English

24.08.2018

MESSAGE FROM THE CEO

The Malaysian Institute of Accountants (MIA) wants to increase the penalty for accountants who flout the law by up to 10 times.

A fine of up to RM5,000 was set in 1967 under the Accountants Act 1967.

Now, after 51 years, MIA wants to increase it to RM50,000 to serve as a sound deterrent in the future.

The proposed fine of up to RM50,000 seems low when compared to the fines that other statutory regulators like Securities Commission and SSM can impose.

Even a rule-based regulator (non-statutory) like Bursa Malaysia can impose a fine of up to RM1,000,000.

A RM50,000 can be a lot for a smaller accounting firm but a mere drop in the ocean for a big four (and bigger) accounting firms.

​17 August 2018

MESSAGE FROM THE CEO

The SGX Listing Requirements (“LR”) has been amended to clarify expectations under the comply-or-explain regime. The Malaysian regime is an apply-or-explain regime. There are, of course, different nuances when it comes to the words ‘comply’ and ‘apply’.

The recent amendments to the SGX LR are quite interesting when compared to Bursa Malaysia’s Listing Requirements. We will examine four of these:

1. Disclosure on reasons for not paying dividends

The issuer is required to disclose reasons where directors decide not to declare or recommend a dividend.

Minority shareholders often look forward to dividends. But there are times when declaring a dividend may not be in the best interest of the issuer.

One such instance is when the issuer may fail the solvency test (by declaring the dividend) under the Companies Act 2016.

Another instance is when the issuer needs funds. In this instance, it may be cheaper to plough back the funds to the issuer than to pay out the dividend and borrow funds at higher cost. Hopefully, shareholders may be rewarded by share price accretion instead of dividends if all goes well.

10 August 2018

MSWG’S QUICK TAKE ON-ONGOING CORPORATE DEVELOPMENTS

PERAK CORPORATION BERHAD (“PCB”)

PCB announced that Animation Theme Park Sdn Bhd (“ATP”), an indirect 51%-owned subsidiary of the Company, has officially discontinued the License Agreement dated 1 January 2013, as amended, (“License Agreement”) entered with DreamWorks Animation L.L.C. (“DreamWorks”) for the establishment and operation of DreamWorks’ attractions within the Movie Animation Park Studios (“MAPS”) effective 1 August 2018.

The reason for the discontinuance being ATP and DreamWorks have not reached an agreement to open the DreamWorks’ attractions to public by 1 August 2018. ATP has the option to extend the License Agreement to 30 September 2018 but decided not to exercise the option in order to accelerate the full opening of the MAPS as soon as possible

Based on the audited financial statements of ATP for the financial year ended 31 December 2017, the related intellectual properties rights acquired under the License Agreement which are classified as intangible assets has a carrying value of RM17.461 million. This amount together with the related inventories and estimated DreamWorks’ attractions development in progress cost of RM15.735 million will be written off in the current financial year.

The Board of Directors of PCB is of the opinion that the decision was made in the best interest of ATP, to ensure its ability to continue to operate as a going concern, and the Group.