Johor Corp's president and chief executive officer Tan Sri Muhammad Ali Hashim has confirmed giving notice of his intent to vacate his current position by year's end.
The 63-year-old Johor-born corporate personality also revealed a succession plan that will see the corporation's five top management executives vie for the top post once he leaves.
The announcement yesterday ended weeks of speculation that he will retire from the Johor state government's market-driven corporation by the end of this year.
"I have already given notice to JCorp's board of directors regarding my intention to vacate my post as the corporation's president and CEO on July 1.
"It will take effect within the next six months as stipulated in my terms of contract with JCorp," he told a news conference on the financial performance of JCorp and its subsidiaries in Johor Baru yesterday.
It is learnt that Muhammad Ali had personally decided to give notice before his tenure is up at the end of this year as stipulated in his contract.
Under the contract, the option to give notice can be made by him or the board of directors of JCorp within six months before the contract ends.
However, his decision will have to be endorsed by the board and Johor Mentri Besar Datuk Abdul Ghani Othman, who represents the state government, by the end of this month.
Muhammad Ali, who has helmed JCorp for 28 years, said his decision (to leave) was not easy and was based on responsibility, together with corporate governance practices.
"I have given 30 years of my working life to the corporation, two as a senior management staff, and the remainder as president and CEO.
"In those capacities, I believe that I have grown the corporation to its present strength today," he added.
As part of the succession plan for JCorp, Muhammad Ali said five senior management staff from the group are being considered to replace him.
They are 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, JCorp senior vice-president and Asia Logistics Council Sdn Bhd chief executive Kamaruzzaman Abu Kassim and Sindora Bhd managing director and Intrapreneur Development senior vice-president Rozan Mohd Sa'at.
Muhammad Ali said that all five were fully capable of leading JCorp and he considered them to be the top five entrepreneurs in the country.
"Datin Paduka (Siti Sa'adiah) has been with us for a long time and was recently awarded Malaysia's CEO of the Year 2009. The rest are just as capable in their respective companies or subsidiaries, and I have no doubt that anyone of them can lead JCorp.
"I have six more months and will use the time to continue to add value to JCorp in my capacity as the president and chief executive," he said, adding that the succession plan was part of his responsibility to ensure continuity in the group.
According to the JCorp enactment, the appointment of the new president and CEO will need the endorsement of the board, the state government and the Ministry of Finance, representing the federal government.
On his future plans, Muhammad Ali said he did not have any at the moment as he wanted to focus on JCorp.
From Bernama:
Johor Corporation (JCorp)'s President and Chief Executive Officer Tan Sri Muhammad Ali Hashim has denied that his resignation is due to the company's RM3.58 billion debt.
He said a six-month notice of resignation was submitted to the board of directors, as required under his contract, which is due to expire by year-end.
"The board will hold a meeting to decide whether to accept or extend the contract before the end of this month," he told reporters at the soft opening of the KPJ Tawakal Specialist Hospital here today.
Replying to a question on the company's debt, Mohammad Ali said JCorp's asset value of RM12 billion, including RM6 billion in listed shares, is currently higher than the debt itself.
"JCorp will not face bankruptcy. The debt due is on July 31, 2012 and we will negotiate with the bank to refinance. Debt is normal in business ," he said. - Bernama
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