KUALA LUMPUR, Nov 4 — Sunway Bhd and IJM Corp Bhd are reportedly in advanced talks over a potential merger deal worth billions of ringgit, a move that could create one of Malaysia’s largest engineering and construction conglomerates.

According to market sources, discussions between both groups have been ongoing for over a year. The proposed deal is expected to involve a share swap arrangement, factoring in the assets, valuation, and market capitalisation of both companies.

Sunway recorded RM7.8 billion in revenue last year, while IJM reported RM5.9 billion, underscoring the scale of the potential merger between these two industry heavyweights.

Bumiputera and Institutional Ownership a Key Consideration

A potential sticking point in the merger discussions lies in IJM’s shareholder structure, where more than half of its shares are held by Bumiputera institutional investors and Government-Linked Investment Companies (GLICs).

Major shareholders include the Employees Provident Fund (EPF) with 18.04%, and Permodalan Nasional Bhd (PNB) with 14.55%. Other notable institutional investors include the Retirement Fund (KWAP), Lembaga Tabung Haji, Amanah Raya, and Amanah Saham Bumiputera (ASB).

Any merger that alters Bumiputera equity levels in IJM is likely to attract scrutiny, especially given past government emphasis on safeguarding strategic national ownership.

Political Sensitivity Over Bumiputera Shareholding

The issue of Bumiputera shareholding dilution surfaced earlier when IJM explored a takeover of Prolintas, the highway operator owned by PNB.

Prime Minister Datuk Seri Anwar Ibrahim had then reminded government-linked institutions to protect national and Bumiputera interests when considering divestments of strategic assets.

Anwar’s comments in August followed PNB’s disclosure that it was reviewing options to divest its highway assets, primarily Prolintas, with IJM and AFA Prime (Karak Highway owner) emerging as key interested parties.

Titans Behind the Deal

At the helm of Sunway Group is its founder and chairman, Tan Sri Jeffrey Cheah Fook Ling, whose diversified empire spans property development, construction, healthcare, education, hospitality, and retail.

Meanwhile, IJM Corp is led by Tan Sri Krishnan Tan Boon Seng, the company’s non-executive chairman, with the group well-established in construction, property, infrastructure, and manufacturing.

Market Snapshot

At the time of reporting, Sunway’s shares were trading at RM5.48, while IJM’s shares stood at RM2.43, reflecting investor interest as merger rumours circulate.

If the merger materialises, the combined entity could potentially reshape Malaysia’s construction landscape, creating a formidable player capable of competing regionally.

FAQ: Sunway–IJM Merger Explained

1. What is happening between Sunway and IJM Corp?
Sunway and IJM are reportedly exploring a merger via share swap, combining their assets and expertise in construction, engineering, and property.

2. How big are the two companies?
Sunway’s revenue in 2024 was RM7.8 billion, while IJM recorded RM5.9 billion.

3. What makes this merger significant?
The merger could create one of Malaysia’s largest integrated engineering and infrastructure groups, with strong synergies across construction, property, and infrastructure.

4. Why is Bumiputera ownership an issue?
Over 50% of IJM’s shares are held by Bumiputera institutional investors, meaning any dilution could raise concerns about maintaining national equity ownership.

5. Who are the main shareholders of IJM?
EPF (18.04%) and PNB (14.55%) are the largest, along with KWAP, Tabung Haji, Amanah Raya, and ASB.

6. Has the government commented?
Prime Minister Anwar Ibrahim has previously cautioned GLICs to maintain strategic ownership when divesting national assets, in reference to IJM’s past bid for Prolintas.

7. Who leads Sunway and IJM?
Sunway is helmed by Tan Sri Jeffrey Cheah, and IJM by Tan Sri Krishnan Tan.

8. How will this affect Malaysia’s construction sector?
It could consolidate two of Malaysia’s biggest players, boosting scale and competitiveness for regional mega projects.

9. What happens next?
Both parties are still in discussions, and any merger will likely require regulatory and shareholder approvals.

10. What are the current share prices?
As of Nov 4, 2025 — Sunway (RM5.48) and IJM (RM2.43).