17. INVESTMENT PROPERTIES (CONT’D.) Description of valuation techniques used and key inputs to valuation on investment properties: Valuation techniques Significant unobservable inputs Range 2022 2021 Commercial building Investment method * Estimated rental value RM3.00 to RM1.00 to per sqft per month RM9.00 RM6.00 Long-term vacancy rate 3.5% to 10% 5% to 10% Yield rate 4% to 6.25% 3.75% to 8% Commercial building Cost method ** Estimated construction costs RM16 to RM18 to per sqft RM184 RM235 Land Comparison method The comparison method -35% to 50% -30% to 30% entails analysing recent transactions and asking prices of similar property in and around the locality for comparison purposes with adjustments made for differences in location, visibility, size and tenure. * The investment method entails determining the net annual income by deducting the annual outgoings from the gross annual income and capitalising the net income by a suitable rate of return consistent with the type and quality of the investment to arrive at the market value of the subject property. ** Buildings are valued by reference to the current estimates on construction costs to erect equivalent buildings, taking into consideration of similar accommodation in terms of size, construction, finishes, contractors’ overheads, fees and profits. Appropriate adjustments are then made for the factors of obsolescence and existing physical condition of the building. 18. INVESTMENTS IN SUBSIDIARIES Company 2022 2021 RM’000 RM’000 Unquoted shares, at cost 3,378,282 3,392,736 Discount on amounts due from subsidiaries 47,910 47,910 3,426,192 3,440,646 Less: Accumulated impairment losses (399,556) (399,556) 3,026,636 3,041,090 Company 2022 2021 RM’000 RM’000 Movement in the accumulated impairment losses: At 1 January/31 December 399,556 399,556 213 FINANCIAL STATEMENTS & OTHER INFORMATION
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