Court of Appeal upholds insider trading ruling, former WCT executive ordered to pay RM5.83 million to Securities Commission
PETALING JAYA: Malaysia’s Court of Appeal has upheld a High Court decision finding former WCT Holdings Bhd deputy managing director Goh Chin Liong and Ara Holdings Sdn Bhd director Leong Ah Chai liable for insider trading, affirming an order requiring them to pay RM5.83 million to the Securities Commission Malaysia (SC).
The unanimous decision by a three-member appellate bench reinforces an earlier High Court ruling delivered in 2022 and represents another significant legal victory for the capital market regulator in its efforts to combat market misconduct.
The Court of Appeal panel, comprising Justices Datuk Mohamed Zaini Mazlan, Datuk Leonard David Shim and Datuk Aliza Sulaiman, dismissed the appeals filed by both defendants after finding no basis to overturn the High Court’s findings.
The court also ordered Goh and Leong to each pay RM100,000 in appeal costs to the Securities Commission.
In addition, the appellate court maintained the High Court’s orders requiring each defendant to disgorge RM2,542,184.70, representing profits gained or losses avoided through the unlawful transactions.
Both men are also required to pay a civil penalty of RM300,000 each, as well as RM75,000 in legal costs to the SC.
The Securities Commission initiated civil proceedings against the pair in 2015, alleging breaches of Sections 188(2) and 188(3) of the Capital Markets and Services Act 2007 relating to insider trading.
According to evidence presented by the regulator, Goh had allegedly disclosed material non-public information to Leong concerning the cancellation of a construction contract for a motor racing circuit in Dubai, United Arab Emirates.
The project had previously been awarded to a joint venture involving WCT and Arabtec Construction LLC.
Armed with the confidential information, Leong allegedly disposed of approximately 1.64 million WCT shares through Ara Holdings’ trading account between Jan 2 and Jan 5, 2009, allowing him to avoid losses before the information became public.
The latest appellate ruling follows another legal success for the Securities Commission on May 26, 2026, when the High Court reinstated garnishee orders against both defendants, paving the way for enforcement proceedings to recover the RM5.83 million judgment sum.
Following the Court of Appeal’s decision, the Securities Commission said it will continue pursuing enforcement measures to recover the outstanding amount from both defendants.
The regulator reiterated that insider trading remains one of the most serious offences under Malaysia’s capital market laws because it undermines market integrity, distorts fair trading and erodes investor confidence.
According to the SC, the appellate court’s ruling sends a strong signal that market abuse will not be tolerated and underscores the regulator’s commitment to taking firm enforcement action against those who breach securities laws in order to safeguard the integrity, transparency and credibility of Malaysia’s capital market.
