KENANGA ANNUAL REPORT 2019

257 NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2019 50. FINANCIAL RISK MANAGEMENT (CONT’D.) (a) Credit risk (cont’d.) Impairment assessment (cont’d.) Forward-looking and probability-weighted (cont’d.) Multiple-scenario Analysis (cont’d.) The assumptions used for the ECL estimates as at 31 December 2019 are set out below. Economic Factor Scenario 2019 2020 2021 GDP Growth Rate 1 2 3 N N D N N D N N N KLCI Index 1 2 3 N N N N N N N N N The assumptions used for the ECL estimates as at 31 December 2018 are set out below. Economic Factor Scenario 2018 2019 2020 GDP Growth Rate 1 2 3 D N N N N D B N D KLCI Index 1 2 3 D N N N N D B N D The weightings assigned to each state of economy as at 31 December 2019 were as follows: All portfolios State of Economy Weighting B 10% N 60% D 30% The weightings assigned to each state of economy as at 31 December 2018 were as follows: All portfolios State of Economy Weighting B 30% N 50% D 20%