Ex-MMAG Executive Director Khow Says Victor Chin Was Consulted on Major M Jets Decisions in Malaysian Court
Why It MattersThe case shows how a private jet charter operator's conversion into an air cargo carrier can end in litigation between its investors and its operating directors.
Kenny Khow Chuan Wah, a former executive director of logistics firm MMAG Holdings Bhd and second defendant in the M Jets dispute, testified in court that Victor Chin was consulted on major decisions involving M Jets. In his witness statement, Khow said Chin acted merely as a coordinator between the parties when negotiating the acquisition of M Jets and the additional investment required. He said Chin told MMAG's directors of the opportunity to invest in M Jets, which led MMAG to acquire an 80% stake in the cargo airline. Under cross-examination by Gunasekar's lawyer, Alex De Silva, Khow conceded that Chin had been involved in consulting on aviation matters, but said Chin did not have prime knowledge of the aviation industry, though he had vast knowledge of the logistics industry, and that the company relied on the people it had.
MMAG Holdings is suing former M Jets directors Gunasekar Mariappan and Philip Phang Kin Ming for RM23.17 million over alleged breaches of fiduciary duties in M Jets. In July 2022, the two men counter-sued Chin and eight others for RM49.85 million, alleging a conspiracy to harm their investments in M Jets. The other defendants are MMAG, its directors Khow and Chong Koon Meng, M Jets, JT Aerotech Solutions Sdn Bhd (JTAS), and JTAS shareholders R Shanmugananthan, Anton Alex Schubert and M Saysu.
The dispute stems from a November 2020 joint venture to convert M Jets, then a private jet charter company, into an air cargo operator. Under the deal arranged by Chin, MMAG was to hold 80% of M Jets and invest RM46 million, while Gunasekar and Phang's group (JTAS) would hold 20% and invest RM10 million. The two men claim they were responsible for running the business and converting M Jets into an operational cargo airline, including securing aircraft leases, renewing licences and managing fuel arrangements.
Chin is due to testify but has filed a fresh application to testify by video link from Zhuhai, Guangdong, China, asserting he is medically unfit to travel by air and offering to testify first for the defence. Justice Leong said he will deal with the application in January 2027.
