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enricHing national Progress ENRICHING SUSTAINABLE RETURNS

notes to tHe financial statements

for the year ended 31 december 2023

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 performed for the position as at 31 december 2023 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. iNVESTMENT/NON-iNVESTMENT iNCOME/(LOSS)

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

Group KWAP
31 December 31 December 31 December 31 December
2023 2022 2023 2022
RM’000 RM’000 RM’000 RM’000

Gross investment income 7,026,678 7,333,953 6,752,774 7,010,017
Non-investment loss
other operating income 41,984 35,810 32,241 28,799
net gains from foreign currency exchange 973,227 45,592 973,219 175,270
net loss arising from derivative
financial instruments (1,124,342) (661,951) (1,089,605) (742,155)
(109,131) (580,549) (84,145) (538,086)

178 KUMPULAN WANG PERSARAAN (DIPERBADANKAN) i INTEGRATED REPORT 2023