Sunway's $3.5 Billion IJM Takeover Faces Scrutiny Over Bumiputera Rights

KUALA LUMPUR - Sunway’s proposed RM11 billion (S$3.5 billion) takeover of IJM Corp Bhd. is drawing political scrutiny over concerns that it could dilute both the equity interests of the government and the rights of Malaysia’s bumiputeras. Akmal Saleh, the youth chief of the United Malays National Organisation that’s a key member of Prime Minister Anwar Ibrahim’s ruling coalition, raised concerns over the deal in a Facebook post on Jan 18. The Malay Businessmen and Industrialists Association is also questioning the deal, according to a separate report in Free Malaysia Today. The deal could help Sunway emerge as the largest property and construction conglomerate in Malaysia, UOB Kay Hian has written in a note. But Sunway is largely controlled by Malaysian tycoon Jeffrey Cheah Fook Ling, who is ethnic Chinese, and the criticism underscores the sensitivity of any deal that may affect the interests of bumiputeras, which includes ethnic Malays who make up the majority of the country. Mr Akmal said bumiputera stakes in major Malaysian corporates are “already limited” and that the the deal would reduce that interest if it goes through. He noted that various Malaysian state funds, including Permodalan Nasional Bhd. and the Employees Provident Fund, which are widely held by bumiputera interests, own a combined 47.1 per cent stake in IJM. Azamanizam Baharon, president of the Malay Businessmen and Industrialists Association, urged Mr Anwar to intervene over what he called a historic policy mistake, according to the Free Malaysia report on Jan 18. Sunway couldn’t immediately be reached for comment. The country’s sovereign fund, Khazanah Nasional, also faced political criticism when it privatised Malaysia Airports Holdings in an equally large privatisation exercise in 2024. That was largely due to the involvement of BlackRock, whose perceived ties to Israel were unpopular in a Muslim-majority country where pro-Palestine sentiments run high. The Khazanah transaction faced delays as a result, but was finally completed in early 2025. BLOOMBERG