IJM Corporation Berhad, the conglomerate at the center of a corruption and money-laundering probe by the Malaysian Anti-Corruption Commission (MACC) is a very profitable company by any account. Based on its press release on 27 August 2025, its financial results for the first quarter ended 30 June 2025 (Q1 FY2026) showed a year–on-year revenue growth of 23.4 per cent with an outstanding construction order book of RM12.9 billion that included a data centre project in Pulai, Johor and the NPE highway extension. It has unbilled property sales of RM1.7 billion in addition to strong cash reserves and healthy net gearing ratio of 0.38x which means it has the capacity to undertake large-scale projects.
IJM is a household name in Malaysia with many successful completed property and infrastructure projects, and so far has an unblemished reputation. Its track record is up there among the best in Malaysia. Not surprisingly, it has won several bids to build data centers in the country’s booming data center space. The company has so far clinched several huge data center projects with a combined total of more than RM4.1 billion (US$1 billion) since 2024.
Hence, it was a shock to read news reports of corruption allegations days after the announcement of a takeover bid by another Malaysian conglomerate, Sunway Berhad.
On January 12, 2026, Sunway launched a conditional voluntary takeover offer for IJM at RM3.15 per share, valuing IJM at about RM11 billion. Seven days later, the MACC and Inland Revenue Board (IRB) raided IJM’s offices. The investigation reportedly involved an alleged RM2.5 billion money laundering scheme and possible share price manipulation.
Aside from speculations about the real reason behind this surprising turn of events, the big two questions those in the data center industry are asking are: 1. Do any of these allegations involve data centers (due to the billion ringgit tag) and, 2. What’s going to happen to all those data center projects that are under construction by IJM?
Veteran property industry player, Sr Samuel Tan, opines: “The key implications include uncertainty and execution risks, delays in regulatory approval, and valuation concerns. The MACC probe introduces significant “deal risk.” Even if Sunway is determined to proceed, the investigation could lead to delays in regulatory approval. The Securities Commission and other regulators may take a “wait-and-see” approach, delaying the approvals necessary to finalize the merger.”
So, the merger will definitely be delayed but what about the projects on the ground? “There shouldn’t be any delay as the firm is run by professionals,” Tan, who is the Founder & CEO of Olive Tree Property Consultants responded.
IJM said just as much in their press release dated January 21st regarding the company’s daily operations. “The Company wishes to clarify that these measures do not affect IJM’s day-to-day business operations.”
An interesting allegation is that the UK’s Serious Fraud Office (SFO) is also investigating the company. Tan, who is also a columnist at various prominent publications in Singapore and Malaysia is of the view that the involvement of the UK’s Serious Fraud Office (SFO) and allegations of share price manipulation “suggest this is not a minor administrative issue.”
IJM meanwhile in the same press release made a blanket denial of any investigations by the UK’s Serious Fraud Office (SFO). It essentially said the company as well as its UK associates “are not aware of any investigation by the UK’s Serious Fraud Office (SFO). We have not been approached and any reports suggesting otherwise are inaccurate. IJM refutes any allegations of money laundering. Since 2012, IJM’s investments in the UK have been funded primarily through facilities raised from Malaysian financial institutions and subsequently remitted to the relevant project special-purpose vehicles in the UK. These investments have undergone the Company’s established business evaluation and internal governance processes.”
‘Biggest property player post-merger’
According to Tan, the merger was intended to create a “National Champion” in the Malaysian construction and property sector—a behemoth with a market cap approaching RM50 billion and a combined order book of RM14 billion.
It would have created the biggest property development and infrastructure firm in Malaysia. Many observers have noted the potential great synergy between the two entities post-merger.
In fact, as of January 26, IJM reportedly expects to secure yet another hyperscale data centre contract by end-financial year 2026, as well as other large-scale projects. The allegations have clearly not made such a huge dent on the company’s appeal. It is still an analysts’ favourite as demonstrated by Kenanga Research’s Outperform rating recently.
It is also worth noting that Sunway has officially declared that it would be proceeding with the takeover as planned despite the investigations.
Tan notes that if the probe is limited to specific individuals (past actions from 2015-2016) and does not impact IJM’s core operations or balance sheet, “Sunway may view this as a “buying opportunity” to acquire a strategic asset despite the temporary noise.”
“The next few weeks are critical. The outcome of Sunway’s Extraordinary General Meeting (EGM) and any further disclosures from the MACC will determine if this remains a landmark merger or becomes a cautionary tale of corporate acquisition timing. For now, the “cloud” over the deal remains dark, and shareholders should expect continued volatility,” he concludes.
It’s interesting to note that this is not the first time the company was involved with corporate allegations. In a March 2024 press release, the company refuted what it described as “false and malicious allegations circulating online regarding the company and its leadership.” One of the leaders mentioned was IJM’s chairman whom the company described as holding no executive authority over the company’s operations. The project in question was the MRT3 project which was eventually deferred by the government and the tender process called off.
We will leave it at that then since we can’t comment much on pending investigations by government authorities. From reports, it does not appear that the investigations involve any data center projects as they center on activities prior to its first involvement with data centers which was from 2024.