KUALA LUMPUR: Construction and property outfit IJM Corp Bhd
, which recently released first quarter ended June 30, 2025 results (1Q26), sees continued interest in data centre (DC) investments for the next three to four years despite external uncertainties from the US-China technology race.
The company has in recent years pivoted to industrial projects for its construction business by focusing on DCs, electrical and electronics (E&E) manufacturing facilities and logistics hubs, all of which have now come under higher risks given the US-China trade and technology crossfire as well as the resulting supply chain shifts due to the disputes.
IJM group chief executive officer and managing director Datuk Lee Chun Fai said in a media briefing yesterday following the company’s AGM that despite a few clients holding back on their industrial investments, there continues to be interest in DC investments.
“The silver lining is that DCs are still going strong in Johor. Based on what we see and the tenders coming up, we’re currently in the process of submitting four tenders and we see more tenders coming along,” he said.
The company recently secured a RM1.4bil contract to build a DC in Johor Baru, marking this its fourth DC project in Johor, which is fast becoming a regional DC hub.
“We think that for the next three to four years the flow of DC investments will continue to be quite strong,” Lee said, adding that the company’s construction business, known as a builder of strata-titled residential, office and commercial projects, still have opportunities as 14 DC projects have been approved by the state.
Lee did point out that while there has been some pullback by E&E and semiconductor clients with operations in Penang in the wake of US tariff uncertainties, the Johor-Singapore Special Economic Zone (JS-SEZ) have gained traction, with E&E manufacturers moving there.
“So yes, some may be affected, but at the same time, we see the pickup in the JS-SEZ,” he said.
Lee noted that for the financial year ending March 30, 2026 (FY26), the company targets to add RM6bil to RM8bil to the construction order book.
The current order book, including of associates in the United Kingdom and Singapore, stands at RM12.9bil.
“We’re quite optimistic so far because we’ve got the RM1.4bil from the New Pantai Expressway (NPE) as well as the RM1.4bil from the Johor DC, we also have another DC and we’re working on a 20-block housing project in Santana (Seremban), this will give us another RM1.4bil.
“So, we think the outlook this year (FY26) for the construction order book is quite intact despite the crossfire,” he says.
IJM on Wednesday signed an extension supplemental concession agreement with the government for the NPE that includes building a 15km elevated highway.
The agreement includes an extension of the concession from 2030 to 2057 and the adding of another toll.
Lee also shared that the company would be adding to the portfolio of investment properties, as it aims for recurring income to be one-third of earnings from a fifth currently.
He noted that much value can come from this income and that this pivot would come through investment properties from township projects as well as expanding the portfolio in the United Kingdom.
