Frontken Berhad Annual Report 2019

112 Frontken Corporation Berhad (651020-T) ANNUAL REPORT 2019 28. TRADE PAYABLES, OTHER PAYABLES AND ACCRUED EXPENSES (CONT’D) (a) Defined benefit plan – Taiwan (Cont’d) The Group’s 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 2019 2018 i) Retirement age 65 65 ii) Disability rate (per annum) 10% of 10% of mortality rate mortality rate iii) Discount rate (per annum) 1.00% 1.375% iv) Expected rate of salary increases (per annum) 3.00% 3.00% The Group 2019 2018 (Decrease)/ (Decrease)/ Increase Increase RM RM Effect on defined benefit obligations Discount rate (per annum) - strengthened by 0.25% (328,470) (302,242) - weakened by 0.25% 345,253 317,950 Expected rate of salary increases (per annum) - strengthened by 0.25% 333,451 307,794 - weakened by 0.25% (319,115) (294,117) (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. Notes To The Financial Statements (cont’d)