187 Annual Report 2024 31. Financial risk management objectives and policies (cont’d) Interest rate risk (cont’d) Sensitivity analysis for interest rate risk The following table demonstrates the sensitivity to a 1% (2023: 1%) change in the interest rates with all other variables held constant on the Group’s profit before tax. Group Profit before tax 2024 2023 $’000 $’000 SGD Increase in 1% interest rate (791) (585) Decrease in 1% interest rate 791 585 USD Increase in 1% interest rate (169) 22 Decrease in 1% interest rate 169 (22) GBP Increase in 1% interest rate (57) (68) Decrease in 1% interest rate 57 68 EUR Increase in 1% interest rate 1 (316) Decrease in 1% interest rate (1) 316 AUD Increase in 1% interest rate (110) (80) Decrease in 1% interest rate 110 80 The assumed movement in basis points for interest rate sensitivity analysis is based on the currently observable market environment. Liquidity risk Liquidity risk is the risk that the Group or the Company will encounter difficulty in meeting financial obligations due to shortage of funds. The Group’s and the Company’s exposure to liquidity risk arises primarily from mismatches of the maturities of financial assets and liabilities. The Group’s and the Company’s objective is to maintain a balance between continuity of funding and flexibility through the use of stand-by credit facilities. The Group’s and the Company’s liquidity risk management policy is to maintain sufficient liquid financial assets and stand-by credit facilities with different banks. At the end of the reporting period, 84% (2023: 83%) of the Group’s loans and borrowings (Note 14) will mature in less than one year based on the carrying amount reflected in the financial statements. NOTES TO THE FINANCIAL STATEMENTS For the financial year ended 31 December 2024
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