Beware of scam


This article first appeared in The Edge Malaysia Weekly on August 18, 2025 - August 24, 2025

A company’s name is generally synonymous with its controlling shareholder. Think Robert Kuok Hock Nien and PPB Group Bhd (KL:PPB), Tan Sri Leong Hoy Kum and Mah Sing Group Bhd (KL:MAHSING), Tan Sri Syed Mokhtar Albukhary and DRB Hicom Bhd (KL:DRBHCOM) or even Tan Sri Lim Wee Chai and Top Glove Corp Bhd (KL:TOPGLOV), to name a few.

In some cases, the companies are synonymous with their business, such as Telekom Malaysia Bhd (KL:TM), which is involved in telecommunications; Astro Malaysia Holdings Bhd (KL:ASTRO), which is in pay TV; IJM Corp Bhd (KL:IJM), which focuses on construction; or Kuala Lumpur Kepong Bhd (KL:KLK), which is a renowned plantation company.

While it is understandable for a new shareholder to change the name of the company, whether because the entity has a new business direction or even to distance itself from the previous owners or founders, changing the name of the company several times for no apparent reason does raise questions.

“It is common practice for a group of companies … the traits of the companies are that they are mostly loss-making, all are small caps, many shuffle inconspicuous assets around and many undertake cash-raising exercises to buy the inconspicuous assets … if you take the trouble to check the valuations of the assets, some are disputable,” says a source.

Market observers question the frequent name changes and wonder if the regulators see a pattern, or if they suspect anything sinister is going on at the companies, with the frequent name changes and assets being transacted between them (see main story).

The name changes can be confusing.

For instance, XOX Networks Bhd (KL:XOXNET) was Macpie Bhd before its name was changed in December 2021. And before it became Macpie in February 2019, it was known as Sterling Progress Bhd from November 2015, before which it was known as 1Utopia Bhd. So over the past 10 years, the company has changed names four times.

Last Friday, XOX Networks’ share price closed at 1.5 sen, valuing the company at RM17 million. The company has been loss-making since FY2014.


Velocity Capital Partner Bhd (KL:VELOCITY), which is involved in the financial services industry, got its current name on Aug 15, 2023. Prior to that, from end-September 2021 to Aug 15, 2023, it was known as CHS Alliance Bhd. Before becoming CHS Alliance, the company was known as KTG Bhd from Aug 5, 2020. From March 16, 2019, until it was renamed, it was known as DWL Resources Bhd. From Dec 6, 2014, until it became DWL Resources, it was known as Spring Gallery Bhd. So from 2019 until today, the company has changed names four times.

Last Friday, Velocity’s share price closed at six sen, giving the company a market capitalisation of RM82.9 million.

Velocity suffered losses from FY2013 to FY2023. In FY2024, it posted a net profit of RM9.85 million from RM65.8 million in revenue, mainly from the disposal of subsidiaries amounting to RM4.3 million and reversal of impairment losses on other investments of RM13.8 million.

Another company, Harvest Miracle Capital Bhd (KL:HM), a diversified group principally involved in the business of IT and information and communication technology (ICT), money lending, plantations, manufacturing, property investment, property construction and property development, among others, was called Vortex Consolidated Bhd before September 2022. Before September 2018, it was known as SKH Consortium Bhd, prior to which it was known as The Media Shoppe Bhd.

Harvest Miracle’s share price closed at 16 sen last Friday, valuing the company at RM277.9 million. But it is worth noting that it has a huge share base of 1.74 billion shares.

In July last year, Hong Seng Consolidated Bhd (KL:HONGSENG) said it was going to change its name to HKL Consolidated Bhd at its annual general meeting, which will be announced later and the circular to shareholders with details of the proposed change of name will be issued to shareholders.

Hong Seng, which is involved in equipment, solutions and services, came about when MSCM Holdings Bhd changed its name in October 2020. Before that, it was known as Panpages Bhd.

Last Friday, Hong Seng’s share price closed at 0.5 sen for a market capitalisation of RM25.5 million.

Ingenieur Gudang Bhd (KL:INGENIEU), which is involved in designing, planning, construction and management of infrastructure such as roads, tunnels, bridges, facilities and buildings, changed its name from Dynaciate Group Bhd in July 2022. Before February 2019, it was known as Tatt Giap Group Bhd.

Last Friday, Ingenieur’s share price closed at three sen, giving the company a market capitalisation of RM45.5 million.

While not an indication of wrongdoing, these frequent name changes might affect investor confidence in these companies.