Frontken Berhad Annual Report 2020

Annual Report 2020 120 FRONTKEN CORPORATION BERHAD 200401012517 (651020-T) Notes to the Financial Statements (cont’d) 25. TRADE PAYABLES, OTHER PAYABLES AND ACCRUED EXPENSES (CONT’D) (c) Defined benefit plan – Indonesia (Cont’d) Actuarial gains and losses recognised directly in other comprehensive income:- The Group 2020 2019 RM RM Actuarial gains recognised during the year 143 82,270 The Group defined benefit plan based on the actuarial valuation performed by an independent actuary adopting the Projected Unit Credit method, with the following principal actuarial assumptions:- The Group 2020 2019 i) Retirement age 55 55 ii) Disability rate (per annum) 1% of 1% of mortality rate mortality rate iii) Discount rate (per annum) 5.95% 7.10% iv) Expected rate of salary increases (per annum) 8.00% 8.00% The Group 2020 2019 (Decrease)/ (Decrease)/ Increase Increase Effect on defined benefit obligations RM RM Discount rate (per annum) - strengthened by 1% (19,334) (18,159) - weakened by 1% 21,734 20,216 Expected rate of salary increases (per annum) - strengthened by 1% 25,052 23,319 - weakened by 1% (22,657) (21,257)