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332 MSM MALAYSIA HOLDINGS BERHAD WHO WE ARE STATEMENT & DISCUSSION BY OUR LEADERS HOW WE OPERATE
ANNUAL INTEGRATED REPORT 2021

NOTES TO THE FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2021

17 PROPERTY, PLANT AND EQUIPMENT (CONTINUED)
(b) Impairment assessment (continued)

Financial year ended 31 December 2021 (continued)
(c) MSM Perlis Sdn Bhd (“MSM Perlis”) (continued)
After considering the condition of the bearer plants as a result of the cessation of the plantation operations
and a fire during the financial year ended 31 December 2020 which resulted in a write-off of RM27,244,000,
an impairment assessment was performed on bearer plants. The assessment indicated the recoverable amount
of the bearer plant assets as nil. Accordingly, an impairment of RM43,705,000 was recorded in the financial year
ended 31 December 2020.
During the current financial year, the Group carried out an assessment on the recoverable amount of certain plant
and machinery assets previously impaired in financial year ended 31 December 2019. Following the assessment,
the Group has reversed a total impairment of RM5,127,000 as a result of a change in the recoverable amount of
these assets.
During the financial year ended 31 December 2020, leasehold plantation land and leasehold factory land located
at Chuping, Perlis were transferred to Assets Held for Sale following offer received from potential buyer.
On 29 September 2021, MSM Malaysia Holdings Berhad (“the Company”) completed the disposal of the entire
equity of MSM Perlis Sdn Bhd (“MSMP”), a wholly owned subsidiary of MSMH, for a total cash consideration
of RM181,106,000. The assets and liabilities of MSMP were deconsolidated upon completion of the disposal.
The effects of the disposal is reflected in Note 20 to the financial statements.
Furniture
fittings,
equipment,
and motor
Company vehicles
RM’000
2021
Cost
At 1 January 2021 5,801
Addition 968
Disposal (534)
At 31 December 2021 6,235
Accumulated depreciation
At 1 January 2021 3,831
Charge for the financial year 650
Disposal (534)
At 31 December 2021 3,947

Net book value
At 31 December 2021 2,288