KUALA LUMPUR: A shift towards industrial projects, particularly data centres, has strengthened IJM Corporation Bhd
’s construction order book and positioned the group for sustainable growth, as well as new construction orders up to RM8 billion in 2025.
Group chief executive officer and managing director Datuk Lee Chun Fai said nearly two-thirds of IJM’s current order book comprises industrial buildings.
"These projects offer shorter completion periods and stronger returns compared with commercial or residential developments,” he said at IJM’s 41st Annual General Meeting Media Briefing today.
Lee said the company is targeting RM6 billion to RM8 billion in new construction orders in 2025, and among the projects secured are a RM1.4 billion New Pantai Expressway (NPE) project, a RM1.4 billion data centre contract in Johor, and public housing projects in Nusantara, Indonesia.
IJM’s construction order book is currently at an all-time high of RM12.9 billion, which includes the orders from its United Kingdom (UK) associate, JRL Group Holdings Ltd, and Singapore associate, Hexacon Construction Pte Ltd.
On market expansion, Lee said IJM is diversifying beyond Malaysia, with London as a key alternative growth market following slower tender activity in India.
Addressing concerns over geopolitical risks affecting its industrial building strategy, he said that uncertainties, such as trade tensions during the US-China tariff disputes, had led some electrical and electronics (E&E) clients in Penang to delay expansion plans.
However, Lee said the data centre segment remained resilient, particularly in Johor, where 14 approvals have already been granted and the Johor-Singapore Special Economic Zone (JS-SEZ) is also expected to attract fresh investments in both data centres and E&E facilities.
"Despite the global uncertainties, we believe our construction order book outlook remains intact,” he said.
Meanwhile, Lee said beyond project-based earnings, the group is also seeking to expand its recurring income base through investment properties, particularly in the UK.
He said recurring income will provide stability and long-term value creation, helping to offset the cyclical nature of property development and construction.
"I think the ambition to get to at least one third of our earnings will be recurring income in the future,” he added. - Bernama
