NexG Bhd Faces a Turbulent Quarter

The Kuala Lumpur‑listed information‑technology firm NexG Bhd (KL:NEXG) has been at the centre of a series of corporate upheavals and legal challenges over the past week, a development that has rattled investors and prompted the company to declare a significant investment loss as a “closed” matter.

On 17 March 2026, NexG’s former executive chairman and chief executive officer, Datuk Abu Hanifah Noordin, announced that he had withdrawn the lawsuit he had filed against former board members. The suit, initiated earlier in March, had stemmed from a wave of resignations that saw a sizeable portion of the board depart. The withdrawal came after a new board was elected and the company announced a “boardroom exodus” that effectively ended the litigation. This development, reported by The Edge Malaysia and confirmed in a filing with Bursa Malaysia, signals a step toward restoring stability within the company’s governance structure.

Litigation over Investment Losses

NexG’s financial statements for the year ended 31 December 2025 reveal that the company suffered a fair‑value loss of RM145.6 million on its share investments. The loss, which pushed NexG into the red, has now been declared a “closed” matter by the board, according to a statement issued on 18 March 2026. The declaration follows the board’s decision to move forward with a restructuring plan that does not rely on further investment in the affected securities. While the loss remains a blot on NexG’s earnings, the board’s confidence that the issue has been fully addressed should ease investor concerns.

In addition to the internal lawsuit, NexG is embroiled in a civil claim initiated by Abu Hanifah Bin Noordin and Siti Nur Aisha Binti Ishak. A writ of summons and statement of claim were filed on 16 March 2026, alleging misconduct and seeking damages. The claim is currently pending, and the company has not yet responded publicly beyond acknowledging the filing. The overlapping legal narratives—one internal, one external—add complexity to NexG’s legal landscape.

Broader Market Context

The company’s turbulence has occurred amid a broader climate of corporate volatility in Kuala Lumpur. On 17 March 2026, The Edge Malaysia reported that several other listed companies—including Gas Malaysia Bhd, Deleum, Axis REIT, and MMAG Holdings—were also in the news for governance changes and financial disclosures. While these events are unrelated to NexG, they underscore a heightened regulatory scrutiny in the Malaysian capital markets.

Investor Outlook

NexG’s market cap sits at just over MYR 1.04 billion, and its share price has fluctuated from a 52‑week low of MYR 0.21 to a high of MYR 0.535. The company’s price‑earnings ratio is a negative 378.78, reflecting the recent loss and the company’s ongoing efforts to restore profitability. The declaration of the investment loss as a closed matter, coupled with the withdrawal of the internal lawsuit, may serve to reassure shareholders that management is prioritizing governance stability and financial transparency.

In summary, NexG Bhd is navigating a multifaceted crisis that encompasses boardroom turnover, legal disputes, and substantial investment losses. The company’s recent statements suggest a concerted effort to resolve these issues and return to a trajectory of sustainable growth within Malaysia’s competitive information‑technology sector.