Asia-Pacific Strategic Investments Limited - Annual Report 2021

Notes to the Financial Statements For the financial year ended 30 June 2021

28

Financial risk management (continued)

(a)

Market risk (continued)

Currency risk (continued)

(i)

If the RM and RMB change against SGD by 1% (2020: 1%) and 5% (2020: 1%) respectively with all other variables including tax rate being held constant, the effects arising from the net financial asset position will be as follows:

2021

2020

S$’000

S$’000

Group RM against SGD - Strengthened

23

28

(23)

- Weakened

(28)

Company RM against SGD - Strengthened

23

28

(23)

- Weakened

(28)

RMB against SGD - Strengthened

1,033

200

(1,033)

- Weakened

(200)

(ii)

Price risk

The Group and the Company are exposed to the underlying equity securities price risk arising from the investments held by the Group and the Company which are classified in the balance sheets as financial assets, at FVPL. These underlying securities are listed in Malaysia. To manage its price risk arising from investments in the securities, the Group and the Company diversified its portfolio. Diversification of the portfolio is done in accordance with the limits set by the Group. If prices for the underlying equity securities listed in Malaysia had changed by 5% (2020: 5%) with all other variables including tax rate being held constant, the effects on loss after tax would have been:

2021

2020

S$’000

S$’000

Group and Company Listed in Malaysia - increased by

141

169

(141)

- decreased by

(169)

ANNUAL REPORT 2021

109