Frontken Berhad Annual Report 2023

Frontken Corporation Berhad 200401012517 (651020-T) • ANNUAL REPORT 2023 133 NOTES TO THE FINANCIAL STATEMENTS (CONT’D) 26. TRADE PAYABLES, OTHER PAYABLES AND ACCRUED EXPENSES (CONT’D) (a) Defined benefit plan – Taiwan (Cont’d) 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 2023 2022 RM RM Cash at bank 138,043 1,290,803 Short-term investments 42,332 324,676 Debentures 67,077 512,688 Fixed income investments 133,713 1,237,086 Equity securities 410,064 3,685,188 Others 92,530 849,213 883,759 7,899,654 Movement in the present value of defined benefit obligations: The Group 2023 2022 RM RM At 1 January 7,946,962 9,630,217 Current service costs and interest 121,070 47,447 Gain on settlement (690,993) - Actuarial gain in other comprehensive income (163,437) (1,279,508) Defined benefit paid (7,323,706) - Defined plan payable - (69,953) Exchange difference 124,669 (381,241) At 31 December 14,565 7,946,962

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