Caely Holdings to expand manufacturing business to Indonesia via joint venture
21 Oct 2022
Caely Holdings Bhd (CHB) has set plans to expand its manufacturing business segment via a proposed joint venture with an Indonesian counterpart for a new production facility with a total investment value of US$800,000.
Executive director Leong Seng Wui said the company is looking to execute the expansion by the first quarter (Q1) of next year, adding that the investments are to be in cash and machinery available in its Teluk Intan plant in Perak.
“We are in the midst of discussions on the percentage that Caely would take up. Moreover, we feel it is good timing to expand even though we have manufacturing facilities in Malaysia as we rely more on foreign workers,” he said during a press conference here today.
CHB also named seven new members to its board of directors (BoD) to revive its businesses and bring in additional revenue in the near future.
The seven new members are executive chairman Ng Keok Chai, executive directors Leong and Kenny Khow Chuan Wah, independent non-executive directors Datuk Kang Chez Chiang, Krishnan Dorairaju, Chong Seng Ming and Datuk Pahlawan Mior Faridalathrash Wahid.
“The ultimate aim of the new board is to work hard to revive the businesses and to reward all our employees and stakeholders for their long-standing support. We, the new management, will bring the company back on the right track,” he said.
With the appointment of the new members of the BoD, the company aims to stride forward with new business plans.
Besides that, CHB is also looking to re-strategise their direction by identifying and engaging market experts in the property development segment to revive the business.
“With additional land banks in Tapah and Klang Valley, we will be hiring experts in the property development sector to identify potential projects that will contribute positively to the company.
“This will also include future acquisitions to boost Caely’s overall business,” Leong added.
Executive chairman Ng Keok Chai said the new board would fully support and cooperate with the police on the investigation and do its best to recover as much as possible to benefit the company and its shareholders.
“In addition, the newly appointed forensic auditor Virdos Lima Consultancy (M) Sdn Bhd, will be able to continue with their investigation with the support from the new board, including providing the necessary documentation relevant to their investigation to the extent possible,” he said.
Since February 2022, CHB has been embroiled in a legal case of misappropriation of funds which involves the company’s founder and former executive director Datin Fong Nyok Yoon, her husband Datuk Alan Chuah Chin Lai and former BoD.
The couple is alleged to have misappropriated RM30.55 million from Caely (M) Sdn Bhd (CMSB) through 10 questionable related-party transactions.
On 26 August, a change in the boardroom took place when the entire former board members, excluding Fong, were removed, and Leong, Kang, Ng and Krishnan were appointed as the new BoD.
An additional three members, Khow, Chong and Mior, were appointed to the board on 27 September.
On 5 October, the new BoD lodged a police report requesting a police investigation into the alleged misappropriation of funds amounting to RM30.55 million involving CMSB during the tenure of the previous board members.
In the latest development regarding the civil suit against 12 of its former directors, CHB filed a claim on the possible systematic misappropriation of funds of not less than RM30.55 million in CMSB by Fong and Chuah and other former directors, as they had deliberately concealed and made no disclosure to the public, fraudulent concealment and conspiracy to injure, among others.
“The new board is hopeful of recovering the misappropriated funds which were supposed to be utilised for the business development and growth of the company in the best interests of the stakeholders as soon as possible,” added Ng.