This article first appeared in The Edge Malaysia Weekly on September 21, 2026 - September 27, 2026

OVER the past couple of weeks, homegrown accounting firm TGS TW PLT has resigned as external auditor of as many as 18 companies listed on Bursa Malaysia’s Main, ACE and LEAP markets — mostly small-capitalisation and recently listed companies.

Only two — HE Group Bhd (KL:HEGROUP) and Excel Force MSC Bhd (KL:EFORCE) — are Main Market counters while eight of the companies are listed on the ACE Market and another eight on the LEAP Market.

As at Sept 17, six of the 18 companies had appointed new auditors, with all six opting for Kudos SBC PLT.

Kudos SBC’s website shows that at least three of its four partners — managing partner Steve Ooi, audit partner Simon Kuan and audit partner Quek Keng Yee — were until recently senior auditors at TGS TW.

Ooi’s departure from TGS TW is also disclosed on the website of BIMOffice Group Bhd (KL:BIMOFFICE), where he is a non-independent non-executive director. BIMOffice says Ooi left TGS TW in February 2026 and subsequently established Kudos SBC, where he is managing partner.

Ooi is also a substantial shareholder of BIMOffice, which provides digital construction planning services.

Kuan and Quek are understood to have left TGS TW at around the same time.

A source familiar with the matter says the 18 companies were primarily handled by four senior auditors who had left TGS TW.

“If I’m not mistaken, TGS TW had something like 60 Bursa-listed clients. If my numbers are accurate, there would now be about 42 listed companies under their audit after the 18 were dropped,” the source tells The Edge.

The source adds that the departure of the senior auditors left TGS TW stretched and that the firm opted to reduce its client load as it dealt with the loss of experienced personnel.

“It’s an industry-wide problem — people leaving and the difficulty in getting good people to replace them. There is nothing special about the reasons for TGS TW dropping the 18 companies. It’s just a matter of being unable to cope with the workload,” the source says.

TGS TW has retained Zetrix AI Bhd (KL:ZETRIX) as a client, which has hogged the limelight as its share price has plunged, as well as those of several companies linked to its controlling shareholder Wong Thean Soon, also known as TS Wong.

TGS TW was appointed Zetrix AI’s auditor in November 2022, replacing Crowe Malaysia PLT. TGS TW is part of the TGS global network, an international group of accounting, auditing, consulting and law firms with 66 members across 58 countries.

In June,  the Securities Commission Malaysia’s Audit Oversight Board reprimanded two of the firm’s partners.

Tan Tian Wooi, TGS TW’s group managing partner, was fined RM50,000, while partner Lim Ge Ru was fined RM25,000.

According to the regulator, Tan had failed to perform adequate audit procedures and obtain sufficient appropriate audit evidence to support conclusions and the basis of the audit opinion in several areas. These included the overall audit conclusion, intangible assets, revenue, cost of sales and a multi-location audit of trade payables at a significant overseas subsidiary.

Lim was found to have failed to sufficiently review conclusions reached in significant audit areas, including intangible assets, revenue and the multi-location audit of trade payables at a significant overseas subsidiary.

The sanctions related to the audit of a public-interest entity for the financial year ended March 31, 2022.

The departure of several senior auditors, including those who subsequently established Kudos SBC, is understood to have placed additional pressure on the remaining senior staff at TGS TW.

It is not clear whether the regulator made any overtures to TGS TW about reducing its number of clients to ensure audit quality was maintained.

The Edge contacted senior representatives of TGS TW for comment but did not receive a response.

Among the 18 companies, HE Group Bhd stands out as one of the larger businesses and is one of only two Main Market-listed counters in the group.

HE Group, whose main business is mechanical and electrical engineering, had a market capitalisation of about RM424.6 million as at last Thursday. Managing director Haw Chee Seng was its largest shareholder with a 23.86% stake as at April 1, followed by executive director Eng Choon Leong with 15.66% and Datuk Yong Chong Cheang with 5.12%.

According to AskEdge, HE Group has zero gearing and was trading at about 33.6 times earnings. The company has appointed Kudos SBC as its new external auditor.

Ramssol Group Bhd (KL:RAMSSOL), which provides human capital management, digital transformation, information technology consulting and systems integration services, is controlled by managing director and CEO Datuk Tan Chee Seng, who holds a 20.37% stake.

Other substantial shareholders include Minister of Finance Inc’s Urusharta Jamaah Sdn Bhd with 6.44% and executive director Liew Yu Hoe with 5.12%. Top Glove Corp Bhd (KL:TOPGLOV) controlling shareholder Tan Sri Lim Wee Chai also owns 4.76% of Ramssol.

AskEdge puts Ramssol’s gearing at zero, with the stock trading at about 15 times earnings. It has also appointed Kudos SBC as its external auditor.

Excel Force, another Main Market counter among the 18, is one of the companies in which Zetrix AI’s Wong holds a 14% stake.

The technology company’s shares fell more than 45% on Aug 27, dropping from 16.5 sen to nine sen, before recovering sharply. The stock closed at 22.5 sen last Thursday, up 150% from its late August low, giving Excel Force a market capitalisation of RM137.2 million.

AskEdge puts the company’s gearing at zero and its earnings multiple at about 26 times.

Manforce Group Bhd (KL:MFGROUP), which listed in May this year, is controlled by Datuk Wong Boon Ming and his wife Datin Lim Gun Kiau, who together hold 65.83%.

The company provides foreign worker management, manual labour and hostel management services. It reported a net loss of RM2.74 million on revenue of RM40.8 million for its first financial quarter ended May 2026, compared with profits in each of the previous four financial years from FY2023 to FY2026.

Manforce shares closed at 25.5 sen last Thursday, valuing the company at about RM102 million.

TopVision Eye Specialist Bhd (KL:TOPVISN) reported a net profit of RM1.66 million on revenue of RM23.84 million for the six months ended June 30, 2026. The company is controlled by Datuk Liew Hock Nean, who owns about 43%.

AskEdge puts TopVision’s gearing at 21.1%, with the stock trading at about 40.5 times earnings.

Hiap Huat Holdings Bhd (KL:HHHCORP), which manufactures, recycles and refines petroleum-based products, reported a net profit of RM2.17 million on revenue of RM59.68 million for the six months ended June 30, 2026.

The company had net gearing of 219% and was trading at about 8.5 times earnings, according to AskEdge. Its shares closed at 11 sen last Thursday, giving it a market capitalisation of about RM43.5 million.

Hiap Huat has appointed Kudos SBC as its external auditor.

Adnex Group Bhd (KL:ADNEX), which provides interior fit-out services for commercial and industrial properties, was listed on Bursa on March 17 this year.

For the six months ended June 30, 2026, Adnex reported a net profit of RM4.09 million on revenue of RM56.36 million. Its shares closed at 41.5 sen last Thursday, valuing the company at about RM207.5 million.

The Kan family controls about 70% of Adnex, with managing director Kan Wai Chun and executive director Kan Wai Peng as the key shareholders.

SBS Nexus Bhd (KL:SBS), a branding and marketing company, listed in January this year. Its shares closed at 12.5 sen last Thursday, giving it a market capitalisation of RM61.3 million. For the six months ended June 30, 2026, the company reported a net profit of RM3.23 million on revenue of RM26.77 million.

Managing director Wong Chun Mun is SBS Nexus’ largest shareholder, with a 30.04% stake.

Verdant Solar Holdings Bhd (KL:VERDANT) was listed on the ACE Market on Oct 2, 2025. The solar power company reported a net loss of RM1.87 million on revenue of RM59.52 million for the financial year ended June 30, 2026.

Managing director Lim Tzer Haur controls 53.31% of the company.

Verdant Solar had yet to appoint a new auditor at press time. Its shares closed at 20.5 sen last Thursday, valuing the company at about RM167.6 million.

CBH Engineering Holding Bhd (KL:CBHB) was listed on the ACE Market in January 2025 and is controlled by managing director Cheah Boon Hwa, who owns 64.08%.

CBH has appointed Kudos SBC as its new external auditor. The stock closed at RM1.02 last Thursday, giving the company a market capitalisation of almost RM2 billion.

Among the LEAP Market companies dropped by TGS TW, Baba Eco Group Bhd (KL:BABA), which sells gardening products, tools and accessories, and Milolo Bhd (KL:MILOLO), a retailer of toys and collectibles, including blind boxes and designer figures, have also appointed Kudos SBC as their external auditor.

The reshuffling of audit mandates comes as accounting firms across Malaysia contend with the loss of experienced personnel and the challenge of replacing them, highlighting the capacity constraints facing firms serving the country’s growing population of listed companies. 

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