6 June 2023, Perak malaysia – In a revelation that has sent shockwaves through Malaysia’s corporate sector, recent allegations surrounding market manipulations have cast a spotlight on the prominent Malaysian Yu Family. Renowned for their expansive investments in property and synergistic businesses, they are now under intense scrutiny. The key figure connecting this intricate web of covert relationships, undeclared related-party transactions, and suspected financial malpractices is none other than “Richard” Yew Hock Ming. Until recently, Yew was an obscure figure both in the Yu family tree and in the corporate world.
The hidden family ties are now coming to light. Yew Hock Ming is the first cousin of the Yu brothers – Yu Kuan Chon and Yu Kuan Huat – both controlling shareholders and directors of YNH Property Bhd (KLSE:YNHPROP) and Rapid Synergy Bhd (KLSE:RAPID). Yew’s mother, Yu Hie Choo, is the sister of YNH founder Yu Neh Huat, who is the father of the Yu Brothers. These familial connections, undisclosed during previous investigations, are now adding a new layer of complexity and potential impropriety to the story.
Yew Hock Ming was among three Malaysian Market Makers sanctioned and fined by Bursa Malaysia for creating a misleading appearance of active trading in the shares of his cousins’ companies, YNH Property Bhd and Rapid Synergy Bhd. At that time, Yew was employed by RHB Investment Bank Berhad. His sanctions included a public reprimand, fines totalling RM423,000, and deregistration from Bursa Malaysia Securities. In every definition of the term “Related Party” Yew Hock Ming is indeed a connected person to Yu Kuan Huat and Yu Kuan Chon.
Yew is also identified as a director of several companies tied to the Yu family, who hold the controlling majority in YNH and Rapid Synergy trades. These companies, under Yew’s stewardship, were recipients of substantial Joint Venture deposits totalling at least RM 354,256,000. Allegedly, these funds were earmarked for various Joint Venture projects that, according to YNH’s own Annual reports going back many years, were either imaginary or simply non-existent. The companies Yew controls that each received these funds include:
Commerce Powerhouse Sdn Bhd: RM 39,811,000
Triple-H Autoparts Sdn Bhd: RM 291,400,000
Fresh Growth Sdn Bhd: RM 23,045,000
This dubious practice allegedly enriched the Yu family, while skirting the legal and regulatory framework and costing YNH shareholders hundreds of millions in financing costs. Such undisclosed related-party transactions violate Bursa Malaysia’s Listing Requirements and the guidelines of the Capital Market and Services Act 2007. Now, investors and creditors, who were unknowingly investing in phantom projects for years, are in a precarious position, with significant returns at stake, while the implicated parties allegedly reap profits.
Yu Kai Leun, son of Yu Kuan Huat works for and leads the team of Triple-H Autoparts Sdn Bhd. He is an authorized signatory of the company and has been at the material times. He is a declared as related party at the YNH Annual Genetral Meetings each year when the RENEWAL OF SHAREHOLDERS’ MANDATE FOR RECURRENT RELATED PARTY is proposed for renewal.
So why is Triple-H Autoparts Sdn Bhd recieving RM 291 million in Joint Venture Deposits for imaginary projects that do not exist? Bursa Malaysia requires that Joint Ventures are announced, further declarations of related party transactions must be declared. Yu Kai Leun as an indivigual has been disclosed in the AGM, but his company who is owned by cousin Yew is not and therfore requires disclosure.
These Joint Venture funds come at a heavy price to the YNH Property Minoirity shareholders. Most of the YNH profits that should be dividends are repurposes to pay RM 100’s of millions in bond and loan finance cost to provide the Yu Family free capital to use unchecked and without oversight. I am sure this is not a part of the use of proceeds declared by the YNH Board of directors.
Despite Yew’s public sanction for illicit trading activity on his cousins’ companies’ shares, their business alliance appears untouched. The potential existence of a covert network of undisclosed transactions could severely compromise the operations of both YNH and Rapid Synergy.
This revelation serves as a stark reminder of the critical need for transparency in corporate dealings. The covert transactions, alleged manipulation of market activities, and potential wrongdoings by figures such as Yew Hock Ming may constitute severe violations of corporate governance norms and securities laws.
As the investigation unfolds, we anticipate deeper insights into the secretive operations of the Yu Syndicate, their business transactions, and the concealed role of Yew Hock Ming. This explosive revelation offers a rare glimpse into the often opaque recesses of Malaysian corporate life.
This is the first part of the Yew Hock Meng story, stay tuned for the impact report to YNH and Rapid sysergy shareholder as we decode the hiden adgenda and expose the findings that include massive violations of Malaysia Bursa regulations as the money trail is revealed!
