FGV Audited Financial Statements 2020

50 PROVISION FOR DEFINED BENEFIT PLAN (continued) The defined benefit obligations for the Group by country are as follows: Group Company 2020 RM’000 2019 RM’000 2020 RM’000 2019 RM’000 Present value of obligation: - Malaysia 62,725 84,229 877 1,706 - Indonesia 3,631 2,447 - - - Thailand 1,136 1,125 - - 67,492 87,801 877 1,706 The principal actuarial assumptions used in respect of the Group’s and the Company’s unfunded defined retirement benefits are as follows: Group Company 2020 RM’000 2019 RM’000 2020 RM’000 2019 RM’000 Discount rate 4.00 4.40 4.00 4.40 Expected rate of salary increase 5.00 5.00 5.00 5.00 The sensitivity of the defined benefit obligation of the Group to changes in the weighted principal assumption is: Change in Impact on defined assumption benefit obligation RM’000 i) Discount rate Increase 1% Decrease by RM3,435 Decrease 1% Increase by RM4,087 ii) Salary growth rate Increase 1% Increase by RM1,473 Decrease 1% Decrease by RM2,014 The above sensitivity analysis are based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined obligation to significant actuarial assumptions the same method (present value of the defined benefit obligation calculated with the projected unit credit method at the end of the reporting period) has been applied as when calculating the benefit liability recognised within the statement of financial position. The methods and types of assumptions used in preparing the sensitivity analysis have not changed compared to the previous financial year. The weighted average duration of the defined benefit obligation is 2 to 28 (2019: 11 to 27) years. 173 Notes to the Financial Statements For The Financial Year Ended 31 December 2020 Audited Financial Statements 2020