JCorp chief Muhammad Ali quits

Reasons for his abrupt resignation remain sketchy but there have been talk that quarters in Johor wanted him out due to dissatisfaction of his management and debts incurred by the corporation

Johor Corp's president and chief executive officer (CEO) Tan Sri Muhammad Ali Hashim (picture) surprised the Johor corporate community yesterday when he walked out of the company's board meeting after announcing his immediate resignation from the post.

The 62-year-old Johor corporate personality was earlier scheduled to retire in November.

Yesterday's JCorp board meeting was chaired by Johor Menteri Besar Datuk Abdul Ghani Othman in Johor Baru.

Sources in the company told Business Times that Muhammad Ali tendered his resignation during the board meeting and walked out before it ended.

Reasons for Muhammad Ali's abrupt resignation remain sketchy but there have been talks that quarters in the state wanted him out due to dissatisfaction of his management and debts incurred by the corporation.

Muhammad Ali had recently brushed aside news reports saying he was retiring due to the corporations's debt which amounted to approximately RM3.58 billion.

A statement issued by the Johor Menteri Besar's office yesterday afternoon confirmed the resignation but stopped short of providing reasons for Muhammad Ali's early retirement.

JCorp vice-president for finance and corporate services Kamaruzzaman Abu Kassim, who is among the candidates named to take over the helm of JCorp, will take over as acting president and CEO.

Besides Kamaruzzaman, others considered for the seat include KPJ Healthcare Bhd managing director Datin Paduka Siti Sa'diah Sheikh Bakir, Kulim (M) Bhd managing director Ahamad Mohamad, QSR Brands Bhd and KFC Holdings (Malaysia) Bhd managing director Jamaludin Md Ali and Sindora Bhd managing director and Intrapreneur Development senior vice-president Rozan Mohd Sa'at.

Lembaga Tabung Haji group managing director and CEO Datuk Ismee Ismail is also said to be one of the contenders for the top seat in JCorp.

Muhammad Ali told reporters on July 12 that he had given notice to JCorp's board of directors on July 1 of his intention to vacate his post after 28 years helming the corporation. He took over the position from Tan Sri Basir Ismail in 1982.

The notice was supposed to take effect within the next six months as stipulated in his terms of contract with the corporation.

Under Muhammad Ali's leadership, JCorp emerged as the most successful state corporation in the country.

One of the most high-profile takeover led by him was in 2007 when JCorp's 57 per cent-owned subsidiary Kulim Bhd proposed to acquire a controlling stake in QSR Brands, the 42.9 per cent majority owner of fast-food operator, KFC Holdings Bhd (KFCH).

At present, the group is involved in diversified business activities such as palm oil and olechemicals, quick service restaurants, healthcare, property and hotels and intrapreneur venture.

It has more than 280 companies in its stable, including eight public-listed companies such as Kulim, KPJ, KFCH and London Stock Exchange-listed New Britain Palm Oil Ltd. Turnover from these companies stood at RM8.4 billion as at June 30 2010.