| BORROWINGS |
The Group had the below
borrowings for working capital purpose:
Bank overdrafts(i)
| | |
As of December 31, | |
| | |
2024 | | |
2025 | |
| Alliance Islamic
Bank Berhad(ii) | |
$ | 309,843 | | |
$ | 363,272 | |
| RHB Bank Berhad (iii) | |
| 77,367 | | |
| 48,990 | |
| Malayan
Banking Berhad(iv) | |
| 71,065 | | |
| 8,530 | |
| Total short-term borrowings | |
$ | 458,275 | | |
$ | 420,792 | |
| (i) | All bank overdrafts are due on demand. Interest charged for the Group for the years ended December 31, 2023, 2024 and 2025 ranged from 5.00% to 8.65% per annum. |
| (ii) | Bank overdrafts from Alliance Islamic Bank Berhad are joint guaranteed by Mr. Goh Kok E and Mrs. Tan Yee Wei and legal charges over the land and building properties of the Group. As of December 31, 2025, there are US$5,944 unutilized amount in the line of credit under bank overdraft facilities from Alliance Islamic Bank Berhad |
| (iii) | Bank overdrafts from RHB Bank Berhad are joint guaranteed by Mr. Goh Kok E and Mrs. Tan Yee Wei and pledged by 2 shop lots buildings and lands of the Group. As of December 31, 2025, there was US$67,412 unutilized amount in the line of credit under bank overdraft facilities from RHB Bank Berhad. |
| (iv) | Bank overdrafts from Malayan Banking Berhad are guaranteed from Syarikat Jaminan Pembiayaan Berhad (SJPP) under working capital guarantee scheme (WCGS), joint guaranteed by Mr. Goh Kok E and Mrs. Tan Yee Wei, and 1% commitment fee per annum based on unutilized portion. As of December 31, 2025, there was US$37,007 unutilized amount in the line of credit under bank overdraft facilities from Malayan Banking Berhad. |
The weighted average interest
rate of bank overdrafts was 6.86%, 7.61% and 8.05% for the years ended December 31, 2023, 2024 and 2025, respectively. Long-term bank
loans
| | | | | | | As of December 31, | | | | | | | | | 2024 | | | 2025 | | | | | Annual
Interest Rate | | Maturity | | Long-term | | | Long-term
(current
portion) | | | Long-term | | | Long-term
(current
portion) | | | Long-term borrowings: | | | | | | | | | | | | | | | | | | Alliance Islamic Bank Berhad(i) | | BFR* - 2.20% per annum (Current BFR 5.42% per annum, Min rate 3.2% per annum, Ceiling rate 15% per annum) | | September 1, 2047 | | $ | 1,512,002 | | | | 43,069 | | | $ | 1,620,853 | | | | 47,422 | | | Malayan Banking Berhad(ii) | | 1~5 years: Fixed rate of 4.75% per annum on monthly rest; thereafter: BLR**+2.5% per annum on monthly rest. | | December 1, 2026 | | | 20,422 | | | | 20,683 | | | | 686 | | | | 21,847 | | | RHB Bank Berhad(iii) | | 3.55% | | June 5, 2047 | | | 279,707 | | | | 8,827 | | | | 300,697 | | | | 10,153 | | | United Overseas Bank (Malaysia) Bhd(iv) | | 4.35% | | June 19, 2028 | | | - | | | | - | | | | 29,316 | | | | 17,138 | | | Total Long-term borrowings | | | | | | $ | 1,812,131 | | | | 72,579 | | | $ | 1,951,552 | | | | 96,560 | |
| * | BFR is base financing rate, which is presently 6.42% per annum. |
| ** | BLR is the rate from time to time stipulated by the Bank as its Base Lending Rate. Currently, the BLR is 6.40% per annum. |
As of December 31,
2024 and 2025, the current portion of the long-term borrowings were US$72,579 (MYR324,391) and US$96,560 (MYR391,649)
respectively.
The weighted average interest
rate of long-term borrowings was 4.07%, 3.96% and 4.70% for the years ended December 31, 2023, 2024 and
2025, respectively.
| (i) | On July 12, 2022, the Group entered into a loan agreement to borrow funds of MYR7,360,000 (US$1,814,569) with Alliance Islamic Bank Berhad during the period from July 2022 to September 2047 for the purchase of two buildings and freehold lands. The Group repays MYR38,524 (US$8,999) every month after July 2022, until the loan maturity date. This borrowing was joint guaranteed by Mr. Goh Kok E and Mrs. Tan Yee Wei and legal charges over the lands and building properties purchased by this loan. |
| (ii) | On September 7, 2021, the Group entered into a loan agreement to borrow funds of MYR440,000 (US$108,481) with Malayan Banking Berhad during the period from September 2021 to December 2026. The Group repays MYR8,254 (US$1,982) every month after September 2021, until the loan maturity date. This borrowing was joint guaranteed by Mr. Goh Kok E and Mrs. Tan Yee Wei and Credit Guarantee Corporation (M) Berhad (CGC) Guarantee under Flexi Guarantee Scheme (FGS). |
| (iii) | On January 26, 2022, the Group entered into a loan agreement to borrow funds of MYR1,350,000 (US$332,840) with RHB Bank Berhad during the period from January 2022 to June 2047 for the purchase of two shop lots which are both rent out. The Group repays MYR6,795 (US$1,587) every month after January 2022, until the loan maturity date. This borrowing was joint guaranteed by Mr. Goh Kok E and Mrs. Tan Yee Wei and legal charges over two shop lot buildings and lands purchased by this loan. |
| (iv) | On 10 April 2025, the Group entered into a loan agreement to borrow funds of MYR200,000 (US$49,310) with United Overseas Bank (Malaysia) Bhd during the period from June 2025 to June 2028 for working capital use. The Group repays MYR6,281 (US$1,467) every month after June 2025, until the loan maturity date. This borrowing was joint guaranteed by Goh Kok E and Tan Yee Wei. |
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