AUDITED FINANCIAL STATEMENTS 2022 91 NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2022 19 PROPERTY, PLANT AND EQUIPMENT (CONTINUED) Significant impairment and write off of property, plant and equipment (continued) Financial year ended 31 December 2022 (continued) d) MSM Sugar Refinery (Johor) Sdn. Bhd. (“MSM Johor”) (continued) The sensitivity on the MSM Johor’s assets recoverable amount to key assumptions are as follows: 2022 Key assumptions Sensitivity VIU Higher/(Lower) by RM’000 Raw sugar price Increase NY11 in 2024 & 2025 by USD0.61 cents/lb and USD0.30 cents/lb (6,900) Selling price Decrease of selling price by RM116/mt in 2023 (266,852) Natural gas price Increase in natural gas price by 22% to RM67/MMBtu in 2023 (16,968) 2021 Key assumptions Sensitivity VIU Higher/(Lower) by RM’000 Sales volume 30% reduction in FY22 and FY23 (43,000) Capital expenditure Increase by RM50 million (42,100) Freight charges Increase to USD60/MT in FY22 (USD 30/MT FY23 onwards) (32,400) Natural gas price Increase to RM40/MMBtu in FY22 (21,100) Fine syrup sales volume Reduce by 12KMT - 16KMT (8,800) The above sensitivity analysis is based on the movement of individual key assumptions while holding all other assumptions constant.
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