This article first appeared in The Edge Malaysia Weekly on September 15, 2025 - September 21, 2025

Last week, Johor-based electronic manufacturing services (EMS) firm VS Industry Bhd (KL:VS) saw its share price tumble 19%, wiping out more than RM440 million in market value. The stock has fallen 28% over the past month, 36% over the last six months, and a staggering 52% since the start of the year.

Following on the heels of ATA IMS Bhd, Cape EMS Bhd (KL:CEB) and Nationgate Holdings Bhd (KL:NATGATE), it appears that the “curse” on Bursa Malaysia-listed EMS counters continues. But unlike the previous cases, a reason for VS Industry’s sharp decline has not been immediately established.

ATA IMS — now Wavefront Bhd (KL:WAVEFRNT) — was heavily sold down in November 2021 after home appliance giant Dyson Ltd terminated its contract.

Last year, Cape EMS’s share price crashed 60% in under a month after management cut its earnings guidance, compounded by forced share disposals involving CEO and managing director Christina Tee Kim Chin following margin calls.

Earlier this year, Nationgate’s shares were hammered following reports of a potential fraud case in Singapore involving the alleged movement of Nvidia chips.

Similar to Cape EMS, VS Industry’s major shareholders have also been paring down their stakes amid the sell-down.

VS Industry executive chairman and largest shareholder Datuk Beh Kim Ling, together with his son and executive director Beh Chern Wei, have been disposing of shares across various transactions since Aug 25, trimming their direct holdings to 4.97% and 2.96% respectively.

A check of VS Industry’s Annual Report 2024 shows a fragmented shareholding structure, with no individual in firm control.

As at Oct 30 last year, Kim Ling was the single largest shareholder at 14.98%. Notably, Kim Ling and other top executives had pledged some portion of their stakes to various financial institutions, which mirrors the Cape EMS saga, where pledged shares were eventually sold down when the stock collapsed.

That said, there is no evidence so far to suggest that the Beh family are facing margin calls.

When contacted, VS Industry stressed that its operations remain intact and customer orders are being fulfilled. But if that is the case, why are the major shareholders selling their shares?

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