Capital World shares fall with transactions linked to former subsidiary under Malaysian probe

SINGAPORE – Singapore-listed property company Capital World said the Malaysian Anti-Corruption Commission (MACC) is investigating certain transactions made in 2018 that are linked to its former subsidiary MCM Studio Entertainment Group.

The transactions were made between January and December 2018. Capital World disposed of its 80 per cent stake in MCM in 2020, it said late on March 20.

Shares of the Catalist-listed company dropped 0.1 cent to 0.1 cent on March 21, with 29 million shares traded.

Mr Jensen Siow Zhi Yin, executive director of subsidiary Capital City Property, along with two of its employees – the human resources manager and accounts manager – were interviewed by MACC on March 19 and 20 to assist with the ongoing investigation.

The company said it learnt from Mr Siow that MACC on March 19 obtained an order for the remand of former Capital World executive director Siow Chien Fu for four days, in connection with the same investigation.

“The board is of the view that Jensen’s performance of his duties as the executive director of Capital City Property will not be compromised by the aforesaid investigation,” Capital World said.

The group added that its operations will continue as usual and that it would continue to monitor the progress of the investigation, cooperate fully with all regulatory authorities, and update shareholders “as and when there are any material updates on the above”.

It urged shareholders to refrain from taking action with respect to its shares “which may be prejudicial to their interests”.

“Shareholders should consult their stockbrokers, bank managers, solicitors or other professional advisers if they have any doubt about the actions they should take,” it said. THE BUSINESS TIMES