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FoR BetteR RetuRns Annual Report 2022 175

notes to the
financial statements
for the year ended 31 december 2022

3. SIGNIFICANT ACCOUNTING ESTIMATES AND JUDGEMENTS (CONTINUED)
(e) Post-retirement medical benefit obligation

the present value of the post-retirement medical benefit obligation is dependent on a number of factors that
are determined on an actuarial basis based on a number of assumptions. the assumptions employed in the
determination of the net cost for post-retirement medical benefit include the discount rate and the actual medical
costs incurred during the financial year with the limit of a medical retiree’s claim up to rm3,000 a year. changes in
the assumptions shall impact the carrying amount of the post-retirement medical benefit obligation.

the appropriate discount rate is determined annually upon the performance of the 3-year actuarial valuation.
the most recent actuarial valuation was completed in 2019 whereby the interest rate was used to determine the
present value of the estimated expected future cash outflows required to settle the post-retirement medical benefit
obligation.

the medical cost rate is based on the actual cost incurred by the group and KWap.

4. (ExPENSE)/INCOME

income of the group and of KWap consist of the following:

Group KWAP
31 December 31 December 31 December 31 December
2022 2021 2022 2021
RM’000 RM’000 RM’000 RM’000

Gross Investment Income 7,333,953 6,772,296 7,010,017 6,330,818
Other (Expense)/Income
other operating income 35,810 34,886 28,799 30,906
net loss arising from derivative
financial instruments (661,951) (195,101) (742,155) (195,101)
net gains from foreign currency exchange 45,592 396,533 175,270 396,186
(580,549) 236,318 (538,086) 231,991