FGV HOLDINGS BERHAD | AUDITED FINANCIAL STATEMENTS 2023 183 NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2023 47 PROVISION FOR DEFINED BENEFIT PLAN (CONTINUED) The principal actuarial assumptions used in respect of the Group’s and the Company’s unfunded defined retirement benefits are as follows: Group Company 2023 % 2022 % 2023 % 2022 % Discount rate 4.70 5.40 4.70 5.40 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 assumption Impact on defined benefit obligation RM’000 i) Discount rate Increase 1% Decrease by RM2,114 Decrease 1% Increase by RM2,475 ii) Salary growth rate Increase 1% Increase by RM780 Decrease 1% Decrease by RM1,046 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 11 to 25 (2022: 12 to 26) years. Expected maturity analysis of undiscounted defined benefit obligation: Less than a year RM’000 Between 1 – 2 years RM’000 Between 2 – 5 years RM’000 Over 5 years RM’000 Total RM’000 Provision for defined benefit plan At 31 December 2023 4,549 4,513 12,648 104,553 126,263 At 31 December 2022 2,486 3,044 10,544 94,861 110,935
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