Page 214 - KWAP_Integrated-Report_2023
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enricHing national Progress ENRICHING SUSTAINABLE RETURNS
notes to tHe financial statements
for the year ended 31 december 2023
33. EMPLOYEE BENEFiTS (CONTiNUED)
(d) the principal actuarial assumptions employed were as follows:
Group and KWAP
31 December 31 December
2023 2022
Discount Rate (%) 4.7% 4.6%
Medical Cost inflation (%)
general practitioner (gp) 3.0% 3.0%
hospitalization (hp) 3.0% 3.0%
specialist (sp) 3.0% 3.0%
dialysis (dl) 0.0% 0.0%
the provision of post-employment medical benefits is based on the net present Value (“npV”), representing
the present value of the estimated future cash outflows required to settle the post-retirement medical benefit
obligations. the npV amount is discounted at the expected money market rate of 4.70% (2022: 4.60%), on the
basis that the underlying instrument is naturally considered to be conservative and liquid for the group and KWap.
(e) the sensitivity analysis below are determined based on a method that extrapolates the occurrence of reasonable
changes in the key assumptions in the same statement of financial position whereby all other assumptions remain
constant:
Group and KWAP
31 December 2023 31 December 2022
RM’000 RM’000
increase Decrease increase Decrease
discount rate (1 % movement) (1,048) 1,380 (950) 1,258
medical inflation rate (1% movement) 96 (222) 118 (288)
(952) 1,158 (832) 970
212 KUMPULAN WANG PERSARAAN (DIPERBADANKAN) i INTEGRATED REPORT 2023