FINANCIAL INSTRUMENT

12 Months Ended

Dec. 31, 2021

Fair Value Disclosures [Abstract]

FINANCIAL INSTRUMENT

5. FINANCIAL INSTRUMENT

The Financial instrument is key management insurance policy. The fair value of the key management insurance policy is determined by reference to the surrender cash value of the insurance policy at the end of each of the reporting period, which is primarily based on the performance of the underlying investment portfolio together with the guaranteed minimum returns of 1.5% per annum. The fair value measurement of the key management insurance contract has been categorized as a Level 3 fair value based on the inputs to the valuation technique used and is positively correlated to the surrender cash value that is valued by the policy underwriter at the end of each reporting period.

The following table shows a reconciliation from the opening balances to the ending balances for Level 3 fair value:

	2020		2021
	SGD’000		SGD’000
As of January 1,		239		240
Purchases		-		-
Change in fair value recognized in profit or loss		1		3
As of December 31,		240		243