'High amount of compounds collected by SSM is not something to be proud of'

PETALING JAYA: The Domestic Trade, Cooperatives and Consumerism Minister Datuk Seri Hamzah Zainuddin (pix) said the amount of compounds collected by the Malaysia Companies Commission (SSM) last year is nothing to be proud of.
Hamzah said ideally the companies should comply with the law and create a win-win situation that will benefit the companies and the country's economy.
"The compounds comes at the expense of the company's business and the overall economy which in turn could be used to increase productivity and efficiency.
"Furthermore, complying with the law would ease the cost of conducting business as well, as it helps the country to improve its overall global ranking in doing business," Hamzah said in his speech at the Commission's national conference at Sunway Hotel Resort and Spa today.
Among the top offences that merited compounds for the companies were failure to submit their annual financial reports, tabling of profit and loss statements as well as failure to hold annual general meetings.
Hamzahs then revealed that his ministry is looking at reducing the non-compliance rates which currently stands at 7% to 5% next year and three per cent the following year.
"Although it might be an uphill task for us or SSM to achieve 100% compliance, we will try our best through various methods, one of which is to organise more seminars and conferences so that they can be better equipped with knowledge that would help them in complying with the law," he said.
He added that the Commission has also launched its online payment and registration system to further boost compliance.