Frontken Berhad Annual Report 2017

108 Frontken Corporation Berhad (651020-T) ANNUAL REPORT 2017 24. TRADE PAYABLES, OTHER PAYABLES AND ACCRUED EXPENSES (CONT’D) (c) Defined benefit plan – Indonesia (Cont’d) The Group 2017 2016 (Decrease)/ (Decrease)/ Increase Increase RM RM Effect on defined benefit obligations Discount rate (per annum) - strengthened by 1% (48,762) (39,066) - weakened by 1% 56,997 45,434 Expected rate of salary increases (per annum) - strengthened by 1% 60,307 48,511 - weakened by 1% (52,296) (42,313) 25. BANK BORROWINGS The Group The Company 2017 2016 2017 2016 RM RM RM RM Short-term borrowings - Money market security 12,460,720 4,652,400 - - Term loans - current portion (Note 22) 4,289,792 3,813,871 2,037,933 2,090,734 16,750,512 8,466,271 2,037,933 2,090,734 Bank overdrafts 5,181,941 - - - 21,932,453 8,466,271 2,037,933 2,090,734 The short-term borrowings represent money market loan facility obtained by a subsidiary incorporated in Singapore which are rolled over every month. The money market loan facility bear effective interest rates ranging from 2.44% to 2.96% (2016: 2.39% to 3.33%) per annum. The bank overdrafts, which are obtained by a subsidiary incorporated in Singapore, bear effective interest rate of 5.00% per annum. The security for the bank borrowings are disclosed in Note 22 to the financial statements. Notes To The Financial Statements (cont’d)