MSM Malaysia Holdings Berhad Annual Report 2020

21 LOANS DUE FROM SUBSIDIARIES (CONTINUED) (e) Maximum exposure to credit risk The following table contains an analysis of the credit risk exposure of the subsidiaries for which an ECL allowance is recognised. Their gross carrying amounts disclosed below also represents the Group’s maximum exposure to credit risk on these assets: Basis for Carrying recognition of Estimated gross amount Group internal Expected expected credit carrying amount Loss (net of loss credit rating credit loss loss provision at default allowance allowance) RM’000 RM’000 RM’000 2020 Performing - 12 months ECL 1,002,053 - 1,002,053 Under performing - Lifetime ECL - - - 2019 Performing - 12 months ECL 1,023,087 - 1,023,087 Under performing 1.1% Lifetime ECL 37,030 (419) 36,611 22 LEASE RECEIVABLES Company 2020 2019 RM’000 RM’000 Not later than 1 year 2,167 2,167 Later than 1 year 83,859 84,972 86,026 87,139 The leased asset is in respect of a piece of leasehold land acquired for the construction of a sugar refinery which the Company leases to a subsidiary of the Company. The Company and its subsidiary had agreed that the total investment recovery cost of RM87,346,451 as at 30 April 2016, which is the commencement date of the lease agreement for the said land, will be recovered by the subsidiary over a period of 59 years. Accordingly, the Company has transferred the net book value of the leasehold land amounting to RM87,346,451 as at 30 April 2016 from property plant and equipment to lease receivables in 2019. MSM MALAYSIA HOLDINGS BERHAD Annual Repor t 2020 200 NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2020 CHAIRMAN’S STATEMENT DELIVERING VALUE MSM OVERVIEW MANAGEMENT DISCUSSION & ANALYSIS GROUP FINANCIAL REPORT