YU Kuan Huat, YNH Director

Kuala Lumpur, Malaysia, [19 May 2023] – Amidst a swirling scandal, YNH Property Berhad (KLSE:YNHPROP) has swiftly sold the disputed land plot HSD 47941, Lot 48632, to Sunway Living Space Sdn Bhd, a fully owned subsidiary of Sunway Bhd, for RM 170 million. This sudden disposal comes just weeks after release of an investigative report involving a RM 239 million Joint Venture deposit scandal for this property. The probe has spotlighted undisclosed transactions and potential conflicts of interest involving close relatives of the YNH Board of Directors.

A link to the report is available at the end of this story below

This hasty disposal seemingly signifies YNH Property Berhad’s desperate attempt to shift focus away from the scandal. The Yu family, at the helm of YNH and the notorious Yu Syndicate, are under fire for allegedly disguising an interest-free Joint Venture Deposit of RM 239 million to a relative without the required disclosures. YNH is now presenting a misleading narrative of a significant victory, claiming a false gain of RM 2.6 million, whilst completely overlooking a loss to YNH shareholders exceeding RM 50 million in interest expenses.

In a bewildering series of events, it appears the YNH Board of Directors has been willing to sell bonds and accumulate debt, imposing interest costs and fees on YNH shareholders, in order to grant interest-free loans back to the directors. This suspicious financial maneuver seemingly supports personal interests such as inflating the stock of YNH and Rapid Synergy Bhd, which consequently increases their lines of credit backed by shares they hold both directly and indirectly via proxy shareholders like Daniel Chan (Chan Weng Fui).

In an attempt to delve deeper, we reached out to the land office and the SSM to access publicly available records for the various entities and property listed in the announcement. Before we disclose what we unearthed, it’s worth highlighting section 16 of the Bursa announcement linked above:

“The Directors and Major Shareholders of YNH and persons connected to them do not have any direct or indirect interest in the Proposed Disposal.”

This audacious claim is difficult to digest considering the depth of involvement of the Yu Syndicate’s members and proxies.

Owners and/or directors of both Yu Syndicate entities, Imbuhan Sempurna Sdn. Bhd. and Great Wall Park Sdn. Bhd., include Lau Sheng Ming and Yu Teong Wei. Until December 2016, Yu Chon Lan and Yu Choon Sing — sisters of Yu Kuan Chon and Yu Kuan Huat — owned Imbuhan Sempurna Sdn Bhd. Their positions were later occupied by Yu Teong Wei, a first cousin, and Lau Sheng Ming, both reputedly proxies for the Yu brothers. On October 10, 2020, Yu Teong Wei resigned his directorial role at the company and various other proxy firms, but continues to hold shares.

The YNH Board of Directors’ audacious denial of compliance with Security Commission Malaysia and Bursa Malaysia rules is bewildering. Despite public records exposing clear violations, the Malaysian authorities have yet to penalize the implicated parties.

The saga doesn’t end there. The Yu family’s dominion over these entities and assets is made evident by numerous public records. Let’s remind ourselves that back in January 2002, Rapid Synergy Berhad and Supreme Concept Sdn Bhd, controlled by Ho Swee Ming and Ng Bak Nai, former directors of YNH and kin of the Yu Brothers, entered a joint venture agreement. However, this venture was discontinued in July 2003, demonstrating that the property has been a bargaining chip for the Yu Syndicate for over two decades before last month’s exposé.

The public records contradict YNH’s announcement data, revealing several actions beneficial to YNH Directors and their family:

On July 28, 2003, Imbuhan Sempurna permitted the property to be used as collateral for a personal loan from HSBC of RM 15 million by Yu Kuan Huat, Yu Kuan Chon, Yu Kuan Seng, Tew Nai Sim, and Ling Mooi Hung. This transaction suggests that the Yu family exerted control over the company, its property, and assets.

On February 27, 2006, Imbuhan Sempurna once again allowed the same property to be used as collateral for another loan from HSBC, this time for RM 2.5 Million, to Yu Kuan Huat and Yu Kuan Chon. These transactions could not have occurred if these two YNH directors did not have direct or indirect control of the company, property, and investments.

On May 15, 2009, Imbuhan Sempurna allowed the property to be used as collateral for an additional loan of RM 50 million from HSBC to Kar Sin Berhad, a subsidiary of YNH Property Berhad and a vendor in this current deal. A company like Rapid Synergy Bhd, controlled by the Yu Brothers.

On April 8, 2006, Imbuhan Sempurna once again allowed the property to be collateral for an open-ended loan to Kar Sin Berhad.

On March 29, 2019, Imbuhan Sempurna permitted a third-party open-ended charge for OCBC Al-Amin Bank in behalf of Kar Sin Berhad.

The key beneficiaries of all these transactions appear to be Yu Kuan Huat and Yu Kuan Chon and the companies they control. They seem to have leveraged the property and the company not just for personal gain, but also to meet YNH’s needs. If all of this is not a related party transaction going back over 20 years, then what is a related party transaction and how hard it is to create one? Where is the compliance and regulators all this time?

On top of using the assets as collaterial, YNH has made nearly RM 240 million in dubious JV interest-free deposits (loans) to this network of Yu Syndicate companies, used liberally by the controlling members of the syndicate. Even if they manage to refund the JV money offset in part by the RM 150 million sale price backdated to just after the close of the last audited financial period, they are still short of the lost interest costs to YNH.

This property and others that are used by the Yu Syndicate have extracted more than RM1 Billion in YNH Property funds interest free.  In many cases to RM2 companies with no assets or business all located at the same YNH address using the same auditor owned by a Director of Rapid Synergy and YNH’s own inside company Secretary.

With the layers of deceit and financial manipulation continuing to unfold, it’s clear that the YNH Property Berhad scandal is far from over. The unethical conduct and alleged fraud perpetrated by the Yu Syndicate are raising significant questions about the future of the company and its directors.

The Directors and Major Shareholders’ audacious denial of their involvement in such transactions, despite clear evidence contradicting their claims, is not only outrageous but also a significant breach of trust. These actions are symptomatic of a corporate culture that prioritizes personal gain over the welfare of the company and its shareholders.

Given these grave revelations, it is no surprise that a class-action lawsuit against YNH Property and its directors is imminent. The minority shareholders’ attempt to bring these allegations to court represents a significant effort to hold those responsible accountable for their actions.

In the past months, minority shareholders have made numerious repoirts to the authorities requesting investigaton and action. Given the overwelming evidence in the public record, it is clear what must be done next.

This scandal serves as a stark reminder of the potential for corruption and exploitation in the corporate world. It underscores the critical importance of transparency, ethical conduct, and robust oversight in maintaining the integrity of financial institutions.

As the investigation into YNH and the Yu Syndicate deepens, the true extent of their financial transgressions is yet to be fully uncovered. The coming days will undoubtedly reveal further unsettling truths about the company’s dubious financial practices. The financial world waits with bated breath as this explosive scandal continues to unfold. This is indeed a dark chapter in Malaysia’s corporate history, one that will serve as a stern lesson for companies and directors alike.


Link to the YNH Property Berhad announcement



A multimedia journalist focused on producing articles about controversial global issues specifically on business, economy, politics, and technology. A strong believer in freedom of the press and exposing the wrong. only through engagement and communications can we as humans evolve. An accredited member of a leading local broadcast media organization.