This article first appeared in The Edge Malaysia Weekly on October 27, 2025 - November 2, 2025

Last week, in the space of three days, Perak Transit Bhd (KL:PTRANS), which operates and manages bus terminals primarily in Perak, saw some 686 million of its shares traded. That is more than 50% of the company’s total number of shares.

The heavy volume was accompanied by a sell-off of the shares. The stock price fell from 63 sen to 33.5 sen last Thursday, wiping out more than half the company’s market capitalisation of RM762 million. 

Perak Transit’s reply to a query from Bursa Malaysia was the standard answer offered by most companies — the board is not aware of any possible explanation to account for the heavy trading activity but the business is intact.

Historically, Perak Transit’s trading volume has been low, at a daily average of 7.8 million shares over the last one year.

So when the trading volume goes through the roof, clearly there is something unusual happening with its shareholding. And the board of directors can easily obtain information on who has been selling and buying the shares.

What’s interesting is that Perak Transit’s major shareholders — Datuk Seri Cheong Kong Fitt and his wife Datin Seri Lim Sow Keng — have been reducing their equity interest in the company in the last six months.

In March, Cheong had a direct interest of 16.1% and an indirect interest of 7.3%. The indirect interest is held with his wife and children. In the latest filings with Bursa, Cheong’s direct interest is down to 6.5% and indirect interest is 4.7%.

As for his wife, her direct interest has hovered at the same level of 4.6% while her indirect interest has dropped to 6.6% from 18.5% in March this year.

Latest Bursa filings reveal that Cheong’s pledged shares  were disposed of on the open market in the last few days. 

Cheong is the managing director of Perak Transit and sits on its board. How can the board claim that it is not aware of the unusual trades?

Interestingly, Datuk Eddie Ong of Hextar Global Bhd (KL:HEXTAR), who held about 6.7% of Perak Transit shares in March, exited the company in April.

The drop in the value of the shares would have an impact on the other shareholders of Perak Transit, notably funds such as Pembangunan Sumber Manusia Bhd, which holds 4.9%, Kumpulan Wang Bersama Syariah (2.4%) and Koperasi Angkatan Tentera Malaysia Bhd (1.9%).

Perak Transit has institutional shareholders and an Islamic bond issue, indicating its business viability. To indicate better standards of governance, shouldn’t the company have a better explanation for the unusual trading activity?

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