A news portal reported that in a filing with Bursa Malaysia recently, the parent company of Datasonic, NexG Bhd, said it had been asked at a meeting with the finance ministry in July 2026 to provide an indicative price for the possible acquisition of its wholly owned unit.
The same news portal subsequently reported that the National Security Council (MKN) said the government will not acquire Datasonic Technologies Sdn Bhd, the supplier of the country’s passports and national identity cards.
Wow, is MKN saying that NextG’s announcement is incorrect?
That is very damning.
Section 369(a)(B) of the Capital Markets and Services Act 2007 (CMSA) makes it a criminal offense for any person, with intent to deceive, to make or furnish a false or misleading statement or report to the Securities Commission Malaysia (SC) or a stock exchange regarding the affairs of a listed corporation.
Conviction carries a maximum prison term of up to 10 years and a fine not exceeding RM3 million.
Bursa Malaysia can instantly suspend trading of the PLC's securities to prevent disorderly trading or uninformed investment decisions based on the fake news.
And Bursa can compel the PLC to issue an immediate, corrective, and factual clarification announcement including launching an in-depth review to determine if the false statement was an accidental oversight or a deliberate attempt at market rigging.
In the case of Dato’ Dr Hj Mohd Adam Che Harun v. Public Prosecutor [2019] MLJU 2146, the High Court of Malaysia affirmed the Sessions Court’s decision to convict the accused of furnishing the stock exchange in 2007 with false information related to the affairs of
Megan Media Holdings Bhd, a PLC at the time.
In his judgment, judge Mohd Nazlan Mohd Ghazali pointed out that an offence of furnishing misleading information to the stock exchange is serious in nature adding that false information betrays the very basis of market transactions on any stock exchange, which is anchored on the principle of symmetry of information that must be accurate in the first place.
The clarification by MKN suddenly put NexG Bhd unfairly in a spotlight.
Which is which now?
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