A MALAYSIAN firm has joined the ranks of the world's derivatives losers. Berjaya Industrial, flagship of Malaysian Chinese tycoon Vincent Tan, stands to lose M$36 million (about HK$108.7 million) from the transaction. To many, the incidents show the risk of introducing derivatives to Malaysia. The Kuala Lumpur Stock Exchange (KLSE) will introduce warrants in January. 'Foreign houses are not going to come here under these conditions,' said one Malaysian dealer. The interest rate swap transaction was between Berjaya's wholly owned offshore subsidiary Berjaya Corp (Cayman) and Credit Suisse Financial Products Public Bank (Labuan). In a letter to the KLSE, the board of directors of Berjaya Industrial argued its company was not responsible for paying for the loss. 'The executives who undertook this transaction had done so without valid authorisation. No board resolution was requested nor issued in relation to this transaction.' The director responsible for executing the swap was suspended and admitted authorising the transaction without approval. 'The company had been advised that the documentation pertaining to this unauthorised Swap Transaction is highly irregular, incomplete and had not even been fully executed by the relevant parties.'