FGV Annual Report 2015

327 WHO WE ARE & WHAT WE DO OUR STRATEGIC INTENT & PERFORMANCE HOWWE ARE GOVERNED CREATING SUSTAINABLE VALUE OUR NUMBERS ADDITIONAL INFORMATION DETAILS OF THE ANNUAL GENERAL MEETING Notes to the Financial Statements For The Financial Year Ended 31 December 2015 ADDRESSING OUR RISKS & OPPORTUNITIES Felda Global Ventures Holdings Berhad Annual Integrated Report 2015 48 PROVISION FOR DEFINED BENEFIT PLAN (CONTINUED) The defined benefit obligations for the Group by country are as follows: Group Company 2015 2014 2015 2014 RM’000 RM’000 RM’000 RM’000 Present value of obligation: - Malaysia 44,776 38,918 621 540 - Indonesia 934 698 - - - Thailand 324 104 - - 46,034 39,720 621 540 The principal actuarial assumptions used in respect of the Group’s and the Company’s unfunded defined retirement benefits are as follows: Group Company 2015 2014 2015 2014 % % % % Discount rate 5.50 5.50 5.50 5.50 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 Impact on defined assumption benefit obligation RM’000 i) Discount rate Increase 1% Decrease by RM3,994 Decrease 1% Increase by RM3,530 ii) Salary growth rate Increase 1% Increase by RM1,019 Decrease 1% Decrease by RM1,191 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 did not change compared to the previous financial year. The weighted average duration of the defined benefit obligation is 16 to 29 (2014: 17 to 30) years.