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Long-Term Bank Loans

3 Months Ended

Mar. 31, 2017

NOTE 13 - LONG-TERM BANK LOANS

	As of			As of
	March 31, 2017			December 31, 2016
Bank loans from financial institutions in Malaysia
Standard Chartered Saadiq Berhad	$	339,213		$	337,464
United Overseas Bank (Malaysia) Berhad		231,297			229,706
		570,510			567,170
Less: current portion		(13,451	)		(13,042	)
Bank loan, net of current portion	$	557,059		$	554,128

In May 2013, the Company obtained a loan in the principal amount of MYR1,629,744 (approximately $495,170) from Standard Chartered Saadiq Berhad, a financial institution in Malaysia to finance the acquisition of leasehold office units at Skypark One City, Selangor in Kuala Lumpur, Malaysia which bears interest at the base lending rate less 2.1% per annum with 300 monthly installments of MYR9,287 (approximately $2,840) each and will mature in May 2038. The mortgage loan is secured by (i) the first legal charge over the property, (ii) personally guaranteed by Mr. Lee Chong Kuang and Mr. Loke Che Chan Gilbert, the directors of the Company, and (iii) corporate guaranteed by a related company which is controlled by the directors of the Company.

In August 2013, the Company, through Mr. Lee Chong Kuang, the director of the Company, obtained a loan in the principal amount of MYR1,074,696 (approximately $326,530) from United Overseas Bank (Malaysia) Berhad, a financial institution in Malaysia to finance the acquisition of a leasehold office unit at Northpoint, Mid Valley City in Kuala Lumpur, Malaysia which bears interest at the base lending rate less 2.2% per annum with 360 monthly installments of MYR5,382 (approximately $1,645) each and will mature in August 2043. The mortgage loan is secured by the first legal charge over the property.

Maturities of the long-term bank loans for each of the five years and thereafter following March 31, 2017 are as follows:

Year ending March 31:
2018	$	13,451
2019		14,416
2020		15,040
2021		15,831
2022		16,592
Thereafter		495,180

Total	$	570,510

For the three months ended March 31, 2017 and 2016, the base lending rate is 6.85% per annum.