- Malaysian data analytics firm Fusionex shuts amid controversy over government dealings.
- Audit by Hitachi post-acquisition revealed suspicious transaction information gaps.
- Fall shows governance risks and founder over-dependency without accountability checks.
Fusionex shutdown
Kuala Lumpur-based data analytics firm Fusionex, once considered a Malaysian success story, is liquidating its operations after parent company Hitachi lost faith in founder Ivan Teh and his leadership team.
Employees received notices of the impending shutdown leading up to Christmas.
Founded in 2005, Fusionex gained renown in Malaysia for its big data capabilities.
It listed publicly in 2012 and drew investment from the likes of JPMorgan and BlackRock.
But behind the scenes, it had ventured into the contentious Digital Free Trade Zone (DFTZ) project in 2017 and allegedly paid over $20 million for a contract role.
What happened?
Cracks emerged when Hitachi conducted an audit of Fusionex after acquiring it in 2020. They reportedly refused to share financial details, citing a vague “government directive.”
Hitachi’s affidavits also flagged suspicious transactions tied to other firms. When Teh then claimed Fusionex urgently needed a $150 million capital injection, Hitachi doubted his motives.
The resigning in late 2023 along with other key executives, Hitachi appointed its nominees to subsidiaries’ boards.
But new CEO Hiroyuki Kumazaki stated he still could not obtain critical data from Teh’s team, precipitating the shutdown call.
Employees now face layoffs while liquidators assess Fusionex’s outstanding contractual obligations.
What can be learned?
The dramatic fall of a heralded Malaysian tech firm reflects governance concerns around major state projects like DFTZ.
It also shows the risk of excessive dependency on individual founders without accountability. Fusionex winds down, and its one-time backers are left with more questions than answers.
