NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 SEPTEMBER 2025 13. INTANGIBLE ASSETS (CONT'D) 13.2 Other intangible assets (Cont'd) (i) Capitalised development costs represent 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 (2024: 60 years) and its remaining lease period is as disclosed in Note 12. SKSB has handed over the vacant possession of the commuter station to PAK on 13 March 2023. The amortisation of the capitalised development costs is amortised on a straight-line basis over the remaining lease period of 51 years (2024: 52 years). (ii) Development rights represents the rights to develop two (2) parcels of leasehold land granted to a subsidiary of the Company. The development rights is acquired through a business combination in previous financial year as disclosed in Note 16(c). The development rights is amortised over the construction period based on percentage of completion method of the future project allocated on the said parcels of land. 14. PREPAID LEASE PAYMENTS The Group 2025 2024 RM RM At beginning of year 35,450,411 37,758,391 Transfer to assets for disposal group classified as held for sale (Note 9) (2,484,802) - Amortisation for the financial year (1,495,490) (1,513,220) Effect of movements in exchange rate (310,505) (794,760) At end of year 31,159,614 35,450,411 The above is leasehold land with remaining unexpired lease period ranging from 12 years to 20 years (2024: 13 to 25 years). The leasehold land of RM16,290,743 (2024: RM17,168,535) is pledged as security for credit facilities granted to the Group as disclosed in Note 33. 6 Financial Insights Through Numbers 1 3 5 2 4 7 PG | 223 ANNUAL REPORT 2025 MKH BERHAD
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