MSM Malaysia Holdings Berhad Annual Report 2020

19 INTANGIBLE ASSETS (CONTINUED) Goodwill (continued) 2020 VIU Key assumptions Sensitivity Higher/(Lower) by RM’000 Exchange rate Reduce by RM0.13/USD 202,700 Raw sugar price * 154,800 Domestic and industry sales volume Domestic reduce by 28mt - 88mt; Industry reduce by 33mt - 131mt; (321,700) Discount rate Discount rate reduce by 1% 417,400 Capital expenditure Increase by RM79m (87,100) Selling premium Reduce in selling premium by USD50/mt (11,000) *Raw sugar price increase by RM0.50/USD in FY2021, reduce by RM0.75/USD in FY2022, reduce by RM2.90/USD in FY2023 and constantly reduce by RM0.30/USD in FY2024 to FY2028. 2019 VIU Key assumptions Sensitivity lower by RM’000 Domestic selling price Reduce RM50/MT 262,359 Raw sugar price Increase by 0.5 cents/lbs 340,519 Terminal value growth rate Reduce by 1% 222,855 Domestic sales volume Reduce by 5% 197,322 Discount rate Increase by 1% 308,443 Exchange rate Increase by RM0.20/USD 532,854 A reduction in domestic selling price by RM36/MT, increase in raw sugar price by 0.2 cents/lbs, reduction in terminal value growth rate by 0.6%, increase in discount rate by 0.4%, decrease in domestic sales volume by 3.8% and increase in exchange rate by RM0.06/USD would, all changes taken in isolation, result in the recoverable amount being equal to the carrying amount. The above sensitivity analysis is based on the movement of individual key assumptions while holding all other assumptions constant. MSM MALAYSIA HOLDINGS BERHAD Annual Repor t 2020 195 NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2020 SUSTAINABILITY REPORT EFFECTIVE LEADERSHIP CORPORATE GOVERNANCE FINANCIAL STATEMENTS ADDITIONAL INFORMATION DETAILS OF THE ANNUAL GENERAL MEETING