Page 159 - EXIM-Bank_Annual-Report-2023

Management Discussion and Analysis Ensuring Sustainability Commitment to Lead Upholding Accountability Financial Statements 157

Notes to the fiNaNcial statemeNts

13. DEFERRED TAX (LIABILITIES)/ASSETS (cont’d)
At the reporting date, the Group and the Bank have not recognised deferred tax assets for the following items:

Group Bank
2023 2022 2023 2022
rM’000 rM’000 rM’000 rM’000
Unutilised business losses 1,288,933 1,327,451 1,288,933 1,327,451
Unabsorbed capital allowance - 4,465 - 4,465
Other deductible temporary differences 229,306 232,203 229,306 232,203
1,518,239 1,564,119 1,518,239 1,564,119
Tax rate 24% 24% 24% 24%
364,377 375,389 364,377 375,389

The unutilised tax losses above are available for offset against future taxable profits at the Group and the Bank. The unabsorbed
business tax losses will only be allowed to be carried forward consecutively seven years effective from the Year of Assessment
2018.
The deductible temporary differences do not expire under current tax legislation unless there is a substantial change in
shareholders (more than 50%).

14. INvESTMENT IN SuBSIDIArIES

Bank
2023 2022
rM’000 rM’000

Unquoted shares - at cost 73,419 73,419
Less: Allowance for impairment (9,290) (9,290)
64,129 64,129

The subsidiaries are as follows:

Effective ownership
interest (%)
Principal Country of
Name of company activities incorporation 2023 2022
Malaysia Export Credit Insurance Berhad Dormant Malaysia 100 100

EXIM Sukuk Malaysia Berhad Special Purpose Malaysia 100 100
Vehicle for
Sukuk issuance
Malaysia Export Credit Insurance Berhad, a wholly owned subsidiary of the Bank was formerly engaged in the provision of
export and domestic credit insurance facilities and guarantees. The Company is currently dormant.