Mun Siong Engineering Limited Holds Extraordinary General Meeting: Major Change in Auditors Approved

Overview of the EGM

Mun Siong Engineering Limited convened its Extraordinary General Meeting (“EGM”) on 14 November 2025 at its Gul Way premises in Singapore. The meeting was chaired by Executive Chairlady Madam Cheng Woei Fen, with members of the Board of Directors, the Group Chief Financial Officer, the Company Secretary, and representatives from the proposed audit and legal advisory firms in attendance.

Key Agenda: Proposed Change of Auditors

The main item on the agenda was the proposed change of company auditors from KPMG LLP, one of the Big Four audit firms, to CLA Global TS Public Accounting Corporation. This resolution was recommended by the Audit Committee after a thorough review and was subsequently endorsed by the Board of Directors.

Rationale for Auditor Change

• Significant Cost Savings: The proposed change is expected to deliver audit fee savings of approximately 20% to 30%, equating to about \$77,000 (as disclosed to shareholders). This is a direct result of the different cost structures between KPMG LLP and CLA Global TS, with CLA operating on a more cost-efficient model.
• Due Diligence and Quality Assurance: Both KPMG and CLA Global TS are fully accredited and regulated by the Monetary Authority of Singapore and the Accounting and Corporate Regulatory Authority (ACRA). Management has conducted reputational checks and found no adverse findings for CLA Global TS. The Board emphasized that compliance and audit quality remain top priorities and would not approve the change based solely on cost considerations.
• Shareholder Engagement: Shareholders were informed and given the opportunity to raise questions. All queries regarding the rationale, cost implications, and impact on international business operations were addressed by the Board and management during the meeting.
• Impact on U.S. Operations: The Group’s U.S. business units are exempted from U.S. statutory audit requirements. Historically, KPMG Singapore performed audits for group reporting purposes due to high fees from KPMG US. The new arrangement will see CLA Singapore undertake these audits, further optimizing costs without compromising compliance.

EGM Poll Results and Shareholder Approval

The resolution was put to a poll, with Boardroom Corporate & Advisory Services Pte Ltd serving as the Polling Agent and Reliance 3P Advisory Pte. Ltd. as Scrutineers. The results were overwhelmingly in favour, with 99.99% of votes supporting the change and only 0.01% against. As a result, CLA Global TS Public Accounting Corporation will replace KPMG LLP as the company’s auditors, effective until the next AGM.

Shareholder Questions & Management Responses

1. Audit Fee Reduction and Auditor Selection

Shareholders queried the substantial difference in audit fees, given KPMG’s long-standing relationship with the Group. Management attributed this to different cost structures and assured that compliance and quality standards will be maintained. The Board reiterated that the selection process involves only accredited firms and is not dictated by cost alone.

2. Impact on U.S. Business Relationships

Concerns were raised about potential reputational impact, as KPMG is a globally recognized Big Four firm and the Group has U.S. operations. Management clarified that U.S. operations do not require statutory audits, and group reporting will continue to comply with requirements under CLA Singapore, with no adverse impact expected.

3. Timing and Cost of EGM

Shareholders questioned the necessity of a separate EGM, suggesting the matter could have been addressed at the last AGM. The Board explained the timing was dictated by internal processes and the need for thorough regulatory compliance, making a separate EGM essential.

Potential Share Price Implications

Cost Efficiency and Corporate Governance: The switch to CLA Global TS is expected to enhance cost efficiency and potentially improve future profitability by reducing audit expenses. However, investors should note the departure from a Big Four auditor may be viewed differently by institutional stakeholders, especially in markets where auditor reputation is critical.

Quality Assurance: Management has addressed concerns regarding audit quality and regulatory compliance, which should help maintain investor confidence.

Operational Impact: No material impact is expected on the Group’s U.S. business relationships, given the nature of statutory audit requirements and existing practices.

Conclusion

The successful approval of the auditor change marks a significant operational development for Mun Siong Engineering Limited. Investors should watch for any future disclosures relating to audit quality or stakeholder feedback, as these could influence market sentiment and share price performance.

Disclaimer: This article is based on official minutes of Mun Siong Engineering Limited’s Extraordinary General Meeting and is intended for informational purposes only. It does not constitute financial advice or a recommendation to buy, sell, or hold any securities. Investors should conduct their own due diligence and consult with professional advisors before making any investment decisions.

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