MKH Annual Report 2020

154 FINANCIAL STATEMENTS ANNUAL REPORT 2020 10. PROPERTY, PLANT AND EQUIPMENT (CONT’D) (e) Property, plant and equipment under construction are mainly immature bearer plants, construction of buildings, plant and machinery and plantation infrastructure in oil palm plantation. Included in addition to the property, plant and equipment under construction are: The Group 2020 RM 2019 RM Interest capitalised 167,603 645,200 Personnel expenses:  Wages, salaries and others 573,688 883,596 The interest on borrowings for the financial year is capitalised at rates ranging from 3.50% to 5.05% (2019: 5.00% to 5.75%) per annum. (f) The long-term leasehold land of the Group has remaining unexpired lease period of more than 50 years. 11. RIGHT-OF-USE ASSET The Group 2020 RM Cost At beginning and end of year 18,410,370 Accumulated Depreciation At beginning of year - Charge for the financial year 322,048 At end of year 322,048 Net Carrying Amount At end of year 18,088,322 The Group’s lease comprise land leased from Perbadanan Aset Keretapi (“PAK”) for a period of 60 years for future construction of a retail mall. The maturity analysis of lease liability is presented in Note 31. The total cash outflow for the lease amounted to RM500,000 per annum.