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ON WEDNESDAY (Dec 22), Asti 575 announced the retrenchment of its chief executive Michael Loh Soon Gnee. The company, which provides various services to semiconductor equipment manufacturers, said it had commenced a retrenchment exercise in July in order to ensure its survival, and that Loh was the latest casualty of this exercise.

Loh is the single largest shareholder of Asti, with a 19.9 per cent stake as at May 11. He is also the company's chairman, and will remain so despite his retrenchment. Loh is contractually entitled to S$2 million as part of his termination, but the board said it will pay him just S$1.4 million.

Asti's latest development is unusual, but is merely the latest in a long list of issues the company has faced for several years. The company is currently on the Singapore Exchange's (SGX) watch list, and owns stakes in 2 other troubled companies.