LETTER

My Letter to the Management in South Malaysia Industries

Taibfar
Publish date: Sat, 16 Mar 2024, 08:35 PM

As an investor in South Malaysia Industries Berhad (SMI), I've watched closely and, frankly, with a growing sense of frustration. Today, I feel compelled to share my perspective, especially in light of recent developments that have only deepened my concerns.

It was just last Thursday, March 15th, 2024, when Honsin Apparel Sdn Bhd, under the Techbase Industries Berhad umbrella, voiced out what many of us have been silently pondering. The management practices at SMI have been, to put it mildly, disheartening. Since 2019, SMI has been on a downward trajectory, with losses piling up. Yet, paradoxically, director fees have seen an uptick. It's a juxtaposition that's hard to digest as a stakeholder whose interests are intertwined with the company's fortunes.

The tipping point for many of us was SMI's decision to file a judicial review against the Securities Commission Malaysia (SC). It's a move that raises more questions than it answers. But what truly got under my skin was learning about the absence of an Annual General Meeting (AGM) for the last 21 months. It's a deviation from the norm that's not just unusual but deeply concerning. An AGM is a cornerstone of corporate governance, offering a transparent platform for management and shareholders to interact, discuss, and strategize. This delay casts a long shadow over the company's commitment to transparency and accountability.

I echo Honsin Apparel's sentiment when they point out the misalignment of the current Board of Directors' (BOD) focus with shareholder interests. It's as if the BOD's priorities are skewed towards self-preservation rather than steering SMI towards recovery and growth. The potential consequences of such actions aren't just confined to SMI but could ripple out, affecting foreign investment confidence in Malaysia. It's a scenario that none of us want.

The situation took an even more disappointing turn when Honsin Apparel's call for an Extraordinary General Meeting (EGM) was met with resistance, with SMI applying for a stay on the judgement. It's a delay tactic that serves no one, least of all the shareholders and the company itself. And SMI's application to the Companies Commission of Malaysia (SSM) for an AGM delay, without any valid reason, only adds to the frustration.

I stand behind Honsin Apparel's lawsuit against the major shareholder of SMI, AsiaPac. It's a necessary step to bring to light the issues plaguing SMI and to hold those responsible accountable. We, the shareholders, need to band together more than ever. The upcoming AGM is not just another meeting. It's an opportunity for us to make our voices heard, to demand transparency, accountability, and a path forward that aligns with the company's and shareholders' best interests.

Please reply to my message, SMI.

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Be the first to like this. Showing 3 of 3 comments

Income

Macam Sslee Sir ker。
U think u are the king? Tulis burnt no Bod wants to baca.

2 months ago

mroverlord888

any publicity will work... go post on other social media too

2 months ago

joeyangwk

yes, you stand behind honsin because you are paid by them to do so. hahahaha. Come on, they file Judicial review because honsin don't want to pay us shareholders the fair market price to take over this company. Who are the crooks now? who disrupted a company that was trying to improve shareholders value? I bet they had to spend millions defending a bunch of crooks trying to raid the company. So they are now the bad person trying to defend crooks who are trying to raid the company to strip if off valuable assets?

2 months ago

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