JCorp's ex-CEO says why he decided to quit

Former Johor Corp (JCorp) president and chief executive officer Tan Sri Muhammad Ali Hashim said yesterday that the environment was "not conducive" for him to stay on

"The decision was to cut it short. I made the decision. Well, I wanted to retire anyway," he said when asked about his abrupt decision to leave JCorp. Muhammad Ali (pic) was supposed to retire in November after tendering a six-month notice. However, during the JCorp board meeting last month, he unexpectedly handed over a 24-hour notice to resign.

When asked if he would still hold his current positions in the listed companies under JCorp, Muhammad Ali said: "At the moment, I'm still the chairman of all the public-listed companies.

"The final authority rests with the shareholders," he told reporters at KFC Holdings Bhd's extraordinary general meeting in Kuala Lumpur yesterday.

Muhammad Ali, who is the chairman of KFC Holdings, also holds the chairmanship in other JCorp companies, including QSR Brands Bhd, KPJ Healthcare Bhd and Kulim (M) Bhd.

Rumours were rife that he had left JCorp because of a RM3.58 billion debt incurred by the state agency. Muhammad Ali brushed aside such talk and provided facts on the group's financial health.

JCorp, he maintained, had over RM12 billion worth of assets to generate revenue and clear its RM3.58 billion debt payable by July 31 2012. They included RM6 billion in quoted securities.

Under his leadership, JCorp has emerged as the most successful state corporation in the country. One of the most high-profile corporate exercises Muhammad Ali led was in 2007 when JCorp's 57 per cent-owned subsidiary, Kulim, bought a controlling stake in QSR Brands. The latter owns 42.9 per cent of fast-food operator KFC Holdings.

Today, JCorp's diversified business activities include palm oil and oleochemicals, quick-service restaurants, healthcare, property and hotels, and intrapreneur venture.

It has more than 280 companies in its stable, including eight that are listed. Total turnover from the listed firms was RM8.4 billion as at June 30 this year.

Following Muhammad Ali's resignation, JCorp's senior vice-president of finance and corporate services, Kamaruzzaman Abu Kassim, was made the acting president and chief executive.