Frontken Berhad Annual Report 2019

110 Frontken Corporation Berhad (651020-T) ANNUAL REPORT 2019 28. TRADE PAYABLES, OTHER PAYABLES AND ACCRUED EXPENSES (CONT’D) Included in other payables are defined benefit plan as detailed below:- The Group 2019 2018 RM RM Defined benefit plan (Overseas subsidiaries) - Taiwan 2,128,431 2,156,890 - Philippines 194,474 201,538 - Indonesia 391,878 434,244 2,714,783 2,792,672 (a) Defined benefit plan – Taiwan The Group 2019 2018 RM RM Fair value of plan assets (6,367,119) (5,876,339) Present value of plan obligations 8,495,550 8,033,229 2,128,431 2,156,890 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 2019 2018 RM RM Cash at bank 1,035,930 827,388 Short-term investments 273,149 180,404 Debentures 448,882 483,623 Fixed income investments 1,102,148 933,750 Equity securities 2,884,942 2,975,778 Others 622,068 475,396 6,367,119 5,876,339 Notes To The Financial Statements (cont’d)