Recap, 4 Stories of Controversy Throughout 2021

 Uhuk, sort of a lot of bitter stories ja 2021 ni.

1. Scattered Multi -Dynamic ‘Chessboard’ waiting for ‘Checkmate’

Audits, lawsuits, forgery and prosecution.

Once upon a time, Serba Dinamik was a stable engineering services and solutions company in Malaysia.

However, it all started when Serba Dinamik sued its auditor, KPMG following the disclosure of the company's transactions and receivables amounting to RM3.5 billion which led the Securities Commission Malaysia (SC) to start an investigation. Later, Serba Dinamik appointed Ernst & Young Conculting Sdn Bhd (EY Consulting) as the new auditors and also sued them for the same reason.

The group also sued Bursa Malaysia alleging that Bursa's regulators had acted beyond its powers to disclose the findings of fact on October 22.

The situation became more murky when Serba Dinamik falsified statements sent to Bursa, causing the SC to sue Serba Dinamik in court against important Serba Dinamik people.

Its shares fell 78% from RM1.61 in May to 35 sen in October.

2. The issue of forced labor practices that tarnish the name of Malaysia

The issue of forced labor practices began when the rubber glove manufacturing sector, Supermax Glove Manufacturing and Top Glove Corp Bhd faced allegations of abuse of foreign workers and forced labor by the United States (US) Customs and Border Protection (GST).

The issue of forced labor practices reached a climax when Dyson Ltd severed ties with local electronics manufacturing company ATA IMS which took the issue internationally and subsequently lowered the company’s revenue by 80%.

3. AirAsia and AirAsia X 'lost wings'

Local airlines offering low fares are facing a tough year as borders between countries are still not fully opened even though travel restrictions have been lifted.

However, AirAsia still managed to raise RM336.46 million from a private placement of 470.21 million shares and in total has raised RM2.5 billion.

Meanwhile, AirAsia X (AAX) has received permission to restructure its debt of RM33.65 billion and acquired new share issue rights for up to RM300 million from existing shareholders and a proposed private placement of new AAX shares for an additional RM200 million.

4. Budget 2022 and Prosperous Tax

The Prosperity Tax or Prosperity Tax introduced by the finance minister, Tengku Datuk Seri Zafrul Abdul Aziz in the 2022 Budget on October 29 has received mixed reactions.

This is because, the one -time tax imposed on companies with income exceeding RM100 billion is taxed at 33% compared to 24% for the first RM100 million previously.

The Malaysian Institute of Certified Public Accountants reacted with surprise and described the tax as a 'less appropriate initiative' while Deloitte Malaysia said the insurance and takaful industry would have the biggest financial impact.

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