Frontken Berhad Annual Report 2017

103 Frontken Corporation Berhad (651020-T) ANNUAL REPORT 2017 24. TRADE PAYABLES, OTHER PAYABLES AND ACCRUED EXPENSES (CONT’D) Included in other payables are defined benefit plan as detailed below: The Group 2017 2016 RM RM Defined benefit plan (Overseas subsidiaries) - Taiwan 2,467,745 2,450,404 - Philippines 240,191 269,068 - Indonesia 517,391 414,805 3,225,327 3,134,277 (a) Defined benefit plan – Taiwan The Group 2017 2016 RM RM Fair value of plan assets (5,554,990) (5,835,050) Present value of plan obligations 8,022,735 8,285,454 2,467,745 2,450,404 The Group contributes to a defined benefit plan that provides retirement benefits for employees upon retirement based on the following:- i) 2 months average salary for each year for the first 15 years of working; and ii) 1 month average salary for each year subsequent to 15 years of working. A maximum entitlement for a retired employee is 45 months average salary. The average salary of a retired employee is calculated based on the average 6 months’ salary prior to his retirement date. Plan assets comprise: The Group 2017 2016 RM RM Cash at bank 998,232 1,052,643 Short-term investments 297,748 159,880 Debentures 651,600 700,206 Fixed income investments 854,913 864,171 Equity securities 2,389,201 2,636,276 Others 363,296 421,874 5,554,990 5,835,050 Notes To The Financial Statements (cont’d)