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282

Notes to the

Financial Statements

for the year ended 31 December 2016

25. RETIREMENT BENEFIT OBLIGATIONS

The Group operates an unfunded, defined benefit Retirement Benefit Scheme (“the Scheme”) for its eligible employees.

The Scheme is closed to new employees. Under the Scheme, eligible employees are entitled to retirement benefits on

attainment of the retirement age of 60 (2015: 60), on medical incapacity or on death. The present value of defined

benefit obligation was based on the actuarial valuation report by independent actuarist dated 26 January 2016.

The details of the net employee benefits liability are as follows:

Group

2016

RM’000

2015

RM’000

Present value of the defined benefit obligations (“PVDBO”)

At 1 January

4,040

6,510

Defined benefit obligations (Note 8)

267

(1,145)

Actuarial gain

(54)

(1,211)

Contributions paid

(135)

(114)

At 31 December

4,118

4,040

Analysis of funded and unfunded PVDBO

PVDBO from plans that are wholly unfunded

4,118

4,040

Analysed as:

Current

261

189

Non-current:

Later than 1 year but not later than 2 years

430

262

Later than 2 years

3,427

3,589

3,857

3,851

4,118

4,040

The details of net employee benefits expense recognised in income statement are as follows:

Group

2016

RM’000

2015

RM’000

Current service costs

61

267

Past service costs

(1,364)

Gain on settlement

(388)

Interest cost

206

340

Net employee benefits expense (Note 8)

267

(1,145)