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SUSTAINABILITY JOURNEY HOW WE ARE GOVERNED FINANCIAL STATEMENTS ADDITIONAL INFORMATION 339

NOTES TO THE FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2021

20 INVESTMENTS IN SUBSIDIARIES
Company
2021 2020
RM’000 RM’000

Unquoted investments, at cost
At 1 January 2,157,406 2,157,406
Additional investment in a subsidiary (Note 20(a)) 122,000 -
Disposal of investment in subsidiary (Note 20(b)) (913,937) -
At 31 December 1,365,469 2,157,406
Accumulated impairment
At 1 January 856,168 828,806
Charged during the year (Note 20(c)) - 27,362
Disposal of investment in subsidiary (Note 20(b)) (762,550) -
At 31 December 93,618 856,168
Net investment in subsidiaries 1,271,851 1,301,238

(a) Capital injection in a subsidiary
During the financial year ended 31 December 2021, MSM Malaysia Holdings Berhad (“the Company”) made a capital
injection of RM122,000,000 to MSM Perlis Sdn Bhd (“MSMP”) for the purpose of balance sheet restructuring prior to
disposal of MSMP.
(b) Disposal of a subsidiary during the financial year
On 29 September 2021, the Company completed the disposal of the entire equity of MSMP, a wholly owned subsidiary
of the Company, for a total cash consideration of RM181,106,000, which resulted in a gain on disposal of RM91,814,000
to the Group and a gain on disposal of RM28,721,000 to the Company after net cost to sell.

The effect of the disposal of MSM Perlis Sdn. Bhd. on the financial position of the Group as at the financial year end is
as follows:
Net asset disposed RM’000

Asset held for sale 89,421
Receivables 439
Income tax recoverable 533
Cash and cash equivalents 5,204
Payables (72)
Deferred tax liabilities (7,171)
Net asset disposed 88,354
Cost to sell 938
Gain on disposal of a subsidiary # 91,814
Proceeds from disposal of a subsidiary 181,106
# Of the total gain, RM6,287,000 is shown as gain disposal for continuing operations and RM85,527,000 is shown as
gain on disposal from discontinued operations.