2018 UEM Edgenta Annual Report

27. DEFINED BENEFIT PENSION PLAN (CONT’D.) Changes in present value of defined benefit obligation: Group 2018 2017 RM’000 RM’000 At 1 January 2,286 41,727 Current service cost – 448 Interest cost 31 1,122 Employees’ contribution – 49 Benefit paid (403) (2,144) Actuarial (gain)/loss (100) 1,382 Disposal of a subsidiary – (39,736) Exchange differences (17) (562) At 31 December 1,797 2,286 Changes in fair value of plan assets: Group 2018 2017 RM’000 RM’000 At 1 January (382) (35,186) Expected return – (977) Employer’s contribution (55) (2,017) Employees’ contribution – (49) Benefit paid 403 2,144 Actuarial gain (4) (359) Administration costs – 172 Interest income (5) – Disposal of a subsidiary – 35,395 Exchange differences 5 495 31 December (38) (382) The principal assumptions used in determining defined benefit obligation of the Group are shown below: Group 2018 2017 RM’000 RM’000 Discount rate 2.0% 1.4% Salary escalation 1.1% 3.0% NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2018 Management Discussion & Analysis UEM Edgenta Berhad Annual Report 2018 About UEM Edgenta Chairman’s Statement 218