OPERATING LEASE RIGHT OF USE ASSET AND LEASE LIABILITIES

6 Months Ended

Jun. 30, 2023

OPERATING LEASE RIGHT OF USE ASSET AND LEASE LIABILITIES

OPERATING LEASE RIGHT OF USE ASSET AND LEASE LIABILITIES

NOTE 5 – OPERATING LEASE RIGHT OF USE ASSET AND LEASE LIABILITIES

Lease liabilities are measured at present value of the sum of remaining rental payment as of recognition with a discount rate of 6.40% per annum adopted from Malayan Banking (Maybank) Berhad's base rate as a reference for the discount rate, as this bank is the largest bank and national bank of Malaysia.

A single lease cost is recognized over the lease term on a generally straight-line basis. All cash payments of operating lease costs are classified within operating activities in the statement of cash flows.

Operating lease right of use assets as follows:	As of
	June 30,			December 31,
	2023			2022
Balance as of beginning of the year	$	55,730		$	41,090
Add: Addition of lease liabilities		-			32,281
Less: Amortization		(7,549	)		(15,534	)
Foreign translation differences		(3,285	)		(2,107	)
Balance	$	44,896		$	55,730

Operating lease liabilities as follows:
	June 30,			December 31,
	2023			2022
Balance as of beginning of the year	$	56,775		$	42,909
Add: Addition of lease liabilities		-			30,770
Less: gross repayment		(9,231	)		(19,618	)
Add: imputed interest		1,559			4,913
Foreign translation differences		(3,347	)		(2,199	)
Balance as of end of the year		45,756			56,775
Less: lease liability current portion		(16,098	)		(16,569	)
Lease liability non-current portion	$	29,658		$	40,206

The amortization of the right of use asset for the six months’ period ended June 30, 2023 and six months’ period ended June 30, 2022 were $7,891 and $8,586 respectively.

Other information:	As of
	June 30, 2023			December 31, 2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flow from operating lease	$	(11,019	)	$	(126,686	)
Right of use assets obtained in exchange for operating lease liabilities		44,896			55,730
Remaining lease term for operating lease (years)		3.5			4
Weighted average discount rate for operating lease	$	6.40	%	$	6.40	%

Lease expenses for the six months’ period ended June 30, 2023 and the year ended December 31, 2022 were $1,559 and $4,913, respectively.