Fraser & Neave Holdings Bhd Annual Report 2019

WWW . F N . C O M . M Y 184 F R A S E R & N E A V E H O L D I N G S B H D NOTES TO THE FINANCIAL STATEMENTS 17. EMPLOYEE BENEFITS (CONTINUED) Group Note 2019 RM’000 2018 RM’000 Principal actuarial assumptions used Discount rate (%) 1.34-4.50 2.50-5.20 Rate of increase in salaries (%) 4.00-7.00 4.00-7.00 Mortality rate (%) 0.03-0.44 0.03-0.67 Disability rate (%) 0.00-0.04 0.00-0.07 Retirement age (years) – Malaysia 60 60 – Thailand 60 60 The average duration of the defined benefit plan obligation at the end of the financial year is 11 years (2018: 10 years). SENSITIVITY ANALYSIS Reasonably possible changes at the reporting date to one of the relevant actuarial assumptions, holding other assumptions constant, would have affected the defined benefit obligation by the amounts shown below. Discount rate Rate of increase in salaries Group 1% increase RM’000 1% decrease RM’000 1% increase RM’000 1% decrease RM’000 2019 (Decrease)/Increase in defined benefit obligation (4,199) 4,916 4,604 (4,026) 2018 (Decrease)/Increase in defined benefit obligation (2,840) 3,295 3,323 (2,908) Although the analysis does not account to the full distribution of cash flows expected under the plan, it provides an approximation of the sensitivity of the assumptions shown. 18. PROVISIONS Group Restructuring costs RM’000 At 1 October 2017 7,405 Provision made 997 Amount utilised (3,880) Provision reversed (4,522) At 30 September 2018/2019 –