Integrated Annual Report 2023 2 3 4 5 6 7 8 9 1 363 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 41. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONTD.) (a) Credit risk (contd.) Trade receivables and contract assets (contd.) The Group considers factors such as the probability of insolvency or significant financial difficulties of the debtor and default or significant delay in payments in calculating ECLs for trade receivables and contract assets. The amount and timing of future cash flows are then estimated based on historical credit loss experience for assets with similar credit risk characteristics and adjusted with forward-looking information such as forecast economic conditions. The measurement of ECL take into accounts reasonable and supportable information that is available without undue cost or effort. This includes information about past events, current conditions and forward-looking factors specific to the debtors. Exposure to credit risk The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets disclosed in Note 40. The Group does not hold collateral as security. Credit risk concentration profile The Group determines concentrations of credit risk by monitoring the country sector profile of its trade receivables on an ongoing basis. The credit risk concentration profile of the Group’s net trade receivables at the reporting date are as follows: 2023 2022 RM’000 % of total RM’000 % of total By country: Malaysia 298,225 58 240,938 59 United Arab Emirates 34,080 7 19,168 5 Singapore 73,303 14 58,902 14 Taiwan 105,525 20 88,320 22 Saudi Arabia 5,652 1 - - 516,785 100 407,328 100 At the reporting date, the Group’s ten largest customers account for approximately 21% (2022: 37%) of total trade receivables. Majority of these customers are government, quasi-government agency and government linked organisations. Financial assets that are either past due or impaired Information regarding financial assets that are either past due or impaired is disclosed in Note 22.
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