IJM Corporation Berhad is planning a major corporate restructuring that would separate several of its business divisions into standalone “pure-play” entities, a move designed to simplify its operations and allow investors to better assess the group’s underlying value.
Group chief executive Lee Chun Fai said the restructuring aims to ensure that each of the company’s core businesses can be evaluated more clearly by the market, rather than being bundled within the group’s current diversified structure.
Speaking at a press conference on a takeover offer by Sunway Berhad, Lee said the existing structure combines a wide range of assets and operational models, making it difficult for investors to assess the performance of individual segments.
“At present all the businesses are within one large group. Some are asset-heavy, some are income-based, some are still under construction and others are already mature.
“This complexity makes it difficult for the market to assess the true value of each business separately,” he said.
Also present at the briefing was the group’s chief financial officer Edward Chong Sin Kiat.
Lee said the restructuring would reduce corporate complexity and enable stronger-performing divisions, particularly the construction segment, to stand out more clearly.
He noted that IJM’s construction division currently has an order book approaching RM8 billion, but its performance is less visible when consolidated with other segments within the group.
“By separating the businesses into a ‘pure-play’ model, the market can assess each business more accurately and this will help narrow the gap between the company’s intrinsic value and its share price,” he said.
The restructuring is also part of broader efforts to unlock value for shareholders, including generating returns from mature assets such as highways and rationalising the group’s international operations.
In a related development, Lee said the company plans to exit its highway operations in India within the next two to three years as part of its efforts to streamline its business structure.
“All these steps are aimed at ensuring the company can create value for shareholders more quickly, while helping the market better understand the true potential of IJM’s businesses,” he said.
At the same time, Lee said the group is gradually shifting its strategy away from relying heavily on landbank ownership towards developing more investment assets capable of generating recurring income.
He explained that property development based on large landbanks often requires long lead times before returns can be realised.
“The integrated township development approach that previously formed the core of the group’s strategy requires many years of development because it involves building basic infrastructure before projects can be rolled out in phases.
“For example, the development of Seremban 2, which began in the 1990s, is still ongoing today with hundreds of acres of land yet to be developed.
“As such, the group intends to adjust part of its strategy towards developing investment assets capable of generating more direct returns once projects are completed and reach maturity.
“This approach is seen as capable of delivering more stable returns compared with landbank ownership, which requires a longer development period before its value can be realised,” he said. - March 16, 2026
