Ireka Corp Bhd will be removed from the Main Market of Bursa Malaysia on March 10 after the exchange rejected the company’s appeal for additional time to submit its regularisation plan.
In a filing to the exchange, the long-established construction group confirmed that the decision means its shares will officially be delisted, ending more than three decades as a publicly listed company. Ireka has been listed on Bursa Malaysia since July 1993.
The company’s shares had already been suspended since Oct 3 last year after the exchange dismissed an earlier request for an extension to finalise its recovery strategy. Prior to that, the regulator had granted the company five separate extensions.
Ireka submitted a final appeal on Oct 2 — the last possible date to avoid a scheduled delisting on Oct 7 — but the appeal was ultimately unsuccessful, sealing the company’s removal from the exchange.
The company first fell into financial distress in March 2022 when it was classified under Practice Note 17 (PN17), a status applied to financially troubled listed companies. The classification occurred after Bursa Malaysia rejected Ireka’s request for an extension of the Covid-19 relief period, as the group’s shareholders’ equity had dropped below half of its issued share capital.
Ireka has faced ongoing financial challenges in recent years. The group has recorded losses almost continuously since the financial year ended March 31, 2019.
After changing its financial year end to June in 2022, the company briefly returned to profitability, posting a net profit of RM67.24 million for the financial year ended June 30, 2023. However, the recovery proved short-lived, as the group reported net losses of RM59.56 million in FY2024 and RM17.54 million in FY2025.
The company also encountered a significant setback in July last year when its RM1.07 billion subcontract for Phase 1B of the Pan Borneo Highway in Sabah was terminated.
The termination was linked to funding complications and the withdrawal of the project’s main contractor. Ireka has contested the termination, stating that certain works had already been completed and that payment arrangements had not been finalised at the time.
The exit of a long-standing contractor like Ireka highlights the increasing financial pressure faced by some players in Malaysia’s construction sector. This development could indirectly influence property development timelines and infrastructure projects tied to major growth corridors.
For property investors and developers involved in sectors such as industrial land in Selangor, commercial property in KL, or logistics hubs near factory clusters in Puchong and the industrial property in Subang area, contractor stability remains a critical factor in project delivery and cost management.
Similarly, developers planning new office space in Bukit Jalil or other emerging business districts within Kuala Lumpur and Selangor will likely continue monitoring the financial health of contractors as part of broader project risk management.
Ireka’s shares were last traded on Oct 2 before suspension, closing at one sen and giving the company a market capitalisation of approximately RM2.28 million at that time.
Malaysia