“Ho Hup’s unit Bukit Jalil Development faces a winding-up petition from IRB over RM23.72 mil in tax arrears; no expected impact on group operations as unit is under liquidation.”
Kuala Lumpur, 11th July 2025, 01.05pm – Ho Hup Construction Company Bhd announced that its wholly owned subsidiary, Bukit Jalil Development Sdn Bhd (BJD), has been served with a winding-up petition by the Inland Revenue Board (IRB) for unpaid tax liabilities amounting to RM23.72 million.
In a filing with Bursa Malaysia, Ho Hup said the tax arrears relate to the year of assessment 2019 and cited prolonged cash flow constraints as the reason BJD was unable to meet its obligations within the prescribed timeline.
Despite the legal action, Ho Hup clarified that the development is not expected to have any material financial or operational impact on the group. BJD is not considered a major subsidiary, having recorded a loss after tax of RM33.33 million in FY2023, compared with the group’s total net loss of RM84.47 million for the same period. The group’s total investment in BJD amounts to RM15 million.
BJD has already been placed under creditors’ voluntary liquidation as of May 23, with Baker Tilly Insolvency PLT appointed as liquidator at a creditors’ meeting held on June 13.
“The winding-up petition is not expected to affect the group’s ongoing business operations, as BJD has ceased activity and is no longer part of the company’s core business strategy,” Ho Hup said.
The financially troubled construction group slipped into Practice Note 17 (PN17) status in April 2024 after BJD defaulted on loan facilities worth RM112.69 million, for which Ho Hup is the corporate guarantor. The group has reported losses for four consecutive financial years since 2021.
Shares of Ho Hup remained unchanged at five sen on Thursday, valuing the company at RM23.75 million.
