MAS imposes S$120,000 civil penalty on doctor for insider trading in SMGL shares

In a joint statement released on 30 June 2026, the Monetary Authority of Singapore (MAS) and the Commercial Affairs Department (CAD) of the Singapore Police Force announced that MAS has imposed a civil penalty of S$120,000 on Dr Chua Han Boon Kenneth for insider trading in shares of Singapore Medical Group Limited (SMGL).

SMGL was listed on the Singapore Exchange at the time of the offence. According to the statement, Dr Chua purchased a total of 210,000 SMGL shares on 6 and 7 September 2022 at a cumulative cost of S$67,200, while in possession of material, non-public information about an impending privatisation offer.

The trades preceded SMGL's public announcement on 13 September 2022 that it had received a voluntary conditional general offer from TLW Success Pte Ltd, the offeror, to privatise the company.

At the time, Dr Chua was both a shareholder of SMGL and a doctor employed by one of its subsidiary companies, making him a connected person under securities law.

According to the joint statement, Dr Chua was among a small group of shareholders approached directly by TLW Success ahead of the public announcement. He was informed of the privatisation plan and the offeror's intention to expand SMGL's operations, and was asked to sign an irrevocable undertaking in favour of the offer.

While holding this price-sensitive information — which had not yet been made public — Dr Chua proceeded to purchase the SMGL shares, contravening section 218(2)(a) of the Securities and Futures Act (SFA).

MAS and CAD said Dr Chua admitted to the contravention and paid the civil penalty without court action. He has also given a voluntary undertaking not to serve as a company director or be involved in the management of any company for two years.

The joint statement noted that the action was the result of an investigation conducted by CAD and MAS, initiated following a referral from Singapore Exchange Regulation Private Limited.

MAS and CAD explained that a civil penalty action is not a criminal action and does not attract criminal sanctions. The civil penalty regime, which became operational in 2004, is designed to complement criminal sanctions and provide a more calibrated approach to market misconduct.

Under section 232 of the SFA, MAS may enter into an agreement with a person to pay a civil penalty for contraventions of Part 12 of the Act, with or without admission of liability. The penalty may be up to three times the profit gained or loss avoided, subject to a minimum of S$50,000 for individuals.