MKH Annual Report 2020

157 MKH BERHAD 12. INTANGIBLE ASSETS (CONT’D) 12.2 Other intangible asset The Group 2020 RM 2019 RM Capitalised development At beginning of year 25,234,391 21,438,080 Additions 20,501,079 3,796,311 At end of year 45,735,470 25,234,391 Other intangible asset represents expenditure incurred to construct a commuter station for Perbadanan Aset Keretapi (“PAK”) in consideration for the right to lease a plot of land from PAK for a period of 60 years as disclosed in Note 11. The total estimated construction costs of the commuter station is approximately RM59,042,876 (2019: RM53,154,136). The status of the construction is as disclosed in Note 36. 13. PREPAID LEASE PAYMENTS The Group 2020 RM 2019 RM At beginning of year 43,397,363 44,675,754 Amortisation for the financial year (1,507,568) (1,513,413) Effect of movements in exchange rate (167,896) 235,022 At end of year 41,721,899 43,397,363 The above is leasehold land with remaining unexpired lease period of less than 50 years. The leasehold land of RM37,463,136 (2019: RM39,082,912) is pledged as security for credit facilities granted to the Group as disclosed in Note 32. Notes to the Financial Statements FOR THE FINANCIAL YEAR ENDED 30 SEPTEMBER 2020