NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2024 (CURRENCY – SINGAPORE DOLLARS UNLESS OTHERWISE STATED) D3 Post-employment benefits (continued) Movement in net defined benefit liability/(asset) (continued) The fair value of plan assets in each category are as follows: Group 2024 2023 $’000 $’000 Equity securities 96,374 121,596 Government bonds 58,660 58,620 Derivatives 406 8,610 Property occupied by the Group 14,480 14,341 Funds managed by a trustee 140,559 109,178 Funds with insurance companies 13,485 12,733 Fair value of plan assets 323,964 325,078 All equity securities and government bonds have quoted prices in active markets. All government bonds have an average rating of A+. In the case of the funded plans, the Group ensures that the investment positions are managed within an asset-liability matching (ALM) framework that has been developed to achieve long-term investments that are in line with the obligations under the pension schemes. Within this framework, the Group’s ALM objective is to match assets to the pension obligations by investing in long-term fixed interest securities with maturities that match the benefit payments as they fall due and in the appropriate currency. Defined benefit obligation (a) Actuarial assumptions The following relates to the actuarial assumptions of significant post-employment defined benefit plans for subsidiaries in Germany and United States of America. The remaining defined benefit plans are not material to the Group and additional disclosures are not shown at the reporting date. The following were the principal actuarial assumptions at the reporting date (expressed as weighted averages): Group 2024 2023 % % Discount rate 4.2 4.1 Future salary growth 3.1 3.4 Future pension growth 2.1 2.4 216 ST ENGINEERING | ANNUAL REPORT 2024
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