Datuk Seri Ivan Teh Faces Fusionex Investigation After Collapse

Introduction: The Investigation Deepens

Months after the dramatic collapse of Malaysia’s once-prominent data analytics firm Fusionex Group, court-appointed interim liquidators have uncovered possible evidence of business diversion and financial irregularities. The findings, outlined in a report submitted to the Shah Alam High Court on April 30, 2024, suggest that parts of Fusionex’s operations may have been quietly shifted to external entities before the company’s closure.

The revelations are the latest chapter in the unraveling of a company once hailed as Malaysia’s tech success story. Founded by Datuk Seri Ivan Teh, Fusionex rose to prominence as a regional leader in big data and artificial intelligence solutions before its acquisition by Japan’s Hitachi Ltd in 2020. Four years later, that partnership has ended in acrimony, court battles, and a full liquidation of the group’s assets.

Interim Liquidators Begin Their Work

The Shah Alam High Court appointed Khoo Siew Kiat and Eddie Goh Hua Ying as interim liquidators (ILs) from Deloitte Restructuring Services PLT on December 27, 2023. Their mandate was clear: investigate the financial and operational state of FusioTech Holdings Sdn Bhd—a wholly owned Hitachi subsidiary—and its 12 Malaysian companies operating under the Fusionex Group.

By January 2024, the liquidators began the difficult task of reconstructing Fusionex’s corporate records, which were found to be incomplete and, in some cases, missing. In their initial report to the court, they described a severe lack of documentation, empty financial accounts, and “insufficient bank balances” across Fusionex Malaysia’s entities.

Their findings immediately raised red flags about how the company had been managed in the months leading up to its collapse.

Termination of Operations and Staff Layoffs

On January 31, 2024, the liquidators announced to Fusionex’s remaining employees that the company would cease operations entirely. Staff were given one month’s notice, with February 29, 2024, marked as their final day of employment.

During the final weeks, the liquidators retrieved company assets—laptops, hard drives, and digital devices—and conducted exit interviews with departing employees. It was in these interviews that whispers of potential wrongdoing surfaced.

According to the report submitted to the court:

“During some of the exit interviews, the interim liquidators were informed that there could be potential diversion of businesses in the past, to third parties. The interim liquidators are still currently investigating these claims.”

This statement, brief but significant, suggests that Fusionex’s business or intellectual property may have been redirected to external companies or individuals—a move that, if proven, could have serious legal implications.

Court Orders Full Winding-Up of Fusionex Group

On May 6, 2024, the Shah Alam High Court officially ordered the winding-up of 13 Fusionex companies, as petitioned by FusioTech Holdings. The ruling was delivered by Judicial Commissioner Datuk Raja Rozela Raja Toran during online proceedings.

The companies affected include:

• Fusionex Technology Sdn Bhd
• Fusiotech Solutions Sdn Bhd
• FX DFTZ Eservices Sdn Bhd
• Fusionex Connect Sdn Bhd
• Fusionex Solutions Inc Sdn Bhd
• Fusionex Innovations Sdn Bhd
• Fusionex Corp Sdn Bhd
• Fusionex Trade Sdn Bhd
• Fusionex Capital Sdn Bhd
• ADV Fusionex Sdn Bhd
• Fusionex Academy Sdn Bhd
• FX Cloud Sdn Bhd
• Fusiotech Holdings Sdn Bhd

Each company was ordered to pay RM5,000 in court costs. The same liquidators, Khoo and Goh, were appointed as joint and several liquidators to oversee the winding-up process.

During the proceedings, Venetian Macau Ltd, represented by the law firm Skrine, held a watching brief. Venetian Macau, a previous client of Fusionex, had relied on the company’s technology services and is believed to have financial exposure to the ongoing case.

Fusionex’s Financial Vacuum

The liquidators’ report painted a grim picture of Fusionex’s financial health. The group’s Malaysian entities—collectively referred to as “Fusionex Malaysia”—had no meaningful cash reserves left by the time liquidation proceedings began.

“This consideration was made to put a stop and avoid the further accrual of liabilities due to the lack of visibility of any income for the Fusionex Group,” the report noted.

Without functioning financial systems, bank statements, or customer contracts, the liquidators deemed it impossible to continue operations. They also cited the absence of complete financial records, missing contract details, and loss of technical infrastructure, including access to company servers.

In short, Fusionex had become a hollow shell—a tech company without its own data.

Alleged Diversion of Business Activities

The most explosive detail in the liquidators’ report is the suggestion that elements of Fusionex’s business may have been diverted to other entities before its collapse.

Such diversions, if proven, could mean that parts of Fusionex’s intellectual property, client relationships, or ongoing contracts were transferred—perhaps illegally—to other companies, possibly run by former Fusionex executives.

Employees reportedly named specific instances where client accounts or software projects were “handed over” to unfamiliar organizations shortly before Fusionex ceased operations. While the report does not name these entities, investigators are believed to be reviewing links to companies previously associated with Fusionex staff.

The Malaysian Companies Act 2016 gives liquidators the power to trace and recover assets or business interests wrongfully transferred before liquidation. Legal experts say that, if evidence of diversion is found, the liquidators could pursue civil action or even criminal referrals against individuals involved.

How Fusionex Collapsed: A Timeline

The seeds of Fusionex’s collapse were sown in late 2023 when Hitachi, its parent company, lost confidence in the management team.

Here’s a brief timeline of events leading to the current situation:

• April 2020: Hitachi acquires Fusiotech Holdings Sdn Bhd, bringing Fusionex and its subsidiaries under its ownership. Ivan Teh is retained as CEO.
• August 2022: Hitachi notifies Fusionex of an upcoming internal audit scheduled for March 2023.
• March–November 2023: Ivan and his team allegedly resist audit requests, citing a “government directive” preventing disclosure of sensitive data.
• September 2023: Hitachi learns of a sharp drop in Fusionex revenue.
• October 2023: Ivan warns Hitachi the company is facing financial crisis, proposing either drastic cost-cutting or a US$100–150 million capital injection.
• December 4, 2023: Hitachi receives an email announcing the resignation of Ivan Teh and his senior management team.
• December 21, 2023: Hitachi files a winding-up petition in the Malaysian High Court.
• December 27, 2023: The court appoints interim liquidators.
• February 2024: Fusionex officially ceases operations and terminates all employees.
• April 2024: Liquidators submit their first report, citing missing funds and allegations of diverted business.
• May 6, 2024: High Court orders full liquidation of all Fusionex companies.

This sequence of events represents one of the fastest corporate collapses in Malaysia’s technology history—less than four years after Hitachi’s celebrated acquisition.

The Missing Records Problem

One of the recurring themes in both Hitachi’s winding-up petition and the liquidators’ report is the absence of basic corporate records.

When Hitachi took control, it reportedly found:

• Empty filing cabinets in Fusionex’s finance department.
• Wiped company laptops with erased data.
• Missing ledgers and invoices.
• No comprehensive list of employees, suppliers, or clients.

This lack of documentation made it nearly impossible for Hitachi—and later, the liquidators—to reconstruct the company’s operations. Even email lists had to be recreated manually.

Such record destruction, if deliberate, could violate Section 245 of the Companies Act 2016, which requires companies to maintain financial documentation for at least seven years.

Hitachi’s Original Faith in Fusionex

The downfall is particularly tragic given Hitachi’s initial enthusiasm. When the Japanese tech giant acquired Fusionex in 2020, it described the company as “a market leader in big data and AI technology in Asia.”

Fusionex claimed to serve over 11,000 small and medium-sized enterprises (SMEs) across the region, offering analytics and software-as-a-service (SaaS) solutions for various industries.

To facilitate the acquisition, Fusionex’s holding structure was reconfigured—20 entities under Fusionex International Plc were moved to Fusiotech Holdings, the vehicle acquired by Hitachi. Ivan Teh retained his position as CEO, while Hitachi executives were appointed as non-executive directors.

Initially, the partnership looked like a model of synergy: Malaysian innovation backed by Japanese capital. But by late 2023, the relationship had collapsed into mutual distrust.

Hitachi’s Allegations Against Ivan Teh

In its December 2023 petition, Hitachi accused Ivan Teh and his management team of withholding financial information and obstructing internal audits. The company claimed that despite being the sole shareholder, it was denied access to Fusionex’s accounts, on the pretext of the so-called “government directive.”

When Hitachi’s legal counsel reviewed the document in question, it turned out to be a generic government circular, not a binding prohibition.

By the time Hitachi realized the depth of Fusionex’s financial distress, it was too late. Ivan’s sudden resignation—along with his top executives—left the company rudderless. Hitachi’s petition describes this exit as “a complete abdication of professional and fiduciary duties.”

Liquidators Confront an Empty Shell

By the time Deloitte’s liquidators took over, Fusionex’s corporate infrastructure was in tatters. Key servers were inaccessible, and the group’s IT systems were either decommissioned or locked.

The liquidators also found that Fusionex’s bank balances were insufficient even to cover basic operational expenses. Given the lack of income and data, the decision was made to wind down all activities and prevent further liabilities from accruing.

This marked the official end of operations for one of Malaysia’s most celebrated tech companies.

Venetian Macau and the Wider Ripple Effect

One of the most notable entities observing the proceedings is Venetian Macau Ltd, a high-profile casino operator and former client of Fusionex. Represented by the law firm Skrine, Venetian’s presence signals that the fallout from Fusionex’s liquidation extends far beyond Malaysia.

Industry insiders believe several of Fusionex’s corporate and government clients across Asia are assessing their exposure and searching for alternative technology providers to manage their platforms and data systems.

Legal and Reputational Consequences

The liquidation of Fusionex marks a major blow to Malaysia’s technology ecosystem. For years, Fusionex stood as a symbol of homegrown innovation, competing with global tech giants. Its collapse now raises questions about corporate governance, foreign acquisitions, and executive accountability.

If the liquidators’ investigation confirms that Fusionex’s business was diverted to third parties, criminal charges or civil suits could follow. Under Malaysian corporate law, directors and officers can be held personally liable for misconduct leading to a company’s insolvency.

Legal experts suggest that Hitachi, as the sole shareholder, could also pursue claims to recover misappropriated assets or intellectual property once evidence is established.

The Bigger Picture: Malaysia’s Tech Reputation at Stake

Fusionex’s demise serves as a cautionary tale for Malaysia’s growing tech industry. The government has long promoted Kuala Lumpur as a digital hub for Southeast Asia, but the Fusionex case reveals gaps in oversight and transparency that foreign investors are unlikely to ignore.

Industry analysts say Malaysia must strengthen corporate governance frameworks, particularly for tech firms handling sensitive data and public contracts.

“Fusionex was supposed to be a flagship of Malaysian innovation,” said one industry veteran. “Its downfall has shaken confidence among both local entrepreneurs and international partners.”

Conclusion: A Legacy in Question

From a promising startup to a global cautionary tale, the Fusionex saga underscores how quickly corporate glory can turn to ruin.

The ongoing investigations by the liquidators—into missing records, empty bank accounts, and alleged diversion of business—may yet reveal the full extent of what went wrong.

But one thing is certain: the story of Datuk Seri Ivan Teh and Fusionex has become a defining moment in Malaysia’s corporate history—a reminder that even the brightest technological success stories can collapse when transparency, trust, and governance fail.

Written by

Nancy Drew

Updated

3 months ago