Bursa Securities reprimands MyEG and its MD

The MyEg counter still in normal operation at Immigration headquarters in Putrajaya. MOHD SAHAR MISNI/The Star

KUALA LUMPUR: Bursa Malaysia Securities Bhd has publicly reprimanded My EG Services Bhd (MyEG) and its managing director, Wong Thean Soon, for the late disclosure to Bursa on its appointment to implement the fully online renewal of foreign workers’ permit from 2015 onwards.

In addition, Wong has been fined RM50,000.

In a media statement, the regulator said the e-Government services provider was reprimanded for breaching the listing requirement that a listed company must ensure no disclosure of material information is made on an individual or selective basis to analysts, shareholders, journalists or other persons unless such information had previously been fully disclosed and disseminated to the public (i.e. to Bursa Malaysia Securities).

In the event that material information is inadvertently disclosed on the occasion of any meeting with analysts, shareholders, journalists or others, it must be publicly disseminated as promptly as possible.

Bursa Securities said MyEG had at the CIMB Conference on Jan 6, 2015, disclosed the Government’s decision for it to implement the fully online renewal of foreign workers’ permit from 2015 onwards as well as impact of the same to the company (e.g. market share and market potential).

However, the announcement on the arrangement was made to Bursa Malaysia Securities only on Jan 9 and 12, 2015, and even so, without any disclosure of details of its impact or implication on MyEG’s financials which was disclosed in its presentation to the fund managers at the conference.

The arrangement was material or significant to the company’s business and prospects as well as financials to MYyEG, particularly as the arrangement would increase MyEG’s market share on renewal of foreign work permits from 8% (based on MyEG’s representation at the CIMB Conference) to 100%.

“There was a significant increase of up to 26% in the company’s share price from Jan 6 to Jan 9, 2015 with high volume traded following MyEG’s presentation at the CIMB Conference on Jan 6, 2015, the CIMB Equities research report issued on Jan 7, 2015 which had, amongst others, stated that the target price for MyEG was to be RM7.80 (from RM5.28) and The Star article on Jan 9, 2015, which had reported on the new renewal of foreign workers permit arrangement,” Bursa Securities said. 

Wong was publicly reprimanded and fined RM50,000 for selectively disclosing information on the new arrangement in making the presentation for MyEG at the CIMB Conference.

In addition to the public reprimand, MyEG is required to undertake or arrange for the necessary training programme(s) in relation to compliance with the disclosure obligation under the Main Market Listing Requirements.