2020 UEM Edgenta Annual Report

25. DEFINED BENEFIT PENSION PLAN (CONTD.) Changes in fair value of plan assets: Group RM’000 2020 2019 At 1 January (495) (38) Employer’s contribution (357) (745) Benefit paid 177 288 Actuarial gain (18) (6) Interest income (3) – Exchange differences (24) 6 At 31 December (720) (495) The principal assumptions used in determining defined benefit obligation of the Group are shown below: Group 2020 2019 Discount rate 0.25% 0.70% Salary escalation 2.00% 2.00% Actual return on plan assets: Group RM’000 2020 2019 Actual return of plan assets, representing actuarial gain recognised in the other comprehensive income (18) (6) A quantitative sensitivity analysis for significant assumptions as at 31 December 2020 and 2019 are as shown below: Sensitivity Level Increase in one percentage Decrease in one percentage RM’000 2020 2019 2020 2019 Assumptions Discount rate (181) (186) 195 200 Salary increase 190 197 (179) (184) The sensitivity analysis above has been determined based on a method that extrapolates the impact on net defined benefit obligation as a result of reasonable changes in key assumptions occurring at the end of the reporting period. The average duration of the defined benefit obligation at the end of the reporting period is 11 years (2019: 12 years). UEM EDGENTA BERHAD 264 Financial Statements NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2020