Ships, offshore floating assets and other property, plant and equipment (Note 14) 318,868 154,949 10,444 8,582 Right-of-use assets (Note 14) 2,292 40,386 – – Loss on termination of contracts – 19,608 – – Non-current assets held for sale written down (Note 25) 10,216 – – – Investments in subsidiaries (Note 17) – – 26,627 92,825 331,376 214,943 37,071 101,407 As a result of COVID-19 pandemic and depressed oil price environment where most oil and gas companies are expected to postpone their upstream projects and reduce capital expenditure, the Group had recorded an impairment loss amounting to RM300,000,000 on its Marine & Heavy Engineering segment’s other property, plant and equipment and right-of-use assets during the year in anticipation of a prolonged recovery in the industry resulting from these events. 6. STAFF COSTS Group Corporation 2020 2019 2020 2019 RM’000 RM’000 RM’000 RM’000 Wages, salaries and bonuses 1,445,251 1,434,880 229,877 202,621 Contributions to defined contribution plans 95,510 87,289 21,578 16,594 Social security costs 9,117 7,890 631 498 Other staff related expenses 225,409 235,102 18,333 24,201 1,775,287 1,765,161 270,419 243,914 Included in staff costs of the Group and of the Corporation are executive director’s remuneration (excluding benefits-in-kind) amounting to RM3,107,000 (2019: RM2,778,000) respectively as further disclosed in Note 7. 7. DIRECTORS’ REMUNERATION The details of remuneration receivable by directors of the Corporation during the financial year are as follows: Group Corporation 2020 2019 2020 2019 RM’000 RM’000 RM’000 RM’000 Executive: Salaries and other emoluments 1,700 1,587 1,700 1,587 Bonus 690 535 690 535 Defined contribution plans 717 656 717 656 Total executive directors’ remuneration (excluding benefits-in-kind) 3,107 2,778 3,107 2,778 Estimated money value of benefits-in-kind 78 272 78 272 Total executive directors’ remuneration (including benefits-in-kind) 3,185 3,050 3,185 3,050 Non-executive directors’ remuneration: Fees 1,185 1,039 1,185 1,039 Fees from subsidiaries 554 528 – – Total non-executive directors’ remuneration (Note 5) 1,739 1,567 1,185 1,039 Total directors’ remuneration including benefits-in-kind (Note 33(g)) 4,924 4,617 4,370 4,089 The number of directors of the Corporation whose total remuneration during the financial year fell within the following bands is analysed below: Number of directors 2020 2019 Executive director: RM3,000,001 - RM3,050,000 – 1 RM3,150,001 - RM3,200,000 1 – Non-executive directors*: RM1 - RM50,000 4 – RM150,001 - RM200,000 2 2 RM200,001 - RM250,000 2 1 RM250,001 - RM300,000 – 1 RM700,001 - RM750,000 – 1 RM750,001 - RM800,000 1 – 9 5 * Excludes the directors of the Corporation whose fees are paid directly to the immediate holding company of the Corporation, PETRONAS. 31 December 2020 NOTES TO THE FINANCIAL STATEMENTS 31 December 2020 NOTES TO THE FINANCIAL STATEMENTS 10 368 10 369 /// Leadership / Governance / Financial Statements / Additional Information / Annual General Meeting ////// /// Leadership / Governance / Financial Statements / Additional Information / Annual General Meeting ////// Section Section MISC Berhad / Integrated Annual Report 2020 MISC Berhad / Integrated Annual Report 2020

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