Frontken Berhad Annual Report 2020

Annual Report 2020 117 FRONTKEN CORPORATION BERHAD 200401012517 (651020-T) Notes to the Financial Statements (cont’d) 25. TRADE PAYABLES, OTHER PAYABLES AND ACCRUED EXPENSES (cONT’D) (a) Defined benefit plan – Taiwan (Cont’d) Expenses recognised in profit or loss:- The Group 2020 2019 RM RM Current service costs and interests 99,459 62,208 Expected return on plan assets (67,341) (81,233) Net benefit expense 32,118 (19,025) Actuarial gains and losses recognised directly in other comprehensive income:- The Group 2020 2019 RM RM Actuarial losses recognised during the year (67,398) (121,342) 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 2020 2019 i) Retirement age 65 65 ii) Disability rate (per annum) 10% of 10% of mortality rate mortality rate iii) Discount rate (per annum) 0.50% 1.00% iv) Expected rate of salary increases (per annum) 2.75% 3.00% The Group 2020 2019 (Decrease)/ (Decrease)/ Increase Increase Effect on defined benefit obligations RM RM Discount rate (per annum) - strengthened by 0.25% (344,283) (328,470) - weakened by 0.25% 361,319 345,253 Expected rate of salary increases (per annum) - strengthened by 0.25% 347,984 333,451 - weakened by 0.25% (333,560) (319,115)