A dramatic shake-up at Ho Hup Construction Company Bhd has sparked debate among shareholders and industry watchers. At the company’s annual general meeting (AGM) in Kuala Lumpur on Monday, shareholders voted to block the re-election of Datin Chan Bee Leng — the last representative of the company’s founding family still sitting on the board — and simultaneously refused to approve RM500,000 in directors’ fees. But here’s where it gets controversial: this decision effectively draws a definitive line under the Low family’s long-standing control of the company.
Chan, who is married to Datuk Low Tuck Choy — son of Ho Hup’s late founder — saw her tenure on the board end as 17 shareholders, representing a commanding 96.1% of the votes, opposed her re-election. Only 10 shareholders, holding just 3.9%, voted in her favor. The move came weeks after the family’s stake in the company dropped significantly, with Low Tuck Choy ceasing to be a substantial shareholder on October 22, 2025.
Adding to the turmoil, Chan’s son, Kheng Lun, had already been ousted from the board during an extraordinary general meeting (EGM) called by Omesti Holdings Bhd — the company’s largest shareholder. That EGM, held on November 20, replaced Kheng Lun and executive director Datuk Wong Kit-Leong with Omesti’s appointees, Ong Koon Loong and Bernard Chen Tong Liang. The replacement reinforced Omesti’s growing influence over Ho Hup’s leadership.
The decision to reject directors’ fees also marks a significant show of dissent. Twelve shareholders, collectively holding close to 70% of voting power, voted against the payment of directors’ fees for the first half of 2025 and the 2026 financial year. Meanwhile, 13 shareholders representing just over 30% of the votes supported the proposal. This refusal signals shareholder dissatisfaction and possibly dwindling confidence in the board’s management.
The Low family’s grip on Ho Hup has been slipping for some time. Their investment arm, Low Chee Group, lost its position as a major shareholder on October 16. Just a year ago, it held 9.09% — second only to Omesti’s 10.89%. The loss of board representation now leaves the founding family with no direct influence over the company they once controlled.
This leadership upheaval comes amid Ho Hup’s prolonged financial distress. The construction firm, which has struggled since 2021, was flagged as a Practice Note 17 (PN17) company in April after its subsidiary Bukit Jalil Development Sdn Bhd defaulted on RM112.69 million in loans — for which Ho Hup served as guarantor. Despite the turmoil, there was a small silver lining: losses narrowed to RM1.7 million in the first quarter ended September 30, 2025, compared to a staggering RM18.7 million loss a year earlier, though revenue slid nearly by half to RM2.2 million.
Earlier this year, Ho Hup changed its fiscal year-end from December to June. For the extended 18-month period ended June 30, 2025, the company posted a massive net loss of RM473.25 million on RM57 million in revenue — figures that continue to haunt investors.
At the noon market break on Monday, Ho Hup’s shares remained stagnant at five sen, leaving the company’s market capitalization at roughly RM26 million. The stock has plummeted by 68% year to date, reflecting ongoing investor skepticism.
And this is the part most people miss: the rejection of both the founding family’s representation and directors’ pay isn’t just about governance — it’s about trust. Has Omesti’s takeover restored confidence, or has it deepened rifts within the shareholder base? Share your thoughts below — do you think the shake-up was long overdue, or has Ho Hup lost an essential part of its identity in the process?
