The Securities Commission Malaysia (SC) has taken action against Datuk Seri Liew Yew Chung, former CEO and non-independent non-executive chairman of Khee San Bhd (KSB), for allegedly causing a loss of RM7.12 million to its subsidiary, Khee San Food Industries Sdn Bhd (KSFI).
Liew faces 11 charges under Section 317A(1) of the Capital Markets and Services Act 2007 (CMSA). The charges revolve around the cancellation of 25 loan agreements granted by KSFI to 11 individuals in 2019 in Seri Kembangan, Selangor.
The SC alleged that the actions wrongfully caused the loss.
If convicted, Liew could potentially face between two and 10 years in prison and a fine of up to RM10 million. Liew pleaded not guilty to all charges in two separate courts and was granted bail of RM160,000.
The Sessions Court under judge Azrul Darus set bail at RM80,000 with two local sureties and a condition of reporting to the SC investigating officer every two months.
In the second case, judge Norma Ismail also set bail at RM80,000 with one local surety and the same reporting condition.
The SC informed that Liew's passport did not need to be surrendered as it had been in court in connection with a separate case since May 2025.
Earlier on May 16, 2025, Liew was charged in another case by the SC relating to false financial statements and falsification of records at London Biscuits Bhd. He pleaded not guilty and the trial is scheduled for May 2026.
This case raises serious questions about governance within Khee San and its subsidiaries. If the allegations of loan cancellation without good reason are true, it reflects a failure of internal control that could undermine investor confidence.
Moreover, Liew is already embroiled in other cases relating to financial fraud. The market needs to monitor this development closely because corporate reputation cannot be taken lightly.
