Frontken Berhad Annual Report 2017

105 Frontken Corporation Berhad (651020-T) ANNUAL REPORT 2017 24. TRADE PAYABLES, OTHER PAYABLES AND ACCRUED EXPENSES (CONT’D) (a) Defined benefit plan – Taiwan (Cont’d) The Group defined benefit plan based on the actuarial valuation performed by an independent actuary adopting the Projected Unit Credit With Service Increment method, with the following principal actuarial assumptions: The Group 2017 2016 i) Retirement age 65 65 ii) Disability rate (per annum) 10% of 10% of mortality rate mortality rate iii) Discount rate (per annum) 1.50% 1.50% iv) Expected rate of salary increases (per annum) 3.00% 3.00% The Group 2017 2016 (Decrease)/ (Decrease)/ Increase Increase RM RM Effect on defined benefit obligations Discount rate (per annum) - strengthened by 0.25% (306,073) (311,974) - weakened by 0.25% 322,355 328,951 Expected rate of salary increases (per annum) - strengthened by 0.25% 312,093 318,375 - weakened by 0.25% (298,000) (303,625) (b) Defined benefit plan – Philippines The Group conforms to the minimum regulatory benefit under prevailing law and regulations which is of the defined benefit type. The normal retirement age is 60. The plan provides a benefit equal to 22.5 days’ salary for every year of credited service. The regulatory benefits are paid in lump sum upon retirement. Movement in the present value of defined benefit obligations: The Group 2017 2016 RM RM At 1 January 269,068 227,743 Current service costs and interest 41,578 37,491 Actuarial (gain)/losses in other comprehensive income (42,928) 4,568 Exchange difference (27,527) (734) At 31 December 240,191 269,068 Notes To The Financial Statements (cont’d)