Malaysia’s diversified construction and infrastructure group IJM Corporation Berhad has rejected allegations of money laundering and denied reports that it is under investigation by UK authorities, after Malaysia’s anti-graft agency launched a probe linked to an alleged ₹4,500-crore scheme. The developments have weighed on market sentiment, coming just days after IJM emerged as a takeover target.
In a statement cited by Malaysian media, IJM said neither the company nor its UK associates were aware of any inquiry by the UK’s Serious Fraud Office. “We have not been approached, and any reports suggesting otherwise are inaccurate,” the company said, dismissing claims of a UK-led investigation.
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MACC Freezes Bank Accounts Worth ₹28 Crore
The clarification followed reports that the Malaysian Anti-Corruption Commission (MACC) had frozen IJM-linked bank accounts totalling ₹28 crore as part of its ongoing probe. Media reports indicated that the investigation centres on alleged money laundering involving transactions estimated at about ₹4,500 crore.
According to earlier reporting by state news agency Bernama, the MACC has identified a member of IJM’s top management holding a Tan Sri title, along with a “company adviser”, as persons of interest. The anti-graft agency has not publicly named the individuals and has said the probe is ongoing.
Company Denies Money Laundering Allegations
IJM strongly denied any involvement in money laundering, describing the allegations as baseless. The company said its UK investments since 2012 were primarily funded through facilities raised from Malaysian financial institutions and channelled to special-purpose vehicles established for specific projects in the UK.
“These investments were subject to the group’s established business evaluation processes and internal governance controls,” IJM said, adding that its overseas operations complied with applicable regulatory and corporate governance standards.
The company also clarified that the individual described in reports as a “company adviser” had previously been engaged only in a professional capacity, providing advisory services for a limited number of corporate transactions.
Cooperation With Authorities
IJM said its chairman, Krishnan Tan, had met officers from the MACC earlier this week and that the company was fully cooperating with Malaysian authorities. Other personnel who have been requested to provide information are also assisting investigators, it added.
Despite the probe, IJM stressed that its day-to-day operations remain unaffected. “Business operations continue as usual,” the company said, reiterating its commitment to high standards of corporate governance, transparency and integrity.
Market Reaction and Takeover Context
News of the investigation triggered a sharp sell-off in IJM shares earlier this week. The stock fell as much as 16.4 per cent intraday before trimming some losses, reflecting investor concerns over the potential impact of the probe on the company’s outlook.
The investigation comes at a sensitive time for IJM, shortly after Sunway Berhad proposed a share-and-cash takeover valuing IJM at around ₹19,800 crore. While the probe has weighed on market sentiment, analysts have noted that the offer cannot be withdrawn at Sunway’s discretion.
Under Malaysia’s takeovers and mergers code, analysts said, an offeror may only withdraw a takeover bid with prior written consent from the Securities Commission Malaysia.
Deal Timeline May Face Delays
Market analysts cautioned that while the takeover may still proceed, the investigation could extend the transaction’s timeline. Although the acquisition was initially expected to conclude in the third quarter of 2026, the ongoing probe is likely to require more intensive due diligence, potentially delaying completion.
In a worst-case scenario, analysts said, the deal could fail if regulatory approvals or shareholder consent are not obtained, which would restrict Sunway from launching another takeover bid for the next 12 months. A best-case scenario would involve regulatory clearance after enhanced scrutiny, albeit with delays.
IJM’s denial of money laundering allegations and any UK investigation has not fully eased market concerns, as the MACC probe continues and bank accounts remain frozen. With authorities pressing ahead with their investigation and a high-stakes takeover bid in the background, the coming months will be crucial in determining both the legal outcome of the probe and the future trajectory of one of Malaysia’s largest construction groups.
About the author – Ayesha Aayat is a law student and contributor covering cybercrime, online frauds, and digital safety concerns. Her writing aims to raise awareness about evolving cyber threats and legal responses.
