Fong Joo Chung steps down as Sarawak Cable deputy chairman

KUALA LUMPUR (May 3): Practice Note 17 (PN17) outfit Sarawak Cable Bhd announced that Datuk Seri Fong Joo Chung has stepped down as non-independent non-executive deputy chairman, effective immediately.

Fong, 75, resigned due to personal reasons, prevailing circumstances, and recent developments concerning the company, the cable manufacturer said in its filing.

Subsequently, Fong relinquished his positions as chairman of both the remuneration and nomination committees.

However, the filing did not elaborate on the circumstances or recent developments related to the company that resulted in Fong’s resignation.

Fong serves as the Sarawak legal adviser and was formerly the state’s attorney general.

He was appointed to the board of Sarawak Cable Berhad on Sept 9, 2009. He holds a 0.1% direct stake in the company, according to its latest annual report.

Fong also sits on the boards of Sarawak Energy Berhad and Bintulu Port Holdings Berhad as a non-independent non-executive director.

Sarawak Cable fell into PN17 status in September 2022 due to concerns raised by its external auditor about its viability as a going concern, after certain financial institutions suspended the group’s credit facilities.

Initially given a deadline of Nov 1, 2023 to submit its regularisation plan, the group was given several extensions to resolve its PN17 status, with the latest deadline now set to Sept 30 of this year.

The group recently reported its eighth straight quarterly loss due to the standstill in its credit and financing lines, and a loss on the disposal of a subsidiary.

For the financial quarter ended February 29, 2024 (3QFY2024), the group’s net loss widened to RM21.04 million from RM14.16 million a year earlier, while revenue declined 43% to RM74.43 million from RM130.55 million.

For 9MFY2024, its net loss expanded to RM69.58 million from RM26.44 million in 9MFY2023, while revenue declined 39.9% to RM273.94 million from RM455.94 million.

As of February 29, 2024, the group’s cash and cash equivalents stood at RM23.85 million, while its current loans and borrowings amounted to RM381.82 million.

The largest shareholder of Sarawak Cable is the company’s chairman, Datuk Seri Mahmud Abu Bekir Taib, who is also the second child of Sarawak’s former governor and longest-serving chief minister, the late Tun Abdul Taib Mahmud. He currently holds an 18.63% stake. Sarawak Energy also holds a 13.13% stake in the company.

Shares in Sarawak Cable settled 1.5 sen or 10% higher at 16 sen, valuing the group at RM63.78 million. Year to date, the stock has dropped 21 sen or 56%.