ST Explains: What could have led to David Seow’s sacking as Fu Yu CEO?

SINGAPORE – Plastics manufacturer Fu Yu Corporation has terminated the employment of its group chief executive, Mr David Seow, for gross default and misconduct.

In a bourse filing on Nov 1, the mainboard-listed company also said Mr Seow has ceased to be a director of Fu Yu and all its subsidiaries and related entities with effect from Oct 31.

The firm noted there are no other matters concerning Mr Seow’s cessation that had to be brought to shareholders’ attention now.

Mr Seow’s dismissal followed an internal investigation launched by Fu Yu’s newly appointed independent directors after they took office in late June.

Shareholders had queried the company’s financial performance at its annual general meeting in June, noting that the remuneration for Fu Yu’s directors and key management personnel “appeared to be high in contrast to the low revenue of the company”.

The board then uncovered several matters suggesting misconduct on Mr Seow’s part. It later engaged third-party professionals, including external legal counsel, to assess the findings. Mr Seow’s sacking was “a carefully considered decision based on established facts and supported by legal advice”, the board said.

Fu Yu said ongoing investigations prevented it from disclosing further details, but said it would do so at the appropriate time.

The company did not respond to queries from The Straits Times.

Several matters that have put the company under scrutiny in recent months may have played a part in Mr Seow’s dismissal.

Board changes

In June, all three of Fu Yu Corporation’s independent directors resigned, leaving Mr Seow as the sole remaining board member, company filings on June 15 showed.

Independent director Royston Tan and non-executive chairman Christopher Huang said they stepped down after persistent attempts to remove them from the board despite their not holding executive roles.

Mr Victor Lim – who served as director of strategy before leaving in March – had tabled resolutions to oust Mr Tan and Mr Huang and appoint new directors, citing the company’s “poor performance”.

The four new independent directors – Mr Gilbert L. Rodrigues, Mr Yang Zhenrong, Mr Haytham T. K.H. S. Al Essa and Mr Ralf Pilarczyk – were appointed on June 27.

Irregularities at Fu Yu’s supply chain unit

In January, Fu Yu Corporation said it was reviewing its subsidiary, Fu Yu Supply Chain Solutions, after identifying concerns over a US$4.5 million (S$5.9 million) acquisition, possible misuse of company resources and a US$3 million prepaid commission.

The probe found that Fu Yu Supply Chain Solutions made unverifiable payment arrangements of about US$3 million for services that did not appear to have been rendered. The payments went to KWW Consultancy, owned by Fu Yu Supply Chain Solutions employee Wong Ka Wing, under an incentive deal signed in July 2022.

The sum was later redirected to a third party, Arc Intl Energy, under a deed of assignment dated Nov 9, 2022 – an arrangement whose commercial rationale investigators were unable to “conclusively state”.

The investigation also looked into the role of Fu Yu’s largest shareholder, Mr Victor Lim, in the company’s US$4.5 million acquisition of Fu Yu Supply Chain Solutions in July 2021.

It also covered other matters, such as the unauthorised use of a company e-mail account by Mr Lim’s girlfriend, Ms Hazel Cai, to source deals, and $9,427.76 in reimbursements claimed by Mr Lim when he was director of strategy at Fu Yu Supply Chain Solutions.

In October 2025, Fu Yu said it would close the probe as it would not benefit the company or shareholders to continue it. The board concluded there was no evidence of wrongdoing or financial loss.

Shares of Fu Yu closed at 11 cents, up 0.95 per cent on Nov 3. 

Mr Isaac Lim, chief market strategist at digital trading platform Moomoo, said the uptick in Fu Yu’s share price reflects investors’ optimism about the company’s prospects. “With both matters now addressed – the termination of Fu Yu Corp’s group chief executive and the conclusion of a year-long audit of its supply chain arm – the skies seem to have cleared for the company for now,” he said.

“Shareholders appear ready to move on rather than be weighed down by news of ongoing investigations.”