Frontken Corporation Berhad 200401012517 (651020-T) • A N N U A L R E P O R T 2 0 2 1 138 NOTES TO THE FINANCIAL STATEMENTS (CONT’D) 25. TRADE PAYABLES, OTHER PAYABLES AND ACCRUED EXPENSES (CONT’D) (b) Defined benefit plan – Philippines (Cont’d) The Group defined benefit plan based on the actuarial valuation performed by an independent actuary adopting the Projected Unit Credit method, with the following principal actuarial assumptions:- The Group 2021 2020 RM RM i) Retirement age 60 60 ii) Discount rate (per annum) 4.97% 3.90% iii) Expected rate of salary increases (per annum) 2.00% 2.00% The Group 2021 2020 (Decrease)/ (Decrease)/ Increase Increase Effect on defined benefit obligations RM RM Discount rate (per annum) - strengthened by 1% (5,142) (3,023) - weakened by 1% 5,550 3,182 Expected rate of salary increases (per annum) - strengthened by 1% 5,660 3,211 - weakened by 1% (5,336) (3,107) (c) Defined benefit plan – Indonesia The Group conforms to the obligations relating to the employee benefits due under the prevailing law and regulations. Movement in the present value of defined benefit obligations:- The Group 2021 2020 RM RM At 1 January 456,377 391,878 Current service costs and interest 83,941 80,341 Actuarial gains in other comprehensive income (44,947) (143) Defined plan payable (571) - Excess payment (7,044) - Exchange difference 10,438 (15,699) At 31 December 498,194 456,377
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