Malaysia probes IJM Corp over alleged US$617 million money laundering linked to overseas assets
Malaysia’s anti-graft agency is investigating IJM Corp over alleged money laundering and governance issues involving overseas assets worth RM2.5 billion, as the company denies wrongdoing and says operations remain unaffected.
- Malaysian Anti-Corruption Commission is investigating IJM Corp over alleged money laundering involving assets estimated at RM2.5 billion.
- Authorities have frozen 55 bank accounts and recorded statements from senior management and other witnesses.
- IJM has denied wrongdoing, said it is cooperating fully, and stated business operations continue as usual.
KUALA LUMPUR, MALAYSIA: Malaysia’s anti-graft watchdog has widened its scrutiny beyond a separate Malaysian Royal Armed Forces procurement scandal, launching investigations into construction and infrastructure conglomerate IJM Corporation Berhad over alleged money laundering involving RM2.5 billion in assets.
Local media reported that a member of IJM’s top management holding the federal honour Tan Sri, as well as a company advisor, have been identified as persons of interest. Both individuals are believed to be currently overseas.
Malaysian Anti-Corruption Commission Chief Commissioner Tan Sri Azam Baki confirmed on Tuesday, 20 January 2026, that investigations involving IJM are under way. He said further details would be disclosed from time to time as inquiries progress.
According to the MACC, the investigation covers issues related to corporate governance, procurement processes, financial transactions and the ownership of overseas assets estimated to be worth RM2.5 billion, equivalent to about US$617 million.
Investigation teams carried out inspections and searches at four separate locations.
Searches conducted and bank accounts frozen
These included the residence and office of one of IJM Corp’s top management personnel, as part of efforts to secure documents and information relevant to the case.
At the same time, the MACC froze 55 personal and company bank accounts linked to the investigation. The total amount involved is estimated at RM15.8 million, or approximately US$3.9 million, according to the commission.
Authorities said the probe is also focusing on tracing and seizing other assets suspected to have been acquired through money laundering activities. These efforts extend beyond Malaysia and include assets held overseas.
So far, nine statements have been recorded by investigators.
These include statements from two members of IJM’s top management, while additional witnesses are expected to be questioned in the coming days.
The MACC said the recording of statements from the two senior management personnel continued on Tuesday. Five more witnesses are scheduled to have their statements taken as investigators expand the scope of inquiries.
On 19 January, the MACC’s Special Operations Division conducted investigations involving two individuals from IJM Corp’s top management. The commission did not disclose their identities or specific roles within the group.
Azam Baki said the investigation is being conducted under Section 16 of the MACC Act 2009. It also involves Section 4(1) of the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001.
IJM acknowledges visits by enforcement agencies
Earlier, IJM announced that officers from the MACC and the Inland Revenue Board had visited its office to obtain information. The company confirmed the visit in a filing with Bursa Malaysia.
In its filing, IJM said it was cooperating fully with the authorities. It added that business operations were continuing as usual, although the nature and scope of the investigation were not disclosed at that time.
In a separate statement issued on 20 January 2026, IJM clarified that its Chairman, Tan Sri Dato’ Krishnan Tan, had met MACC officers on the same day. The company said he continues to cooperate fully with investigators.
IJM said other personnel who have been requested to provide information are also cooperating as part of the investigative process. It stressed that the company is engaging openly with the authorities.
Addressing reports involving overseas enforcement agencies, IJM said it and its United Kingdom associates were not aware of any investigation by the UK’s Serious Fraud Office.
It said no approach had been made and such reports were inaccurate.
The company also clarified that the individual described in some reports as a “company advisor” had previously been engaged on a professional basis. It said this engagement was limited to a small number of corporate transactions.
Company rejects foreign probe and advisor allegations
IJM refuted allegations of money laundering linked to its UK investments.
It said that since 2012, investments in the UK were primarily funded through facilities raised from Malaysian financial institutions.
The group said these funds were subsequently remitted to relevant project special-purpose vehicles in the UK. It added that all investments underwent established business evaluation and internal governance processes.
IJM reiterated its commitment to strong standards of corporate governance, transparency and integrity. It said business operations across its core sectors are continuing as usual despite the ongoing investigation.
The company added that any material developments would be announced through Bursa Malaysia, in line with disclosure requirements for publicly listed companies.
IJM Corporation Berhad was formed in 1983 and is among Malaysia’s leading conglomerates. Its core businesses include construction, property development, industry and infrastructure concessions.
As of September 2025, the group had a market capitalisation of about RM9.37 billion, equivalent to approximately US$2.3 billion. It employed around 3,500 people and reported total assets of RM22.1 billion.
