2019 UEM Edgenta Annual Report

223 UEM EDGENTA AT A GLANCE MESSAGE FROM OUR LEADERSHIP STRATEGIC FOCUS OPERATIONAL REVIEW SUSTAINABILITY EFFORTS CORPORATE GOVERNANCE INTRODUCTION FINANCIAL REVIEW ADDITIONAL INFORMATION Notes to the Financial Statements For the year ended 31 December 2019 UEM Edgenta Berhad Annual Report 2019 27. DEFINED BENEFIT PENSION PLAN (CONT’D.) Changes in fair value of plan assets: Group 2019 RM’000 2018 RM’000 At 1 January (38) (382) Employer’s contribution (745) (55) Benefit paid 288 403 Actuarial gain (6) (4) Interest income - (5) Exchange differences 6 5 At 31 December (495) (38) The principal assumptions used in determining defined benefit obligation of the Group are shown below: Group 2019 2018 Discount rate 0.7% 2.0% Salary escalation 2.0% 1.1% Actual return on plan assets: Group 2019 RM’000 2018 RM’000 Actual return of plan assets, representing actuarial gain recognised in the other comprehensive income (6) (4) A quantitative sensitivity analysis for significant assumptions as at 31 December 2019 and 2018 are as shown below: Sensitivity Level Increase in one percentage Decrease in one percentage 2019 RM’000 2018 RM’000 2019 RM’000 2018 RM’000 Assumptions Discount rate 17 (16) (19) 18 Salary increase 3 4 (3) (3) The sensitivity analysis above has been determined based on a method that extrapolates the impact on net defined benefit obligation as a result of reasonable changes in key assumptions occurring at the end of the reporting period. The average duration of the defined benefit obligation at the end of the reporting period is 12 years (2018: 12 years).