In a statement today, Bursa Malaysia Securities Bhd said it observed a surge in COVID-19-related disclosures lately on listed issuers venturing into various new investments or business collaborations, including by way of memorandum of understanding, letter of intent and distributorship agreement.
Among others, these were to manufacture personal protective equipment, ventilators, hand sanitisers and face masks; distribute COVID-19 rapid diagnostic test kits; and develop or distribute health supplements, it noted.
"The disclosures should contain material information such as total capital and investment outlay, plan to bring the venture onstream, impact on its profitability, relevant regulatory approval required, business risks or exposure, and prospects of such investments to aid investors and shareholders in making an informed assessment and investment decision,” it advised.
Further, Bursa Malaysia said, listed issuers should proactively monitor and provide regular updates on the COVID-19 -related investments as required under the listing requirements.
It also reminded the listed issuers to avoid using vague and ambiguous words that might be "exaggerated, flamboyant, over-stated or over-zealous or to engage in any promotional disclosure activity which may mislead investors or cause unwarranted price movement and activity in the trading of listed issuer’s securities.”
The exchange said it was committed to assist and support listed issuers in this challenging time, amid the current uncertainty surrounding the COVID-19 pandemic.
"Based on the exchange’s observation of the recent disclosures made by listed issuers in connection with the impact of COVID-19, it is noted that there is room for improvement especially in respect of quality and adequacy of information.
"Investors and securities holders need more transparent and entity-specific disclosures, including information about the impact of COVID-19 on the listed issuers’ operations and financial performance,” it said.
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