Frontken Corporation Berhad 200401012517 (651020-T) • ANNUAL REPORT 2022 141 NOTES TO THE FINANCIAL STATEMENTS (CONT’D) 25. 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 2022 2021 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% 0.50% iv) Expected rate of salary increases (per annum) 2.75% 2.75% The Group 2022 2021 (Decrease)/ (Decrease)/ Increase Increase Effect on defined benefit obligations RM RM Discount rate (per annum) - strengthened by 0.25% (253,917) (339,037) - weakened by 0.25% 265,139 355,146 Expected rate of salary increases (per annum) - strengthened by 0.25% 257,561 342,008 - weakened by 0.25% (247,997) (328,432) (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.
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