46 PROVISION FOR DEFINED BENEFIT PLAN (CONTINUED) The retirement benefit scheme is a final salary defined benefit plan with a guaranteed lump sum payment at retirement, which remains open to new entrants. The housing assistance scheme is a final salary defined benefit plan with a guaranteed lump sum payment at retirement or at an earlier exit through ill-health retirement or death-in-service in Malaysia, which remains open to new entrants. The long service award is for eligible employees that have served the Group upon attainment of 15, 25 and 35 years of service in Malaysia (2023: 15, 25 and 35 years of service). In the previous financial year, there was a change in the long service award plan effective from 1 April 2023, resulting in an increase in the defined benefit obligation. This increase in defined benefit obligation was termed as past service cost and was fully recognised in the profit or loss as at 31 December 2023. The current service cost and interest expense for the financial year ended 31 December 2023 had been recalculated to reflect the changes in the benefits. The Group benefit for retirement scheme shall be paid to the employees who reached the compulsory retirement age and have served the Group for at least twenty (20) years of service in Malaysia (2023: follows the Malaysian Minimum Retirement Age Act 2012 at age of 60). However, the normal retirement age for the housing assistance scheme will remain at age 56 which will be payable at attainment of 56 years old, regardless of whether employees continue employment until the minimum retirement age of 60 years old. There will be no benefits payable for services rendered from age 55 to 60. The defined benefit plan for Thailand subsidiary is under the Legal Severance Plan where the companies are required to pay legal severance payments to employees who leave employment at their retirement age, or are terminated by the companies without reason. The movements during the financial year in the amounts recognised in the statement of financial position of the Group and Company are as follows: Group Company 2024 2023 2024 2023 RM’000 RM’000 RM’000 RM’000 Present value of unfunded obligation: At 1 January 62,072 47,981 949 568 Charge to profit or loss (Note 12) 7,575 17,837 142 384 Benefits paid (7,920) (5,235) (37) (61) Remeasurement 335 1,339 65 58 Currency translation difference 35 150 – – At 31 December 62,097 62,072 1,119 949 The remeasurement amounts recognised in the other comprehensive income are determined as follows: Group Company 2024 2023 2024 2023 RM’000 RM’000 RM’000 RM’000 Remeasurement: – Changes in financial assumptions 894 2,085 21 41 – Experience adjustments (559) (746) 44 17 335 1,339 65 58 FGV Holdings Berhad | Audited Financial Statements 2024 Notes to the Financial Statements For the financial year ended 31 December 2024 166
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