OPERATING LEASE RIGHT OF USE ASSET AND LEASE LIABILITIES

9 Months Ended

Sep. 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

Right-of-use assets and lease liabilities are measured at present value of the lease payment over the lease term as of recognition with discount rate of 6.40% per annum effective date  and 6.65% per annum effective date initial recognized date 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
	September 30,			December 31,
	2023			2022
Balance as of beginning of the period/year	$	55,730		$	41,090
Add: Addition of lease liabilities		110,817			32,281
Less: Amortization		(15,045	)		(15,534	)
Foreign translation differences		(3,586	)		(2,107	)
Balance as of end of the period/year	$	147,916		$	55,730

Operating lease liabilities as follows:
	September 30,			December 31,
	2023			2022
Balance as of beginning of the period/year	$	56,775		$	42,909
Add: Addition of lease liabilities		110,817			30,770
Less: gross repayment		(28,485	)		(19,618	)
Add: imputed interest		3,311			4,913
Foreign translation differences		(3,654	)		(2,199	)
Balance as of end of the year		138,764			56,775
Less: lease liability current portion		(33,897	)		(16,569	)
Lease liability non-current portion	$	104,867		$	40,206

The amortization of the right of use asset for the nine months’ period ended September 30, 2023 and nine months’ period ended September 30, 2022 were $15,620 and $12,754 respectively.

Other information:	As of
	September 30, 2023			December 31, 2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flow from operating lease	$	81,989		$	(126,686	)
Right of use assets obtained in exchange for operating lease liabilities		147,916			55,730
Remaining lease term for operating lease (years)		4.75			4
Weighted average discount rate for operating lease	$	6.53	%	$	6.40	%

Lease expenses for the nine months’ period ended September 30, 2023 and nine months’ period ended September 30, 2022 were $3,438 and $1,358, respectively.