45 PROVISION FOR ASSET RETIREMENT 2024 2023 RM’000 RM’000 At 1 January 33,408 32,821 Provision during the financial year 4,984 – Unwinding of discount 372 418 Payment made during the financial year (57) (317) Currency translation differences (281) 486 At 31 December 38,426 33,408 Provision for asset retirement mainly relates to the Group’s fatty acids manufacturing facility in USA and mills in Malaysia. The asset retirement obligation is computed based on detailed estimates, adjusted for inflation, escalated to the estimated spending dates, and then discounted using an average risk-free interest rate of which represents management’s best estimate of the liability. Actual costs to be incurred in future periods may vary from estimates, given the inherent uncertainties in evaluating certain exposures subject to the imprecision in estimating the asset retirement obligation. 2024 2023 RM’000 RM’000 Analysed as: Non-current 37,710 32,674 Current 716 734 38,426 33,408 46 PROVISION FOR DEFINED BENEFIT PLAN The Group operates defined benefit retirement plans in Malaysia and Thailand for all eligible employees. All of the plans are lump sum payments depending on members’ length of service and their salary in the final years leading up to retirement. As the retirement benefit plans are unfunded, the Group meets the defined benefit payment obligations as they fall due. Group Company 2024 2023 2024 2023 RM’000 RM’000 RM’000 RM’000 Non-current – Retirement benefit scheme 26,851 26,050 680 560 – Housing assistance scheme 18,044 19,085 – – – Long service award 17,202 16,937 439 389 62,097 62,072 1,119 949 Notes to the Financial Statements For the financial year ended 31 December 2024 165
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