Khee San Berhad (KSB) said six bank accounts belonging to its wholly owned major subsidiary, Khee San Food Industries Sdn Bhd (KSFI), have been frozen pursuant to an order issued by the Royal Malaysia Police as part of an investigation under the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 (AMLA).
KSB said the six accounts had an aggregate credit balance of approximately RM1.89 million when they were frozen.
The company said it has yet to receive formal written clarification from PDRM on the specific circumstances or matters leading to the investigation.
However, based on information conveyed by PDRM, KSB said the freezing of the accounts is not due to or connected with the operations or business activities of the Group.
The company has also submitted an appeal to PDRM on 24 August 2026 seeking the lifting of the freezing order and the release of the affected accounts.
The frozen accounts are used for KSFI’s day-to-day operations, including receiving customer payments and processing payments to suppliers and staff.
As a result, the company said the freezing could have an immediate impact on the receipt and processing of customer collections, as well as supplier payments and staff salaries through the affected accounts.
The impact on the Group’s sales and production activities has yet to be determined, with management continuing to assess the operational implications.
