In Malaysia, small and medium enterprises (SMEs) make up 97% of all businesses and contribute 37% of the GDP. However, one in three fail within five years. A major reason? Poor compliance with legal and tax requirements. 

This case study reveals how expert company secretary services helped one struggling SME recover from a serious compliance crisis—and shows how your business can avoid the same fate. 

 

The Problem: A Business in Trouble 

A family-run manufacturing SME in Penang was close to shutting down. We faced: 

• RM250,000 in unpaid taxes to LHDN 

• Penalties from SSM for breaking the Companies Act 2016 

• Shareholder lawsuits due to missing AGM documents 

The directors were overwhelmed. We didn’t know how to fix the situation—until we turned to their licensed company secretary. 

 

The Recovery Plan: 4 Steps to Save the Business 

Step 1: Closing Compliance Gaps 

First, the company secretary reviewed all documents and records. We found: 

• Unfiled financial reports from 2020 and 2021 

• Incorrect information about directors in the SSM system 

 

Solution:

We updated the MyCoID portal, corrected the director records, and submitted all overdue filings. 

 

Step 2: Working with Authorities 

Next, the secretary spoke with both SSM and LHDN on behalf of the company. This made a big difference. 

• A payment plan was arranged: 20% upfront, and the rest over 12 months 

• The company avoided court cases for minor offenses 

By acting quickly, we reduced legal risk and bought time to fix deeper problems. 

 

Step 3: Fixing Financial Pressure 

With the help of the Corporate Debt Restructuring Committee (CDRC), the business: 

• Changed RM1.5 million in debt into a manageable 5-year plan 

• Cut monthly payments by 40%, freeing up cash to run operations 

 

Step 4: Training for Better Governance 

To prevent future problems, the directors received training. We learned: 

• Our roles and responsibilities under Malaysian company law 

• How to run proper board and AGM meetings 

As a result, we became better decision-makers. 

 

Rebuilding the Business 

Using MyCoID for Better Compliance 

The business moved all its records to MyCoID, which gave us: 

• Real-time updates on filings 

• Automated reminders for important deadlines like AGMs 

This helped avoid late filings and future fines. 

 

Restoring Shareholder Confidence 

To win back trust, the directors: 

• Shared monthly business updates 

• Created a transparency charter to promote openness 

These steps led to a RM300,000 reinvestment from shareholders. 

 

Accessing Government Support 

Because the company was now compliant, they qualified for: 

• A RM500,000 PENJANA grant to upgrade equipment 

• Low-interest MIDF loans for new machinery 

Without proper filings, they would have missed out on this support. 

 

The Results: Growth Within 18 Months 

This SME went from crisis to success: 

• Fully compliant with SSM and LHDN 

• Debt reduced by 40% 

• Profits increased by 25% 

• Workforce grew by 15% after automation 

 

Compliance didn’t just save the company—it helped it grow. 

 

How to Choose the Right Company Secretary 

Not all secretaries offer the same value. Here’s what to look for: 

 

1. Proper Licensing

Make sure they are registered with SSM or certified by MAICSA. 

 

2. Industry Experience

For example, if you’re in manufacturing, your secretary should understand laws like the Factory and Machinery Act. 

 

3. Proactive Support

Don’t hire someone who only files documents. Instead, choose an advisor who can: 

• Negotiate with SSM and LHDN 

• Help apply for grants and loans 

• Provide reminders and updates 

 

FAQs: Company Secretary Services in Malaysia 

Q: Can a company secretary reduce SSM or LHDN fines?
A: Yes! Experienced secretaries often arrange payment plans or even reduce penalties. 

Q: Is this service expensive?
A: Not at all. Packages often start at RM1,488 per year, much cheaper than fines or legal costs. 

Q: Do I need to set up MyCoID?
A: Yes, but your company secretary can do this for you—and keep it updated. 

 

Final Thoughts: Protect Your Business with Consistant Info 

Many Malaysian SMEs fail due to avoidable compliance issues. But with the right support, your business can not only survive—it can grow. 

At Consistant Info, we provide: 

• 90% compliance success rate within 6 months 

• Help with debt restructuring, grant applications, and MyCoID setup 

• Transparent pricing with no hidden fees 

 

Book Your Expert Consultation Today 

Let us help you stay compliant, avoid fines, and unlock growth opportunities. Turn compliance into your competitive edge—with Consistant Info. 

Call us now at 011-3669 6823 or visit: https://consistantinfo.com.my