2019 UEM Edgenta Annual Report

239 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 38. CAPITAL COMMITMENTS Group Company 2019 RM’000 2018 RM’000 2019 RM’000 2018 RM’000 Capital expenditure Approved and contracted for purchase of - intangible assets 358 960 358 960 - property, plant and equipment 20,496 46,423 1,085 1,338 Approved but not contracted for purchase of - intangible assets 32,560 19,050 32,560 19,050 - property, plant and equipment 129,015 143,461 10,428 8,203 39. PERFORMANCE BONDS AND GUARANTEES Group 2019 RM’000 2018 RM’000 Secured: Performance bond extended to Government of Malaysia in respect of security for the due performance of the Hospital Support Services Concession Agreement dated 28 October 1996 (Note 29(d)) 26,519 17,000 Performance bond to Western Region Municipality of Abu Dhabi for Facilities Management Services in Abu Dhabi - 11,079 Bank guarantee issued to authorities 3,356 3,067 Bank guarantees and performance bonds issued to others 90,838 29,827 120,713 60,973 Unsecured: Bank guarantees extended to third parties - trade related 65,121 61,027 Performance bond extended to third parties - trade related 23,296 23,504 Retention guarantee extended to third parties - trade related 11,648 11,752 100,065 96,283 As at the reporting date, no values are ascribed on these guarantees provided by the Group for the purpose described above as the directors regard the value of the credit enhancement provided by these guarantees as minimal and the probability of default, based on historical track records of the parties receiving the guarantees are not probable.