This article first appeared in The Edge Malaysia Weekly on April 6, 2026 - April 12, 2026

SUNWAY Bhd (KL:SUNWAY),founded by Tan Sri Jeffrey Cheah Fook Ling when he was 29, turns 52 this year. Over the past five decades of building the conglomerate, he has faced numerous challenges.

The first major challenge was the bold plan to transform a vast, disused tin mine into a township — challenging not only because of the construction difficulties but also because it was in the middle of the economic recession of 1984 to 1986.

The second was the 1997/98 Asian financial crisis, which hit just as he opened the sprawling Sunway Pyramid shopping mall.

Cheah and Sunway survived both crises, and the company today has a market capitalisation of RM34 billion compared with just RM5.5 billion 10 years ago. And it has just listed its hospital arm, Sunway Healthcare Holdings Bhd (KL:SUNMED).

By all accounts, Sunway is a remarkable Malaysian success story, with businesses in construction, property, healthcare, education, retail and hospitality.

Cheah is currently deeply frustrated and disappointed, however, that Sunway’s bid to take over IJM Corp Bhd (KL:IJM) has come under attack from certain parties who use the race bogeyman — framing it as a Chinese businessman taking over a bumiputera company, when IJM is not a bumiputera company.

And, he emphasises, neither is Sunway a Chinese company. “We are a Malaysian company. At Sunway, more than half our staff are Malays. We are race- and religion-blind.”

Cheah says while he disagrees with the argument that the offer was unfair to IJM, he accepts that debate over valu­a­tion is part and parcel of any acquisition. What he cannot accept is people turning a commercial transaction into a racial issue.

“We are a Malaysian company and I am a Malaysian. Everything we have done these 50 years is about nation building, contributing to the economy and creating jobs.”

Cheah sat down with The Edge to talk about developments since Sunway made the offer on Jan 12 and the likelihood that the deal may not succeed because of race and politics. The following are excerpts from the interview.

Jeffrey Cheah: Let me give some background. A few years ago, we set ourselves a target of increasing our profit three times to RM3 billion. Last year, we made RM1.6 billion and, the previous year, RM1.5 billion. In order to grow, we have to look at M&A (mergers and acquisitions). So, that’s why we started to identify targets. And we have looked at IJM for some time now. We thought that there are a lot of synergies that can be derived from the two companies working together.

And then I was presented with this graph by my people. Then I said, well, it looks fantastic … except during Covid-19, in 2022, we made a little bit less than IJM. Meaning, because we are in malls, in theme parks, in hotels and all this, of course, during Covid-19, all were closed. That’s why we made less than [IJM]. Then after that, [profit] jumped, and it was so good.

And then we looked at the graph again … [and] we compared the next, the last 10 years. How do we see our peers compared to Sunway’s achievements? You can see the numbers; it’s fantastic — Sunway 339% (total shareholders returns for 10 years from 2016 to 2025). This is only on share price. We looked at it and said, It’s a no-brainer.

We selected the best. IJM is most ideal for Sunway as a synergistic vehicle and a lot of things are similar to what we do. We also [spoke] to our staff who worked with them. I thought we could add a lot of value [to IJM], improve a lot on the bottom line.

After we brainstormed among ourselves, we said, ‘Okay, well, let’s try.’ Then we engaged Maybank and UBS to do the study and submit to the Securities Commission.

[We submitted it] on a Friday. I called Tan Sri Krishnan Tan [Boon Seng] and [Datuk] Lee Chun Fai for lunch on Saturday. As a friend, I said, as a courtesy, I want to talk to you. They said they were in Sydney but couldn’t come back in time. So, lunch was postponed to Monday, but by Monday, they would have known anyway [about the Sunway offer].

So, I told them, over lunch, very friendly, cordial. Nothing personal. It’s all commercial … It’s a good thing [asset] to have, the growth that we can do with IJM in our hands. Of course, I didn’t expect Krishnan Tan to be very happy.

The Edge: Why don’t you vary your offer? Give more.

I think it’s very difficult. You have 24,000 shareholders. It’s not easy to satisfy. If you give a little bit to them, they will ask more and more. There’s no end [to it]. And also, my credibility, I feel. I already said it very clearly. This is the best offer. If they don’t accept, I walk away … That’s what it is now.

Before you make an offer, wouldn’t you get some acceptance from the major shareholders? Isn’t that how takeovers happen?

If you do that, SC will come after you. It’s PAC, person acting in concert. They’ll come for you ... So, we can’t. Only after we had submitted our offer, our people all went and saw these top people — the GLICs (government-linked investment companies); they were very, very supportive. They all said it makes a lot of commercial sense.

We met with all the major shareholders: EPF (Employees Provident Fund), KWAP (Kumpulan Wang Persaraan Diperbadankan), PNB (Permodalan Nasional Bhd), Urusharta Jamaah. We also met with, of course, the AIAs, the East Springs … Basically, [they all] said, commercially, it makes a lot of sense, if you look at the numbers.

I told them that our proposal [to take over IJM] is for them to stay [on as shareholders of Sunway] because the objective is not to push the institutions away. We met them right after we launched it [the offer for IJM]. I think about a week later, the racial elements started to come in.

Just to clarify, before the offer was made, there were no feelers sent to anybody on the offer?

[As] we were going to list Sunway Healthcare [Holdings Bhd], we also went to see people. The main objective was Sunway Healthcare. We asked their opinion on IJM, but it was by the way.

But, now, the issue has suddenly become, like you said, political. How did this happen? Because the financial numbers is one thing, everybody can argue about financial valuations, but it has gone beyond that. A straightforward corporate deal has gone beyond that. For the record, how did it become like this and why?

I think there’s somebody who is very powerful [who wants to block it]. And [they say] because it involves public money, they want to investigate IJM and Sunway … Why should they say such a thing?

MACC (Malaysian Anti-Corruption Commission) never, never came to us [Sunway]. We were all waiting. Then they cleared IJM last week. I asked, what about us? Then that evening, I got a letter; they cleared [Sunway].

The way it is projected now is like, wow, it’s such a big conspiracy — a Chinese towkay underpricing, taking over Malay shareholders’ rights … This [interview] is the opportunity for us to clarify that there’s no other agenda as far as this offer is concerned. And on its own commercial merits, it is all there. Our position has never been that this is racial. To us, it’s EPF is [a retirement fund involving] all Malaysians. So, we have never approached this offer from that [racial] perspective.

It’s all the politicians and blogs and whoever is funding the blogs, the bloggers. Whether the offer is fair or not, valuation and all that, sum of the parts or whatever you want to argue, you can argue. But in terms of the numbers, in terms of returns, it’s there.

Did you consider allocating a larger portion to cash, before finalising the 90% shares, 10% cash split?

No, we wanted to give more shares to the existing shareholders, Sunway’s shares. That’s why I told EPF, I don’t want to give you so much cash. You take more of Sunway shares. You’ll be part of us. I want you to be in the same boat [as us], to benefit from what we can do. That’s the whole reason. I don’t think you need that kind of 10% cash or more. So, that’s how we came on the 10% cash plus 90% share offer. We wanted them to feel, oh, I’ve got a lot of shares. We want them to be with us. We don’t want them to be diluted.

We understand the straight swap is to have IJM shareholders stay with you, but the point is also because you offered the deal at a point when Sunway shares were at a record high. Some people will feel that you are actually taking advantage by issuing shares at a record price.

Actually, if we exchange at today’s rate, the short-term gain, the immediate gain for IJM shareholders is twice what we offered. So, as at Jan 9, when we closed, we offered them at RM3.15, with our reference price of RM5.65. And then if you look at RM4.80 yesterday, when we were at the lowest, IJM’s share price was RM2.90. And if you look through the methods, they actually had a premium of 25% straight away … Many people misconstrued what we wanted to do; the RM5.65 was derived at the point of just before the transaction … It was not meant to take advantage of our trading at the premium.

But having said that, this is business; it’s about risk taking ... We don’t have a crystal ball; it could be a blessing in disguise if we fail. We don’t know how the world will turn out. There can be chaos in the world, supply chains all locked up and then prices go sky high ... How are we going to deal with it? It may happen that way. I’m not sure. I don’t have a crystal ball.

Do you know whether there were any other parties that were interested in IJM?

Well, I think one.

So, with another four days or so to go, how confident are you? What’s your feeling?

I know it’s going to be a tough call. But if some of them refuse, what can I do? I say ‘I get 51%, I control, then I can do everything better for you (the IJM shareholders); I can add value.’ That’s why I say ‘50 and one share — if not, I walk away.’

It’s totally up to the shareholders. If they want to accept, accept it. If they don’t accept, I’ve got my business to do. Never mind ... That’s it.

Of course I’d be disappointed. I’ve got all the support [initially] and, suddenly, people decide to say no.

You have to ask the question: You take the 90% cash, what are you going to do with it? If you are an investor, you have to reinvest, and if you are to reinvest, which counter will you reinvest in?

You know, it’s quite embarrassing … The government, GLICs are investing in a lot of companies with very low shareholders’ return ... And shareholders are crying out for dividends — ASB, EPF dividends … Sunway is delivering the best returns. So, it’s not a weakness, actually; it’s a strength.

Our strategy was actually to tell the GLICs that control IJM, ‘We are not buying you out.’ That was the whole reason for the 10% [cash payout; it’s] just a sweetener.

And the other thing, as a shareholder, they talk about the [IJM] potential, which is very good. That’s why everybody sees the potential ... RM5, RM6, the intrinsic value. If IJM’s malls can leverage the Sunway expertise, the network that Sunway has with the retailers, the goodwill, IJM will fly.

So, it’s down to the shareholders, whether they should expect status quo, keep everything, the structure, the same … and then hope for a different outcome.

Or should they use Sunway as the catalyst, unleash the potential, to realise the potential because the synergy is real? It’s like their land bank: Can they build a hospital? Can they build a shopping mall? Can they build a hotel? Can they bring education in there?

If [shareholders] can leverage Sunway’s strength [for IJM], my goodness, the profit margin and the shareholders’ return … It’s a no-brainer. But, of course, the management may see it as a bit hostile because it reflects on their performance. But it is a sweet deal for the shareholders.

There was a lot of talk that you had a partner in mind — Tan Sri Syed Azman Syed Ibrahim of The Weststar Group. Did you ever have any plan [to rope him in as a bumiputera partner]?

Syed Azman is in aviation. He is a very nice guy, very good friend of mine, [but] he is not involved. I also feel bad to ask him to get involved, because this has nothing to do with him. I have no shareholding in his company. He has no shareholding in my company. If ever I ask him, it will be purely on friendship. But I thought that this one shouldn’t involve him.

Your interest has been indicated for a while now. I think a few years ago, Fortuna Gembira [Enterpris Sdn Bhd, a Sunway-controlled privately held company,] had 4.95% to 5% in IJM ... So, how long have you been interested in IJM?

At that time, when we bought [into] IJM, the share price was very low. And we do have our people looking at how to make some investment profit. After that, we had 5% … Then [Datuk Seri] Idris Jala, our co-chairman, spoke to Krishnan Tan and said, ‘How about we merge?’

That was maybe five years ago, [but] Krish­nan Tan said no. We proposed to him, a merger of equals, [but] he was not interested.

So, we [Fortuna Gembira] sold the shares … We profited RM100 million.

Some wonder why Sunway didn’t mop up shares on the open market after you made the offer.

There are certain rules [where] you can’t go and make an offer and then you start mopping up. There is a rule, SC or Bursa Malaysia, I’m not sure … We would love to [mop up shares]; for sure, we would have got a fair bit of shares, but we can’t.

To be honest, I know nothing about the IJM raid [by MACC] … Nothing. That’s why I was shocked. I used to ask my people, whether they think that I am behind these [raids on IJM].

People will say, it must be you behind the raids at IJM …

My God, if I had that power, it would be fantastic.

Why the takeover of IJM at this time? Again, people say it is to take advantage of the high share price of Sunway.

Well, I mean, we are in commercial deals. When you have a high share price, you are in a good position to acquire. And that’s very simple. That’s how I will answer you.

It so happened that, at the time, we believed our brand was very strong, with the healthcare IPO and people talking about Sunway. [It felt like] this is a good time.

It’s not because it was, oh, just one factor, the high price, that we did it … There are many other factors to put together. This is the right time for us to do it.

So, technically, 50% plus one share is good enough, right?

Yeah, yeah, yeah, we will take over the company; 50% plus one is good enough. You see, all the other institutions, like insurance companies, are all very supportive … But, unfortunately, they don’t make up the big numbers; that is the only thing. So, I’m still hoping that the GLICs maybe they won’t sell all [to Sunway], give half, to us …

If you do take control, do you plan to maintain the board and the management?

That I cannot say now; I think it’s fair. I don’t think it’s fair to answer now.

Look at the takeover of MCL by Sunway [Sunway forked out S$738.7 million in September 2025 for Singapore’s MCL Land]. It wasn’t a harsh transition at all. We gave them time to think about their choice; and when we merged the companies, we called it Sunway MCL. The CEO of Sunway MCL in Singapore is an MCL guy … So, again, it’s the way we do it.

Coming back to the offer for IJM, at this stage, with four days to go, how many per cent have you already purchased?

I think we have 20-odd per cent … There’s still another 80%. If you look at the 40-odd per cent held by the GLICs, they’re substantial.

[For now,] we have confirmation for 20-plus per cent. More calls will need to be made. And I think we’ll do some night calls as well … because, sometimes, the retailers don’t have time during the day.

You’re reaching out to individuals?

Yes, it’s a lot of work. One thing about us, we never give up … Mathematically, there’s still a chance. Even if the GLIC says no, there are still a lot of shareholders, 24,000 shareholders.

[But] I hope [the GLICs] come to their senses. Support [sell] half, keep half. If I were a hedging person, I would do that.

If you do secure 50% plus one share, how would you manage IJM as a construction and property company, given that Sunway has similar businesses? How do you operate the two, especially for construction?

We will hope to go for 100% eventually. Yeah, we go for 100%. And once we have 100%, then we privatise IJM. Then it’s very easy.

Easier, yeah, much easier to do that ... But that’s our aim, you know. Of course, if it is 51% over time, we will continue to have a strategy to merge in a proper manner, to be a very big construction company.

Just to clarify, it’s a conditional offer, right? That means the offer takes effect only if you get 50% plus one share, right?

If I knew about all this, I wouldn’t have put this (50% plus one share) condition because, then, even if we get 20%, 30%, it’s also good enough. Just sit there, sit on the 20%, 30%; it’ll be a different concept, become a substantial shareholder.

Could you still extend your deadline or is it too late?

No, we cannot ... If we have 50% plus one share, then we can extend two weeks to get more, to offer to the others … But if we get very little, no, we cannot [extend] ... That is an SC ruling; it’s not by us.

I realised when we spoke to even institutional investors, many assumed that since the GLICs had rejected it, there was nothing more for them to do ... They didn’t realise that they could still make a difference.

So, we have been going around, explaining to people that they can still [participate] and if they believe it makes commercial sense, they should do so and help make up the numbers ... So, we have confidence coming in, like going through an election now.

People are coming in to submit and our colleagues, many friends and even institutional investors are helping. Although they know the chances could be slim, they are [still] submitting.

Not that long ago, Kuala Lumpur Kepong Bhd’s (KL:KLK) takeover bid for Boustead Plantations Bhd fell through. Didn’t that give you some clue?

If it were left to professionals, objectively, this [offer] would go through … But politics came [into the picture].

I never get involved in politics. .. Everybody is my friend; that’s how I conduct myself. I never thought that a Chinaman like me could create so much headache for people.

IJM is a bumiputera company. I think in March 2025, they were in the running for [highway operator] Prolintas ... Remember? And the PM basically stood up and said, ‘No, we don’t want to let go of the bumiputera interest [to IJM, a non-bumiputera entity].’

It’s almost like IJM is an amphibious entity, isn’t it? At one point, you are non-bumiputera and, [at another] point, you’re bumiputera.

But in the KLK and Boustead Plantations deal, the PM did speak up when KLK wanted to proceed with the takeover. But in this case, the PM has not said anything.

Maybe after the vote, he may say something. After Monday, I don’t know. But it was actually brought up in parliament. In the beginning, they actually said, ‘Do not make a political issue of this.’ DPM [Datuk Seri] Fadillah Yusuf said that.

Unfortunately, in Malaysia, when it’s a straightforward commercial deal, like I said, you can argue about valuation, fair or not fair, you can argue. But to become political and turn it into a racial thing, I think it’s sad. It’s a killer of the capital market.

So, besides IJM, do you already have a name or two in mind?

No, we don’t have any. We don’t have any. There are very few who are significant; because IJM is very big, it’s good to have.

As you said, the commercial or the business aspect has been hijacked by the politicisation of this issue. And it looks like the GLICs are also stepping back. So, without them, 50% plus one is very tough, don’t you think?

Well, I know it’s tough, but we are hoping for a miracle … But what to do?

But, anyway, what are we talking about here? I’m a true-blue Malaysian; I was offered [citizenship] by a few countries. I have politely rejected them because, I said, I was born here; I’m Malaysian, true-blue Malaysian. I’ll die here ... I will do what I can for this country. I don’t care about race; I don’t care about religion. So, why are they singling out Sunway?

Did you anticipate this at all?

No, but I’m just feeling very frustrated as a Malaysian. You can’t even do an acquisition, M&A without interference.

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