Every year, after Chinese New Year, we clean house. Not just the office, but also our client list. If a client repeatedly ignores our reminders and refuses to submit their management accounts, we cut them off. No more chasing, no more nagging.

Why? Because when trouble comes knocking, we won’t be the ones standing in court with them.

And if you think we’re being too harsh, just read this real-life case.

On 9 March 2025, Lee & W Hospitality Sdn Bhd and its director, William Chandra Tjeng, stood before the Sessions Court, facing five charges under the Companies Act 2016.

Their crime? Failing to prepare and submit financial statements for 2020 and 2021.Despite having 18 months to do so, they ignored the law.

The cost of ignoring compliance is summarised as below :

• Failure to prepare financial statements (Section 248(3)) → Fine up to RM500,000, jail up to 1 year, or both.
• Failure to submit financial statements (Sections 258(3) & 259(3)) → Fine up to RM50,000 per offence.

The court has set 9 April 2025 for further proceedings. The director had to surrender his passport and was released on RM3,000 bail.

What this means for SMEs…SSM is serious about enforcement.

Their message is clear and comply or face the consequences.

If you think financial statements are “just paperwork,” think again.

It’s a legal requirement. Ignore it, and you risk:
✅ Heavy fines
✅ Jail time
✅ Business restrictions
✅ Personal liability as a director

At KTP, we remind, assist, and guide. But we won’t beg.If a client refuses to cooperate despite our help, it’s only a matter of time before they get into legal trouble. And we are not here to babysit companies that don’t take compliance seriously.

So yes, we sack clients after CNY. It’s not personal. It’s business.

Because when SSM comes knocking, we’d rather be spectators than co-defendants.

Lesson of the day? Submit your accounts. On time. Every time.